BELIZE CITY, Belize, May 19 /PRNewswire/ -- The following was issued today
by Carlisle Holdings Limited:
Carlisle Holdings Limited (Nasdaq: CLHL, London: CLH), a leader in
outsourced facilities services and staffing services, reported revenue of
$297.2m (1999 -- $269.8m) and net income (before non-recurring items) of
$16.4m (1999 -- $11.7m) for the quarter ended March 31, 2000, the fourth
quarter of fiscal 2000. Diluted earnings per share (before non-recurring
items) for the fourth quarter was $0.26 (1999 -- $0.18).
For the year ended March 31, 2000, revenue amounted to $1,144.1m (1999 --
$968.2m) and net income (before non-recurring items) amounted to $60.3m (1999
-- $41.1m). Diluted earnings per share (before non-recurring items) for the
year ended March 31, 2000 was $0.93 (1999 -- $0.80).
Strong sales increases in Facilities and Staffing Services were driven by
both acquisitions and organic growth. The operating margin in the fourth
quarter improved to 3.6% (1999 - 2.8%) reflecting acquisitions and the ongoing
initiatives in place to reduce operating costs and improve efficiencies.
Commenting on the results, CEO Ian R. Pluthero said:
"Carlisle not only maintained, but enhanced its leadership role in the
facilities services sector in fiscal 2000. We had a successful year on three
fronts: winning new business in all divisions; making tuck-in acquisitions
that expanded our reach both in the U.S. and the U.K.; and improving
profitability by reducing our cost base.
"The first quarter is off to a good start. We will continue to focus on
organic growth, customer retention, driving cost efficiencies, cross marketing
our services and the quick integration of small companies we purchase.
"The acquisition of larger, higher margin service businesses remains an
integral part of our expansion plans. The climate is competitive, but we will
remain disciplined and continue to review opportunities in order to find the
right companies at the right price."
Fourth Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $248.2m for the
quarter ended March 31, 2000 (1999 -- $236.1m), an increase of 5.1% over the
same period last year. Full year revenue for the division was $976.9m
(1999 -- $870.7m) representing an increase of 12.2% over last year. Operating
income for the quarter was $8.7m, compared to $7.0m in the previous year, an
increase of 24.3%, bringing operating income for the full year to $31.8m
(1999 -- $23.7m).
Successful new business development continued in the fourth quarter,
boosting sales and operating income. OneSource continued to win janitorial
contracts in a competitive environment; important new contracts include USAA
Realty, Lockheed Martin (Phoenix), Southwest Airlines (Texas, Arkansas and
Chicago) and Saks Fifth Avenue's main store in Chicago. Successful cross
marketing to existing janitorial clients during the quarter led to new
business relationships with Mack-Cali Realty Corporation (metal and marble
refinishing) and AT&T (painting).
Recent upgrades and investments in back-office technology (JD Edwards,
Kronos, Vertex) have expanded our processing capabilities. This will improve
management information systems and we expect benefits from improved efficiency
in the current year.
Facilities services in the U.K. had a very strong quarter, reflecting both
new business and the integration of previous acquisitions. Contracts won
include a long-term contract to clean trains for one of the Virgin rail
franchises -- West Coast Trains and the addition of five new Tesco retail
stores. The manned guarding business completed several acquisitions during
the year and now has a strong network of offices to service national clients
in both the U.K. and the Republic of Ireland. New contracts included Argos
(The U.K.'s leading catalogue retailer) and the Metropolitan Police. Business
in the first quarter is buoyant and the outlook for continued growth is
positive.
The first quarter has started well with encouraging signs for organic
growth in the U.K. In the U.S., we continue to focus heavily on customer
retention to complement the pipeline of new business won.
Staffing Services
The Staffing Services division, operating in the U.K. and the Republic of
Ireland, reported revenue of $49.0m (1999 -- $33.7m) for the quarter ended
March 31, 2000, bringing total revenue for the year to $167.2m
(1999 -- $97.5m). Operating income for the quarter was $2.1m (1999 -- $0.5m).
The increase reflects strong organic growth, cost control and acquisitions.
Organic growth during the fourth quarter was especially strong in the
Education Services and Retail Services businesses. Tate Appointments has been
successfully integrated and is well positioned for further growth in both the
traditional temporary office staff area as well as the growing "people
management" sector. Carlisle Staffing Services' ability to attract and retain
high-quality temporary workers and its position in the permanent placement
market remain a key competitive advantage and with a number of small
acquisitions in the pipeline the outlook for continued growth is positive.
Financial Services
Financial Services delivered another record result. For the year ended
March 31, 2000, income increased 23% to $15.3m (1999 -- $12.4m). The results
reflect a 23% increase in net interest income, driven by a 15% increase in the
average loan portfolio of the Belize Bank.
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, Indigo Selection and Tate in
over 70 locations servicing a diverse base of over 5,000 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.
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.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Statements of Income (unaudited)
U.S. dollars in millions except per share data
Quarter ended Quarter ended Year ended Year ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
Net sales 297.2 269.8 1,144.1 968.2
Operating income 15.3 11.2 54.6 39.0
Associates 2.2 2.2 11.9 8.8
Net interest
(expense) income (0.1) 0.5 (0.8) (0.8)
Income before
income taxes 17.4 13.9 65.7 47.0
Income taxes (0.8) (2.0) (4.5) (5.1)
Income after
income taxes 16.6 11.9 61.2 41.9
Minority interests (0.2) (0.2) (0.9) (0.8)
Income from
continuing operations 16.4 11.7 60.3 41.1
Earnings per ordinary share
from continuing operations
before non-recurring items:
Basic $0.27 $0.20 $1.01 $0.88
Diluted $0.26 $0.18 $0.93 $0.80
Number of
shares - diluted 63.0m 66.4m 64.7m 51.6m
The results for the year ended March 31, 2000 are stated before
non-recurring net charges of $2.8m 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 and other non-core businesses, closure, restructuring and
redundancy costs in the Services Businesses, and a $0.8m 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
March 31, March 31,
2000 1999
Assets
Services Businesses
Current assets:
Cash and cash equivalents 25.3 90.6
Other current assets 181.0 161.1
Total current assets 206.3 251.7
Property, plant and equipment 32.5 23.1
Associates and other assets 98.3 76.3
Goodwill and other intangibles 318.7 233.8
Total Services Businesses assets 655.8 584.9
Financial Services net assets 26.1 21.0
Total assets 681.9 605.9
Liabilities and shareholders' equity
Services Businesses
Current liabilities:
Short-term debt 33.1 29.0
Other current liabilities 126.3 145.0
Total current liabilities 159.4 174.0
Long-term debt 19.0 --
Other long-term liabilities 81.3 95.2
Minority interests -- 61.5
Total Services Businesses liabilities 259.7 330.7
Total shareholders' equity 422.2 275.2
Total liabilities and shareholders' equity 681.9 605.9
Carlisle Holdings Limited
Financial Information
Segmental Analysis (unaudited)
U.S. dollars in millions
Quarter ended Quarter ended Year ended Year ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
Sales
Facilities Services 248.2 236.1 976.9 870.7
Staffing Services 49.0 33.7 167.2 97.5
Total sales 297.2 269.8 1,144.1 968.2
Operating income
Facilities Services 8.7 7.0 31.8 23.7
Staffing Services 2.1 0.5 7.5 2.9
Financial Services 4.5 3.7 15.3 12.4
Total operating income 15.3 11.2 54.6 39.0
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.
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, 561-368-3899; or Broadgate
Consultants, Inc., 212-232-2222, for Carlisle Holdings Limited
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