Angelica Announces First Quarter Fiscal 2005 Financial Results; Revenues Increase 32.0% to $102.6 Million Operating Income increases 15.9%.ST. LOUIS -- Angelica angelica (ănjĕl`ĭkə), any species of the genus Angelica, plants of the family Umbelliferae (parsley family), native to the Northern Hemisphere and New Zealand, valued for their potency as a medicament and protection against Corporation (NYSE NYSE See: New York Stock Exchange : AGL (programming) AGL - (Atelier de Genie Logiciel) French for IPSE. ), a leading provider of healthcare linen linen, fabric or yarn made from the fiber of flax, probably the first vegetable fiber known to people. Linens more than 3,500 years old have been recovered from Egyptian tombs. Phoenician traders marketed linen in Mediterranean ports. management services, today announced first quarter fiscal year 2005 financial results for the period ended April 30, 2005. Net revenues for the first quarter of fiscal 2005 were $102.6 million, a 32.0% increase from $77.7 million in first quarter of fiscal 2004. Acquisitions, net of divestitures, added $21.7 million to fiscal first quarter 2005 revenue, or 27.9% of the revenue percentage increase. Organic growth year-over-year was $3.2 million, accounting for 4.1% of the percentage increase. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for first quarter of fiscal 2005 was $2.0 million, a 15.9% increase, from $1.7 million recorded in first quarter of fiscal 2004. These results reflect primarily higher sales volume, which was partially offset by a $0.8 million increase in amortization expense and a $1.1 million increase in depreciation expense. Gross margin declined to 15.1% in fiscal 2005 from 15.7% in fiscal 2004. Included in the gross margin decline is $0.8 million of the depreciation expense increase noted above and an increase in natural gas expense which rose to 5.0% of revenues in first quarter of fiscal 2005 from 4.4% of revenues in first quarter of fiscal 2004. Selling, general and administrative expenses decreased by 80 basis points as a percent of revenue to 12.3% in fiscal 2005, compared to 13.1% in fiscal 2004. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $1.0 million, or $0.11 per share, compared to $2.5 million, or $0.28 per share ($0.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share), in first quarter of fiscal 2004. The year-over-year decline in net income was mainly due to a decline in non-operating income as well as higher interest expense. The Company recorded $0.5 million of pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern non-operating income primarily from a liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy distribution related to life insurance policies owned by the company in first quarter of fiscal 2005. In comparison, there was $2.1 million of pretax non-operating income related to the sale of its Miami real estate and proceeds on life insurance policies during the same period in fiscal 2004. Late in the first quarter of 2005, the Company completed the acquisition of Royal Institutional Services, Inc. and its affiliate, The Surgi-Pack Corporation. With annual revenues of over $45 million, the Royal facilities in Somerville Somerville. 1 City (1990 pop. 76,210), Middlesex co., E Mass., a residential and industrial suburb of Boston, on the Mystic River; settled 1630, set off from Charlestown 1842, inc. as a city 1871. and Worcester Worcester, city, England Worcester (w  s`tər), city (1991 pop. 75,466) and district, Worcestershire, W central England, on the Severn River. , Massachusetts Massachusetts (măsəch `sĭts), most populous of the New England states of the NE United States. , when
combined with the Company's existing Pawtucket, Rhode Island Pawtucket is a city in Providence County, Rhode Island, United States. The population was 72,958 at the 2000 census. It is the fourth largest city in the state. The current mayor is James Doyle.Pawtucket was the birthplace of the American Industrial Revolution. and Ballston Spa, New York Ballston Spa is a village in Saratoga County, New York in the United States. The population was 5,556 at the 2000 census. It is the county seat of Saratoga CountyGR6. The name is from Eliphalet Ball, an early settler. facilities, more than triples the Company's revenues in the New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. region. Commenting on the results, Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. O'Hara, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "Despite continued economic challenges, we posted strong revenue gains, both through acquisitions and organic growth which yielded a strong increase in operating income. While costs associated with threats of union action and continued high natural gas costs hindered our gross margin progress, we still believe final fiscal 2005 gross margin will exceed our final fiscal 2004 gross margin. Meanwhile, we continue to lower our selling, general and administrative expenses as a percent of revenue. In addition, the integration of our recent acquisitions has been progressing on schedule. We also continue to invest in our plants to make them more energy and labor efficient so that we can provide our customers quality linen service at an excellent value." Mr. O'Hara continued, "As announced last week, we have strengthened our management team with the recent addition of Dave Van Vliet as President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . With his experience in the healthcare industry and track record of providing superior customer service, we believe he will be instrumental in growing revenue organically and profitably as we continue to build upon our leading customer service position in the healthcare linen services market." Angelica Corporation, traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol AGL, is a leading provider of textile rental and linen management services to the U.S. healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. market. More information about Angelica is available on its website, www.angelica.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Any forward-looking statements made in this document reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These potential risks and uncertainties include, but are not limited to, competitive and general economic conditions, the ability to retain current customers and to add new customers in competitive market environments, competitive pricing in the marketplace, delays in the shipment of orders, availability of labor at appropriate rates, availability and cost of energy and water supplies, the cost of workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and healthcare benefits, the ability to attract and retain key personnel, the ability of the Company to recover its seller note and avoid future lease obligations as part of its sale of Life Uniform, the ability of the Company to accomplish its strategy of redirecting its resources to its healthcare linen management business in a timely and financially advantageous manner, unusual or unexpected cash needs for operations or capital transactions, the effectiveness of certain expense reduction initiatives, the ability to obtain financing in required amounts and at appropriate rates and terms, the ability to identify, negotiate, fund, consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. and integrate acquisitions, and other factors which may be identified in the Company's filings with the Securities and Exchange Commission.
