BELIZE CITY, Belize, Nov. 8 /PRNewswire/ -- The following is being issued
by Carlisle Holdings Limited:
Carlisle Holdings Limited (Nasdaq: CLHL, London: CLH), a leader in
outsourced facilities services and staffing services, reported revenue
of $312m (1999 -- $284m) and a 16% increase in operating income to
$15.3m (1999 - $13.2m) for the quarter ended September 30, 2000, the second
quarter of fiscal 2001. Net income for the quarter was marginally down at
$14.3m from $14.9m in 1999. The increase in operating income was offset by a
lower contribution from our associates, higher interest charges and weaker
U.K. sterling. Diluted earnings per share for the second quarter was
$0.24 (1999 -- $0.23).
For the six months ended September 30, 2000, revenue was
$614m (1999 - $559m) and net income was $27.6m (1999 - $28.2m). Diluted
earnings per share for the six months ended September 30, 2000, improved to
$0.46 (1999 -- $0.43).
Commenting on the results, CEO Ian R. Pluthero said:
"In our core operations, steady new business development and ongoing cost
controls were achieved by all Carlisle divisions during the quarter. However,
in a highly competitive environment, we continue to see pressure on gross
margins on both new business and re-bids. The emphasis on efficiencies and
cost control has been essential to maintain margins."
"OneSource in the U.S. continued to focus on National Accounts and
Facilities Services in the U.K. had another strong quarter with important
sales contributions, not only from our traditional stronghold in the retail
sector, but also from further new business won in the transport and
distribution sectors."
"In Staffing Services a 22% increase in like-for-like operating income
reflects strong organic growth and was complemented by revenue from new
acquisitions."
Second Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $258.4m for the
quarter ended September 30, 2000 (1999 - $243.7m), an increase of 6% over the
prior year. Operating income for the quarter was $8.4m (1999 - $7.6m)
producing an operating margin of 3.3%. Effective cost controls at all levels
- corporate, SG&A and labor costs in the field - continued the trend of
previous quarters.
In the U.S., OneSource won new contracts during the quarter to provide
janitorial services to significant corporate facilities for Bank of America,
Federal Express, Bose Corporation, Raytheon and leading real estate firm,
Jones Lang LaSalle.
Price competition on new business has not abated, creating pressure on
gross margins, a pattern that is expected to continue. To counter this, we
are focusing heavily on selling a broad range of services to the larger
National Account sector in order to increase sales volume and thereby leverage
our overhead cost base.
Facilities Services in the U.K. achieved significant growth in the current
quarter. This strong performance was driven by organic growth and new
business in the retail, transport and distribution cleaning sectors. The
outlook for the rest of the year is positive, with significant new contracts
recently won, including six new stores for Tesco, station cleaning businesses
for Central Trains and the New Covent Garden Market.
In manned guarding, overall sales were slightly up where new business
gains and acquisitions were offset by losses in retail and the duty free
maritime sectors. Some major new clients include the Office of National
Statistics, the Patent Office, the National Grid and Esso in Ireland. The
outlook for manned guarding will be influenced by the extent to which a recent
initiative is expanded for certain customers to test reducing their daytime
security requirements at low risk locations.
We continue to review opportunities for small, rightly priced tuck-in
acquisitions where we can leverage our existing overhead structure.
Staffing Services
The Staffing Services division, operating in the U.K. and Ireland,
reported revenue of $53.6m (1999 -- $39.9m) for the quarter ended
September 30, 2000, a gain of 34% over the prior year. Operating income for
the quarter was $2.6m (1999 - $2.0m) and organic growth was strong with
operating income up 22% on a like-for-like basis versus the prior year. Two
recent small acquisitions, an office support staffing business in Dublin and
Hewitson Walker, a financial services and accounting specialist in London, are
performing well, have deepened our presence in key sectors and will positively
impact the third quarter. The strategy to develop a full HR Service for major
clients has resulted in expanded contracts to Guinness Ireland and Enron in
London.
