BELIZE CITY, Belize, Nov. 10 /PRNewswire/ -- Carlisle Holdings Limited
(Nasdaq: CLHL, London: CLH), a leader in outsourced facilities services and
staffing services, reported revenue of $283.6m (1998 -- $226.0m) and net
income (before non-recurring income) of $14.9m (1998 -- $9.6m) for the quarter
ended September 30, 1999, the second quarter of fiscal 2000. Diluted earnings
per share before non-recurring income for the quarter ended September 30,
1999, was $0.23 (1998 -- $0.24).
For the six months ended September 30, 1999, revenue amounted to $558.8m
(1998 -- $447.9m) and net income before non-recurring charges amounted to
$28.2m (1998 -- $18.7m). Diluted earnings per share before non-recurring
income for the six months ended September 30, 1999, was $0.43 (1998 -- $0.46).
The dilution in earnings per share (2 cents in the first quarter, reducing
to 1 cent in the second) is in line with expectations and results from the
anticipated effect of the combination of BHI Corporation and Carlisle UK.
The increase in sales, compared both to the September 1998 quarter and the
first quarter of fiscal 2000, includes contributions from the acquisitions
completed during fiscal 1999 and the impact of new business in both the U.S.
and the U.K. Operating income and margin (excluding Financial Services) also
improved, increasing to $9.6m and 3.4%, respectively, for the current quarter
(1998 -- $6.4m and 2.8%).
Commenting, CEO Ian R. Pluthero said:
"Carlisle continued to make progress on two fronts during the second
quarter: winning new business and controlling overheads. In addition, we are
increasingly combining the expertise of our U.S. and U.K. operations to offer
the broadest and most competitive range of services to customers. Organic
growth, particularly in the U.K., was the highlight of the second quarter, and
the acquisitions pipeline is strong as we continue to pursue transactions that
will be accretive to earnings."
Mr. Pluthero added:
"In the U.S., our facilities services business, OneSource, continues to
expand, primarily through acquisitions, together with some modest organic
growth, and cross-marketing efforts are showing steady progress. Expanding
higher margin service offerings to our existing customer base, as well as
continued initiatives to improve efficiency, are having a positive effect on
margins. In the U.K., all sectors performed well, particularly the Staffing
Services business."
Second Quarter Operational Review
Facilities Services
The Facilities Services division reported revenue of $243.7 for the three
months ended September 30, 1999 (1998 -- $204.2m), an increase of 19%.
Operating income for the three months ended September 30, 1999, was $7.6m, a
significant increase of 43% over operating income of $5.3m for the comparable
period last year. These improvements reflect last year's acquisitions, the
addition of more profitable accounts, and OneSource's ability to add new
business without significantly increasing SG&A expenses. The program to
modernize and expand the capabilities of OneSource's central back office
function is ongoing.
In the U.S., management continues to cross-market OneSource landscape,
painting and metal and marble services to the large janitorial customer base.
New accounts were added at a steady pace during the second quarter and
important new contracts were signed in all markets including:
Commercial Cleaning -- Southwest Airlines operations at Chicago's O'Hare
airport; a portfolio of Cushman Wakefield properties in California; and a
number of high-rise office buildings in New York.
Commercial Painting -- work began at the Trump Taj Mahal hotel and casino
in Atlantic City and OneSource established Goldman Sachs in New York as a new
client.
Metal and Marble Services -- will be provided to the Time Life Building
and Chase Manhattan's world headquarters, both in New York.
In addition, the Landscape and Golf Services business won significant new
business from three premier golf courses in the southeast.
In the current fiscal year, OneSource has added approximately $28m in
annualized revenue through acquisitions, the largest of which was a landscape
business on the West Coast. Management continues to actively seek
acquisitions that will complement existing service offerings, increase market
density, and, in certain cases, add management talent.
The Company continues to push the OneSource brand as an important
statement of its strategy to provide a single solution for a wide variety of
facilities services to commercial and industrial property owners and managers.
In the U.K., the LI Group, which provides cleaning and support services,
mainly to retailers, is ahead of its sales and operating profit targets and
continued to gain new accounts and grow existing business during the quarter
with customers such as Harrods, Toys R US and Marks & Spencer.
Capitol Security Services, which provides specialist security services
(principally uniformed guarding), expanded business with existing customers
and continued to improve operating margins. In addition, the growth of
24-hour shopping at retail outlets has increased the demand for contracts
within this sector.
Staffing Services
The Staffing Services division in the U.K. reported revenue of $39.9m for
the three months ended September 30, 1999 (1998 -- $21.8m). Operating income
for the three months ended September 30, 1999, was $2.0m (1998 -- $1.1m).
The improvement in revenue and operating income is principally due to
organic growth and the effect of the acquisition of Abacus, completed in
December 1998.
Staffing Services is now represented by a number of well-known brands in
over 70 locations. This division provides temporary staff, primarily to
clients in the IT, banking, accounting, insurance, legal, education,
commercial, industrial, retail, driving, technical, catering and social care
marketplaces around the U.K.
