EX-99.1 2 g99934exv99w1.htm EX-99.1 MARCH 2, 2006 PRESS RELEASE Ex-99.1 March 2, 2006 Press Release
 

Exhibit 99.1
     
(ABLEST LOGO)
  1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
(727) 299-1200
www.ablest.com
 
   
 
   
 
   
     
FOR IMMEDIATE RELEASE
  SYMBOL:      AIH
Thursday, March 2, 2006
  TRADED:      AMEX
ABLEST ANNOUNCES 2005 RECORD OPERATING RESULTS
     CLEARWATER, FL., Mar. 2 — Ablest Inc. (Amex: AIH) today announced that revenue for the fiscal fourth quarter ended December 25, 2005, increased 15.2 percent to $39 million from revenue of $33.8 million in the fiscal fourth quarter of 2004. Operating income results for the fiscal fourth quarter ended December 25, 2005 in turn increased 49.0 percent to $1.1 million as compared to $767 thousand in the same fiscal quarter of 2004. Net loss was $669,000 or $0.23 per diluted share, compared to net income of $506,000 or $0.17 per diluted share for the similar period last year, reflecting a $1.2 million income tax adjustment relating to an Internal Revenue Service audit of its previously filed 2001 tax return. This adjustment reduces the deferred tax asset derived from the 2000 sale of the industrial maintenance business. The IRS has completed and closed the examinations of the company’s tax returns for all years through 2003. The company notified the IRS of their acceptance of the IRS findings and is awaiting the final IRS ruling letter. The adjustment did not impact 2005’s revenues, operating expenses or cash flows.
     Revenues for fiscal year 2005 increased 18.1 percent to $137.5 million from $116.4 million in the corresponding period of the prior fiscal year. Operating income for the fiscal year 2005 was $3.1 million as compared to operating income of $1.4 million for the similar period last year, an increase of 125 percent. For the 12 months ended December 25, 2005, the company reported net income of $536,000 or $0.18 per diluted share compared to net income of $883,000 equal to $0.30 per diluted share for the prior fiscal year.
     Kurt R. Moore, president and chief executive officer, said, “Operating income for the 2005 fiscal year more than doubled this past year. Our Associates have been working hard to increase revenue while keeping a close eye on expenses. This effort, coupled with our service level expectations, will keep us on our growth plan.” He went on to say, “The IRS adjustment, resulting from the 2000 disposition of our industrial maintenance company, affected net income, but it doesn’t detract from the solid performance posted by our talented Ablest team.”
     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 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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PAGE 2 / ABLEST ANNOUNCES 2005 RECORD OPERATING RESULTS
ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)
                                 
    For the Thirteen Week     For the Fifty-two Week  
    Periods Ended     Periods Ended  
    December 25, 2005     December 26, 2004     December 25, 2005     December 26, 2004  
Net service revenues
  $ 38,998     $ 33,844     $ 137,457     $ 116,353  
Cost of services
    32,497       28,756       114,471       97,938  
 
                       
 
                               
Gross profit
    6,501       5,088       22,986       18,415  
 
                               
Selling, general and administrative expenses
    5,358       4,321       19,899       17,043  
 
                       
 
                               
Operating income
    1,143       767       3,087       1,372  
 
                       
 
                               
Other:
                               
Interest income (expense), net
    (7 )     (1 )     (7 )     1  
Miscellaneous income (expense), net
          24       (2 )     25  
 
                       
Other income (expense)
    (7 )     23       (9 )     26  
 
                       
 
                               
Income from operations before income taxes
    1,136       790       3,078       1,398  
 
                               
Income tax expense
    1,805       284       2,542       515  
 
                       
 
                               
Net (loss) income
  $ (669 )   $ 506     $ 536     $ 883  
 
                       
 
                               
                               
 
                       
Basic net (loss) income per common share
  $ (0.23 )   $ 0.18     $ 0.19     $ 0.31  
 
                       
 
                               
                               
 
                       
Diluted net (loss) income per common share
  $ (0.23 )   $ 0.17     $ 0.18     $ 0.30  
 
                       
 
                               
Weighted average number of common shares in computing net income per common share
                               
Basic
    2,863,133       2,840,345       2,861,097       2,839,272  
 
                       
Diluted
    2,929,657       2,933,898       2,922,981       2,921,853  
 
                       

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PAGE 3 / ABLEST ANNOUNCES 2005 RECORD OPERATING RESULTS
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
(Unaudited)
                 
    December 25, 2005     December 26, 2004  
ASSETS
               
CURRENT ASSETS
               
Cash
  $ 1,931     $ 1,357  
Accounts receivable, net
    18,760       16,783  
Prepaid expenses and other current assets
    469       160  
Current deferred tax asset
    1,246       1,369  
 
           
Total current assets
    22,406       19,669  
 
               
Property, plant and equipment, net
    1,732       543  
Deferred tax asset
    863       3,208  
Goodwill
    1,283       1,283  
Other assets
    171       40  
 
           
 
               
Total assets
  $ 26,455     $ 24,743  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES
               
Accounts payable
  $ 841     $ 378  
Accrued insurance
    2,536       3,069  
Accrued wages
    2,738       1,989  
Other current liabilities
    514       425  
 
           
Total current liabilities
    6,629       5,861  
 
               
Other liabilities
    432       117  
 
           
 
               
Total liabilities
    7,061       5,978  
 
           
 
               
COMMITMENTS AND CONTINGENCIES
               
 
               
STOCKHOLDERS’ EQUITY
               
Preferred stock of $.05 par value; 500,000 shares authorized , none issued or outstanding at December 25, 2005 and December 26, 2004
           
Common stock of $.05 par value; 7,500,000 shares authorized, 3,346,877 and 3,334,344 shares issued and outstanding including shares held in treasury at December 25, 2005 and December 26, 2004, respectively
    167       167  
Additional paid-in capital
    5,265       5,172  
Retained earnings
    16,072       15,536  
Treasury stock at cost; 457,729 shares held at both December 25, 2005 and December 26, 2004
    (2,110 )     (2,110 )
 
           
 
               
Total stockholders’ equity
    19,394       18,765  
 
           
 
               
Total liabilities and stockholders’ equity
  $ 26,455     $ 24,743  
 
           
#####
     
SOURCE:
  Ablest Inc.
CONTACT:
  Charles H. Heist, Chairman and Chief Financial Officer
 
  727-299-1200 or theist@ablest.com/