BELIZE CITY, Belize, Oct. 31 /PRNewswire-FirstCall/ --
Carlisle Holdings Limited (Nasdaq: CLHL; London: CLH) reported revenue of
$302.0m (2001 - $317.2m) and net income (before non-recurring net charges) of
$9.0m (2001 - $5.8m) for the quarter ended September 30, 2002, the second
quarter of fiscal 2003. Earnings per share (before non-recurring net charges)
for the quarter ended September 30, 2002 was $0.15 (2001 - $0.10).
For the six months ended September 30, 2002, revenue was $600.1m
(2001 - $635.8m) and net income (before non-recurring net charges) was
$17.7m (2001 - $14.9m). Earnings per share (before non-recurring net charges)
for the six months ended September 30, 2002 was $0.30 (2001 - $0.25).
Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said:
"The positive signs at OneSource include a continued stabilization of the
business operations during the second quarter, contract renewals in a tough
operating climate and steady improvement in reducing costs. We are encouraged
by the progress to date. With management's clear focus and the continuing
enhancement of information systems we look forward to further improvements in
operating performance in the second half of the year."
"The benefits of our combined structure in the UK and Ireland began to
show through this quarter with improved profitability. In spite of staff
reductions at many companies, Staffing Services continues to win new business
supplying temporary workers. In Facilities Services, Retail Services
merchandising activities had a strong quarter and expanded in the DIY and food
sectors. The overall economic climate is not helping our performance, but
reduced overheads position the UK business to benefit when conditions
improve."
"The process of turning our businesses around is ongoing and we are
pleased that the second quarter results demonstrate that we are meeting our
goals."
Second Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $233.4m for the
quarter ended September 30, 2002 (2001 - $248.0m). The operating income for
the quarter ended September 30, 2002 amounted to $1.2m (2001 - $1.2m loss).
Facilities Services United States
During the second quarter, OneSource management continued to focus on the
four key business elements fundamental to successful operation of a facilities
services business: labor cost management, customer retention, receivables
management and overhead cost reduction.
Labor cost increases, in line with inflation, will be partially mitigated
as newly introduced labor cost management processes are expanded to key
locations. Productivity gains are expected from focusing on overtime,
accident, and workers compensation cost reductions.
OneSource continues to renew contracts with key customers in extremely
competitive re-bid situations in spite of some volume reductions in the
economically sensitive technology and hospitality sectors, primarily in
California and Florida. Additional labor will be added as business
relationships with existing customers are expanded in both contract and
temporary assignments.
Second quarter sales exceeded expectations with the addition of several
new strategic accounts, including a new janitorial contract with Convergys
Corporation. The sales and marketing team is concentrating new business
efforts in key geographic areas and selective sectors.
In September, OneSource was pleased to be presented with an annual
"Supplier Excellence Award" from Fedex for work at their corporate
headquarters in Memphis, Tennessee.
Efficiencies in SG&A costs have helped improve the overall operating
performance of OneSource. Back office process improvements are expected to
generate additional savings beginning in the fourth quarter. Data
communications improvements are progressing in tandem with other management
information system improvements, which, in time, will help OneSource return to
normal operating levels.
Facilities Services United Kingdom
Second quarter revenue in Facilities Services in the UK and Ireland was
down from last year but has stabilized following some contract losses.
Profitability improved compared to the prior quarter reflecting improvements
in Security Services, a strong performance in Retail Services and Events
Management and reduced overheads. Consolidation of all payroll and
accounting activities has been completed. LI Group has won new transport
sector business and the Dublin Security Services operation had a significant
new business gain with the Irish Independent Newspaper Group.
With a more cost-efficient structure in place, the challenge ahead is to
combine better customer retention with ongoing new business momentum.
