BELIZE CITY, Belize, Jan. 30 /PRNewswire-FirstCall/ --
Carlisle Holdings Limited (Nasdaq: CLHL; London: CLH) reported revenue of
$303.2m (2001 -- $315.3m) and net income (before non-recurring items) of
$9.0m (2001 -- $7.5m) for the quarter ended December 31, 2002, the third
quarter of fiscal 2003. Earnings per share (before non-recurring items) for
the quarter ended December 31, 2002 was $0.15 (2001 -- $0.13).
For the nine months ended December 31, 2002, revenue was $903.3m
(2001 -- $951.1m) and net income (before non-recurring items) was $26.7m
(2001 -- $22.4m). Earnings per share (before non-recurring items) for the
nine months ended December 31, 2002 was $0.45 (2001 -- $0.38).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:
"Evidence of ongoing progress in the U.S. facilities services business is
encouraging and OneSource performed in line with expectations during the third
quarter. Management's conservative approach and attention to cost controls and
customer retention is paying off. We are providing quality facility services
to new and existing customers at competitive rates and, at the same time,
improving margins. We expect the full effect of these management initiatives
will be reflected in future quarters."
"In the UK, Facilities Services achieved improved profitability in the
third quarter, reflecting the benefits of the integrated overhead structure.
Revenue growth continues to be a challenge in both Facilities Services and
Staffing Services. In a climate of reduced market demand, our Staffing
Services business benefits from having the scale necessary to serve a diverse
range of clients, a consistent income stream from supplying temporary workers
and continued growth in managed human resources services."
"Now that the structural improvements at both OneSource and our UK
businesses are substantially underway, we believe all businesses are well
positioned to benefit when market conditions improve."
Third Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $231.8m for the
quarter ended December 31, 2002 (2001 -- $244.0m). The operating income for
the quarter ended December 31, 2002 amounted to $1.3m (2001 -- $0.3m loss).
Facilities Services United States
OneSource performed in line with expectations for the third quarter.
Prudent management of existing core businesses and careful expansion of its
customer base have positioned OneSource well in a competitive environment.
Labor cost management, customer retention, receivables management and overhead
cost reduction remain top priorities.
Third quarter new janitorial contracts were strong, with the addition of
thirty-eight new strategic accounts, including Boston Scientific in Miami and
a major janitorial services award at the Tom Bradley Terminal at Los Angeles
International Airport. Recent contract renewals at the Charlotte Douglas
Airport in Charlotte, North Carolina and the Raleigh Durham Airport validate
OneSource's inroads into the market for facilities maintenance at aviation
facilities. In addition to aviation, the sales and marketing team is
concentrating new business efforts in key geographic areas and selective
sectors.
OneSource continues to renew contracts with major customers in extremely
competitive re-bid situations despite some volume reductions in the
economically sensitive technology and hospitality sectors, primarily in
California and Florida. However, recent opportunities in these market sectors
may signal the beginning of an upturn.
Market price volatility and margin compression continue to impact the
industry; nonetheless, there are early indications of improvement in
OneSource's gross margin as new labor cost management processes are introduced
at key locations. Back office process improvements are expected to generate
additional savings beginning in the fourth quarter while data communications
improvements are progressing in tandem with other management information
system enhancements.
Facilities Services United Kingdom
Third quarter revenue in the UK and Ireland was down from the prior year
and last quarter. However, operating income improved compared to the prior
year and previous quarters. Security services has begun to return to
profitability to match the stable contribution of cleaning services and the
ongoing growth in retail merchandising and support services. The benefits of
the integrated overhead structure will be more fully realized when organic
growth resumes. An early encouraging sign was the addition of Midland
Mainline to the already strong list of train operating companies in the
customer base.
The business now has a better defined set of services and markets and is
well positioned to take advantage of combined outsourced service opportunities
while continuing to develop its specific markets in cleaning, security and
retail support services.
Staffing Services
Carlisle Staffing Services reported revenue of $56.9m for the quarter
ended December 31, 2002 (2001 -- $57.1m), and a busier Autumn term in
education services helped balance declines in other parts of the business.
Operating income for the quarter ended December 31, 2002 was $2.4m
(2001 -- $3.1m) and was broadly unchanged compared to the last quarter. It is
difficult to grow revenue in a market with reducing demand but the income
stream from our broad base of contract and temporary workers remains
consistent. Our managed human resource services business continues to develop
and our Celsian business acquired a small healthcare staffing business based
in Manchester which complements our existing education and care businesses in
that region. The outlook remains challenging but Carlisle has the benefit of
being one of the larger sector players with the resources and range of
services to meet customer needs.