Financial Services
Financial Services continued its strong performance in the second quarter.
Income increased 29% to $3.6m for the three months ended September 30, 1999
(1998 -- $2.8m). In the six-month period, income increased by 28% to $6.9m;
the results reflect a 26% increase in net interest income, driven by a 20%
increase in the average loan portfolio of The Belize Bank.
Corporate Matters
In August 1999, the Company announced a continuation for a further twelve
months of the program to repurchase Carlisle's ordinary shares. Since August,
the Company has purchased 1,798,000 ordinary shares for $18.6m (an average
buy-back price of $10.34 per share). Carlisle will continue to purchase
shares when it is in the shareholders' interest to do so. The timing of
purchases and the actual number of shares purchased will depend on market
conditions.
Carlisle Group is a leader in the outsourced facilities services sector in
the U.S. and provides janitorial, landscaping, security services, commercial
interior painting services, general repair and maintenance and other
specialized services for more than 11,000 commercial, institutional and
industrial accounts. Carlisle Group is also a leading provider of outsourced
facilities services and staffing services in the U.K.
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 (formerly
named BHI Corporation) with the United States Securities and Exchange
Commission.
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 6 months ended
September 30, September 30,
1999 1998 1999 1998
Net sales 283.6 226.0 558.8 447.9
Operating income 13.2 9.2 25.0 16.8
Associates 3.6 2.0 6.7 4.9
Net interest expense (0.4) (0.4) (0.6) (0.8)
Income before
income taxes 16.4 10.8 31.1 20.9
Income taxes (1.3) (1.0) (2.5) (1.8)
Income after
income taxes 15.1 9.8 28.6 19.1
Minority interests (0.2) (0.2) (0.4) (0.4)
Income from
continuing operations 14.9 9.6 28.2 18.7
Earnings per ordinary
share from continuing
operations before
non-recurring items:
Basic $0.24 $0.25 $0.46 $0.49
Diluted $0.23 $0.24 $0.43 $0.46
Number of shares
- diluted 65.8m 40.1m 66.0m 40.8m
The results for the three months and the six months ended September 30,
1999 are stated before non-recurring income less charges which includes costs
relating to the BHI Corporation/Carlisle U.K. merger and the aborted offer for
The Corporate Services Group, gains arising on the disposal of certain
associates and investments and a charge relating to the minority interest
arising on "as-if" pooling.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Balance Sheets (unaudited)
U.S. dollars in millions
September 30, March 31,
1999 1999
Assets
Services Businesses
Current assets:
Cash and cash equivalents 48.0 90.6
Other current assets 165.8 161.1
Total current assets 213.8 251.7
Property, plant and equipment 27.5 23.1
Associates and other assets 90.5 76.3
Goodwill and
other intangibles 296.2 233.8
Total Services
Businesses assets 628.0 584.9
Financial Services net assets 21.9 21.0
Total assets 649.9 605.9
Liabilities and
shareholders' equity
Services Businesses
Current liabilities:
Short-term debt 26.4 29.0
Other current liabilities 126.6 145.0
Total current liabilities 153.0 174.0
Long-term liabilities 83.3 95.2
Minority interests -- 58.8
Total Services
Businesses liabilities 236.3 328.0
Total shareholders' equity 413.6 277.9
Total liabilities and
shareholders' equity 649.9 605.9
Carlisle Holdings Limited
Financial Information
Segmental Analysis (unaudited)
U.S. dollars in millions
3 months ended 6 months ended
September 30, September 30,
1999 1998 1999 1998
Sales
Facilities Services 243.7 204.2 482.8 406.2
Staffing Services 39.9 21.8 76.0 41.7
Total sales 283.6 226.0 558.8 447.9
Operating income
Facilities Services 7.6 5.3 14.8 9.8
Staffing Services 2.0 1.1 3.3 1.6
Financial Services 3.6 2.8 6.9 5.4
Total operating income 13.2 9.2 25.0 16.8
Notes:
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.
In June 1999, the Company completed the acquisition of 100% of Carlisle
U.K., one of the U.K.'s leading providers of outsourced facilities services
and staffing services.
The acquisition of Carlisle U.K. has been accounted for using the "as-if"
pooling of interests method of accounting due to the existence of a common
controlling shareholder in both the Company and Carlisle U.K. This method of
pooling of interests requires that the consolidated financial statements of
Carlisle U.K. are pooled with those of the Company for all accounting periods
reported, with a minority interest elimination for all periods where a
non-controlling minority interest existed in the share capital of Carlisle
U.K. Consequently, the consolidated statements of income of the Company for
all accounting periods reported include 100 per cent of the results of
Carlisle U.K. for the entire periods.
SOURCE Carlisle Holdings Limited
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CONTACT:
Carlisle Group, 561-368-3899; or Broadgate
Consultants, Inc., 212-232-2222
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