Financial Services
Income from Financial Services increased 19% to $4.3m for the quarter
ended September 30, 2000 (1999 - $3.6m). For the six months ended
September 30, 2000, income from Financial Services increased 22% to
$8.4m (1999 - $6.9m). The results for the six months reflect a 9% increase
in net interest income driven principally by an increase in average
interest-earning assets of The Belize Bank.
Associates and net interest charges
The income from associates arises from the investments in NUMAR and Belize
Telecommunications. The decline against last year is principally due to the
anticipated fall in the calendar 2000 income from the investment in NUMAR,
which is temporarily suffering the effects of the depressed international
market for edible oils.
Net interest charges in the quarter increased due to higher working
capital requirements at OneSource which is expected to normalize by year-end,
and a small amount of acquisitions activity.
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.
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)
U.S. dollars in millions except per share data
3 months 3 months 6 months 6 months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales 312.0 283.6 613.6 558.8
Operating income 15.3 13.2 29.2 25.0
Associates 2.4 3.6 4.4 6.7
Net interest expense (1.8) (0.4) (2.9) (0.6)
Income before
income taxes 15.9 16.4 30.7 31.1
Income taxes (1.4) (1.3) (2.7) (2.5)
Income after income taxes 14.5 15.1 28.0 28.6
Minority interests (0.2) (0.2) (0.4) (0.4)
Net income 14.3 14.9 27.6 28.2
Earnings per ordinary share:
Basic $0.24 $0.24 $0.46 $0.46
Diluted $0.24 $0.23 $0.46 $0.43
Number of
shares - diluted 60.4m 65.8m 60.2m 66.0m
The results for the three months and the six months ended
September 30, 2000 are stated before non-recurring net gains of $0.9m.
The results for the three months ended September 30, 1999 are stated
before non-recurring net gains of $2.9m and the results for the six months
ended September 30, 1999 are stated before non-recurring net charges of $0.9m.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Balance Sheets (unaudited)
U.S. dollars in millions
September 30, March 31,
2000 2000
Assets
Services Businesses
Current assets:
Cash and cash equivalents 19.5 25.3
Other current assets 233.7 181.0
Total current assets 253.2 206.3
Property, plant and equipment 35.0 32.5
Associates and other assets 92.6 98.3
Goodwill and other intangibles 324.9 318.7
Total Services Businesses assets 705.7 655.8
Financial Services net assets 23.8 26.1
Total assets 729.5 681.9
Liabilities and shareholders' equity
Services Businesses
Current liabilities:
Short-term debt 47.5 32.9
Other current liabilities 120.2 126.3
Total current liabilities 167.7 159.2
Long-term debt 55.4 19.0
Other long-term liabilities 77.0 81.5
Total Services Businesses liabilities 300.1 259.7
Total shareholders' equity 429.4 422.2
Total liabilities and shareholders' equity 729.5 681.9
Carlisle Holdings Limited
Financial Information
Segmental Analysis (unaudited)
U.S. dollars in millions
3 months 3 months 6 months 6 months
ended ended ended ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Sales
Facilities Services 258.4 243.7 508.5 482.8
Staffing Services 53.6 39.9 105.1 76.0
Total sales 312.0 283.6 613.6 558.8
Operating income
Facilities Services 8.4 7.6 15.8 14.8
Staffing Services 2.6 2.0 5.0 3.3
Financial Services 4.3 3.6 8.4 6.9
Total operating income 15.3 13.2 29.2 25.0
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.
SOURCE Carlisle Holdings Limited
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Related links:
http://www.carlisleholdings.com
Company News On-Call:
http://www.prnewswire.com/comp/114380.html or fax,
800-758-5804, ext. 114380
CONTACT:
Carlisle Group, 561-368-3899, or Broadgate
Consultants, Inc., 212-232-2222, for Carlisle Holdings Limited
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