Exhibit 99.1
| | | |
| | 1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
(727) 299-1200
www.ablest.com |
| | | | | |
| FOR IMMEDIATE RELEASE | | SYMBOL: | | AIH |
| Thursday, August 4, 2005 | | TRADED: | | AMEX |
ABLEST REPORTS SECOND QUARTER PROFIT MORE THAN DOUBLED;
SIGNS THREE-YEAR EXTENSION ON CREDIT AGREEMENT AT REDUCED RATES
CLEARWATER, Fla., Aug. 4 — Ablest Inc. today reported substantially improved financial results for the fiscal second quarter ended June 26, 2005. Revenue increased 22.4 percent to $32.8 million from revenue of $26.8 million in the fiscal second quarter of 2004. Net income increased two-and-one-half times to $574,000 or $0.20 per diluted share compared to net income of $230,000 or $0.08 per diluted share for the same period last year.
Revenues for the first six months of fiscal 2005 increased 20.9 percent to $63.6 million from $52.6 million in the corresponding period of the prior year. For the six months ended June 26, 2005, the company reported net income of $838,000 or $0.29 per diluted share compared to the same period of 2004 when the company reported a net loss of $211,000 equal to seven cents per share.
Kurt R. Moore, president and chief executive officer, said, “Our strong second quarter results are attributable to our associates’ hard work in executing Ablest’ service model and expansion plans. We continue to see increases from many of our existing large client companies and have been successful opening new locations. Branches opened less than one year accounted for approximately one half of our revenue increase.”
“To improve profitability, we focused our selling efforts on higher margin and lower risk accounts,” Mr. Moore said. “The gross margin improvement was driven by our selective addition of higher margin accounts and our ability to reduce the costs associated with larger accounts.” He added, “We are pleased by the favorable results in workers’ compensation costs and will continue our efforts to manage these costs. Also contributing to our improved profitability was our associates’ ability to grow by leveraging the organization’s resources.”
Mr. Moore also said, “The company renewed for an additional three years its $7.5 million committed credit agreement at a 75 basis-point reduction in borrowing rates. We received excellent support from our banking partner and consider the favorable renewal as acknowledging our strong operational results and solid financial position. We currently have no outstanding debt and this facility will continue to provide us the liquidity necessary to achieve our growth plans.”
Ablest Inc. provides its clients with staffing solutions, managed services and vendor-on-premise (VOP) programs. Staffing solutions include clerical, industrial, information technology, finance and accounting personnel provided through Ablest Staffing Services, Ablest Technology Services and Ablest Finance and Accounting. Ablest supplies more than 30,000 field employees and consultants to more than 3,500 businesses annually through 52 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 . . .
