31 October 2002
CARLISLE HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE SECOND QUARTER ENDED SEPTEMBER 30, 2002
Belize City, Belize, October
31, 2002 -- 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.
For further information
contact:
|
Carlisle
Group
|
Makinson
Cowell
|
|
561-368-3899
|
212-994-9044
|
Note: This and other press
releases are available at the Company's web site: http://www.bbholdingslimited.com.
Carlisle Holdings Limited
Financial Information
Summarized Consolidated Statements of Income (unaudited)
US dollars in millions except per share data
|
| |
3
months ended September 30, 2002
|
3
months ended September 30, 2001
|
6
months ended September 30, 2002
|
6
months ended September 30, 2001
|
|
| Net
sales |
| Facilites Services |
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| Staffing Services |
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| Telecommunication
Services |
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| Total net sales |
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| Operating
income |
| Facilites Services |
|
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|
|
| Staffing Services |
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| Financial Services |
|
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| Telecommunication
Services |
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| Corporate Overheads |
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| Operating income |
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| Associates |
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| Net interest expense |
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| Income before income
taxes |
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| Income taxes |
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| Income after income
taxes |
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|
| Minority interests |
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| Net income |
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| Earnings per ordinary
share: |
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| Diluted |
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| Number of shares
- diluted |
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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.
- Ends -
