EX-99.1 2 g07377exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 PRESS RELEASE
 

     
(ABLEST Logo)
  Exhibit 99.1
 
  1511 N. Westshore Blvd, Suite 900
 
  Tampa, Florida 33607
 
  (813) 830-7700
 
  www.ablest.com
 
   
FOR IMMEDIATE RELEASE
            SYMBOL: AIH
Monday May 14, 2007
            TRADED: AMEX
ABLEST INC. REPORTS FIRST QUARTER 2007 RESULTS
     TAMPA, Fla., May 14 — Ablest Inc. (Amex: AIH) today announced that revenue for the 13-week fiscal first quarter ended April 1, 2007, decreased 12.2 percent to $31.5 million from revenue of $35.9 million in the 14-week fiscal first quarter of 2006. Net loss for first quarter 2007 was $290,000 or $0.10 per diluted share compared to net income of $348,000 or $0.12 per diluted share for the first three months of 2006.
     Kurt R. Moore, president and chief executive officer, said, “The net loss for the quarter is attributable to both incremental professional fees expense approximating $626,000 relating to the Special Committee of the Board of Directors evaluation of buyout proposals and other strategic alternatives and continuing weakness in the homebuilding, furniture and consumer products markets. In addition, the first quarter of 2006 contained 14 weeks as compared with 13 weeks in 2007. Nonetheless, we expect business conditions to improve as 2007 progresses. Our new business pipelines are healthy and existing customers are indicating increasing demand for our services over the remainder of the year.”
About Ablest
     Ablest is a leader in workforce services; creating and delivering local solutions that enable companies to compete and win in an ever-changing business world. Services are provided through its Staffing Services and Professional Services Divisions. Staffing Services offers customers a range of employment services in the office and light industrial sectors including employee assessment and selection, training, managed services and vendor-on-premise (VOP) programs. Professional Services offers employment and consulting services in the Information Technology and Finance and Accounting sectors. Ablest’s Services focus on improving customer performance in the areas of quality, efficiency and cost-reduction within their workforce. Ablest supplies more than 35,000 field employees and consultants to approximately 2,000 businesses annually through 62 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. Management’s estimates and assumptions are based on historical experience and other factors believed to be reasonable under the circumstances. The following important factors, among others, could affect future results and events, causing those results and events to differ materially from those expressed or implied in our forward-looking statements: business conditions and competitive factors in our customers’ industries, our ability to successfully expand into new markets and offer new service lines, the availability of qualified personnel, the non-exclusive, short-term nature of our customers’ commitments, economic and political conditions and unemployment levels in the United States and other countries, increases in payroll related costs, including state unemployment insurance and workers compensation insurance, obsolescence or impairment of our information systems, our ability to successfully invest in and implement information systems, the cost of and our ability to comply with Section 404 of the Sarbanes-Oxley Act of 2002, liabilities under our self-insurance program, and other factors that we may not have currently identified or quantified. In addition, 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 INC. REPORTS FIRST QUARTER 2007 RESULTS
ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)
                 
    For the Thirteen Week     For the Fourteen Week  
    Period Ended     Period Ended  
    April 1, 2007     April 2, 2006  
 
           
 
               
Net service revenues
  $ 31,473     $ 35,864  
Cost of services
    25,790       29,753  
 
           
 
               
Gross profit
    5,683       6,111  
 
               
Selling, general and administrative expenses
    6,300       5,551  
 
           
 
               
Operating (loss) income
    (617 )     560  
 
           
 
               
Other:
               
Interest income (expense), net
           
Miscellaneous income (expense), net
    4       1  
Other income (expense)
    4       1  
 
           
 
               
(Loss) income before income taxes
    (613 )     561  
 
               
Income tax (benefit) expense
    (323 )     213  
 
           
Net (loss) income
  $ (290 )   $ 348  
 
           
 
               
Basic net (loss) income per common share
  $ (0.10 )   $ 0.12  
 
           
 
               
Diluted net (loss) income per common share
  $ (0.10 )   $ 0.12  
 
           
 
               
Weighted average number of common shares used in computing net income per common share
               
Basic
    2,916,112       2,879,764  
 
           
Diluted
    2,958,890       2,935,050  
 
           
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PAGE 3 / ABLEST INC. REPORTS FIRST QUARTER 2007 RESULTS
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share and per share amounts)
                 
    April 1, 2007     December 31, 2006  
 
               
ASSETS
               
CURRENT ASSETS
               
Cash and cash equivalents
  $ 4,350     $ 3,040  
Accounts receivable, net
    14,605       17,564  
Prepaid expenses and other current assets
    476       439  
Current deferred tax asset
    1,504       1,323  
 
           
Total current assets
    20,935       22,366  
 
               
Property and equipment, net
    3,330       3,259  
Deferred tax asset
    871       592  
Goodwill
    1,283       1,283  
Other assets
    65       64  
 
           
 
               
Total assets
  $ 26,484     $ 27,564  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
CURRENT LIABILITIES
               
Accounts payable
  $ 408     $ 375  
Income taxes payable
          296  
Accrued insurance
    1,923       2,965  
Accrued wages
    2,463       1,995  
Other current liabilities
    659       566  
 
           
Total current liabilities
    5,453       6,197  
 
               
Other liabilities
    262       261  
 
           
 
               
Total liabilities
    5,715       6,458  
 
           
 
               
COMMITMENTS AND CONTINGENCIES
               
 
               
STOCKHOLDERS’ EQUITY
               
Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at April 1, 2007 and December 31, 2006
           
Common stock of $.05 par value; 7,500,000 shares authorized, 3,382,833 and 3,385,153 shares issued and outstanding including shares held in treasury at April 1, 2007 and December 31, 2006, respectively
    169       169  
Additional paid-in capital
    5,589       5,636  
Retained earnings
    17,121       17,411  
Treasury stock at cost; 457,729 shares held at April 1, 2007 and December 31, 2006
    (2,110 )     (2,110 )
 
           
 
               
Total stockholders’ equity
    20,769       21,106  
 
           
 
               
Total liabilities and stockholders’ equity
  $ 26,484     $ 27,564  
 
           
#####
     
SOURCE:
  Ablest Inc.
CONTACT:
  John Horan, Vice President and Chief Financial Officer
 
  813/830-7700 or jhoran@ablest.com/