Exhibit 99.1
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1511 N. Westshore Blvd, Suite 900 | ||
FOR IMMEDIATE RELEASE | Tampa, Florida 33607 | |
Wednesday May 16, 2006 | (813) 830-7700 | |
www.ablest.com |
ABLEST INC. REPORTS IMPROVED REVENUE AND EARNINGS FOR FIRST QUARTER
TAMPA, Fla., May 16 — Ablest Inc. (Amex: AIH) today announced that revenue for the 14-week fiscal first quarter ended April 2, 2006, increased 16.3 percent to $35.9 million from revenue of $30.8 million in the 13-week fiscal first quarter of 2005. Net income increased 31.8 percent to $348,000 or $0.12 per diluted share compared to net income of $264,000 or $0.09 per diluted share for 2005.
Kurt R. Moore, president and chief executive officer, said, “We are pleased with our first quarter results. The employment and hiring markets were positive in the first quarter, contributing to demand for both Staffing Services and Professional Services. We saw continued success with our efforts to increase margins through the addition of customers in the mid to small business sectors. In addition, our branch team execution is focused on our customer and employee loyalty initiatives with good results.”
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. Staffing Services offer 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 offer 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 37,000 field employees and consultants to approximately 2,000 businesses annually through 56 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.
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ABLEST INC.
Condensed Statements of Income
(amounts in thousands except share and per share data)
(Unaudited)
Condensed Statements of Income
(amounts in thousands except share and per share data)
(Unaudited)
For the Fourteen Week | For the Thirteen Week | |||||||
Period Ended | Period Ended | |||||||
April 2, 2006 | March 27, 2005 | |||||||
Net service revenues | $ | 35,864 | $ | 30,835 | ||||
Cost of services | 29,753 | 25,858 | ||||||
Gross profit | 6,111 | 4,977 | ||||||
Selling, general and administrative expenses | 5,551 | 4,549 | ||||||
Operating income | 560 | 428 | ||||||
Other: | ||||||||
Interest income, net | — | — | ||||||
Miscellaneous income (expense), net | 1 | (3 | ) | |||||
Other income (expense) | 1 | (3 | ) | |||||
Income before income taxes | 561 | 425 | ||||||
Income tax expense | 213 | 161 | ||||||
Net income | $ | 348 | $ | 264 | ||||
Basic net income per common share | $ | 0.12 | $ | 0.09 | ||||
Diluted net income per common share | $ | 0.12 | $ | 0.09 | ||||
Weighted average number of common shares used in computing net income per common share | ||||||||
Basic | 2,879,764 | 2,854,578 | ||||||
Diluted | 2,935,050 | 2,926,692 | ||||||
ABLEST INC.
Condensed Balance Sheets
(amounts in thousands except share data)
(Unaudited)
Condensed Balance Sheets
(amounts in thousands except share data)
(Unaudited)
April 2, 2006 | December 25, 2005 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 4,169 | $ | 1,931 | ||||
Accounts receivable, net | 15,032 | 18,760 | ||||||
Prepaid expenses and other current assets | 599 | 469 | ||||||
Current deferred tax asset | 1,246 | 1,246 | ||||||
Total current assets | 21,046 | 22,406 | ||||||
Property and equipment, net | 1,997 | 1,732 | ||||||
Deferred tax asset | 727 | 863 | ||||||
Goodwill | 1,283 | 1,283 | ||||||
Other assets | 243 | 171 | ||||||
Total assets | $ | 25,296 | $ | 26,455 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 527 | $ | 841 | ||||
Accrued insurance | 1,985 | 2,536 | ||||||
Accrued wages | 2,131 | 2,738 | ||||||
Other current liabilities | 428 | 514 | ||||||
Total current liabilities | 5,071 | 6,629 | ||||||
Other liabilities | 122 | 432 | ||||||
Total liabilities | 5,193 | 7,061 | ||||||
COMMITMENTS AND CONTINGENCIES | — | — | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at April 2, 2006 and December 25, 2005 | — | — | ||||||
Common stock of $.05 par value; 7,500,000 shares authorized, 3,387,118 and 3,334,344 shares issued and outstanding including shares held in treasury at April 2, 2006 and December 25, 2005, respectively | 169 | 167 | ||||||
Additional paid-in capital | 5,624 | 5,265 | ||||||
Retained earnings | 16,420 | 16,072 | ||||||
Treasury stock at cost; 457,729 shares held at April 2, 2006 and December 25, 2005 | (2,110 | ) | (2,110 | ) | ||||
Total stockholders’ equity | 20,103 | 19,394 | ||||||
Total liabilities and stockholders’ equity | $ | 25,296 | $ | 26,455 | ||||
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SOURCE: | Ablest Inc. | |
CONTACT: | Charles H. Heist, Chairman and Chief Financial Officer | |
813-830-7700 or theist@ablest.com/ |