AIH Ablest

TAMPA, Fla., May 14 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced that revenue for the 13-week fiscal first quarter ended April 1, 2007, decreased 12.2 percent to $31.5 million from revenue of $35.9 million in the 14-week fiscal first quarter of 2006. Net loss for first quarter 2007 was $290,000 or $0.10 per diluted share compared to net income of $348,000 or $0.12 per diluted share for the first three months of 2006. Kurt R. Moore, president and chief executive officer, said, "The net loss for the quarter is attributable to both incremental professional fees expense approximating $626,000 relating to the Special Committee of the Board of Directors evaluation of buyout proposals and other strategic alternatives and continuing weakness in the homebuilding, furniture and consumer products markets. In addition, the first quarter of 2006 contained 14 weeks as compared with 13 weeks in 2007. Nonetheless, we expect business conditions to improve as 2007 progresses. Our new business pipelines are healthy and existing customers are indicating increasing demand for our services over the remainder of the year." 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 35,000 field employees and consultants to approximately 2,000 businesses annually through 62 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. Management's estimates and assumptions are based on historical experience and other factors believed to be reasonable under the circumstances. The following important factors, among others, could affect future results and events, causing those results and events to differ materially from those expressed or implied in our forward-looking statements: business conditions and competitive factors in our customers' industries, our ability to successfully expand into new markets and offer new service lines, the availability of qualified personnel, the non-exclusive, short-term nature of our customers' commitments, economic and political conditions and unemployment levels in the United States and other countries, increases in payroll related costs, including state unemployment insurance and workers compensation insurance, obsolescence or impairment of our information systems, our ability to successfully invest in and implement information systems, the cost of and our ability to comply with Section 404 of the Sarbanes-Oxley Act of 2002, liabilities under our self-insurance program, and other factors that we may not have currently identified or quantified. In addition, 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 For the Thirteen Week Fourteen Week Period Ended Period Ended April 1, 2007 April 2, 2006 Net service revenues $ 31,473 $ 35,864 Cost of services 25,790 29,753 Gross profit 5,683 6,111 Selling, general and administrative expenses 6,300 5,551 Operating (loss) income (617) 560 Other: Interest income (expense), net -- -- Miscellaneous income (expense), net 4 1 Other income (expense) 4 1 (Loss) income before income taxes (613) 561 Income tax (benefit) expense (323) 213 Net (loss) income $ (290) $ 348 Basic net (loss) income per common share $ (0.10) $ 0.12 Diluted net (loss) income per common share $ (0.10) $ 0.12 Weighted average number of common shares used in computing net income per common share Basic 2,916,112 2,879,764 Diluted 2,958,890 2,935,050 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share and per share amounts) (Unaudited) April 1, 2007 December 31, 2006 ASSETS CURRENT ASSETS Cash $ 4,350 $ 3,040 Accounts receivable, net 14,605 17,564 Prepaid expenses and other current assets 476 439 Current deferred tax asset 1,504 1,323 Total current assets 20,935 22,366 Property, plant and equipment, net 3,330 3,259 Deferred tax asset 871 592 Goodwill 1,283 1,283 Other assets 65 64 Total assets $ 26,484 $ 27,564 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 408 $ 375 Income taxes payable -- 296 Accrued insurance 1,923 2,965 Accrued wages 2,463 1,995 Other current liabilities 659 566 Total current liabilities 5,453 6,197 Other liabilities 262 261 Total liabilities 5,715 6,458 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at April 1, 2007 and December 31, 2006 -- -- Common stock of $.05 par value; 7,500,000 shares authorized, 3,382,833 and 3,385,153 shares issued and outstanding including shares held in treasury at April 1, 2007 and December 31, 2006, respectively 169 169 Additional paid-in capital 5,589 5,636 Retained earnings 17,121 17,411 Treasury stock at cost; 457,729 shares held at April 1, 2007 and December 31, 2006 (2,110) (2,110) Total stockholders' equity 20,769 21,106 Total liabilities and stockholders' equity $ 26,484 $ 27,564 DATASOURCE: Ablest Inc. CONTACT: John Horan, Vice President and Chief Financial Officer of Ablest Inc., +1-813-830-7700,

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