28th Jan 2005 16:30
Carlisle Holdings Ltd28 January 2005 Press Release Carlisle Holdings Limited CARLISLE HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2004 Belize City, Belize, January 28, 2005 -- Carlisle Holdings Limited (NASDAQ:CLHL, London: CLH) reported revenue of $353.2m (2003 -- $315.7m) and income fromcontinuing operations of $10.9m (2003 -- $8.1m) for the quarter ended December31, 2004, the third quarter of fiscal 2005. Earnings per share from continuingoperations for the quarter ended December 31, 2004 was $0.18 (2003 -- $0.13). For the nine months ended December 31, 2004, revenue was $1,034.7m (2003 --$898.4m) and income from continuing operations was $31.4m (2003 -- $24.8m).Earnings per share from continuing operations for the nine months ended December31, 2004 was $0.52 (2003 -- $0.42). Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said: "OneSource had a successful quarter with both good customer retention and newbusiness development contributing to revenue gains. Management is meeting thechallenge of improving business performance and productivity and remains firmlyfocused on providing high-quality and cost-effective solutions to our clients. "UK Facilities Services benefited from strong seasonal demand for retailmerchandising services which showed growth from both established DIY retailcustomers as well as relationships we are developing with food and consumerretailers. Our focus on customer retention is paying off with good success incontract renewals and extensions in cleaning and related services. "The pressure of reduced permanent staffing needs in several of our sectors werefelt during the holiday period but opportunities in the technology and telecomssectors continue to be encouraging. The integration of Carlisle Staffing andProfessional Staff is well underway and this will provide us with a solidplatform for growth. Improving productivity at the combined operation is a toppriority." Third Quarter Operational Review Facilities Services The Facilities Services division reported operating income for the quarter endedDecember 31, 2004 of $4.0m (2003 -- $1.7m) on revenues of $240.8m (2003 --$226.3m). Operating income for the nine months ended December 31, 2004 amountedto $8.7m (2003 -- $5.2m) on revenues of $711.5m (2003 -- $675.2m). OneSource met earnings expectations for the third quarter. Solid customerretention remains a significant contributing factor to a strong revenue run ratewhich has been bolstered by modest improvements in commercial real estate marketconditions. OneSource successfully renewed targeted accounts during the thirdquarter and added over thirty new contracts as a result of business developmentefforts. In addition to growth objectives, management continues to pursue ongoingimprovements in strategic efficiency initiatives. OneSource's goal is toprovide total cost management solutions to its client base. As a result,significant investments have been made over the past several quarters intechnology as well as back office processes and procedures, allowing OneSourceto continue to translate internal efficiencies into a more competitive coststructure for the marketplace. UK Facilities Services achieved good year on year revenue growth, driven bygrowth in cleaning and related services together with the usual higher seasonalvolumes in the retail merchandising operations during the quarter. Some key newbusiness, including existing contract renewals and extensions and some newbusiness in the transport sector, was achieved during the quarter. The securitysector continues to experience margin pressure, in part due to increased costsresulting from the impact of new licensing regulations. Management remainsfocused on cost control and customer retention in the markets for both cleaningservices and security services. Staffing Services Carlisle Staffing Services reported revenue of $112.4m (2003 -- $89.4m) for thequarter ended December 31, 2004. Operating income for the quarter ended December31, 2004 amounted to $0.7m (2003 -- $0.7m). Operating income for the nine monthsended December 31, 2004 was $3.6m (2003 -- $2.0m) on revenues of $323.2m (2003-- $223.2m). Revenue in the current nine month period was impacted by a fullnine month contribution from Professional Staff compared with only a six monthcontribution in the prior year (see notes to consolidated statements of income). The Staffing business is well positioned across a broad range of markets whichled to both year on year and quarter on quarter growth in revenue during thethird quarter. The technology and telecoms sectors continue to show promisinggrowth. However, the level of activity in the UK Office sector in permanent placementwas reduced in the run-up to Christmas and temporary and contract volumes werelower than anticipated, particularly in the Office and Industrial sectors.Third quarter income was affected by contractors taking seasonal vacation. Thishad a negative impact on gross profit with a number of sectors seeing fewer thananticipated revenue hours worked over the holiday period. Progress continues on integrating the staffing businesses as Carlisle Staffingand Professional Staff are merged into a single operation. A new managementstructure was implemented on January 1, 2005, and the integration is expected toaccelerate during the fourth quarter. Financial Services Financial Services reported a strong performance for the quarter ended December31, 2004. Operating income