EXHIBIT 12
(ABLEST LOGO) 1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
(727) 299-1200
www.ablest.com
FOR IMMEDIATE RELEASE Symbol: AIH
Friday, October 24, 2003 Traded: AMEX
ABLEST REPORTS A PROFIT FOR THIRD QUARTER AND FIRST NINE MONTHS
CLEARWATER, Fla., Oct. 24 -- Ablest Inc. today announced revenue of
$26.7 million for the third fiscal quarter ended September 28, 2003, an 8.9
percent decrease from the corresponding quarter in 2002. Revenue for the third
quarter increased 9.9 percent when compared to the previous quarter, marking the
second consecutive quarter-over-quarter sequential increase in 2003. Third
quarter net income, which reversed losses in the first two quarters of 2003,
amounted to $350,000 or $0.12 per basic and diluted share compared to $526,000
or $0.18 per basic and diluted share earned in the third quarter of 2002.
Revenue for the first nine months of fiscal 2003 decreased slightly to
$74.2 million from $74.7 million in the prior year. Nine months net income was
$209,000 or seven cents per basic and diluted share compared to $604,000 or
$0.21 per basic and diluted share for the same period in 2002.
W. David Foster, chief executive officer, said "Third quarter results
were impacted by increased workers' compensation expenditures. Programs
implemented to combat the higher workers' compensation costs started to show
benefits during the last month of the third quarter."
Mr. Foster added, "While third quarter revenue was below the prior year,
we have realized higher revenue each quarter this year over the prior quarter.
Several customers, both light industrial and clerical, accounted for our higher
revenue compared to a year ago, when the increase was primarily attributable to
one large account."
"We have continued to focus on our core business by developing programs
that drive revenue, increase margins and improve service. At the same time, we
have made selective investments in technology that have enhanced our ability to
manage the profitability of our existing business and identify new
opportunities," Mr. Foster continued. "We have funded these initiatives by
continuing to closely manage expenses and staff levels. SG&A as a percentage of
revenue decreased for both the quarter and nine months compared to the
corresponding periods in 2002."
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 A PROFIT FOR THIRD QUARTER AND FIRST NINE MONTHS
ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)
For the Thirteen Week For the Thirty-nine Week
Periods Ended Periods Ended
------------------------------------------- ------------------------------------------
September 28, 2003 September 29, 2002 September 28, 2003 September 29, 2002
------------------ ------------------ ------------------ ------------------
Net service revenues $ 26,668 $ 29,287 $ 74,171 $ 74,748
Cost of services 22,111 24,006 61,777 61,034
----------- ----------- ----------- -----------
Gross profit 4,557 5,281 12,394 13,714
Selling, general and administrative
expenses 3,999 4,479 12,074 13,075
----------- ----------- ----------- -----------
Operating income (loss) 558 802 320 639
----------- ----------- ----------- -----------
Other:
Interest income (expense), net (9) (20) (31) 24
Miscellaneous, net 14 24 47 20
----------- ----------- ----------- -----------
Other income (loss) 5 4 16 44
----------- ----------- ----------- -----------
Income (loss) before income
taxes 563 806 336 683
Income tax expense (benefit) 213 280 127 79
----------- ----------- ----------- -----------
Net income (loss) $ 350 $ 526 $ 209 $ 604
=========== =========== =========== ===========
Basic net income (loss)
per common share $ 0.12 $ 0.18 $ 0.07 $ 0.21
=========== =========== =========== ===========
Diluted net income (loss)
per common share $ 0.12 $ 0.18 $ 0.07 $ 0.21
=========== =========== =========== ===========
Weighted average number of common
shares in computing net income
(loss) per common share
Basic 2,858,197 2,864,422 2,862,629 2,872,847
=========== =========== =========== ===========
Diluted 2,876,197 2,884,422 2,880,629 2,892,847
=========== =========== =========== ===========
MORE . . .
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PAGE 3/ABLEST REPORTS A PROFIT FOR THIRD QUARTER AND FIRST NINE MONTHS
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
September 28, 2003 December 29, 2002
------------------ -----------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,372 $ 1,858
Accounts receivable, net 13,440 11,639
Prepaid expenses and other current assets 407 296
Current deferred tax asset 988 988
-------- --------
Total current assets 16,207 14,781
Property, plant and equipment, net 733 872
Deferred tax asset, net 2,234 2,234
Goodwill, net 1,283 1,283
Other assets 40 46
-------- --------
Total assets $ 20,497 $ 19,216
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 718 $ 256
Accrued expenses and other current liabilities 4,739 4,008
Short-term borrowings -- --
-------- --------
Total current liabilities 5,457 4,264
Other liabilities 86 81
-------- --------
Total liabilities 5,543 4,345
-------- --------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock of $.05 par value; 500,000 shares authorized ,
none issued or outstanding at September 28, 2003 and December 29, 2002 -- --
Common stock of $.05 par value; 7,500,000 shares authorized,
3,308,929 shares issued and outstanding including shared held in
treasury at September 28, 2003 and December 29, 2002, respectively 165 165
Additional paid-in capital 4,936 4,936
Retained earnings 11,934 11,725
Treasury stock at cost; 452,429 and 428,341 shares held at
September 28, 2003 and December 29, 2002, respectively (2,081) (1,955)
-------- --------
Total stockholders' equity 14,954 14,871
-------- --------
Total liabilities and stockholders' equity $ 20,497 $ 19,216
======== ========
SOURCE: Ablest Inc.
CONTACT: Vincent J. Lombardo, Vice President and Chief Financial Officer,
727-299-1200 or vlombardo@ablest.com/
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