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Ablest: Reports First Quarter Earnings
New Headquarters also Opening This Week
CLEARWATER, Fla., May 9 Ablest Inc. (Amex: ABI - news), a
commercial staffing and information technology (IT) solutions provider,
today reported first quarter 2000 earnings of $.10 per share.
Ablest revenues increased $4.2 million, or 19.4 percent, to $25.9 million
in the first quarter of 2000 from $21.7 million during the same period the
year prior. The Corporation reported net earnings from continuing
operations of $75,000, or $.03 per share, in the first quarter of 2000
compared to a net loss of $9,000, or less than $0.1 per share, during the
first three months of 1999.
The Company reported first quarter 2000 net earnings of $275,000, or $.10
per share, including a gain of $200,000, or $.07 per share, from
discontinued operations.
``The Company's exclusive focus on its staffing operations is already
beginning to pay off for Ablest and its shareholders,'' Chairman Charles H.
Heist said. ``While first quarter earnings were modest, they are a
significant improvement over historic first quarter performance. The
Company now has the resources and financial structure to implement plans
for maintaining sustainable top- and bottom-line results for Ablest Inc.''
For example, Heist said the four new Ablest branches opened this year are
expected to be accretive to earnings by the end of 2000.
``By executing Ablest's strategic plan, our Vision, for winning and
retaining the business of outstanding customers, our associates are
building an even stronger business,'' Heist added. ``In particular, our
commercial staffing branches continued to perform exceptionally through the
first three months of the year.''
Revenues from Ablest's commercial staffing operations increased $6.1
million, or 39.1 percent, to $21.7 million in the first quarter of 2000
from $15.6 million during the same period the year prior. The 39.1 percent
commercial sales growth is attributed to the performance of seven Ablest
commercial staffing branches opened during 1999, greater market penetration
from existing offices, and the use of a 14-week quarter versus 13 weeks in
the first quarter of '99.
Revenues from Ablest's IT operations were $4.2 million in the first quarter
of 2000, compared to $6.1 million during the same period the year prior. IT
gross margins improved to $25.9 percent of sales in the first quarter of
2000 compared to 23.0 percent in the first three months of 1999. As part of
the residual affect of the Y2K phenomenon, which has temporarily dampened
industry-wide demand, Ablest will increasingly pursue IT revenue growth by
filling customers' need for e-commerce, Internet and Web technology
consultants.
``In response to demand for e-commerce professionals, we began dramatically
shifting our training, recruitment and retention programs early in 2000,''
Heist explained. ``In every successive quarter for the foreseeable future,
we expect these new-economy services to comprise a rapidly growing share of
Ablest IT revenue.
``To lead Ablest's IT business in the new, e-commerce driven economy, we
are actively searching for a new senior executive for this division,''
Heist said, noting that Ablest IT branches will report directly to
President Kurt R. Moore in the interim.
The Company's gross margin remained a healthy 22.7 percent of revenue in
the first quarter of both '99 and 2000.
Sales, general and administrative expenses remained at about 22 percent of
staffing services revenue for the first quarters of both 2000 and 1999.
Flat SG&A was achieved in spite of the first quarter costs for
consolidating three facilities into the new headquarters, expanding
corporate resources to accommodate the stand-alone Ablest Inc. and opening
four new branches.
This week, Ablest Inc. is moving to its new headquarters facility at 1901
Ulmerton Road, Suite 300, Clearwater, Florida 33762-2317. The relocation
within the Tampa-Bay area allows Ablest to consolidate all of its corporate
administration, training and support functions into a single,
state-of-the-art facility.
In March 2000, the Company completed its sale of the C.H. Heist industrial
maintenance businesses. Onyx Industrial Services, Inc. purchased
substantially all of the Company's U.S. and Canadian industrial operations,
as well as the ``C.H. Heist'' name, for $19.7 million in cash and
approximately $2.6 million in assumed liabilities. Proceeds from the sale
were used primarily to pay down long-term debt and provide working capital
for continuing operations.
