BELIZE CITY, Belize, Aug. 9 /PRNewswire/ -- Carlisle Holdings Limited
announced the following today:
Carlisle Holdings Limited (Nasdaq: CLHL, London: CLH), a leader in
outsourced facilities services and staffing services, reported revenue of
$301.6m (1999 -- $275.2m) and an 18% increase in operating income to $13.9m
(1999 - $11.8m) for the quarter ended June 30, 2000, the first quarter of
fiscal 2001. As a consequence of the anticipated decrease in income from
associates and the increase in net interest expense incurred to purchase
treasury shares, net income for the quarter was flat at $13.3m (1999 -
$13.3m). Diluted earnings per share for the first quarter was 10% up at $0.22
(1999 -- $0.20).
Commenting on the results, CEO Ian R. Pluthero said:
"The fiscal year is off to a positive start in all divisions. We continue
to make, and pursue small, rightly priced, profitable tuck-in acquisitions in
both the U.S. and U.K. A good example was the acquisition of Doyle Building
Services (DBS), an excellent fit with OneSource, both in terms of business mix
and corporate culture. DBS is known for its commitment to customer service
and has an excellent account retention history -- a track record we intend to
build on as we integrate DBS into OneSource."
"Facilities Services in the U.K. performed well during the quarter and,
significantly, expanded beyond its established strength serving retailers to
win several new contracts in the transport sector. Staffing Services achieved
impressive gains over the previous year in both sales and operating income,
reflecting a good balance of contributions from acquisitions and underlying
growth."
"Our priorities for the year will remain driving internal growth by
improving our customer retention, realizing cost efficiencies and aggressive
cross-marketing."
First Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $250.1m for the three
months ended June 30, 2000 (1999 - $239.1m), an increase of 5% over the same
period last year. Operating margin was consistent with 1999 producing
operating income for the quarter of $7.4m (1999 - $7.2m).
In the U.S., the acquisitions of ANOVA, DBS and successful new business
development contributed to sales and operating income. DBS operates from
branches in Rochester, Syracuse, Buffalo and Pittsburgh and has annualized
sales of approximately $17 million. The company employs 1,500 and provides
building maintenance and landscaping services to more than 500 customers,
including Bristol Meyers, PNC Bank and US Airways. ANOVA Property Care and
Control Inc. is based in Denver, Colorado.
The OneSource portfolio of new business incorporates several prestigious
contracts, including Universal Studios in California, 355 locations for First
Security Bank, PM Realty Advisors in Houston, CB Richard Ellis, and Mack-Cali
Realty Corp. However, competition on contract renewals remains intense,
putting pressure on margins and customer retention. Successful
cross-marketing during the quarter led to new business relationships with
existing janitorial clients including Merrill Lynch (metal & marble) and
Landscape Services acquired a $3m contract for The Villages, a 12,000 acre
retirement community in Central Florida.
The implementation of new information and reporting systems is continuing
and will significantly strengthen the company's administrative capabilities
allowing continued growth and reduced costs in the second half of the year.
Facilities Services in the U.K. turned in a very strong performance in the
first quarter. Business with the retail sector expanded and the business was
especially successful winning contracts in the recently targeted transport
sector including the provision of cleaning services for Aer Rianta at Shannon
Airport in Ireland and West Coast Traincare.
The manned guarding business continued to grow, benefiting from
acquisitions completed last year. The purchase of Aegis Security in Ireland
and Ecosse in Scotland were completed in the quarter. The acquisitions expand
our geographic spread, secure inroads into the Local Government market and
provide a platform for expansion of our retail business. Other contracts
awarded included The Environment Agency, Gloucester Healthcare and five
additional sites for the Metropolitan Police.
Overall, the second quarter has started well with encouraging new business
wins and we are confident we can continue to produce growth in all areas while
extending our reach to customers with additional services.
Staffing Services
The Staffing Services division, operating in the U.K. and Ireland,
reported revenue of $51.5m (1999 -- $36.1m) for the quarter ended June 30,
2000, a gain of 43% over the prior year. Operating income for the quarter was
$2.4m (1999 - $1.3m) and significantly, internal growth accounted for 18% of
the sales and 50% of the income increase.
The Education Services and Retail Services businesses both had strong
quarters. We completed the acquisition of The Agency, a business that adds
further depth to the high-quality brands in our Office Support sector; and is
already performing strongly. The overall outlook for the second quarter is
encouraging.
Financial Services
Income from Financial Services increased 24% to $4.1m for the three months
ended June 30, 2000 (1999 - $3.3m). The results for the quarter reflect a 16%
increase in net interest income (principally driven by a volume increase in
average interest-earning assets of The Belize Bank) coupled with tight control
of costs.
Background Information
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 with the
United States Securities and Exchange Commission.
For further information contact:
Carlisle Group Broadgate Consultants, Inc.
561-368-3899 212-232-2222
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
3 months ended June 30 2000 1999
Net sales 301.6 275.2
Operating income 13.9 11.8
Associates 2.0 3.1
Net interest expense (1.1) (0.2)
Income before income taxes 14.8 14.7
Income taxes (1.3) (1.2)
Income after income taxes 13.5 13.5
Minority interests (0.2) (0.2)
Net income 13.3 13.3
Earnings per ordinary share:
Basic $0.22 $0.22
Diluted $0.22 $0.20
Number of shares - diluted 60.1m 66.4m
The results to June 30, 1999 are stated before non-recurring charges of
$4.6m.
Carlisle Holdings Limited
Financial Information
Segmental Analysis (unaudited)
U.S. dollars in millions
3 months ended June 30 2000 1999
Net sales
Facilities Services 250.1 239.1
Staffing Services 51.5 36.1
Total sales 301.6 275.2
Operating income
Facilities Services 7.4 7.2
Staffing Services 2.4 1.3
Financial Services 4.1 3.3
Total operating income 13.9 11.8
Note:
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.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Balance Sheets (unaudited)
U.S. dollars in millions
June 30, March 31,
2000 2000
Assets
Services Businesses
Current assets:
Cash and cash equivalents 29.5 25.3
Other current assets 196.6 181.0
Total current assets 226.1 206.3
Property, plant and equipment 34.2 32.5
Associates and other assets 99.3 98.3
Goodwill and other intangibles 320.0 318.7
Total Services Businesses assets 679.6 655.8
Financial Services net assets 23.6 26.1
Total assets 703.2 681.9
Liabilities and shareholders' equity
Services Businesses
Current liabilities:
Short-term debt 39.7 32.9
Other current liabilities 132.3 126.3
Total current liabilities 172.0 159.2
Long-term debt 29.0 19.0
Other long-term liabilities 77.1 81.5
Total Services Businesses liabilities 278.1 259.7
Total shareholders' equity 425.1 422.2
Total liabilities and shareholders' equity 703.2 681.9
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, 561-368-3899; or Broadgate
Consultants, Inc., 212-232-2222, for Carlisle Group
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