AIH Ablest

CLEARWATER, Fla., Nov. 3 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced that revenue for the fiscal third quarter ended September 25, 2005, increased 16.6 percent to $34.9 million from revenue of $29.9 million in the fiscal third quarter of 2004. Net income was $367,000 or $0.13 per diluted share, compared to net income of $588,000 or $0.20 per diluted share for the similar period last year, reflecting a $290,000 pretax charge related to a settlement agreement with the company's former chief financial officer. Revenues for the first nine months of fiscal 2005 increased 19.3 percent to $98.5 million from $82.5 million in the corresponding period of the prior fiscal year. For the nine months ended September 25, 2005, the company reported net income of $1.2 million or $0.41 per diluted share compared to net income of $377,000 equal to $0.13 per diluted share for the first nine months of fiscal 2004. Kurt R. Moore, president and chief executive officer, said, "Ablest branches opened in 2004 and 2005 contributed over half of the $16 million year-to-date increase in revenue. Our associates' hard work and commitment to the Ablest business model are creating results which allow us to move forward with our expansion plans." Ablest Inc. provides its clients with staffing solutions, managed services and vendor-on-premise (VOP) programs. Staffing solutions include clerical, industrial and information technology personnel provided through Ablest Staffing Services and Ablest Technology Services. Ablest supplies more than 30,000 field employees and consultants to more than 3,500 businesses annually through 55 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 Income (Amounts in thousands except share and per share amounts) (Unaudited) For the Thirteen Week For the Thirty-nine Week Periods Ended Periods Ended Sept. 25, Sept. 26, Sept. 25, Sept. 26, 2005 2004 2005 2004 Net service revenues $ 34,873 $ 29,912 $ 98,459 $ 82,509 Cost of Services 29,107 24,838 81,974 69,182 Gross Profit 5,766 5,074 16,485 13,327 Selling, general and administrative expenses 5,177 4,127 14,541 12,722 Operating income 589 947 1,944 605 Other: Interest income, net -- -- -- 2 Miscellaneous, net 1 -- (2) 1 Other income (loss) 1 -- (2) 3 Income before income taxes 590 947 1,942 608 Income tax expense 223 359 737 231 Net income $ 367 $ 588 $ 1,205 $ 377 Basic net income per common share $ 0.13 $ 0.21 $ 0.42 $ 0.13 Diluted net income per common share $ 0.13 $ 0.20 $ 0.41 $ 0.13 Weighted average number of common shares used in computing net income per common share Basic 2,863,168 2,840,350 2,860,418 2,838,915 Diluted 2,930,644 2,926,233 2,922,079 2,917,838 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share and per share amounts) September 25, December 26, 2005 2004 (Unaudited) ASSETS CURRENT ASSETS Cash $ 3,305 $ 1,357 Accounts receivable, net 16,993 16,783 Prepaid expenses and other current assets 448 160 Current deferred tax asset 1,369 1,369 Total current assets 22,115 19,669 Property, plant and equipment, net 583 543 Deferred tax asset 2,506 3,208 Goodwill 1,283 1,283 Other assets 45 40 Total assets $ 26,532 $ 24,743 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 639 $ 378 Accrued insurance 1,924 3,069 Accrued wages 3,056 1,989 Other current liabilities 617 425 Total current liabilities 6,236 5,861 Other liabilities 209 117 Total liabilities 6,445 5,978 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at September 25, 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 September 25, 2005 and December 26, 2004, respectively 168 167 Additional paid-in capital 5,288 5,172 Retained earnings 16,741 15,536 Treasury stock at cost; 457,729 shares held at September 25, 2005 and December 26, 2004 (2,110) (2,110) Total stockholders' equity 20,087 18,765 Total liabilities and stockholders' equity $ 26,532 $ 24,743 DATASOURCE: Ablest Inc. CONTACT: Kurt R. Moore, President and Chief Executive Officer, Ablest Inc., +1-727-299-1200, or

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