Ablest Reports First Quarter Profit
6 May 2005
Ablest Inc. (Amex: AIH - News) today announced revenue for the fiscal first quarter ended March 27, 2005, of $30.8 million, an increase of 19.7 percent over revenue of $25.8 million in the fiscal first quarter of 2004. Net income was $264,000 or $0.09 per diluted share compared to a net loss of $441,000 or $0.16 loss per diluted share.
"The first quarter continued the momentum generated through the end of 2004," said Kurt R. Moore, president and chief executive officer. "We are pleased and excited with this revenue and profit performance. Both are first quarter records for Ablest."
Mr. Moore added, "The revenue increase was evenly split between branches opened in 2004 and previously existing branches. Greater staffing requirements from existing clients and the addition of several large industrial clients contributed to the growth. In addition, we opened two new branch locations during the quarter, in accordance with our expansion plan."
"Our gross margin improved two percentage points to 16.1 percent compared to the first quarter of 2004," Mr. Moore said. "The margin improvement resulted primarily from recording an adjustment to our provision for workers' compensation claims in the prior year with no corresponding adjustment this year. We continue our efforts to minimize workers' compensation costs through our safety initiatives and return-to-work programs. Profitability also improved as a result of our sales initiatives and close management of expenses in support of our new branches and growth initiatives."
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 51 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.
ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)
For the Thirteen Week
Periods Ended
March 27, March 28,
2005 2004
Net service revenues $ 30,835 $ 25,770
Cost of services 25,858 22,141
Gross profit 4,977 3,629
Selling, general and administrative expenses 4,549 4,337
Operating income (loss) 428 (708)
Other:
Interest income, net -- 2
Miscellaneous, net (3) (5)
Other income (loss) (3) (3)
Income (loss) before income taxes 425 (711)
Income tax expense (benefit) 161 (270)
Net income (loss) $ 264 $ (441)
Basic net income (loss) per common share $ 0.09 $ (0.16)
Diluted net income (loss) per common share $ 0.09 $ (0.16)
Weighted average number of common shares used
in computing net income (loss) per common share
Basic 2,854,578 2,835,951
Diluted 2,926,692 2,908,574
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
March 27, December 26,
2005 2004
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,425 $ 1,357
Accounts receivable, net 14,703 16,783
Prepaid expenses and other current assets 346 160
Current deferred tax asset 1,235 1,369
Total current assets 18,709 19,669
Property, plant and equipment, net 513 543
Deferred tax asset 3,208 3,208
Goodwill, net 1,283 1,283
Other assets 430 40
Total assets $ 23,756 $ 24,743
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 402 $ 378
Accrued insurance 1,766 3,069
Accrued wages 1,886 1,989
Other current liabilities 527 425
Total current liabilities 4,581 5,861
Other liabilities 29 117
Total liabilities 4,610 5,978
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock of $.05 par value;
500,000 shares authorized, none issued
or outstanding at March 27, 2005
and December 26, 2004 -- --
Common stock of $.05 par value; 7,500,000
shares authorized, 3,350,097 and
3,334,344 shares issued and outstanding
including shares held in treasury at
March 27, 2005 and December 26, 2004,
respectively 168 167
Additional paid-in capital 5,288 5,172
Retained earnings 15,800 15,536
Treasury stock at cost; 457,729 shares
held at March 27, 2005 and
December 26, 2004 (2,110) (2,110)
Total stockholders' equity 19,146 18,765
Total liabilities and
stockholders' equity $ 23,756 $ 24,743
--------------------------------------------------------------------------------
Source: Ablest Inc.
Source: PR Newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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