BELIZE CITY, Belize, Feb. 10 /PRNewswire/ -- Carlisle Holdings Limited
(Nasdaq: CLHL; London: CLH), a leader in outsourced facilities services and
staffing services, reported revenue of $288.1m (1998 -- $250.5m) and net
income (before non-recurring items) of $15.7m (1998 -- $10.7m) for the quarter
ended December 31, 1999, the third quarter of fiscal 2000. Diluted earnings
per share (before non-recurring items) for the quarter ended December 31, 1999
was $0.25 (1998 -- $0.18).
For the nine months ended December 31, 1999, revenue amounted to $846.9m
(1998 -- $698.4m) and net income (before non-recurring items) amounted to
$43.9m (1998 -- $29.4m). Diluted earnings per share (before non-recurring
items) for the nine months ended December 31, 1999 was $0.68 (1998 -- $0.63).
Solid increases in sales in Facilities and Staffing Services reflect the
full integration of acquisitions made in previous quarters together with
organic growth. Returns in these operations improved with operating income
and margin increasing to $10.4m and 3.6%, respectively, in the third quarter
(1998 -- $7.7m and 3.1%).
Financial Services had its strongest quarter ever, with earnings of $3.9m
in the quarter (1998 -- $3.3m).
Commenting on the results, CEO Ian R. Pluthero said:
"Carlisle has achieved another successful quarter with earnings on
target."
"Accretive acquisitions remain a key goal -- recent tuck-in acquisitions
in the U.S. and the U.K. are steadily increasing our customer base and
operating income. We are also continuing the search for higher margin,
complementary service businesses."
"Our attention is now focused on reducing the overhead cost base in order
to protect our margins in what is a highly competitive facilities services
market."
Third Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $245.9m for the three
months ended December 31, 1999 (1998 -- $228.4m), an increase of 7.7% over the
same period last year. Operating income for the quarter was $8.3m, compared
to $6.9m in the previous year, an increase of 20.3%. Previous acquisitions
and successful new business development boosted sales and operating income.
In the U.S. the name change to OneSource is complete and the revenue base
stabilized. The next challenge is to further reduce the cost base to improve
operating margins and maximize the returns from the existing business.
OneSource continued to win contracts in a competitive environment and added
important new contracts, including the Metropolitan Transit Authority (MTA)
and DuPont. Successful cross-marketing during the quarter led to new business
relationships with existing janitorial clients: Metropolitan Life Insurance
(painting), Reckson Associates (metal and marble) and TrizecHahn (metal and
marble).
The U.K.'s successful quarter was marked by the start up of new business
with the prestigious Millennium Dome in London. The experience and
credibility of OneSource were beneficial in helping the Company win this
business, which represents the largest single site-cleaning contract in the
U.K. The U.K. has a solid bank of new business prospects and the outlook for
the full year is very promising.
Staffing Services
The Staffing Services division, operating in the U.K., reported revenue of
$42.2m (1998 -- $22.1m) for the three months ended December 31, 1999.
Operating income for the three months ended December 31, 1999 was $2.1m (1998
-- $0.8m). The increase reflects continued strong organic growth and benefits
from previously reported acquisitions.
The November acquisition of Agency Cover, which provides social workers
and caregivers to social service departments, increases the Company's public
sector market presence. The recent acquisition of Tate Appointments adds
another highly respected brand name and well established client base to the
temporary secretarial and office support staff business.
Financial Services
Financial Services contributed another strong performance. In the
nine-month period, income increased by 24% to $10.8m; the results reflect a
28% increase in net interest income, driven by a 17% increase in the average
loan portfolio of the Belize Bank.
Corporate Matters
During the quarter the Company continued the program to repurchase
Carlisle ordinary shares which resulted in a further 1,485,500 shares being
repurchased at an average buy-back of $10.44 per share.
