BELIZE CITY, Belize, Jan. 29 /PRNewswire/ --
Carlisle Holdings Limited (Nasdaq: CLHL; London: CLH), a leader in outsourced
facilities services and staffing services, reported revenue of
$312.9m (1999 -- $288.1m) and net income (before non-recurring items) of
$11.6m (1999 -- $15.7m) for the quarter ended December 31, 2000, the third
quarter of fiscal 2001. Net income for the current quarter was adversely
affected by a shortfall in the contribution from OneSource, principally due to
write-offs of receivables following a billing system upgrade and the related
administrative costs. Diluted earnings per share (before non-recurring items)
for the quarter ended December 31, 2000 was $0.20 (1999 -- $0.25).
For the nine months ended December 31, 2000, revenue amounted to
$926.5m (1999 -- $846.9m) and net income (before non-recurring items) amounted
to $39.2m (1999 -- $43.9m). Diluted earnings per share (before non-recurring
items) for the nine months ended December 31, 2000 was $0.66 (1999 -- $0.68).
Commenting on the results, CEO Ian R. Pluthero said:
"The results at OneSource are obviously very disappointing. Significant
resources were focused on new systems implementation and addressing some
billing problems which arose following upgrades to our computer software.
This process has incurred more management time and costs than anticipated
and has in turn highlighted some unexpected receivable write-offs."
"Competition in our core Facilities Services markets remains strong with
increasing pressure on margins and achieving organic growth is proving
difficult. Our attention continues to be focused on customer retention and
we must now further reduce the overhead cost base in order to protect our
future profit levels. In time the new systems should help us do that."
"Staffing Services and Financial Services both had another strong
quarter."
"Overall, trading conditions in the current quarter remain challenging
although we anticipate some improvement in earnings in the fourth
quarter."
Third Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $254.8m for the three
months ended December 31, 2000 (1999 -- $245.9m), an increase of 3.6% over the
same period last year. Operating income for the quarter declined to
$4.9m (1999 - $8.3m) due to a profit shortfall at OneSource caused by
unexpected charges arising from the installation of a new billing system.
During the quarter, OneSource allocated further resources to accelerating
the recovery of a cash collection shortfall and to finalizing the
implementation of new administrative systems. The effect of these additional
costs together with an unexpected increase in receivable write-offs adversely
affected results for the quarter.
Overall, trading at OneSource was affected by the loss of three large
contracts at the end of the second quarter and pressure on margins which is
expected to continue. New business starts in the quarter were offset by
contract losses and therefore organic growth remains flat.
Facilities Services in the U.K. had another good quarter with strong year
on year sales growth, principally from new business in the retail, transport
and distribution sectors, and continued effective cost control. The outlook
for the fourth quarter is positive.
In manned guarding, where year on year sales are flat, there is increasing
pressure on sales revenue and margins due to the cost cutting initiatives of
customers and to wage pressure in a low unemployment market. Seasonal guarding
business over the December holiday period was below expectations due to
customer budget cutbacks. However, in what is traditionally a quiet quarter, a
number of new contracts were won with several well-known names coming on
stream.
Staffing Services
The Staffing Services division, operating in the U.K and Ireland, reported
a successful quarter with revenue of $58.1m (1999 -- $42.2m) for the three
months ended December 31, 2000. Operating income for the three months ended
December 31, 2000 was $3.1m (1999 -- $2.1m). The increase reflects continued
strong organic growth together with the benefits from acquisitions. Pressure
on gross margins has been offset by cost savings achieved as the division
continues to consolidate its businesses into clearly defined markets.
Financial Services
Financial Services contributed another strong performance. In the
nine-month period, income increased by $1.8m to $12.6m; the results reflect a
$0.8m increase in net interest income, driven by an increase in the average
loan portfolio of the Belize Bank and a reduction in other non-interest
expenses.
Associates
The income from associates arises from the investments in NUMAR and Belize
Telecommunications. The decline to $2.4m in the third quarter compared to
$3.0m last year is principally due to the anticipated fall in the calendar
2000 income from the investment in NUMAR, which is currently suffering the
effects of the depressed world market for edible oils.
