AIH Ablest

Ablest Reports Third Quarter Revenue and Earnings Growth CLEARWATER, Fla., Nov. 4 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced that net income for the third fiscal quarter ended September 26, 2004, increased 68 percent to $588,000 or 21 cents per basic and 20 cents per diluted share from $350,000 or 12 cents per basic and diluted share a year earlier. Revenues for the third quarter were $29.9 million, an increase of 12.2 percent compared to revenues of $26.7 million for the similar period in 2003. Revenues for the first nine months of fiscal 2004 increased 11.2 percent to $82.5 million from $74.2 million in the corresponding period of the prior year. For the nine months ended September 26, 2004, the company reported net income of $377,000 or 13 cents per basic and diluted share compared to the same period of 2003 when the company reported net income of $209,000 or seven cents per share. "The third quarter growth was the result of strong performances from most of our geographic regions," said Kurt R. Moore, president and chief executive officer. "In addition, we are encouraged to see increased demand for staffing from a broad base of client companies including renewed demand from the small and mid-sized client sectors." Mr. Moore added, "We see positive indicators resulting from what appears to be a sustained economic recovery. The three locations we opened earlier this year have contributed over $2.0 million to revenue this year and all are currently contributing to our operating profit." 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 30,000 field employees and consultants to more than 3,500 businesses annually through 48 locations in the Eastern and Southwestern United States. Certain statements contained in this news release, including statements regarding anticipated improvement in economic conditions and trends in worker's compensation claims, and other statements contained herein regarding matters that are not historical facts, are "forward-looking" statements (as such term is defined in The Private Securities Litigation Reform Act of 1995, as amended). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, changes in general economic conditions and unforeseen events impacting new worker's compensation claims, and those risks and uncertainties discussed in filings made by the Company with the Securities and Exchange Commission, including its periodic reports on Forms 10-K and 10-Q. ABLEST INC. Condensed Statements of Operations (Amounts in thousands except share and per share amounts) (Unaudited) For the For the Thirteen Week Thirty-nine Week Periods Ended Periods Ended September September September September 26, 28, 26, 28, 2004 2003 2004 2003 Net service revenues $29,912 $26,668 $82,509 $74,171 Cost of Services 24,838 22,111 69,182 61,777 Gross Profit 5,074 4,557 13,327 12,394 Selling, general and administrative expenses 4,127 3,999 12,722 12,074 Operating income 947 558 605 320 Other: Interest (expense) income, net -- (9) 2 (31) Miscellaneous, net -- 14 1 47 Other income -- 5 3 16 Income before income taxes 947 563 608 336 Income tax expense 359 213 231 127 Net income $ 588 $ 350 $ 377 $ 209 Basic net income per common share $ 0.21 $ 0.12 $ 0.13 $ 0.07 Diluted net income per common share $ 0.20 $ 0.12 $ 0.13 $ 0.07 Weighted average number of common shares used in computing net income per common share Basic 2,840,350 2,858,197 2,838,915 2,862,629 Diluted 2,926,233 2,876,197 2,917,838 2,880,629 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share and per share amounts) September 26, December 28, 2004 2003 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,340 $ 1,614 Accounts receivable, net 14,327 13,778 Prepaid expenses and other current assets 192 213 Current deferred tax asset 1,085 1,085 Total current assets 17,944 16,690 Property, plant and equipment, net 538 647 Deferred tax asset 3,920 3,920 Goodwill, net 1,283 1,283 Other assets 39 39 Total assets $ 23,724 $ 22,579 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 330 $ 326 Accrue expenses and other current liabilities 5,055 4,438 Total current liabilities 5,385 4,764 Other liabilities 80 89 Total liabilities 5,465 4,853 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at September 26, 2004 and December 28, 2003 -- -- Common stock of $.05 par value; 7,500,000 shares authorized, 3,334,344 and 3,308,929 shares Issued and outstanding including shares held in treasury at September 26, 2004 and December 28, 2003,respectively 167 165 Additional paid-in capital 5,172 5,018 Retained earnings 15,030 14,653 Treasury stock at cost; 457,729 shares held at September 26, 2004 and December 28, 2003 (2,110) (2,110) Total stockholders' equity 18,259 17,726 Total liabilities and stockholders' equity $ 23,724 $ 22,579 DATASOURCE: Ablest Inc. CONTACT: Vincent J. Lombardo, Vice President and Chief Financial Officer of Ablest, Inc., +1-727-299-1200, or

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