AIH Ablest

TAMPA, Fla., Nov. 9 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today reported that net income for the fiscal third quarter ended October 1, 2006 increased to $396,000 or $0.13 per diluted share compared to $367,000 or $0.13 per diluted share for the similar period last year. Revenues were $34.7 million compared to $34.9 million in the 2005 third quarter. For the first 40 weeks of fiscal 2006 revenues increased 6.5 percent to $104.9 million from $98.5 million in the corresponding 39-week period of the prior year. Net income was $1.0 million or $0.35 per diluted share compared to $1.2 million equal to $0.41 cents per diluted share for the 39 weeks ended September 25, 2005. Increased selling, general and administrative expenses relating to both new offices and sales staff additions contributed to this reduction in 2006 net income as compared to the prior year. Kurt R. Moore, president and chief executive officer, said, "Third quarter 2006 revenues were essentially flat compared to the third quarter 2005 reflecting both the slowdown we are seeing in certain industries such as home building, furniture and consumer products and also our selective paring of customers not meeting our margin expectations. While 2006 year-to-date revenue increased only modestly, gross profit increased 10.6 percent versus the year-ago third quarter level and was up 7.2 percent over the previous quarter's gross profit due to our strategy execution and servicing efforts to improve pricing and margins across the company." 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 60 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 Forty Thirty Nine Week Week Week Periods Ended Period Ended Period Ended Oct 1, Sept 25, Oct 1, Sept 25, 2006 2005 2006 2005 Net service revenues $ 34,672 $ 34,873 $ 104,876 $ 98,459 Cost of services 28,491 29,107 86,642 81,974 Gross profit 6,181 5,766 18,234 16,485 Selling, general and administrative expenses 5,528 5,177 16,545 14,541 Operating income 653 589 1,689 1,944 Other: Interest income, net 13 - 22 - Miscellaneous, income (expense), net - 1 21 (2) Other income (expense) 13 1 43 (2) Income before income taxes 666 590 1,732 1,942 Income tax expense 270 223 703 737 Net income $ 396 $ 367 $ 1,029 $ 1,205 Basic net income per common share $ 0.13 $ 0.13 $ 0.35 $ 0.42 Diluted net income per common share $ 0.13 $ 0.13 $ 0.35 $ 0.41 Weighted average number of common shares in computing net income per common share Basic 2,879,566 2,863,168 2,879,073 2,860,418 Diluted 2,972,953 2,930,644 2,961,314 2,922,079 ABLEST INC. Condensed Balance Sheets (amounts in thousands except share data) (Unaudited) October 1, 2006 December 25, 2005 ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,251 $ 1,931 Accounts receivable, net 16,301 18,760 Prepaid expenses and other current assets 704 469 Current deferred tax asset 1,017 1,246 Total current assets 22,273 22,406 Property and equipment, net 2,661 1,732 Deferred tax asset 867 863 Goodwill 1,283 1,283 Other assets 63 171 Total assets $ 27,147 $ 26,455 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 203 $ 841 Accrued insurance 2,417 2,536 Accrued wages 2,948 2,738 Other current liabilities 518 514 Total current liabilities 6,086 6,629 Other liabilities 265 432 Total liabilities 6,351 7,061 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstand- ing at October 1, 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 October 1, 2006 and December 25, 2005, respectively 169 167 Additional paid-in capital 5,636 5,265 Retained earnings 17,101 16,072 Treasury stock at cost; 457,729 shares held at October 1, 2006 and December 25, 2005 (2,110) (2,110) Total stockholders' equity 20,796 19,394 Total liabilities and stockholders' equity $ 27,147 $ 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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