AIH Ablest

Ablest Reports Second Quarter And First Half Results CLEARWATER, Fla., Aug. 2 /PRNewswire/ -- Ablest Inc. (AMEX:AIH) today announced that fiscal second quarter 2004 revenues were $26.8 million, an increase of 10.6 percent compared to revenues of $24.3 million for the similar period in 2003. Net income was $230,000 or eight cents per basic and diluted share for the quarter compared with a net loss of $72,000 or three cents per basic and diluted share in the second quarter of 2003. Comparatively, last year's second quarter results were negatively impacted by a $600,000 increase in the company's reserves for workers' compensation claims. Revenues for the first six months of fiscal 2004 increased 10.7 percent to $52.6 million from $47.5 million in the corresponding period of the prior year. For the six months ended June 27, 2004, the company reported a net loss of $211,000 or seven cents per basic and diluted share compared to the first half of 2003 when the company reported a net loss of $141,000 or five cents per share. For the first six months of 2004, worker's compensation costs were 3.7 percent of revenues as compared to 3.6 percent in the first six months of 2003. Kurt R. Moore, president and chief executive officer, said, "Staffing requirements increased from most of our existing large client companies, including both light industrial and clerical customers. In addition, revenue from new clients contributed to our higher volume and expanded our client base." "Overall, the demand for staffing industry jobs increased further in the second quarter," Mr. Moore added. "We continue to capitalize on growth opportunities presented by the economic environment. We are successfully generating new accounts while supporting current customers with our service- oriented operating culture. During the second quarter, we also opened two locations in new markets." Mr. Moore said, "We continue to work closely on initiatives to manage workers' compensation and unemployment insurance costs. SG&A expenses for the quarter, at 15.9 percent of revenue, were flat on a percentage basis with the prior year. Our financial condition remains healthy with no debt." 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. ABLEST INC. Condensed Statements of Operations (Amounts in thousands except share and per share amounts) Thirteen Week Twenty-six Week Period Ended Period Ended June 27, June 29, June 27, June 29, 2004 2003 2004 2003 Net service revenues $26,827 $24,264 $52,597 $47,503 Cost of services 22,203 20,550 44,344 39,666 Gross profit 4,624 3,714 8,253 7,837 Selling, general and administrative expenses 4,258 3,830 8,595 8,075 Operating income (loss) 366 (116) (342) (238) Other: Interest income (expense), net -- (17) 2 (22) Miscellaneous, net 6 17 1 33 Other income (loss) 6 -- 3 11 Income (loss) before income taxes 372 (116) (339) (227) Income tax expense (benefit) 142 (44) (128) (86) Net income (loss) $230 $(72) $(211) $(141) Basic net income (loss) per common share $0.08 $(0.03) $(0.07) $(0.05) Diluted net income (loss) per common share $0.08 $(0.03) $(0.07) $(0.05) Weighted average number of common shares used in computing net income (loss) per common share Basic 2,840,443 2,868,381 2,838,197 2,864,845 Diluted 2,918,708 2,868,381 2,913,641 2,864,845 ABLEST INC. Condensed Balance Sheets (Amounts in thousands except share and per share amounts) June 27, December 28, 2004 2003 ASSETS (Unaudited) Current assets: Cash and cash equivalents $2,410 $1,614 Accounts receivable, net 12,621 13,778 Prepaid expenses and other current assets 344 213 Current deferred tax asset 1,239 1,085 Total current assets 16,614 16,690 Property, plant and equipment, net 616 647 Deferred tax asset 3,920 3,920 Goodwill, net 1,283 1,283 Other assets 38 39 Total assets $22,471 $22,579 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $479 $326 Accrued expenses and other current liabilities 4,273 4,438 Total current liabilities 4,752 4,764 Other liabilities 48 89 Total liabilities 4,800 4,853 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock of $.05 par value; 500,000 shares authorized, none issued or outstanding at June 27, 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 June 27, 2004 and December 28, 2003, respectively 167 165 Additional paid-in capital 5,172 5,018 Retained earnings 14,442 14,653 Treasury stock at cost; 457,729 shares held at June 27, 2004 and December 28, 2003 (2,110) (2,110) Total stockholders' equity 17,671 17,726 Total liabilities and stockholders' equity $22,471 $22,579 DATASOURCE: Ablest Inc. CONTACT: Vincent J. Lombardo, Vice President and Chief Financial Officer of Ablest, Inc., +1-727-299-1200 or

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