Exhibit 99.1
![]() | 1511 N. Westshore Blvd., Suite 900 Tampa, Florida 33607 (813) 830-7700 www.ablest.com |
FOR IMMEDIATE RELEASE | SYMBOL: | AIH | ||
Thursday, August 10, 2006 | TRADED: | AMEX |
ABLEST INC. REPORTS INCREASED REVENUE FOR SECOND QUARTER
TAMPA, Fla., Aug. 10 — Ablest Inc. today reported that revenue for the fiscal second quarter ended July 2, 2006 increased 4.9 percent to $34.3 million as compared to revenue of $32.8 million in the 2005 second quarter. Net income decreased to $285,000 or $0.10 per diluted share compared to $574,000 or $0.20 per diluted share for the similar period last year. Net income in the fiscal second quarter was negatively impacted because of higher than planned increase in workers’ compensation expense accruals of approximately $254,000.
Revenues for the first 27 weeks of fiscal 2006 increased 10.4 percent to $70.2 million from $63.6 million in the corresponding 26-week period of the prior year. For the six months ended July 2, 2006, net income was $633,000 or $0.21 per diluted share compared to the first half of 2005 when the company reported net income of $838,000 equal to $0.29 cents per diluted share.
Kurt R. Moore, president and chief executive officer, said, “The company experienced an increase in claims costs and incidence rates in 2006 which required an increase in our workers’ compensation expense estimates. Senior management is addressing this matter to reduce the growth rate of the expense.”
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 37,000 field employees and consultants to approximately 2,000 businesses annually through 58 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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PAGE 2 / ABLEST INC. REPORTS INCREASED REVENUE FOR SECOND QUARTER
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 Thirteen Week | For the Twenty Seven Week | For the Twenty Six Week | ||||||||||||||
Periods Ended | Period Ended | Period Ended | ||||||||||||||
July 2, 2006 | June 26, 2005 | July 2, 2006 | June 26, 2005 | |||||||||||||
Net service revenues | $ | 34,340 | $ | 32,751 | $ | 70,204 | $ | 63,586 | ||||||||
Cost of services | 28,398 | 27,009 | 58,151 | 52,867 | ||||||||||||
Gross profit | 5,942 | 5,742 | 12,053 | 10,719 | ||||||||||||
Selling, general and administrative expenses | 5,466 | 4,815 | 11,017 | 9,364 | ||||||||||||
Operating income | 476 | 927 | 1,036 | 1,355 | ||||||||||||
Other: | ||||||||||||||||
Interest income, net | 10 | — | 9 | — | ||||||||||||
Miscellaneous income (expense), net | 19 | — | 21 | (3 | ) | |||||||||||
Other income (expense) | 29 | — | 30 | (3 | ) | |||||||||||
Income before income taxes | 505 | 927 | 1,066 | 1,352 | ||||||||||||
Income tax expense | 220 | 353 | 433 | 514 | ||||||||||||
Net income | $ | 285 | $ | 574 | $ | 633 | $ | 838 | ||||||||
Basic net income per common share | $ | 0.10 | $ | 0.20 | $ | 0.22 | $ | 0.29 | ||||||||
Diluted net income per common share | $ | 0.10 | $ | 0.20 | $ | 0.21 | $ | 0.29 | ||||||||
Weighted average number of common shares used in computing net income per common share | ||||||||||||||||
Basic | 2,933,268 | 2,863,509 | 2,915,761 | 2,859,043 | ||||||||||||
Diluted | 2,971,642 | 2,940,368 | 2,952,721 | 2,933,530 | ||||||||||||
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PAGE 3 / ABLEST INC. REPORTS INCREASED REVENUE FOR SECOND QUARTER
ABLEST INC.
Condensed Balance Sheets
(amounts in thousands except share data)
(Unaudited)
Condensed Balance Sheets
(amounts in thousands except share data)
(Unaudited)
July 2, 2006 | December 25, 2005 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 3,698 | $ | 1,931 | ||||
Accounts receivable, net | 16,355 | 18,760 | ||||||
Prepaid expenses and other current assets | 704 | 469 | ||||||
Current deferred tax asset | 1,246 | 1,246 | ||||||
Total current assets | 22,003 | 22,406 | ||||||
Property and equipment, net | 2,329 | 1,732 | ||||||
Deferred tax asset | 681 | 863 | ||||||
Goodwill | 1,283 | 1,283 | ||||||
Other assets | 245 | 171 | ||||||
Total assets | $ | 26,541 | $ | 26,455 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 739 | $ | 841 | ||||
Accrued insurance | 2,235 | 2,536 | ||||||
Accrued wages | 2,500 | 2,738 | ||||||
Other current liabilities | 469 | 514 | ||||||
Total current liabilities | 5,943 | 6,629 | ||||||
Other liabilities | 198 | 432 | ||||||
Total liabilities | 6,141 | 7,061 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at July 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 July 2,, 2006 and December 25, 2005, respectively | 169 | 167 | ||||||
Additional paid-in capital | 5,636 | 5,265 | ||||||
Retained earnings | 16,705 | 16,072 | ||||||
Treasury stock at cost; 457,729 shares held at July 2, 2006 and December 25, 2005 | (2,110 | ) | (2,110 | ) | ||||
Total stockholders’ equity | 20,400 | 19,394 | ||||||
Total liabilities and stockholders’ equity | $ | 26,541 | $ | 26,455 | ||||
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SOURCE: | Ablest Inc. | |
CONTACT: | John Horan, Vice President and Chief Financial Officer | |
813/830-7700 or jhoran@ablest.com/ |