EX-99.1 2 g89119exv99w1.htm EX-99.1 PRESS RELEASE Ex-99.1 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
Wednesday, May 12, 2004
  TRADED: AMEX

ABLEST REPORTS FINANCIAL RESULTS FOR FIRST QUARTER

     CLEARWATER, Fla., May 12 — Ablest Inc. today announced that revenue for the first quarter of fiscal 2004 reached $25.8 million, an increase of 10.9 percent or $2.5 million from the comparable quarter of the prior year. After a $734,000 increase in the provision for workers’ compensation self-insurance claims and higher state unemployment costs, the company incurred a net loss of $441,000 or 16 cents per basic and diluted share for the quarter. This compares with a net loss of $69,000 or two cents per basic and diluted share in the first quarter of 2003.

     Kurt R. Moore, president and chief executive officer, said, “I am pleased with our revenue increase in the first quarter. Requirements for staffing services were strong, particularly at several large existing client companies, and revenue was higher from both light industrial and clerical customers. I believe the increase in clerical business indicates continued economic improvement.”

     Mr. Moore added, “Our associates drove this growth utilizing our service-oriented operating culture to penetrate existing markets. It is exciting to see our associates’ intensity, ownership and passion reflected in the revenue results. In addition, we expanded our geographic footprint by opening a new branch late in the first quarter as part of our strategy to develop new markets along with existing ones.”

     He said, “Results for the quarter were negatively impacted by the increase we made in our workers’ compensation reserves and higher state unemployment costs. In the first quarter, we adjusted our estimate for workers’ compensation reserves to reflect updated loss development criteria generated from an actuarial study completed in early April 2004. Although the actuarial analysis resulted in an additional provision, we are experiencing a positive trend in workers’ compensation costs associated with new claims reported in the quarter. We believe these improvements are a result of initiatives implemented during 2003, focused on managing new occurrences and existing claims.”

     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 47 locations in the Eastern and Southwestern United States.

MORE . . .

 

 

PAGE 2 / ABLEST REPORTS FINANCIAL RESULTS FOR FIRST QUARTER

     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.

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

                 
    For the Thirteen Week
    Periods Ended
    March 28, 2004
   March 30, 2003
Net service revenues
   $ 25,770     $ 23,239  
Cost of services
     22,141       19,116  
 
    
 		      
 		  
Gross profit
     3,629       4,123  
Selling, general and administrative expenses
     4,337       4,245  
 
    
 		      
 		  
Operating income (loss)
     (708 )     (122 )
 
    
 		      
 		  
Other:
                
Interest income (expense), net
     2       (5 )
Miscellaneous, net
     (5 )     16  
 
    
 		      
 		  
Other income (loss)
     (3 )     11  
 
    
 		      
 		  
Income (loss) before income taxes
     (711 )     (111 )
Income tax expense (benefit)
     (270 )     (42 )
 
    
 		      
 		  
Net income (loss)
   $ (441 )   $ (69 )
 
    
 		      
 		  
Basic net income (loss) per common share
   $ (0.16 )   $ (0.02 )
 
    
 		      
 		  
Diluted net income (loss) per common share
   $ (0.16 )   $ (0.02 )
 
    
 		      
 		  
Weighted average number of common shares used
in computing net income (loss) per common share
                
Basic
     2,835,951       2,861,310  
Diluted
     2,908,574       2,888,844  

MORE...

 

 

PAGE 3/ ABLEST REPORTS FINANCIAL RESULTS FOR FIRST QUARTER

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

                 
    March 28,2004
   December 28,2003
    (Unaudited)        
ASSETS
                
CURRENT ASSETS
                
Cash and cash equivalents
   $ 2,094     $ 1,614  
Accounts receivable, net
     12,150       13,778  
Prepaid expenses and other current assets
     318       213  
Current deferred tax asset
     1,380       1,085  
 
    
 		      
 		  
Total current assets
     15,942       16,690  
Property, plant and equipment, net
     642       647  
Deferred tax asset
     3,920       3,920  
Goodwill, net
     1,283       1,283  
Other assets
     37       39  
 
    
 		      
 		  
Total assets
   $ 21,824     $ 22,579  
 
    
 		      
 		  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
CURRENT LIABILITIES
                
Accounts payable
   $ 473     $ 326  
Accrued expenses and other current liabilities
     3,884       4,438  
 
    
 		      
 		  
Total current liabilities
     4,357       4,764  
Other liabilities
     24       89  
 
    
 		      
 		  
Total liabilities
     4,381       4,853  
 
    
 		      
 		  
COMMITMENTS AND CONTINGENCIES
                
STOCKHOLDERS’ EQUITY
                
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at March 28, 2004 and December 28, 2003
     —       —  
Common stock of $.05 par value; 7,500,000 shares authorized, 3,334,842 and 3,308,929 shares issued and outstanding including shares held in treasury at March 28, 2004 and December 28, 2003, respectively
     167       165  
Additional paid-in capital
     5,174       5,018  
Retained earnings
     14,212       14,653  
Treasury stock at cost; 457,729 shares held at March 28, 2004 and December 28, 2003
     (2,110 )     (2,110 )
 
    
 		      
 		  
Total stockholders’ equity
     17,443       17,726  
 
    
 		      
 		  
Total liabilities and stockholders’ equity
   $ 21,824     $ 22,579  
 
    
 		      
 		  
     
SOURCE:
  Ablest Inc.
CONTACT:
  Vincent J. Lombardo, Vice President and Chief Financial Officer,
727-299-1200 or vlombardo@ablest.com/