EX-99.1 2 g91692exv99w1.htm EX:99.1: PRESS RELEASE DATED NOVEMBER 4, 2004 Ex:99.1: Press release dated November 4, 2004
 

Exhibit 99.1

     
(ABLEST LOGO)
  1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
(727) 299-1200
www.ablest.com
     
FOR IMMEDIATE RELEASE
Thrusday, November 4, 2004
  SYMBOL:     AIH
TRADED:     AMEX

ABLEST REPORTS THIRD QUARTER REVENUE AND EARNINGS GROWTH

     CLEARWATER, Fla., Nov. 4 — Ablest Inc. today announced that net income for the third fiscal quarter ended September 26, 2004, increased 68 percent to $588,000 or 21 cents per basic and 20 cents per diluted share from $350,000 or 12 cents per basic and diluted share a year earlier. Revenues for the third quarter were $29.9 million, an increase of 12.2 percent compared to revenues of $26.7 million for the similar period in 2003.

     Revenues for the first nine months of fiscal 2004 increased 11.2 percent to $82.5 million from $74.2 million in the corresponding period of the prior year. For the nine months ended September 26, 2004, the company reported net income of $377,000 or 13 cents per basic and diluted share compared to the same period of 2003 when the company reported net income of $209,000 or seven cents per share.

     “The third quarter growth was the result of strong performances from most of our geographic regions,” said Kurt R. Moore, president and chief executive officer. “In addition, we are encouraged to see increased demand for staffing from a broad base of client companies including renewed demand from the small and mid-sized client sectors.”

     Mr. Moore added, “We see positive indicators resulting from what appears to be a sustained economic recovery. The three locations we opened earlier this year have contributed over $2.0 million to revenue this year and all are currently contributing to our operating profit.”

     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 48 locations in the Eastern and Southwestern United States.

     Certain statements contained in this news release, including statements regarding anticipated improvement in economic conditions and trends in worker’s compensation claims, and other statements contained herein regarding matters that are not historical facts, are “forward-looking” statements (as such term is defined in The Private Securities Litigation Reform Act of 1995, as amended). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, changes in general economic conditions and unforeseen events impacting new worker’s compensation claims, and those risks and uncertainties discussed in filings made by the Company with the Securities and Exchange Commission, including its periodic reports on Forms 10-K and 10-Q.

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PAGE 2/ ABLEST REPORTS THIRD QUARTER REVENUE AND EARNINGS GROWTH

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 26, 2004
   September 28, 2003
   September 26, 2004
   September 28, 2003
Net service revenues
   $ 29,912     $ 26,668     $ 82,509     $ 74,171  
Cost of Services
     24,838       22,111       69,182       61,777  
 
    
 		      
 		      
 		      
 		  
Gross Profit
     5,074       4,557       13,327       12,394  
Selling, general and administrative expenses
     4,127       3,999       12,722       12,074  
 
    
 		      
 		      
 		      
 		  
Operating income
     947       558       605       320  
 
    
 		      
 		      
 		      
 		  
Other:
                                
Interest income (expense), net
     —       (9 )     2       (31 )
Miscellaneous, net
     —       14       1       47  
 
    
 		      
 		      
 		      
 		  
Other income
     —       5       3       16  
Income before income taxes
     947       563       608       336  
Income tax expense (benefit)
     359       213       231       127  
 
    
 		      
 		      
 		      
 		  
Net income
   $ 588     $ 350     $ 377     $ 209  
 
    
 		      
 		      
 		      
 		  
Basic net income per common share
   $ 0.21     $ 0.12     $ 0.13     $ 0.07  
 
    
 		      
 		      
 		      
 		  
Diluted net income per common share
   $ 0.20     $ 0.12     $ 0.13     $ 0.07  
 
    
 		      
 		      
 		      
 		  
Weighted average number of common shares used in computing net income per common share
                                
Basic
     2,840,350       2,858,197       2,838,915       2,862,629  
 
    
 		      
 		      
 		      
 		  
Diluted
     2,926,233       2,876,197       2,917,838       2,880,629  
 
    
 		      
 		      
 		      
 		  

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PAGE 3/ ABLEST REPORTS THIRD QUARTER REVENUE AND EARNINGS GROWTH

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

                 
    September 26, 2004
   December 28, 2003
    (Unaudited)        
ASSETS
                
CURRENT ASSETS
                
Cash and cash equivalents
   $ 2,340     $ 1,614  
Accounts receivable, net
     14,327       13,778  
Prepaid expenses and other current assets
     192       213  
Current deferred tax asset
     1,085       1,085  
 
    
 		      
 		  
Total current assets
     17,944       16,690  
Property, plant and equipment, net
     538       647  
Deferred tax asset
     3,920       3,920  
Goodwill, net
     1,283       1,283  
Other assets
     39       39  
 
    
 		      
 		  
Total assets
   $ 23,724     $ 22,579  
 
    
 		      
 		  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
CURRENT LIABILITIES
                
Accounts payable
   $ 330     $ 326  
Accrue expenses and other current liabilities
     5,055       4,438  
 
    
 		      
 		  
Total current liabilities
     5,385       4,764  
Other liabilities
     80       89  
 
    
 		      
 		  
Total liabilities
     5,465       4,853  
 
    
 		      
 		  
COMMITMENTS AND CONTINGENCIES
                
STOCKHOLDERS’ EQUITY
                
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at September 26, 2004 and December 28, 2003
     —       —  
Common stock of $.05 par value; 7,500,000 shares authorized, 3,334,344 and 3,308,929 shares issued and outstanding including shares held in treasury at September 26, 2004 and December 28, 2003, respectively
     167       165  
Additional paid-in capital
     5,172       5,018  
Retained earnings
     15,030       14,653  
Treasury stock at cost; 457,729 shares held at September 26, 2004 and December 28, 2003
     (2,110 )     (2,110 )
 
    
 		      
 		  
Total stockholders’ equity
     18,259       17,726  
 
    
 		      
 		  
Total liabilities and stockholders’ equity
   $ 23,724     $ 22,579  
 
    
 		      
 		  
     
SOURCE:
  Ablest Inc.
 
    
CONTACT:
  Vincent J. Lombardo, Vice President and Chief Financial Officer,
727-299-1200 or vlombardo@ablest.com/

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