AIH Ablest

CLEARWATER, Fla., March 2 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced that revenue for the fiscal fourth quarter ended December 25, 2005, increased 15.2 percent to $39 million from revenue of $33.8 million in the fiscal fourth quarter of 2004. Operating income results for the fiscal fourth quarter ended December 25, 2005 in turn increased 49.0 percent to $1.1 million as compared to $767 thousand in the same fiscal quarter of 2004. Net loss was $669,000 or $0.23 per diluted share, compared to net income of $506,000 or $0.17 per diluted share for the similar period last year, reflecting a $1.2 million income tax adjustment relating to an Internal Revenue Service audit of its previously filed 2001 tax return. This adjustment reduces the deferred tax asset derived from the 2000 sale of the industrial maintenance business. The IRS has completed and closed the examinations of the company's tax returns for all years through 2003. The company notified the IRS of their acceptance of the IRS findings and is awaiting the final IRS ruling letter. The adjustment did not impact 2005's revenues, operating expenses or cash flows. Revenues for fiscal year 2005 increased 18.1 percent to $137.5 million from $116.4 million in the corresponding period of the prior fiscal year. Operating income for the fiscal year 2005 was $3.1 million as compared to operating income of $1.4 million for the similar period last year, an increase of 125 percent. For the 12 months ended December 25, 2005, the company reported net income of $536,000 or $0.18 per diluted share compared to net income of $883,000 equal to $0.30 per diluted share for the prior fiscal year. Kurt R. Moore, president and chief executive officer, said, "Operating income for the 2005 fiscal year more than doubled this past year. Our Associates have been working hard to increase revenue while keeping a close eye on expenses. This effort, coupled with our service level expectations, will keep us on our growth plan." He went on to say, "The IRS adjustment, resulting from the 2000 disposition of our industrial maintenance company, affected net income, but it doesn't detract from the solid performance posted by our talented Ablest team." 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 37,000 field employees and consultants to approximately 2,000 businesses annually through 56 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 Fifty-two Week Periods Ended Periods Ended December 25, December 26, December 25, December 26, 2005 2004 2005 2004 Net service revenues $ 38,998 $ 33,844 $137,457 $116,353 Cost of Services 32,497 28,756 114,471 97,938 Gross Profit 6,501 5,088 22,986 18,415 Selling, general and administrative expenses 5,358 4,321 19,899 17,043 Operating income 1,143 767 3,087 1,372 Other: Interest income (expense), net (7) (1) (7) 1 Miscellaneous, net -- 24 (2) 25 Other income (7) 23 (9) 26 Income from continuing operations before income taxes 1,136 790 3,078 1,398 Income tax expense 1,805 284 2,542 515 Net (loss) income $ (669) $ 506 $ 536 $ 883 Basic net (loss) income per common share $ (0.23) $ 0.18 $ 0.19 $ 0.31 Diluted net (loss) income per common share $ (0.23) $ 0.17 $ 0.18 $ 0.30 Weighted average number of common shares used in computing net income per common share Basic 2,863,133 2,840,345 2,861,097 2,839,272 Diluted 2,929,657 2,933,898 2,922,981 2,921,853 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share and per share amounts) (Unaudited) December 25, December 26, 2005 2004 ASSETS CURRENT ASSETS Cash $ 1,931 $ 1,357 Accounts receivable, net 18,760 16,783 Prepaid expenses and other current assets 469 160 Current deferred tax asset 1,246 1,369 Total current assets 22,406 19,669 Property, plant and equipment, net 1,732 543 Deferred tax asset 863 3,208 Goodwill, net 1,283 1,283 Other assets 171 40 Total assets $26,455 $24,743 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 841 $ 378 Accrued insurance 2,536 3,069 Accrued wages 2,738 1,989 Other current liabilities 514 425 Total current liabilities 6,629 5,861 Other liabilities 432 117 Total liabilities 7,061 5,978 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at December 25, 2005 and December 26, 2004 -- -- Common stock of $.05 par value; 7,500,000 shares authorized, 3,346,877 and 3,334,344 shares issued and outstanding including shares held in treasury at December 25, 2005 and December 26, 2004, respectively 167 167 Additional paid-in capital 5,265 5,172 Retained earnings 16,072 15,536 Treasury stock at cost; 457,729 shares held at December 25, 2005 and December 26, 2004 (2,110) (2,110) Total stockholders' equity 19,394 18,765 Total liabilities and stockholders' equity $26,455 $24,743 DATASOURCE: Ablest Inc. CONTACT: Charles H. Heist, Chairman and Chief Financial Officer of Ablest Inc., +1-727-299-1200, or

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