Ablest's quick ratio was 2.3 to 1 on April 2, 2000 compared with 1.6 to 1
on December 26, 1999. At the end of first quarter 2000, the current ratio
was 2.8 to 1 compared to year-end 1999's 1.8 to 1. Net working capital also
improved by $3.1 million during the first three months of 2000.
Ablest Inc. provides its clients with commercial staffing and information
technology (IT) solutions, managed services and vendor-on-premise (VOP)
programs. Commercial staffing solutions -- including accounting, clerical,
administrative and light-industrial personnel -- are provided through
Ablest Staffing Services. IT staffing solutions - including computer
programming and networking consultants -- are provided through Ablest
Technology Services. Through 52 branches in the Eastern and Southwestern
United States, Ablest supplies more than 30,000 field employees and
consultants to more than 3,500 businesses annually.
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.
ABLEST INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited - in thousands except share and per share amounts)
OPERATING RESULTS:
Fourteen Week Thirteen Week
Period Ended Period Ended
April 2, 2000 March 28, 1999
Net Service Revenue $25,893 $21,682
Cost of Services 20,021 16,769
Gross Margin 5,872 4,913
Sales, General & Administrative Expenses 5,663 4,602
Amortization of Intangible Assets 92 181
Operating Income 117 130
Other income (expense):
Interest Expense, Net (106) (143)
Miscellaneous, Net 128 (3)
Total Other Income (Expense), Net 22 (146)
Income (Loss) Before Income Taxes from
Continuing Operations 139 (16)
Income Tax Expense (Benefit) 64 (7)
Net Earnings (Loss) from Continuing
Operations 75 (9)
Discontinued Operations
Loss from Discontinued Operations, Net of
Income Taxes -- (85)
Gain (Loss) on Sale of Discontinued Operations,
Net of Income Taxes 200 --
200 (85)
Net Earnings (Loss) 275 (94)
Basic and Diluted Net Earnings (Loss) Per Share
Continuing Operations .03 --
Loss From Discontinued Operations -- (.03)
Gain on Sale of Discontinued Operations .07 --
Basic Earnings (Loss) Per Share $0.10 $(.03)
Average Shares Outstanding 2,882,685 2,880,271
ABLEST INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited - in thousands except share and per share amounts)
April 2, December 26,
2000 1999
Assets:
Current Assets:
Cash and Cash Equivalents $1,255 $562
Receivables 11,492 13,492
Prepaid Expenses and Other 792 419
Deferred Income Taxes 1,957 1,100
Total Current Assets 15,496 15,573
Net Property, Plant and Equipment 1,880 2,213
Deferred Income Taxes 1,047 909
Intangible Assets, Net 4,789 4,880
Net Assets of Discontinued Operations 1,713 20,434
$24,925 $44,009
Liabilities and Stockholders' Equity:
Current Liabilities:
Accounts Payable $725 $1,468
Accrued Expenses 4,782 7,223
Total Current Liabilities 5,507 8,691
Long-Term Debt, Excluding Current Installments -- 15,950
Other Liabilities 453 756
Total Liabilities 5,960 25,397
Stockholders' Equity:
Common stock of $.05 par value. Authorized
8,000,000 shares; issued 3,178,092 and
3,167,092 shares for 2000 and 1999,
respectively 159 158
Additional Paid-In Capital 4,362 4,285
Retained Earnings 15,666 15,391
20,187 29,377
Less Cost of Common Stock in Treasury: 285,529
shares for 2000 and 1999,
respectively (1,222) (1,222)
Total Stockholders' Equity 18,965 18,612
$24,925 $44,009
For more information call:
Charles H. Heist
Chairman of the Board
727-299-1200
1901 Ulmerton Road, Suite 300
Clearwater, Florida 33762-2317
E-mail: trip_heist@ablest.com
End