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, and has a significant presence in the staffing services sector under
a number of leading brands, including Recruit, Abacus and Tate in over
70 locations servicing a diverse base of over 3,000 clients in the following
markets: IT, Finance and Banking, Office and Industrial, Education and Care,
Retail, Truck Driving, Technical, Legal and Catering.
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 (formerly
named BHI Corporation) with the United States Securities and Exchange
Commission.
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
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
Net sales 288.1 250.5 846.9 698.4
Operating income 14.3 11.0 39.3 27.8
Associates 3.0 1.7 9.7 6.6
Net interest expense (0.1) (0.5) (0.7) (1.3)
Income before income
taxes 17.2 12.2 48.3 33.1
Income taxes (1.2) (1.3) (3.7) (3.1)
Income after income
taxes 16.0 10.9 44.6 30.0
Minority interests (0.3) (0.2) (0.7) (0.6)
Income from continuing
operations 15.7 10.7 43.9 29.4
Earnings per ordinary share
from continuing operations
before non-recurring
items:
Basic $0.27 $0.21 $0.74 $0.69
Diluted $0.25 $0.18 $0.68 $0.63
Number of shares
- diluted 63.4m 58.3m 64.8m 46.4m
The results for the three months and the nine months ended
December 31, 1999 are stated before non-recurring income less charges which
include costs relating to the BHI Corporation / Carlisle U.K. merger and the
aborted offer for The Corporate Services Group, net gains arising on the
disposal of certain associates and investments, closure and redundancy costs
in the Services Businesses, and a charge relating to the minority interest
arising on "as-if" pooling.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Balance Sheets (unaudited)
U.S. dollars in millions
December 31, March 31,
1999 1999
Assets
Services Businesses
Current assets:
Cash and cash equivalents 45.7 90.6
Other current assets 171.2 161.1
Total current assets 216.9 251.7
Property, plant and equipment 30.1 23.1
Associates and other assets 85.6 76.3
Goodwill and other intangibles 302.2 233.8
Total Services Businesses assets 634.8 584.9
Financial Services net assets 22.7 21.0
Total assets 657.5 605.9
Liabilities and shareholders'
equity
Services Businesses
Current liabilities:
Short-term debt 29.3 29.0
Other current liabilities 128.3 145.0
Total current liabilities 157.6 174.0
Long-term liabilities 82.9 95.2
Minority interests -- 58.8
Total Services Businesses
liabilities 240.5 328.0
Total shareholders' equity 417.0 277.9
Total liabilities and
shareholders' equity 657.5 605.9
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
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
Sales
Facilities Services 245.9 228.4 728.7 634.6
Staffing Services 42.2 22.1 118.2 63.8
Total sales 288.1 250.5 846.9 698.4
Operating income
Facilities Services 8.3 6.9 23.1 16.7
Staffing Services 2.1 0.8 5.4 2.4
Financial Services 3.9 3.3 10.8 8.7
Total operating income 14.3 11.0 39.3 27.8
Notes:
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.
In June 1999, the Company completed the acquisition of 100 per cent of
Carlisle U.K., one of the U.K.'s leading providers of outsourced facilities
services and staffing services.
The acquisition of Carlisle U.K. has been accounted for using the "as-if"
pooling of interests method of accounting due to the existence of a common
controlling shareholder in both the Company and Carlisle U.K. This method of
pooling of interests requires that the consolidated financial statements of
Carlisle U.K. are pooled with those of the Company for all accounting periods
reported, with a minority interest elimination for all periods where a
non-controlling minority interest existed in the share capital of Carlisle
U.K. Consequently, the consolidated statements of income of the Company for
all accounting periods reported include 100 per cent of the results of
Carlisle U.K. for the entire periods.
Note: This and other press releases are available through Company News On
Call by fax; call 800-758-5804, extension 114380, or at
http://www.prnewswire.com.
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, 561-368-3899; or Broadgate
Consultants, 212-232-2222, for Carlisle Group
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