Financial Services
Financial Services reported a good performance for the quarter ended
December 31, 2002. Operating income increased by 11% to $7.1 m (2001 --
$6.4m). In the nine-month period, operating income increased by 20% to
$20.5m (2001 -- $17.1m). The results reflect an 18% increase in net interest
income, driven by a 24% increase in the average loan portfolio of the Belize
Bank.
Belize Telecommunications
Belize Telecommunications Limited ("BTL") ended 2002 with the commercial
launch of a new nationwide GSM cellular telephone system, although the
December 14 launch was too late in the third quarter to have any impact on
results. Revenue for the quarter ended December 31, 2002 amounted to
$14.5m (2001 -- $14.2m). The impact of increased traffic volumes offset the
negative effects of tariff rebalancing. SG&A costs increased reflecting higher
legal and other costs incurred in preparation for the new regulatory framework
and increased depreciation expense associated with the replacement of the
existing cellular network. As a result, operating income declined in the
quarter ended December 31, 2002, to $4.7m (2001 -- $6.0m). The Company's
52% share of net income after taxes and minority interest amounted to
$1.2m (2001 -- $1.9m).
BTL's monopolistic telecommunications license expired on
December 29, 2002, and effective December 30, BTL was awarded one of only two
full service telecommunications licenses that will be issued in Belize. The
main competitor is not expected to begin service until March 2003, at the
earliest.
Associates
The income from associates in the quarter ended December 31, 2002, arises
from the investment in NUMAR and amounted to $0.8m (2001 -- $0.8m). The
business has benefited from some improvement in the market price of edible
oils but this has to an extent been offset by increased competition in certain
markets.
Background Information
Through its OneSource brand, Carlisle Group is a leader in the outsourced
facilities services sector in the US 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 UK and Ireland, Carlisle Group is also a leading
provider of business services. The Group operates in the facilities services
sector through LI Group, Capitol Security Services, Retail Support Services
and Events Management. 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 Services and
the developing Human Resources Services market. This business has over
70 locations with a weekly temporary/contractor base of circa 7,000 workers
employed across more than 2,700 clients. The Company also has interests in
Financial Services and Telecommunication Services businesses.
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)
US dollars in millions except per share data
3 months 3 months 9 months 9 months
ended ended ended ended
December December December December
31, 31, 31, 31,
2002 2001 2002 2001
Net sales
Facilities Services 231.8 244.0 693.9 745.2
Staffing Services 56.9 57.1 167.1 162.7
Telecommunication Services 14.5 14.2 42.3 43.2
Total net sales 303.2 315.3 903.3 951.1
Operating income
Facilities Services 1.3 (0.3) 1.8 0.3
Staffing Services 2.4 3.1 7.8 8.9
Financial Services 7.1 6.4 20.5 17.1
Telecommunication Services 4.7 6.0 15.8 19.7
Corporate overheads (1.6) (1.8) (5.0) (5.2)
Operating income 13.9 13.4 40.9 40.8
Associates 0.8 0.8 4.0 2.7
Net interest expense (1.6) (1.8) (5.1) (4.9)
Income before income taxes 13.1 12.4 39.8 38.6
Income taxes (2.6) (2.8) (7.8) (9.7)
Income after income taxes 10.5 9.6 32.0 28.9
Minority interests (1.5) (2.1) (5.3) (6.5)
Net income 9.0 7.5 26.7 22.4
Earnings per ordinary share:
Diluted $0.15 $0.13 $0.45 $0.38
Number of shares - diluted 59.3m 59.0m 59.2m 58.9m
The results for the three months and the nine months ended December 31,
2002 are stated before non-recurring items of $0.1m net income and $0.4m net
charges, respectively (2001 - $0.8m and $1.3m net charges respectively).
Non-recurring items principally comprise employee severance payments in the
Facilities Services division less other gains on asset disposals. Net income
for the three months and the nine months ended December 31, 2002, after these
items, amounted to $9.1m and $26.3m, respectively (2001 - $6.7m and $21.1m,
respectively) and earnings per share was $0.15 and $0.44, respectively
(2001 - $0.11 and $0.36, respectively).
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, +1-561-368-3899; or Makinson
Cowell, +1-212-994-9044, for Carlisle Group
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