AIH Ablest

TAMPA, Fla., Aug. 10 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today reported that revenue for the fiscal second quarter ended July 2, 2006 increased 4.9 percent to $34.3 million as compared to revenue of $32.8 million in the 2005 second quarter. Net income decreased to $285,000 or $0.10 per diluted share compared to $574,000 or $0.20 per diluted share for the similar period last year. Net income in the fiscal second quarter was negatively impacted because of higher than planned increase in workers' compensation expense accruals of approximately $254,000. Revenues for the first 27 weeks of fiscal 2006 increased 10.4 percent to $70.2 million from $63.6 million in the corresponding 26-week period of the prior year. For the six months ended July 2, 2006, net income was $633,000 or $0.21 per diluted share compared to the first half of 2005 when the company reported net income of $838,000 equal to $0.29 cents per diluted share. Kurt R. Moore, president and chief executive officer, said, "The company experienced an increase in claims costs and incidence rates in 2006, which required an increase in our workers' compensation expense estimates. Senior management is addressing this matter to reduce the growth rate of the expense." About Ablest Ablest is a leader in workforce services; creating and delivering local solutions that enable companies to compete and win in an ever-changing business world. Services are provided through its Staffing Services and Professional Services Divisions. Staffing Services offers customers a range of employment services in the office and light industrial sectors including employee assessment and selection, training, managed services and vendor-on- premise (VOP) programs. Professional Services offers employment and consulting services in the Information Technology and Finance and Accounting sectors. Ablest's Services focus on improving customer performance in the areas of quality, efficiency and cost-reduction within their workforce. Ablest supplies more than 37,000 field employees and consultants to approximately 2,000 businesses annually through 58 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 data) (Unaudited) Thirteen Twenty Seven Twenty Six Week Week Week Periods Ended Period Ended Period Ended July 2, June 26, July 2, June 26, 2006 2005 2006 2005 Net service revenues $ 34,340 $ 32,751 $ 70,204 $ 63,586 Cost of services 28,398 27,009 58,151 52,867 Gross profit 5,942 5,742 12,053 10,719 Selling, general and administrative expenses 5,466 4,815 11,017 9,364 Operating income 476 927 1,036 1,355 Other: Interest income, net 10 -- 9 -- Miscellaneous, income (expense), net 19 -- 21 (3) Other income (expense) 29 -- 30 (3) Income before income taxes 505 927 1,066 1,352 Income tax expense 220 353 433 514 Net income $ 285 $ 574 $ 633 $ 838 Basic net income per common share $ 0.10 $ 0.20 $ 0.22 $ 0.29 Diluted net income per common share $ 0.10 $ 0.20 $ 0.21 $ 0.29 Weighted average number of common shares in computing net income per common share Basic 2,933,268 2,863,509 2,915,761 2,859,043 Diluted 2,971,642 2,940,368 2,952,721 2,933,530 ABLEST INC. Condensed Balance Sheets (amounts in thousands except share data) (Unaudited) July 2, 2006 December 25, 2005 ASSETS CURRENT ASSETS Cash and cash equivalents $ 3,698 $ 1,931 Accounts receivable, net 16,355 18,760 Prepaid expenses and other current assets 704 469 Current deferred tax asset 1,246 1,246 Total current assets 22,003 22,406 Property and equipment, net 2,329 1,732 Deferred tax asset 681 863 Goodwill 1,283 1,283 Other assets 245 171 Total assets $ 26,541 $ 26,455 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 739 $ 841 Accrued insurance 2,235 2,536 Accrued wages 2,500 2,738 Other current liabilities 469 514 Total current liabilities 5,943 6,629 Other liabilities 198 432 Total liabilities 6,141 7,061 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at July 2, 2006 and December 25, 2005 -- -- Common stock of $.05 par value; 7,500,000 shares authorized, 3,387,118 and 3,334,344 shares issued and outstanding including shares held in treasury at July 2, 2006 and December 25, 2005, respectively 169 167 Additional paid-in capital 5,636 5,265 Retained earnings 16,705 16,072 Treasury stock at cost; 457,729 shares held at July 2, 2006 and December 25, 2005 (2,110) (2,110) Total stockholders' equity 20,400 19,394 Total liabilities and stockholders' equity $ 26,541 $ 26,455 DATASOURCE: Ablest Inc. CONTACT: John Horan, Vice President and Chief Financial Officer of Ablest, Inc., +1-813-830-7700, or

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