EX-99.1 2 g95049exv99w1.htm EX-99.1: PRESS RELEASE DATED MAY 5, 2005 EX-99.1: PRESS RELEASE DATED MAY 5, 2005
 

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, May 5, 2005
  TRADED:   AMEX

ABLEST REPORTS FIRST QUARTER PROFIT

      CLEARWATER, Fla., May 5 — Ablest Inc. 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.

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PAGE 2 / ABLEST REPORTS FIRST QUARTER PROFIT

ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)

                 
    For the Thirteen Week  
    Periods Ended  
    March 27, 2005     March 28, 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  
 
    

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PAGE 3 / ABLEST REPORTS FIRST QUARTER PROFIT

ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)

                 
    March 27, 2005     December 26, 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
     43       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.
CONTACT:
  Vincent J. Lombardo, Vice President and Chief Financial Officer,
  727-299-1200 or vlombardo@ablest.com/