TAMPA, Fla., Mar. 7 /PRNewswire/ -- Ablest Inc. today announced that revenue for the fifty-three week 2006 fiscal year increased 2.4 percent to $140.8 million from $137.5 million in the corresponding fifty-two week prior fiscal year. Operating income for the fiscal year 2006 was $2.4 million as compared to operating income of $3.1 million for the similar period last year, a decrease of 21.1 percent. For the fifty-three week fiscal year ended December 31, 2006, the company reported net income of $1.3 million or $0.45 per diluted share compared to net income of $536,000 or $0.18 per diluted share for the fifty-two week fiscal year ended December 25, 2005. In the fourth quarter of 2005, the company recorded a $1.2 million income tax adjustment relating to an Internal Revenue Service audit of its previously filed 2001 tax return.
Revenues for the fiscal fourth quarter ended December 31, 2006 decreased 7.95 percent to $35.9 million from revenue of $39.0 million in the fiscal fourth quarter of 2005. Operating income for the fiscal fourth quarter ended December 31, 2006 decreased 34.6 percent to $747,000 compared to $1.1 million in the corresponding quarter of 2005. Net income was $310,000 or $0.10 per diluted share, compared to a net loss of $669,000 or $0.23 per diluted share for the similar period last year.
Kurt R. Moore, president and chief executive officer, said, "Revenue was impacted by slowdowns in the homebuilding, furniture and consumer products markets. Net income reflected increased selling, general and administrative expenses from new commercial branch offices, and deployment of new front and back-office computer systems. Although the revenue trend experienced in the fourth quarter of 2006 is continuing in the first quarter of 2007, we are confident investments in new branches and technology will yield improved results as 2007 progresses."
With respect to the ongoing deliberations of the Special Committee of the Board of Directors formed on January 18, 2007, Richard W. Roberson, the Chairman of the Special Committee, said, "The Special Committee continues to evaluate the buyout proposal received from a group led by members of senior management, as well as other strategic alternatives for the company. The committee is also evaluating an indication of interest received from a potential third-party acquirer." Mr. Roberson stated, "The Special Committee currently does not intend to make any further public announcements regarding its review of possible strategic alternatives until its evaluation process has been completed," adding that, "no assurances can be given as to whether any particular strategic alternatives will be pursued or implemented."
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 35,000 field employees and consultants to approximately 2,000 businesses annually through 61 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 are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to negative developments with significant customers, new regulations, loss of key personnel or any significant economic downturn, as well other risks and uncertainties disclosed from time to time in the Company's periodic reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission.
ABLEST INC.
Condensed Statements of Operations
(Amounts in thousands except share and per share amounts)
(Unaudited)
Thirteen Fifty-Three Fifty-Two
Week Week Week
Periods Ended Period Ended Period Ended
Dec 31, Dec 25, Dec 31, Dec 25,
2006 2005 2006 2005
Net service revenues $ 35,888 $ 38,998 $ 140,764 $ 137,457
Cost of services 29,684 32,497 116,326 114,471
Gross profit 6,204 6,501 24,438 22,986
Selling, general and
administrative expenses 5,457 5,358 22,002 19,899
Operating income 747 1,143 2,436 3,087
Other:
Interest income
(expense), net 7 (7) 29 (7)
Miscellaneous, income
(expense), net 1 - 22 (2)
Other income (expense) 8 (7) 51 (9)
Income from continuing
operations before income
taxes 755 1,136 2,487 3,078
Income tax expense 445 1,805 1,148 2,542
Net income $ 310 $ (669) $ 1,339 $ 536
Basic net income
per common share $ 0.11 $ (0.23) $ 0.47 $ 0.19
Diluted net income
per common share $ 0.10 $ (0.23) $ 0.45 $ 0.18
Weighted average number
of common shares in
computing net income
per common share
Basic 2,873,134 2,863,133 2,877,546 2,861,097
Diluted 2,962,096 2,929,657 2,959,968 2,922,981
ABLEST INC.
Condensed Balance Sheets
(Amounts in thousands except share amounts)
(Unaudited)
December 31, December 25,
2006 2005
ASSETS
CURRENT ASSETS
Cash $ 3,040 $ 1,931
Accounts receivable, net 17,564 18,760
Prepaid expenses and other current assets 439 469
Current deferred tax asset 1,213 1,246
Total current assets 22,256 22,406
Property, plant and equipment, net 3,259 1,732
Deferred tax asset 702 863
Goodwill 1,283 1,283
Other assets 64 171
Total assets $ 27,564 $ 26,455
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 375 $ 790
Income taxes payable 296 51
Accrued insurance 2,965 2,536
Accrued wages 1,995 2,738
Other current liabilities 566 514
Total current liabilities 6,197 6,629
Other liabilities 261 432
Total liabilities 6,458 7,061
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock of $.05 par value; 500,000
shares authorized, none issued or outstand-
ing at December 31, 2006 and December 25, 2005 - -
Common stock of $.05 par value; 7,500,000
shares authorized, 3,385,153 and 3,346,877
shares issued and outstanding including
shares held in treasury at December 31, 2006
and December 25, 2005, respectively 169 167
Additional paid-in capital 5,636 5,265
Retained earnings 17,411 16,072
Treasury stock at cost; 457,729 shares held
at December 31, 2006 and December 25, 2005 (2,110) (2,110)
Total stockholders' equity 21,106 19,394
Total liabilities and stockholders' equity $ 27,564 $ 26,455
See accompanying Notes to Financial Statements