AIH Ablest

CLEARWATER, Fla., Aug. 4 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today reported substantially improved financial results for the fiscal second quarter ended June 26, 2005. Revenue increased 22.4 percent to $32.8 million from revenue of $26.8 million in the fiscal second quarter of 2004. Net income increased two-and-one-half times to $574,000 or $0.20 per diluted share compared to net income of $230,000 or $0.08 per diluted share for the same period last year. Revenues for the first six months of fiscal 2005 increased 20.9 percent to $63.6 million from $52.6 million in the corresponding period of the prior year. For the six months ended June 26, 2005, the company reported net income of $838,000 or $0.29 per diluted share compared to the same period of 2004 when the company reported a net loss of $211,000 equal to $0.07 per share. Kurt R. Moore, president and chief executive officer, said, "Our strong second quarter results are attributable to our associates' hard work in executing Ablest' service model and expansion plans. We continue to see increases from many of our existing large client companies and have been successful opening new locations. Branches opened less than one year accounted for approximately one half of our revenue increase. "To improve profitability, we focused our selling efforts on higher margin and lower risk accounts," Mr. Moore said. "The gross margin improvement was driven by our selective addition of higher margin accounts and our ability to reduce the costs associated with larger accounts." He added, "We are pleased by the favorable results in workers' compensation costs and will continue our efforts to manage these costs. Also contributing to our improved profitability was our associates' ability to grow by leveraging the organization's resources." Mr. Moore also said, "The company renewed for an additional three years its $7.5 million committed credit agreement at a 75 basis-point reduction in borrowing rates. We received excellent support from our banking partner and consider the favorable renewal as acknowledging our strong operational results and solid financial position. We currently have no outstanding debt and this facility will continue to provide us the liquidity necessary to achieve our growth plans." Ablest Inc. provides its clients with staffing solutions, managed services and vendor-on-premise (VOP) programs. Staffing solutions include clerical, industrial, information technology, finance and accounting personnel provided through Ablest Staffing Services, Ablest Technology Services and Ablest Finance and Accounting. Ablest supplies more than 30,000 field employees and consultants to more than 3,500 businesses annually through 52 locations in the Eastern and Southwestern United States. Statements made in this news release, other than those concerning historical information, should be considered forward-looking and subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Readers should carefully review and consider disclosures, including periodic reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission, which attempt to advise interested parties of the factors which affect the Company's business. ABLEST INC. Condensed Statements of Operations (Amounts in thousands except share and per share amounts) (Unaudited) For the Thirteen Week For the Twenty-Six Week Periods Ended Periods Ended June 26, June 27, June 26, June 27, 2005 2004 2005 2004 Net service revenues $ 32,751 $ 26,827 $ 63,586 $ 52,597 Cost of Services 27,009 22,203 52,867 44,344 Gross Profit 5,742 4,624 10,719 8,253 Selling, general and administrative expenses 4,815 4,258 9,364 8,595 Operating income 927 366 1,355 (342) Other: Interest income, net -- -- -- 2 Miscellaneous, net -- 6 (3) 1 Other income (loss) -- 6 (3) 3 Income (loss) before income taxes 927 372 1,352 (339) Income tax expense (benefit) 353 142 514 (128) Net income $ 574 $ 230 $ 838 $ (211) Basic net income (loss) per common share $ 0.20 $ 0.08 $ 0.29 $ (0.07) Diluted net income (loss) per common share $ 0.20 $ 0.08 $ 0.29 $ (0.07) Weighted average number of common shares used in computing net income (loss) per common share Basic 2,863,509 2,840,443 2,859,043 2,838,197 Diluted 2,940,368 2,918,708 2,933,530 2,913,641 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share and per share amounts) June 26, 2005 December 26, 2004 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,886 $ 1,357 Accounts receivable, net 15,376 16,783 Prepaid expenses and other current assets 689 160 Current deferred tax asset 1,369 1,369 Total current assets 20,320 19,669 Property, plant and equipment, net 538 543 Deferred tax asset 2,721 3,208 Goodwill, net 1,283 1,283 Other assets 40 40 Total assets $ 24,902 $ 24,743 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 521 $ 378 Accrued insurance 1,642 3,069 Accrued wages 2,363 1,989 Other current liabilities 505 425 Total current liabilities 5,031 5,861 Other liabilities 151 117 Total liabilities 5,182 5,978 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at June 26, 2005 and December 26, 2004 -- -- Common stock of $.05 par value; 7,500,000 shares authorized, 3,350,097 and 3,334,344 shares issued and outstanding including shares held in treasury at June 26, 2005 and December 26, 2004, respectively 168 167 Additional paid-in capital 5,288 5,172 Retained earnings 16,374 15,536 Treasury stock at cost; 457,729 shares held at June 26, 2005 and December 26, 2004 (2,110) (2,110) Total stockholders' equity 19,720 18,765 Total liabilities and stockholders' equity $ 24,902 $ 24,743 DATASOURCE: Ablest Inc. CONTACT: Vincent J. Lombardo, Vice President and Chief Financial Officer of Ablest, Inc., +1-727-299-1200 or

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