Unaudited results for first quarter ended April 30, 2005 compared with
same period ended May 1, 2004 (dollars in thousands, except per share
amounts):
First Quarter Ended
------------------------------
April 30, May 1, Percent
2005 2004 Change
--------- --------- ---------
Continuing Operations:
Net revenues $102,580 $ 77,730 32.0%
Cost of services (87,046) (65,563) 32.8%
--------- --------- ---------
Gross profit 15,534 12,167 27.7%
Selling, general and administrative
expenses (12,663) (10,180) 24.4%
Amortization of other acquired assets (811) (225) 260.4%
Other operating expense, net (52) (29) 79.3%
--------- --------- ---------
Income from operations 2,008 1,733 15.9%
Interest expense (1,150) (280) 310.7%
Non-operating income, net 539 2,100 -74.3%
--------- --------- ---------
Income from continuing operations
before taxes 1,397 3,553 -60.7%
Provision for income taxes (377) (1,030) -63.4%
--------- --------- ---------
Income from continuing operations 1,020 2,523 -59.6%
--------- --------- ---------
Discontinued Operations:
Income from operations of discontinued
segment, net of tax - 672 nm
Loss on disposal of discontinued segment, nm
net of tax - (3,064)
--------- --------- ---------
Loss from discontinued operations - (2,392) nm
--------- --------- ---------
Net income $ 1,020 $ 131 nm
========= ========= =========
Basic earnings per share:
Income from continuing operations $ 0.11 $ 0.28 -60.7%
Loss from discontinued operations - (0.27) nm
--------- --------- ---------
Net income $ 0.11 $ 0.01 nm
========= ========= =========
Diluted earnings per share:
Income from continuing operations $ 0.11 $ 0.27 -59.3%
Loss from discontinued operations - (0.26) nm
--------- --------- ---------
Net income $ 0.11 $ 0.01 nm
========= ========= =========
Unaudited condensed balance sheets as of April 30, 2005 and
January 29, 2005 (dollars in thousands):
April 30, January 29,
2005 2005
----------- -----------
ASSETS
------
Current Assets:
Cash and short-term investments $ 2,488 $ 926
Receivables, net 55,210 44,454
Linens in service 45,870 38,846
Prepaid expenses and other current assets 3,371 3,817
Deferred income taxes 4,354 5,386
----------- -----------
Total Current Assets 111,293 93,429
Property and Equipment, net 105,536 101,665
Goodwill 50,586 31,272
Other Acquired Assets 43,659 24,860
Other Long-Term Assets 18,277 37,727
----------- -----------
Total Assets $ 329,351 $ 288,953
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Current maturities of long-term debt $ 7,919 $ 419
Accounts payable 21,349 16,865
Accrued wages and other compensation 6,646 5,145
Other accrued liabilities 32,112 33,289
----------- -----------
Total Current Liabilities 68,026 55,718
Long-Term Debt, less current maturities 94,706 67,811
Other Long-Term Obligations 13,910 14,068
Shareholders' Equity 152,709 151,356
----------- -----------
Total Liabilities and Shareholders' Equity $ 329,351 $ 288,953
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