Staffing Services
Carlisle Staffing Services reported revenue of $54.8m (2001 - $54.3m) for
the quarter ended September 30, 2002, the seasonally quietest quarter of the
year. Operating income for the quarter ended September 30, 2002 was
$2.6m (2001 - $2.5m). Overall performance has been supported by the resilient
contract and temporary staff sector, which represents the majority of the
business and has provided an average of 7,000 workers per week for the year to
date. Managed Human Resources services are also enjoying good growth both to
new clients and as an add-on for existing accounts. The staffing markets
remain tough but the investment in our front-office systems has improved
efficiency at test locations and will now be rolled out to all locations.
Financial Services
Financial Services reported a strong performance for the quarter ended
September 30, 2002. Operating income increased 24% to $6.7m (2001 - $5.4m).
In the six-month period operating income increased by 25% to
$13.4m (2001 - $10.7m). The results reflect a 23% increase in net interest
income, driven by a 27% increase in the average loan portfolio of the Belize
Bank.
Belize Telecommunications
Belize Telecommunications Limited ("BTL") continues to prepare for
competition and has taken steps, such as rebalancing tariffs, to secure a
solid base for future business. Revenue for the quarter ended September 30,
2002 declined to $13.8m (2001 - $14.9m), principally due to tariff
rebalancing. SG&A costs increased principally due to higher legal and other
costs incurred in preparation for the new regulatory framework and increased
depreciation expense associated with the replacement of the existing cellular
network. As a result, operating income declined in the quarter ended September
30, 2002, to $4.5m (2001 - $6.7m). The Company's 52% share of net income after
taxes and minority interest amounted to $1.2m (2001 - $2.1m). The new GSM
service will be introduced in December 2002 and a rapid increase in customer
numbers is expected once it has been launched.
Associates
The income from associates in the quarter ended September 30, 2002, arises
from the investment in NUMAR. The increase in the quarter ended September 30,
2002 to $1.5m (2001 - $1.2m) 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 11,000 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 7,000 workers
employed across more than 2,700 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 September September September
30, 30, 30, 30,
2002 2001 2002 2001
Net sales
Facilities Services 233.4 248.0 462.1 501.2
Staffing Services 54.8 54.3 110.2 105.6
Telecommunication
Services 13.8 14.9 27.8 29.0
Total net sales 302.0 317.2 600.1 635.8
Operating income
Facilities Services 1.2 (1.2) 0.5 0.6
Staffing Services 2.6 2.5 5.4 5.8
Financial Services 6.7 5.4 13.4 10.7
Telecommunication
Services 4.5 6.7 11.1 13.7
Corporate overheads (1.6) (1.8) (3.4) (3.4)
Operating income 13.4 11.6 27.0 27.4
Associates 1.5 1.2 3.2 1.9
Net interest expense (1.8) (1.5) (3.5) (3.1)
Income before income
taxes 13.1 11.3 26.7 26.2
Income taxes (2.7) (3.3) (5.2) (6.9)
Income after income
taxes 10.4 8.0 21.5 19.3
Minority interests (1.4) (2.2) (3.8) (4.4)
Net income 9.0 5.8 17.7 14.9
Earnings per ordinary
share:
Diluted $0.15 $0.10 $0.30 $0.25
Number of shares -
diluted 59.2m 58.9m 59.1m 58.8m
The results for the three months and the six months ended September 30,
2002 are stated before non-recurring net charges of $0.5m (2001 - $0.5m).
Non-recurring net charges principally comprise employee severance payments in
the Facilities Services division. Net income for the three months and the six
months ended September 30, 2002, after these charges, amounted to $8.5m and
$17.2m, respectively (2001 - $5.3m and $14.4m, respectively) and earnings per
share was $0.14 and $0.29, respectively (2001 - $0.09 and $0.24,
respectively).
Effective July 1, 2002, the Retail and Event Services businesses form part
of Facilities Services rather than Staffing Services and, accordingly, the
results for all prior periods have been reclassified. In addition, certain
other prior period figures have been reclassified to conform to the current
presentation.
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, +1-561-368-3899; or Makinson
Cowell, +1-212-994-9044
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