Exhibit 12
| [ABLEST LOGO] | 1901 Ulmerton Road, Suite 300 Clearwater, Florida 33762-2317 (727) 299-1200 www.ablest.com |
| FOR IMMEDIATE RELEASE Friday, August 1, 2003 | SYMBOL: TRADED: | AIH AMEX |
ABLEST REPORTS SECOND QUARTER AND FIRST HALF RESULTS
CLEARWATER, Fla., Aug. 1 — Ablest Inc. today announced that revenue of $24.3 million for the second fiscal quarter ended June 29, 2003, while off 7.5 percent from the corresponding quarter last year, represented a 4.4 percent sequential increase from the first quarter of 2003. The company incurred a second quarter net loss of $72,000 or three cents per basic and diluted share compared with earnings of $405,000 or $0.14 per basic and diluted share for the second quarter of 2002.
Revenue for the first six months of fiscal 2003 increased 4.4 percent to $47.5 million from $45.5 million in the prior year. For the six months ended June 29, 2003, the company incurred a net loss of $141,000 or five cents per basic and diluted share. For the first half of the prior year, the company reported net income of $78,000 or three cents per share.
W. David Foster, chief executive officer, noted that 2003 second quarter and first half results were impacted by a $600,000 increase in the company’s reserves for workers’ compensation claims due to adverse developments in a small group of claims originated in 2001 and 2002.
Mr. Foster added, “We are pleased with the second quarter revenue growth over the first quarter in both our light industrial and clerical businesses. The shortfall compared to the year-ago quarter was primarily attributable to a reduction in the needs of one large account.”
“We are encouraged by continued stable demand for our services despite ongoing economic weakness,” Mr. Foster continued. “While we are uncertain when the economic recovery will occur, we continue to drive revenue and service. We continue to closely manage expenses and staff levels, lowering SG&A in 2003 by 13 percent for the quarter and 6.1 percent for the six months.”
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 44 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.
MORE . . .
PAGE 2 / ABLEST REPORTS SECOND QUARTER AND FIRST HALF RESULTS
ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)
| For the Thirteen Week | For the Twenty-six Week | |||||||||||||||||
| Periods Ended | Periods Ended | |||||||||||||||||
| June 29, 2003 | June 30, 2002 | June 29, 2003 | June 30, 2002 | |||||||||||||||
| Net service revenues | $ | 24,264 | $ | 26,234 | $ | 47,503 | $ | 45,461 | ||||||||||
| Cost of services | 20,550 | 21,411 | 39,666 | 37,027 | ||||||||||||||
| Gross profit | 3,714 | 4,823 | 7,837 | 8,434 | ||||||||||||||
| Selling, general and administrative expenses | 3,830 | 4,404 | 8,075 | 8,597 | ||||||||||||||
| Operating income (loss) | (116 | ) | 419 | (238 | ) | (163 | ) | |||||||||||
| Other: | ||||||||||||||||||
| Interest income (expense), net | (17 | ) | (6 | ) | (22 | ) | 44 | |||||||||||
| Miscellaneous, net | 17 | (8 | ) | 33 | (4 | ) | ||||||||||||
| Other income (loss) | — | (14 | ) | 11 | 40 | |||||||||||||
| Income (loss) before income taxes | (116 | ) | 405 | (227 | ) | (123 | ) | |||||||||||
| Income tax expense (benefit) | (44 | ) | — | (86 | ) | (201 | ) | |||||||||||
| Net income (loss) | $ | (72 | ) | $ | 405 | $ | (141 | ) | $ | 78 | ||||||||
| Basic net income (loss) per common share | $ | (0.03 | ) | $ | 0.14 | $ | (0.05 | ) | $ | 0.03 | ||||||||
| Diluted net income (loss) per common share | $ | (0.03 | ) | $ | 0.14 | $ | (0.05 | ) | $ | 0.03 | ||||||||
| Weighted average number of common shares in computing net income (loss) per common share | ||||||||||||||||||
| Basic | 2,868,381 | 2,873,007 | 2,864,845 | 2,896,944 | ||||||||||||||
| Diluted | 2,868,381 | 2,893,007 | 2,864,845 | 2,916,944 | ||||||||||||||
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PAGE 3 / ABLEST REPORTS SECOND QUARTER AND FIRST HALF RESULTS
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
| June 29, 2003 | December 29, 2002 | |||||||||
| (Unaudited) | ||||||||||
ASSETS | ||||||||||
| CURRENT ASSETS | ||||||||||
| Cash and cash equivalents | $ | 3,646 | $ | 1,858 | ||||||
| Accounts receivable, net | 11,280 | 11,639 | ||||||||
| Prepaid expenses and other current assets | 428 | 296 | ||||||||
| Current deferred tax asset | 988 | 988 | ||||||||
| Total current assets | 16,342 | 14,781 | ||||||||
| Property, plant and equipment, net | 728 | 872 | ||||||||
| Deferred tax asset, net | 2,234 | 2,234 | ||||||||
| Goodwill, net | 1,283 | 1,283 | ||||||||
| Other assets | 39 | 46 | ||||||||
| Total assets | $ | 20,626 | $ | 19,216 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | 196 | $ | 256 | ||||||
| Accrued expenses and other current liabilities | 3,692 | 4,008 | ||||||||
| Short-term borrowings | 2,000 | — | ||||||||
| Total current liabilities | 5,888 | 4,264 | ||||||||
| Other liabilities | 67 | 81 | ||||||||
| Total liabilities | 5,955 | 4,345 | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||
| Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at June 29, 2003 and December 29, 2002 | — | — | ||||||||
| Common stock of $.05 par value; 7,500,000 shares authorized, 3,308,929 and 3,293,395 shares issued and outstanding including shares held in treasury at June 29, 2003 and December 29, 2002, respectively | 165 | 165 | ||||||||
| Additional paid-in capital | 4,936 | 4,936 | ||||||||
| Retained earnings | 11,584 | 11,725 | ||||||||
| Treasury stock at cost; 440,207 and 428,341 shares held at June 29, 2003 and December 29, 2002, respectively | (2,014 | ) | (1,955 | ) | ||||||
| Total stockholders’ equity | 14,671 | 14,871 | ||||||||
| Total liabilities and stockholders’ equity | $ | 20,626 | $ | 19,216 | ||||||
| SOURCE: | Ablest Inc. | |
| CONTACT: | Vincent J. Lombardo, Vice President and Chief Financial Officer, 727-299-1200 or vlombardo@ablest.com/ |