BELIZE CITY, Belize, July 31 /PRNewswire-FirstCall/ --
Carlisle Holdings Limited (Nasdaq: CLHL; London: CLH) reported revenue of
$298.1m (2001 -- $315.9m) and net income of $8.7m (2001 -- $9.1m) for the
quarter ended June 30, 2002, the first quarter of fiscal 2003.
Earnings per share for the quarter ended June 30, 2002 was 14.7 cents
(2001 -- 15.5 cents).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:
"Operating performance at OneSource remains below par, but we have made
some progress on controlling costs and, significantly, retaining customers in
a very competitive environment. We expect a gradual improvement in results at
OneSource in the coming quarters."
"We have consolidated our activities in the UK and Ireland to operate as
one Business Services operation including Facilities Services, Security
Services and Staffing Services. All divisions continue to be challenged in a
tough economic environment."
"However, bright spots during the quarter included the continued success
of our Public Services business now rebranded Celsian, providing services to
the Education and Healthcare markets, and good growth in providing
merchandising and store support services in the UK."
"Our goal for the year is steady and sustainable improvement at all
divisions as we implement efficient business systems, continue to cut costs
and organize our marketing teams for maximum response to customer needs."
First Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $224.7m for the
quarter ended June 30, 2002 (2001 -- $250.0m). The operating loss for the
quarter ended June 30, 2002 amounted to $0.9m (2001 -- $1.6m income).
United States
At OneSource, management has focused on four key areas in the first
quarter: labor cost management, customer retention, receivables management and
overhead cost reduction. Some progress has been made in all of these areas
and we expect further improvements in the next quarter.
A new labor cost management process is being tested in key field areas
with the goal of full implementation later in the year. We successfully
renewed contracts with a number of key customers in extremely competitive
re-bid situations. Receivables management and cash collections have met
expectations. Efficiencies in SG&A costs have helped improve the overall
operating performance of OneSource. The data communications improvements are
progressing well in tandem with other management information system
improvements which, in time, will help us return to normal operating
performance.
In the new business arena, the sales and marketing team is concentrating
its efforts in key geographic areas and selective business sectors and is
achieving some success, while operating management is also adding new accounts
for cleaning services and landscaping services in local markets.
United Kingdom and Ireland
First quarter revenue in Facilities Services in the UK and Ireland was
down from last year, reflecting the loss of some contracts, but profitability
has stabilized. Rationalization of our back office operations has been
accelerated and the focus is on establishing market oriented operational and
development teams to better serve customers in Cleaning Services and Security
Services. The Retail Services business for merchandising and store support
services continued to enjoy good growth in the DIY sector and also established
relationships with food retailers Sainsburys and Tesco.
The outlook is for slightly reduced sales but stabilizing gross profit
levels in the next quarter due to the impact of lost and terminated contracts.
The priorities in the second quarter are the establishment of a stable
platform to pursue growth opportunities in the outsourced facilities services
markets and successful integration of the back office operations.
Staffing Services
Carlisle Staffing Services reported revenue of $59.4m (2001 -- $54.5m) for
the quarter ended June 30, 2002. Operating income for the quarter ended June
30, 2002 was $3.0m (2001 -- $3.5m). The re-launch of our Public Services
business under the "Celsian" brand name has been well received by customers.
This business continues to produce good growth, whilst overall volumes from
our office and professional permanent and temporary placements remain flat,
reflecting current market conditions. New business wins in the quarter
included a significant contract to supply flexible office staff for the Open
University's head office in the UK. With no indicators of an economic upturn
in the near term, our focus remains on cost control and identified growth
areas in Celsian (although the second quarter will be impacted slightly due to
school summer holidays) and our managed HR services.
Financial Services
Financial Services reported a strong performance for the quarter ended
June 30, 2002. Operating income increased 26% to $6.7m (2001 -- $5.3m). The
results reflect a 26% increase in net interest income, driven by a 28%
increase in the average loan portfolio of the Belize Bank.
Belize Telecommunications
Belize Telecommunications Limited ("BTL") provided another solid quarter
in operating income, the Company's 52% share amounting to $2.4m
(2001 -- $2.5m). A new digital mobile service and expanded Internet services
will be introduced in the next few months to meet customer demand.
Associates
The income from associates in the quarter ended June 30, 2002, arises from
the investment in NUMAR. The increase in the quarter ended June 30, 2002 to
$1.7m (2001 -- $0.7m) is due to the effect of a slight recovery in the 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 and Ireland, Carlisle Group is also a leading
provider of business services. The Group operates in the facilities services
sector through LI Group, Capitol Security Services, Retail Support Services
and Events Management. 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 8,000 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 3 months ended
June 30, June 30,
2002 2001
Net sales
Facilities Services 224.7 250.0
Staffing Services 59.4 54.5
Telecommunication Services 14.0 11.4
Total net sales 298.1 315.9
Operating income
Facilities Services (0.9) 1.6
Staffing Services 3.0 3.5
Financial Services 6.7 5.3
Telecommunication Services 2.4 2.5
Corporate overheads (1.8) (1.6)
Operating income 9.4 11.3
Associates 1.7 0.7
Net interest expense (1.7) (1.6)
Income before income taxes 9.4 10.4
Income taxes (0.5) (1.2)
Income after income taxes 8.9 9.2
Minority interests (0.2) (0.1)
Net income 8.7 9.1
Earnings per ordinary share:
Diluted 14.7 cents 15.5 cents
Number of shares - diluted 59.1m 58.8m
SOURCE Carlisle Holdings Limited
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Related links:
http://www.carlisleholdings.com
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CONTACT:
Carlisle Group, +1-561-368-3899, or Makinson
Cowell, +1-212-994-9044
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