BELIZE CITY, Belize, July 31 /PRNewswire/ --
Carlisle Holdings Limited (Nasdaq: CLHL, London: CLH) reported revenue of
$315.9m (2000 -- $301.6m) and net income of $6.9m (2000 -- $13.3m) for the
quarter ended June 30, 2001, the first quarter of fiscal 2002.
Earnings per share for the quarter ended June 30, 2001 was $0.12
(2000 -- $0.22).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:
"With the exception of OneSource we are very pleased with the way all of
our businesses have started the new fiscal year -- all have produced solid
earnings in line with our expectations."
"At OneSource, the distraction and disruption of the system changes and
continuing competitive pressure in the sector have unfortunately resulted in a
sharp decline in operating margins in some of our locations giving rise to a
disappointing quarter."
"We are firmly focused on returning OneSource to the performance levels we
are more used to and, to that end, we have added a new divisional CFO, a new
SVP of Sales and Marketing and made a number of other key management and
support department changes both at head office level and in the field."
"We have three main priorities for the second quarter: ongoing
improvements in the administration of billing, payroll and cash collections;
improving overall labor productivity; and sales growth. We believe we have
taken the right steps with the people and systems now in place in order to
lead to improved performance in the coming quarters."
First Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $250.0m for the
quarter ended June 30, 2001 (2000 -- $250.1m). The operating income before
goodwill amortization for the quarter ended June 30, 2001 amounted to $1.6m
(2000 -- $9.5m).
At OneSource, increased labor costs and pricing pressure have affected the
performance of certain locations -- this has resulted in an approximately
break-even operating performance. Management focus has been concentrated on
structural improvements to enhance this performance, particularly in the area
of labor cost controls. Some corporate changes have also been made, mainly in
certain key management personnel and corporate support departments. Specialty
services, such as metal and marble restoration, have been consolidated into
the operating groups in order to increase efficiency and improve cross-
marketing opportunities. The billing, credit and collection departments have
been reorganized to improve performance, albeit at increased cost.
At OneSource, intensive efforts have continued to clean up and collect the
older receivables balances since the preliminary announcement of the Company's
fiscal 2001 results, released on May 19, 2001. However, due to the limited
success of this effort and the increased difficulty in collecting the older
balances, management has increased the provision against receivables by $10
million in the audited consolidated financial statements of the Company for
the year ended March 31, 2001, which will be released shortly.
In the new business area at OneSource the emphasis on sales growth, and
particularly on National Accounts, continues to be successful. Several new
contracts for janitorial services were signed during the quarter, including
the Pittsburgh International Airport, the Harvard School of Public Health and
Kaiser Permanente in the US, and Wal-Mart in Puerto Rico. In addition,
OneSource won a significant landscaping contract with the city of Orlando.
In the UK, first quarter sales in Facilities Services were flat,
reflecting the loss of two retail contracts that were taken in-house as well
as the closing of the Millennium Dome. However, several significant contract
wins during the quarter in the retail, public and transport sectors replaced
the lost revenue. The outlook is for further revenue improvement in the
second quarter.
Manned guarding revenues declined slightly in the first quarter due to the
impact of customer budget cutbacks. Nonetheless, there were also steady gains
in new contracts signed with commercial and retail clients. In addition, the
re-launch of the Maritime and Aviation business has attracted positive
interest. Tuck-in acquisitions continue to help build the client base and
service offering; the latest acquisition of a security business in the
Midlands adds a small cash-in-transit operation to the business.
Staffing Services
The Staffing Services division reported another quarter of year-on-year
growth with revenue of $54.5m (2000 -- $51.5m) for the quarter ended June 30,
2001. Operating income before goodwill amortization for the quarter ended
June 30, 2001 increased 13% to $3.5m (2000 -- $3.1m) and most of this increase
represents organic growth as all divisions continue to show overall momentum
despite a weakening economy. The Public Services business, which supplies
teachers, nurses and careworkers, had an especially strong quarter. Another
highlight was early implementation of the human resources services outsourced
contract with Ernst & Young. School vacations will have a negative impact on
our high-growing education business in the current quarter; however, our
balanced business mix and emphasis on temporary and contract revenues should
be an advantage over the longer term in a weakening economy.
Financial Services
Financial Services reported a strong performance for the quarter ended
June 30, 2001 -- operating income increased 15% to $5.3m (2000 -- $4.6m). The
results reflect a 14% increase in net interest income, driven by a 15%
increase in the average loan portfolio of the Belize Bank, combined with a 19%
increase in non-interest income.
Belize Telecommunications
Belize Telecommunications Limited ("BTL"), which is now consolidated as a
subsidiary, provided another solid quarter in operating income, the Company's
51% share amounting to $2.5m. 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 June 30, 2001, arises from
the investment in NUMAR. The decline in the quarter ended June 30, 2001 to
$0.7m (2000 -- $2.3m) is due to the continued effect of the depressed world
market for edible oils in NUMAR and the exclusion of BTL, now 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 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 10,000 workers
employed across more than 5,000 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 ended June 30
2001 2000
Net Sales
Facilities Services 250.0 250.1
Staffing Services 54.5 51.5
Telecommunication Services 11.4 --
Total net sales 315.9 301.6
Operating income before amortization of goodwill
Facilities Services 1.6 9.5
Staffing Services 3.5 3.1
Financial Services 5.3 4.6
Telecommunication Services 2.5 --
Corporate overheads (1.6) (1.4)
Total operating income before
goodwill amortization 11.3 15.8
Goodwill amortization (2.2) (2.2)
Operating income 9.1 13.6
Associates 0.7 2.3
Net interest expense (1.6) (1.1)
Income before income taxes 8.2 14.8
Income taxes (1.2) (1.3)
Income after income taxes 7.0 13.5
Minority interests (0.1) (0.2)
Net income 6.9 13.3
Earnings per ordinary share:
Basic and diluted $0.12 $0.22
Number of shares - diluted 58.8m 60.1m
SOURCE Carlisle Holdings Limited
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Related links:
http://www.carlisleholdings.com
CONTACT:
Carlisle Group, 561-368-3899; or Makinson
Cowell, 212-896-3814
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