BELIZE CITY, Belize, Jan. 31 /PRNewswire-FirstCall/ --
Carlisle Holdings Limited (Nasdaq: CLHL, London: CLH) reported revenue of
$315.3m (2000 -- $312.9m) and net income (before non-recurring items) of
$7.5m (2000 -- $11.6m) for the quarter ended December 31, 2001, the third
quarter of fiscal 2002. Earnings per share (before non-recurring items) for
the quarter ended December 31, 2001 was $0.13 (2000 -- $0.20).
For the nine months ended December 31, 2001, revenue was
$951.1m (2000 -- $926.5m) and net income (before non-recurring items) was
$22.4m (2000 -- $39.2m). Earnings per share (before non-recurring items) for
the nine months ended December 31, 2001 was $0.38 (2000 -- $0.66).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:
"The results for the current quarter continue to be affected by OneSource
which reported an operating loss of $1.7m compared with a loss of $3.5m in the
second quarter. The October cuts in SG & A have lowered overhead levels and
produced a more efficient corporate structure."
"Overall, the UK businesses produced a satisfactory result for the quarter
in the context of a slowing economy where the adverse economic climate has had
some negative effect. Disciplined cost control remains a priority at both
operations."
"Financial Services produced an exceptionally good result and
Telecommunications contributed another solid quarter."
Third Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $239.7m for the
quarter ended December 31, 2001 (2000 -- $254.8m). The operating loss before
goodwill amortization for the quarter ended December 31, 2001 amounted to
$0.5m (2000 -- income of $7.5m), principally due to the OneSource performance.
At OneSource, in our principal janitorial area of commercial real estate
cleaning, price competition and labor cost pressures continue to depress gross
margins. Although further progress has been made in rectifying loss-making
districts, the overall performance at the gross margin level has improved only
slightly. Workers compensation self-insurance costs are also trending
slightly upwards, which could negate some of this improvement as we move
forward. Management is tightly focused on maintaining and improving the gross
margins at job level where possible. The October cuts in personnel at
divisional corporate headquarters and in the field reduced SG & A levels and
consequently the operating loss in the quarter was reduced to $1.7m from a
level of $3.5m in the second quarter. Certain administration costs will
increase as the company implements improvements in its IT and data
communications infrastructure and the management information systems which
support operations. Over time, these improvements should help to improve the
performance at OneSource. Since September, cash collections have recovered to
normal levels and the exercise to collect the pre-March 2001 receivables will
be substantially completed by the end of this fiscal year.
New business added during the quarter included a contract for provision of
full facilities maintenance for Tuskegee University in Alabama and one for
janitorial services at the University at Buffalo in New York. OneSource also
won significant landscape contracts with The Villages, a residential
development north of Orlando and Marriott's Cypress Harbor Resort in Orlando,
as well as a painting contract for The Borgata Hotel and Casino, scheduled to
open in the summer of 2003 in Atlantic City.
In the UK, third quarter revenues in cleaning and support services
declined slightly from the previous year. However, several new contracts were
won in the retail and distribution sectors. While sales are likely to remain
relatively flat in the near term, operating income is expected to remain on
plan, reflecting stringent cost controls. In manned guarding, revenues in the
third quarter declined by approximately $2.0m due to a number of contract
losses and a small operating loss was posted. Higher minimum wage regulations
and increased training requirements have kept the cost base too high; it has
been difficult to pass these increased costs on to customers in the current
environment and we continue to review the business structure to maximize the
efficiency of our operations. A significant new contract was won with the
London Underground and the new business pipeline is healthy.
Staffing Services
The Staffing Services division increased revenues by approximately 6% to
$61.4m (2000 -- $58.1m) for the quarter ended December 31, 2001. However,
operating income before goodwill amortization for the quarter ended
December 31, 2001 continued to be impacted by the deterioration in permanent
hiring and declined to $3.3m (2000 -- $3.9m). In addition, the quarter was
negatively affected by loss of business from the collapse of Enron, which
caused an additional bad debt expense of $0.4m to be incurred.
In spite of difficult market conditions, the business completed the
acquisition of CPG in November, a London based business providing temporary
and permanent staff placement services to blue chip clients. CPG strengthens
our London market position and adds to the group's outsourced HR Services
capabilities.
External conditions are expected to remain difficult going forward but we
have successfully reduced overheads a further 2% in the third quarter. In
addition, the protection provided by our significant public services presence
and the bias towards contract and temporary workers should continue to help
performance.
Financial Services
Financial Services reported another strong performance with operating
income of $6.4m (2000 -- $4.7m) in the quarter. In the nine-month period,
operating income increased by 21% to $17.1m (2000 -- $14.1m). The results
reflect a 29% increase in net interest income, driven by a 22% increase in the
average loan portfolio of the Belize Bank, offset by a small increase in
non-interest expenses.
Belize Telecommunications
Belize Telecommunications Limited ("BTL"), which is now consolidated as a
subsidiary, provided another solid quarter in operating income, the Company's
52% share amounting to $2.0m. Increasing demand for cellular, Internet and
data services is expected to continue to drive revenue growth.
Associates
The income from associates in the quarter ended December 31, 2001, arises
from the investment in NUMAR. The decline in the quarter ended December 31,
2001 to $0.8m (2000 -- $2.2m) is due to the continued effect of the depressed
world market for edible oils on NUMAR and the exclusion of BTL, which is now
consolidated as a subsidiary.
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 12,000 commercial, institutional and
industrial accounts. In the UK, Carlisle Group is also a leading provider of
outsourced facilities services through the LI Group and Capitol Security
Services. Carlisle Staffing Services occupies a significant position in the
UK and Ireland staffing services sector with a presence in the markets for
Office, Professional and Industrial staff, Public Services and the developing
Human Resources Services market. This business has over 75 locations with a
weekly temporary/contractor base of circa 9,000 workers employed across more
than 4,000 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 31, December 31, December 31, December 31,
2001 2000 2001 2000
Net sales
Facilities Services 239.7 254.8 733.5 763.3
Staffing Services 61.4 58.1 174.4 163.2
Telecommunication
Services 14.2 -- 43.2 --
Total net sales 315.3 312.9 951.1 926.5
Operating income (loss)
before goodwill amortization
Facilities Services (0.5) 7.5 (0.4) 27.8
Staffing Services 3.3 3.9 9.6 10.3
Financial Services 6.4 4.7 17.1 14.1
Telecommunication
Services 2.0 -- 6.8 --
Corporate overheads (1.8) (1.5) (5.2) (4.5)
Total operating income
before goodwill
amortization 9.4 14.6 27.9 47.7
Goodwill amortization -- (2.2) -- (6.6)
Operating income 9.4 12.4 27.9 41.1
Associates 0.8 2.2 2.7 7.1
Net interest expense (1.8) (1.6) (4.9) (4.5)
Income before
income taxes 8.4 13.0 25.7 43.7
Income taxes (0.7) (1.2) (2.8) (3.9)
Income after
income taxes 7.7 11.8 22.9 39.8
Minority interests (0.2) (0.2) (0.5) (0.6)
Net income 7.5 11.6 22.4 39.2
Earnings per ordinary share:
Basic and diluted $0.13 $0.20 $0.38 $0.66
Number of shares --
diluted 59.0m 59.2m 58.9m 59.8m
The results for the three months and the nine months ended December 31,
2001 exclude goodwill amortization with effect from April 1, 2001 and are
stated before non-recurring net charges of $0.8m and $1.3m, respectively. 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.
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, +1-561-368-3899, or Makinson
Cowell, +1-212-994-9044, for Carlisle Holdings Limited
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