AIH Ablest

TAMPA, Fla., Mar. 7 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced that revenue for the fifty-three week 2006 fiscal year increased 2.4 percent to $140.8 million from $137.5 million in the corresponding fifty-two week prior fiscal year. Operating income for the fiscal year 2006 was $2.4 million as compared to operating income of $3.1 million for the similar period last year, a decrease of 21.1 percent. For the fifty-three week fiscal year ended December 31, 2006, the company reported net income of $1.3 million or $0.45 per diluted share compared to net income of $536,000 or $0.18 per diluted share for the fifty-two week fiscal year ended December 25, 2005. In the fourth quarter of 2005, the company recorded a $1.2 million income tax adjustment relating to an Internal Revenue Service audit of its previously filed 2001 tax return. Revenues for the fiscal fourth quarter ended December 31, 2006 decreased 7.95 percent to $35.9 million from revenue of $39.0 million in the fiscal fourth quarter of 2005. Operating income for the fiscal fourth quarter ended December 31, 2006 decreased 34.6 percent to $747,000 compared to $1.1 million in the corresponding quarter of 2005. Net income was $310,000 or $0.10 per diluted share, compared to a net loss of $669,000 or $0.23 per diluted share for the similar period last year. Kurt R. Moore, president and chief executive officer, said, "Revenue was impacted by slowdowns in the homebuilding, furniture and consumer products markets. Net income reflected increased selling, general and administrative expenses from new commercial branch offices, and deployment of new front and back-office computer systems. Although the revenue trend experienced in the fourth quarter of 2006 is continuing in the first quarter of 2007, we are confident investments in new branches and technology will yield improved results as 2007 progresses." With respect to the ongoing deliberations of the Special Committee of the Board of Directors formed on January 18, 2007, Richard W. Roberson, the Chairman of the Special Committee, said, "The Special Committee continues to evaluate the buyout proposal received from a group led by members of senior management, as well as other strategic alternatives for the company. The committee is also evaluating an indication of interest received from a potential third-party acquirer." Mr. Roberson stated, "The Special Committee currently does not intend to make any further public announcements regarding its review of possible strategic alternatives until its evaluation process has been completed," adding that, "no assurances can be given as to whether any particular strategic alternatives will be pursued or implemented." 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 35,000 field employees and consultants to approximately 2,000 businesses annually through 61 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 are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to negative developments with significant customers, new regulations, loss of key personnel or any significant economic downturn, as well other risks and uncertainties disclosed from time to time in the Company's periodic reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. ABLEST INC. Condensed Statements of Operations (Amounts in thousands except share and per share amounts) (Unaudited) Thirteen Fifty-Three Fifty-Two Week Week Week Periods Ended Period Ended Period Ended Dec 31, Dec 25, Dec 31, Dec 25, 2006 2005 2006 2005 Net service revenues $ 35,888 $ 38,998 $ 140,764 $ 137,457 Cost of services 29,684 32,497 116,326 114,471 Gross profit 6,204 6,501 24,438 22,986 Selling, general and administrative expenses 5,457 5,358 22,002 19,899 Operating income 747 1,143 2,436 3,087 Other: Interest income (expense), net 7 (7) 29 (7) Miscellaneous, income (expense), net 1 - 22 (2) Other income (expense) 8 (7) 51 (9) Income from continuing operations before income taxes 755 1,136 2,487 3,078 Income tax expense 445 1,805 1,148 2,542 Net income $ 310 $ (669) $ 1,339 $ 536 Basic net income per common share $ 0.11 $ (0.23) $ 0.47 $ 0.19 Diluted net income per common share $ 0.10 $ (0.23) $ 0.45 $ 0.18 Weighted average number of common shares in computing net income per common share Basic 2,873,134 2,863,133 2,877,546 2,861,097 Diluted 2,962,096 2,929,657 2,959,968 2,922,981 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share amounts) (Unaudited) December 31, December 25, 2006 2005 ASSETS CURRENT ASSETS Cash $ 3,040 $ 1,931 Accounts receivable, net 17,564 18,760 Prepaid expenses and other current assets 439 469 Current deferred tax asset 1,213 1,246 Total current assets 22,256 22,406 Property, plant and equipment, net 3,259 1,732 Deferred tax asset 702 863 Goodwill 1,283 1,283 Other assets 64 171 Total assets $ 27,564 $ 26,455 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 375 $ 790 Income taxes payable 296 51 Accrued insurance 2,965 2,536 Accrued wages 1,995 2,738 Other current liabilities 566 514 Total current liabilities 6,197 6,629 Other liabilities 261 432 Total liabilities 6,458 7,061 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstand- ing at December 31, 2006 and December 25, 2005 - - Common stock of $.05 par value; 7,500,000 shares authorized, 3,385,153 and 3,346,877 shares issued and outstanding including shares held in treasury at December 31, 2006 and December 25, 2005, respectively 169 167 Additional paid-in capital 5,636 5,265 Retained earnings 17,411 16,072 Treasury stock at cost; 457,729 shares held at December 31, 2006 and December 25, 2005 (2,110) (2,110) Total stockholders' equity 21,106 19,394 Total liabilities and stockholders' equity $ 27,564 $ 26,455 See accompanying Notes to Financial Statements DATASOURCE: Ablest Inc. CONTACT: John Horan, Vice President and Chief Financial Officer of Ablest, Inc., +1-813-830-7700, or

Copyright