BELIZE CITY, Belize, May 17 /PRNewswire-FirstCall/ --
Carlisle Holdings Limited (Nasdaq: CLHL; London: CLH) reported revenue of
$295.4m (2001 -- $314.2m) and net income (before non-recurring items) of $4.5m
(2001 -- $26.5m loss) for the quarter ended March 31, 2002, the fourth quarter
of fiscal 2002. Earnings per share (before non-recurring items) for the
quarter ended March 31, 2002 was $0.08 (2001 -- $0.45 loss per share).
For the year ended March 31, 2002, revenue was $1,246.5m
(2001 - $1,240.7m) and net income (before non-recurring items) was $26.9m
(2001 -- $12.7m). Earnings per share (before non-recurring items) for the
year ended March 31, 2002 was $0.46 (2001 -- $0.21).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG said:
"Operating income for the fourth quarter was adversely affected by the
Facilities Services businesses which made an operating loss of $3.7m.
Management is focused on returning to normal performance levels."
"The Staffing Services business in the UK produced a satisfactory result
for the quarter in the context of the continuing slow economy which has a
negative effect, particularly on the permanent placement market. Disciplined
cost control remains a high priority."
"Financial Services made a record $7.6m operating income in the quarter
and Telecommunications continued to produce a solid contribution."
Fourth Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $224.4m for the
quarter ended March 31, 2002 (2001 -- $242.7m). The operating loss for the
quarter ended March 31, 2002 amounted to $3.7m (2001 -- $32.8m loss).
At OneSource, in the janitorial area of commercial real estate cleaning,
the discontinuance of some low margin contracts, price competition and higher
labor and related costs continued to adversely affect revenues and gross
margins. Improving the gross margins at job level is a key priority. SG & A
costs have also trended slightly upwards as OneSource continues to invest in
improved data communications and the management information systems which
drive process controls and improvement at district and job level. Over time,
these investments should help to improve the performance at OneSource.
Operational management is also focusing on customer retention and developing
new business and the sales and marketing team is concentrating its efforts in
selective geographic and business sectors.
In the UK, the facilities services businesses have been placed under the
overall management of a Chief Executive who has reorganized the senior
management team. This reorganization is being accompanied by a co-ordination
of back office locations and functions to provide a more efficient structure.
This has given rise to non-recurring office closure and severance costs in the
fourth quarter. Revenues in the fourth quarter declined due to the
discontinuance of low margin contracts and the continuing competitive
environment. A small operating loss was posted in the fourth quarter
principally due to these discontinuances and trailing one-off legal and other
expenses pertaining to an acquisition made in 2001. Management is focusing on
maintaining stringent cost controls and returning the business to normal
margins.
Staffing Services
The Staffing Services division revenues were marginally ahead at $58.7m
(2001 -- $58.1m) for the quarter ended March 31, 2002. Operating income for
the quarter ended March 31, 2002 continued to be impacted by the deterioration
in permanent placements and declined to $1.9m (2001 -- $4.2m). Operating
income for the year ended March 31, 2002 amounted to $11.5m (2001 -- $12.7m)
on revenues of $233.1m (2001 -- $221.3m).
Economic conditions remain difficult but the division has been helped by
an overall bias towards temporary and contract income, which should continue
to help performance in an overall uncertain economic environment. Strict cost
control and continued strong performance from the Public Services businesses
are also having a positive impact. Significant new contract wins in the fourth
quarter included a contract extension for managed services with the Financial
Services Authority, a new managed services selection contract with the BBC and
both temporary and contract business from the Inland Revenue.
Financial Services
Financial Services reported a record result for the year ended March 31,
2002. Operating income of $7.6m (2001 -- $4.7m) for the quarter brought the
full year operating income to $24.7m (2001 -- $18.8m). The results reflect a
33% increase in net interest income, driven by a 24% increase in the average
loan portfolio together with an increased interest margin.
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 $2.1m (2001 -- $1.6m). BTL has invested in a modern
cellular network and is well positioned to meet increased customer demand for
cellular and internet services.
Associates
The income from associates in the quarter ended March 31, 2002, arises
from the investment in NUMAR. The decline in the quarter ended March 31, 2002
to $0.4m (2001 -- $0.7m) is due to the continued effect on NUMAR 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 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 12 months 12 months
ended ended ended ended
March 31, March 31, March 31, March 31,
2002 2001 2002 2001
Net sales
Facilities Services 224.4 242.7 957.9 1,006.0
Staffing Services 58.7 58.1 233.1 221.3
Telecommunication
Services 12.3 13.4 55.5 13.4
Total net sales 295.4 314.2 1,246.5 1,240.7
Operating income (loss)
Facilities Services (3.7) (32.8) (4.1) (9.8)
Staffing Services 1.9 4.2 11.5 12.7
Financial Services 7.6 4.7 24.7 18.8
Telecommunication
Services 2.1 1.6 8.9 1.6
Corporate overheads (2.0) (1.9) (7.2) (6.4)
Operating income (loss) 5.9 (24.2) 33.8 16.9
Associates 0.4 0.7 3.1 7.8
Net interest expense (1.3) (1.4) (6.2) (5.9)
Income (loss) before
income taxes 5.0 (24.9) 30.7 18.8
Income taxes (0.4) (1.4) (3.2) (5.3)
Income (loss) after
income taxes 4.6 (26.3) 27.5 13.5
Minority interests (0.1) (0.2) (0.6) (0.8)
Net income (loss) 4.5 (26.5) 26.9 12.7
Earnings (loss)
per ordinary share:
Diluted $0.08 $(0.45) $0.46 $0.21
Number of shares
- diluted 59.0m 59.1m 58.9m 59.3m
The results for the three months and the twelve months ended March 31,
2002 are stated before non-recurring net charges of $2.4m and $3.7m,
respectively. The results for the three months and twelve months ended March
31, 2001 are stated before non-recurring net charges of $10.0m and $9.2m
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 Holdings Limited
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