Background Information
Through its OneSource brand, Carlisle Group is a leader in the outsourced
facilities services sector in the U.S. and provides janitorial, landscaping,
commercial interior painting services, general repair and maintenance and
other specialized services for more than 11,000 commercial, institutional and
industrial accounts. In the U.K. Carlisle Group is also a leading provider of
outsourced facilities services, through the LI Group and Capitol Security
Services. Carlisle Staffing Services continues to develop a significant
position in the staffing services sector with a presence in the markets for
Professional Services, Office and Industrial, Public Sector and the developing
HR Services market. The business has over 70 locations with a weekly
temporary/contractor base of circa 9,000 workers employed across more than
4,000 clients.
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. In particular, statements contained herein regarding the
consummation and benefits of future acquisitions, as well as expectations with
respect to future revenues, operating efficiencies, net income and business
expansion, are subject to known and unknown risks, uncertainties and
contingencies, many of which are beyond the control of Carlisle, which may
cause actual results, performance or achievements to 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 of future
acquisitions. Additional factors which may affect Carlisle's businesses and
performance are set forth in filings by Carlisle Holdings Limited with the
United States Securities and Exchange Commission.
Note: This and other press releases are available at the company's web
site: http://www.carlisleholdings.com.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Statements of Income (unaudited)
U.S. dollars in millions except per share data
3 months 3 months 9 months 9 months
ended ended ended ended
December 31, December 31, December 31, December 31,
2000 1999 2000 1999
Net sales 312.9 288.1 926.5 846.9
Operating income 12.2 14.3 41.4 39.3
Associates 2.4 3.0 6.8 9.7
Net interest expense (1.6) (0.1) (4.5) (0.7)
Income before income
taxes 13.0 17.2 43.7 48.3
Income taxes (1.2) (1.2) (3.9) (3.7)
Income after income
taxes 11.8 16.0 39.8 44.6
Minority interests (0.2) (0.3) (0.6) (0.7)
Net income 11.6 15.7 39.2 43.9
Earnings per ordinary share:
Basic $0.20 $0.27 $0.66 $0.74
Diluted $0.20 $0.25 $0.66 $0.68
Number of shares -
diluted 59.2m 63.4m 59.8m 64.8m
The results for the three months ended December 31, 2000 are stated before
non-recurring net charges of $0.1m. The results for the nine months ended
December 31, 2000 are stated before non-recurring net gains of $0.8m.
The results for the three months ended December 31, 1999 are stated before
non-recurring net gains of $0.8m and the results for the nine months ended
December 31, 1999 are stated before non-recurring net charges of $0.1m.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Balance Sheets (unaudited)
U.S. dollars in millions
December 31, March 31,
2000 2000
Assets
Services Businesses
Current assets:
Cash and cash equivalents 17.9 25.3
Other current assets 228.3 181.0
Total current assets 246.2 206.3
Property, plant and equipment 35.6 32.5
Associates and other assets 90.2 98.3
Goodwill and other intangibles 328.3 318.7
Total Services Businesses assets 700.3 655.8
Financial Services net assets 27.9 26.1
Total assets 728.2 681.9
Liabilities and shareholders' equity
Services Businesses
Current liabilities:
Short-term debt 38.8 32.9
Other current liabilities 118.2 126.3
Total current liabilities 157.0 159.2
Long-term debt 60.4 19.0
Other long-term liabilities 75.7 81.5
Total Services Businesses liabilities 293.1 259.7
Total shareholders' equity 435.1 422.2
Total liabilities and shareholders' equity 728.2 681.9
Carlisle Holdings Limited
Financial Information
Segmental Analysis (unaudited)
U.S. dollars in millions
3 months 3 months 9 months 9 months
ended ended ended ended
December 31, December 31, December 31, December 31,
2000 1999 2000 1999
Sales
Facilities Services 254.8 245.9 763.3 728.7
Staffing Services 58.1 42.2 163.2 118.2
Total sales 312.9 288.1 926.5 846.9
Operating income
Facilities Services 4.9 8.3 20.7 23.1
Staffing Services 3.1 2.1 8.1 5.4
Financial Services 4.2 3.9 12.6 10.8
Total operating income 12.2 14.3 41.4 39.3
Note:
The financial information has been prepared in U.S. dollars (the Company's
reporting and functional currency) in accordance with generally accepted
accounting principles in the U.S.
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, 561-368-3899; or Makinson
Cowell, 212-896-3814
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