for the quarter amounted to $7.7m (2003 -- $7.3m). Inthe nine-month period, operating income increased by 4.2 percent to $22.4m (2003-- $21.5m). The results reflect a 4.5 percent increase in net interest incomedriven by an 18 percent increase in the average loan portfolio offset by reducedmargins. Background Information Through its OneSource brand, Carlisle Group is a leader in the outsourcedfacilities services sector in the US and provides janitorial, landscaping,general repair and maintenance and other specialized services for more than10,000 commercial, institutional and industrial accounts. In the UK andIreland, Carlisle Group is also a leading provider of business services.Carlisle Facilities Services is a national provider for a broad range ofpeople-dominated facilities services (specializing in the industry sectors ofRetail, Transport and Public Sector). Carlisle Staffing Services continues todevelop a significant position in the staffing services sector with a presencein the markets for Professional Services, Office and Industrial, PublicServices, Scientific and Telecoms/Technology and the developing Human ResourcesServices market. This business has over 80 locations with a weekly temporary/contractor base of over 9,000 workers employed across more than 5,000 clients.The Company also has interests in Financial Services. Forward Looking Statements Certain statements in this press release constitute "forward looking statements"within the meaning of the Private Securities Litigation Reform Act of 1995. Inparticular, statements contained herein regarding the consummation and benefitsof future acquisitions, as well as expectations with respect to future revenues,operating efficiencies, net income and business expansion, are subject to knownand unknown risks, uncertainties and contingencies, many of which are beyond thecontrol of Carlisle, which may cause actual results, performance or achievementsto differ materially from anticipated results, performance or achievements.Factors that might affect such forward looking statements include among others,overall economic and business conditions, the demand for Carlisle's services,competitive factors, regulatory approvals and the uncertainty of consummation offuture acquisitions. Additional factors which may affect Carlisle's businessesand performance are set forth in filings by Carlisle Holdings Limited with theUnited States Securities and Exchange Commission. For further information contact: Carlisle Group Makinson Cowell770-308-5566 212-994-9044 Note: This and other press releases are available at the Company's web site:http://www.carlisleholdings.com. Carlisle Holdings LimitedFinancial InformationSummarized Consolidated Statements of Income (unaudited)US dollars in millions except per share data 3 months ended 3 months ended 9 months ended 9 months ended December 31, December 31, December 31, December 31, 2004 2003 2004 2003Net salesFacilities Services 240.8 226.3 711.5 675.2Staffing Services 112.4 89.4 323.2 223.2 Total net sales 353.2 315.7 1,034.7 898.4 Operating incomeFacilities Services 4.0 1.7 8.7 5.2Staffing Services 0.7 0.7 3.6 2.0Financial Services 7.7 7.3 22.4 21.5Corporate overheads (1.2) (1.1) (3.5) (3.3) Total operating income 11.2 8.6 31.2 25.4 Associates 1.1 0.9 3.6 3.1Net interest expense (0.5) (1.0) (1.3) (2.9) Income before income taxes 11.8 8.5 33.5 25.6Income taxes (0.3) (0.3) (0.7) (0.5) Income after income taxes 11.5 8.2 32.8 25.1Minority interests (0.6) (0.1) (1.4) (0.3) Income from continuing operations 10.9 8.1 31.4 24.8Income from discontinued operations - 1.6 - 4.4 Net income 10.9 9.7 31.4 29.2 Earnings per ordinary share: Basic and fully dilutedContinuing operations $0.18 $0.13 $0.52 $0.42Discontinued operations - $0.03 - $0.07Net Income $0.18 $0.16 $0.52 $0.49 Number of shares - basic 60.4m 60.1m 60.4m 59.8mNumber of shares - diluted 61.0m 60.6m 60.9m 60.2m Notes: In April 2004, the Company acquired the entire issued share capital of OhseaHoldings Limited ("Ohsea"). Ohsea is a holding company, incorporated in theUnited Kingdom, whose principle asset is its wholly owned investment inProfessional Staff Limited ("Professional Staff"), a company incorporated in theUnited Kingdom, which was acquired by Ohsea in July 2003. Professional Staff andits subsidiaries are a staffing services group based mainly in the UnitedKingdom and the United States, providing temporary and permanent staffrecruitment services principally to the Scientific and Telecoms/Technologymarkets. The acquisition of Ohsea has been accounted for using the "as-if" pooling ofinterests method of accounting due to the existence of a common controllingshareholder in both the Company and Ohsea. This method of pooling of interestsrequires that the consolidated financial statements of Ohsea are pooled withthose of the Company for all accounting periods reported, with a minorityinterest elimination for all periods where a non-controlling minority interestexisted in the share capital of Ohsea. Ohsea acquired Professional Staffeffective July 1, 2003 and consequently the consolidated statements of income ofthe Company include 100 percent of the results of Ohsea (together with anelimination of the appropriate minority interest) for the nine month periodended December 31, 2004 and for the six month period ended December 31, 2003. - Ends - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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