BELIZE CITY, Belize, Oct. 31 /PRNewswire/ --
Carlisle Holdings Limited (Nasdaq: CLHL, London: CLH) reported revenue of
$317.2m (2000 -- $312.0m) and net income of $5.8m (2000 -- $14.3m) for the
quarter ended September 30, 2001, the second quarter of fiscal 2002. Earnings
per share for the quarter ended September 30, 2001 was $0.10 (2000 -- $0.24).
For the six months ended September 30, 2001, revenue was $635.8m
(2000 -- $613.6m) and net income was $14.9m (2000 -- $27.6m). Earnings per
share for the six months ended September 30, 2001 was $0.25 (2000 -- $0.46).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:
"The results for the quarter reflect to a large extent the disappointing
performance at OneSource, which made an operating loss of $3.5m and which
overshadowed more acceptable results from the rest of our operations which
performed satisfactorily.
"We estimate that the tragic events of September 11 have had only a small
immediate revenue impact at OneSource, with less than 1% of annual sales lost.
The full impact of the terrorist event and subsequent related developments,
together with the faltering economic environment, have not yet filtered
through to our services businesses and therefore the medium term consequences
are not yet measurable.
"Overall, the UK businesses produced a satisfactory result for the quarter
in the context of a slowing economy -- we are taking appropriate steps to
control costs in order to mitigate, as far as possible, the effects of
prevailing market conditions.
"Both the Financial Services and Telecommunications businesses performed
well -- the recent hurricane in Belize caused some infrastructure damage but
we do not expect a significant negative effect on the businesses going
forward."
Second Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $243.8m for the
quarter ended September 30, 2001 (2000 -- $258.4m). The operating loss before
goodwill amortization for the quarter ended September 30, 2001 amounted to
$1.5m (2000 -- income of $10.8m).
At OneSource, although some progress has been made in rectifying loss
making districts, the overall performance has been affected by depressed gross
margins and administration costs which continue to run at a higher than normal
level due, in part, to the initiatives put in place to correct the billing and
collection issues which arose in fiscal 2001. The reorganized payroll,
billing and collections departments are operating efficiently. There was,
however, a marked slowdown in cash collections immediately after September 11.
This has subsequently recovered, although not quite to levels prior to the
event. In an effort to improve performance, SG&A has been cut in October
through selective staff reductions, which included 50 personnel from corporate
headquarters and 150 in the field. In certain districts, loss making
contracts are either being renegotiated or the contracts are being terminated.
In our principal janitorial area of commercial real estate cleaning, price
competition and labor cost pressures are continuing to depress gross margins.
Several new contracts for janitorial services were signed during the
quarter with, among others, the Federal Reserve Bank in Atlanta, Pfizer Global
in Holland, Michigan and Pinnacle West Capital Corp. in Phoenix. In addition,
OneSource won a contract for lawn maintenance with Accor, the hotel group that
owns Motel 6 and Red Roof Inns across the US.
In the UK, second quarter revenues in cleaning and support services
declined year on year, reflecting the loss of three larger contracts.
However, new contracts were won in the leisure, transport and public sectors,
some with start up dates not until the fourth quarter. Operating profits met
target.
In manned guarding, revenues and income in the second quarter declined due
to a number of contract losses. Higher minimum wage regulations have resulted
in several contracts being renegotiated to cover the cost increase. Some
business was lost as a result. New contracts were won in the Maritime and
Aviation sectors, including several contracts with regional airlines at
Manchester International Airport. A lock-on acquisition in the quarter has
added a specialist in handling distribution sites for major logistics
operators and retailers throughout the UK.
Staffing Services
The Staffing Services division reported 9% year-on-year growth in revenues
to $58.5m (2000 -- $53.6m) for the quarter ended September 30, 2001. However,
operating income before goodwill amortization for the quarter ended September
30, 2001 declined to $2.8m (2000 -- $3.3m). Revenue from temporary workers
showed modest organic growth over last year but permanent placement revenues
fell by 20% and caused the decline. Additionally, the second quarter is
seasonally quieter in the teacher supply business due to school vacations.
The acquisition of Stirling Recruitment in July has strengthened the
company's presence in Southern England in the office and industrial markets.
The current economic outlook together with the negative impact of
anticipated EU vacation pay rules are expected to put growth and margins under
further pressure for the foreseeable future. However, our balanced income
streams, including a significant presence in public services, offer some
protection. We are complementing this with strict cost controls designed to
maximize efficiency without damaging our infrastructure so that we are well
positioned for any economic upturn as it arises.
Financial Services
Financial Services reported a strong performance for the quarter ended
September 30, 2001 -- operating income increased 13% to $5.4m (2000 -- $4.8m).
The results reflect a 20% increase in net interest income, driven by a 16%
increase in the average loan portfolio of the Belize Bank, combined with a 12%
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 $2.3m. Increasing demand for cellular, internet and
data services is expected to continue to drive revenue growth. Hurricane Iris
caused some damage to the infrastructure and temporary loss of business in
southern Belize.
Associates
The income from associates in the quarter ended September 30, 2001, arises
from the investment in NUMAR. The decline in the quarter ended September 30,
2001 to $1.2m (2000 -- $2.6m) 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 3 months 6 months 6 months
ended ended ended ended
September 30, September 30, September 30, September 30,
2001 2000 2001 2000
Net Sales
Facilities Services 243.8 258.4 493.8 508.5
Staffing Services 58.5 53.6 113.0 105.1
Telecommunication
Services 14.9 -- 29.0 --
Total net sales 317.2 312.0 635.8 613.6
Operating income (loss)
before goodwill amortization
Facilities Services (1.5) 10.8 0.1 20.3
Staffing Services 2.8 3.3 6.3 6.4
Financial Services 5.4 4.8 10.7 9.4
Telecommunication Services 2.3 -- 4.8 --
Corporate overheads (1.8) (1.6) (3.4) (3.0)
Total operating income
before goodwill
amortization 7.2 17.3 18.5 33.1
Goodwill amortization -- (2.2) -- (4.4)
Operating income 7.2 15.1 18.5 28.7
Associates 1.2 2.6 1.9 4.9
Net interest expense (1.5) (1.8) (3.1) (2.9)
Income before income taxes 6.9 15.9 17.3 30.7
Income taxes (0.9) (1.4) (2.1) (2.7)
Income after income taxes 6.0 14.5 15.2 28.0
Minority interests (0.2) (0.2) (0.3) (0.4)
Net income 5.8 14.3 14.9 27.6
Earnings per ordinary share:
Basic and diluted $0.10 $0.24 $0.25 $0.46
Number of shares --
diluted 58.9m 60.4m 58.8m 60.2m
The results for the three months and the six months ended September 30,
2001 exclude goodwill amortization with effect from April 1, 2001 and are
stated before non-recurring net charges of $0.5m. The results for the three
months and the six months ended September 30, 2000 are stated before
non-recurring net gains of $0.9m.
SOURCE Carlisle Holdings Limited
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Related links:
http://www.carlisleholdings.com
CONTACT:
Carlisle Group, +1-561-368-3899, or Makinson
Cowell, +1-212-896-3814, both for Carlisle Holdings Limited
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