Angelica Reports Fourth Quarter and Fiscal Year 2004 Results; Annual Revenues Increase 8.4% to $316 Million.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, reported today unaudited financial results for the fourth quarter and twelve months ended January 29, 2005. For the year, revenues rose 8.4% from fiscal year 2003 to $316.1 million. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of 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 were $1.14, which was one cent, or approximately $0.1 million of net income, below the prior guidance range, as fourth quarter 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. claims and worker fringe benefit fringe benefit Any nonwage payment or benefit granted to employees by employers. Examples include pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance. costs rose $1.3 million versus the prior year. Continuing operating results exclude the Company's Life Uniform retail division, which was sold during the second quarter of fiscal year 2004 and is shown as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . Revenues from continuing operations for the fourth quarter of fiscal year 2004 were $81.7 million, up 4.0% from $78.6 million in fourth quarter of fiscal year 2003, despite one less week in the fourth quarter of fiscal year 2004 versus fiscal year 2003. Acquisitions net of divestitures added $6.2 million to fourth quarter revenues, offset by the loss of $5.5 million of revenues from the extra week in fiscal year 2003. Net income from continuing operations for the fourth quarter was $2.4 million, down 19.9% from fourth quarter fiscal year 2003 of $3.0 million. Diluted earnings per share for fourth quarter fiscal year 2004 were $0.26, compared to fourth quarter fiscal year 2003 earnings per share of $0.33. The decrease versus prior year was primarily due to the increase in workers' compensation and fringe benefit costs, a $1.5 million increase in utilities and delivery fuel expense versus the prior year, and the loss of gross margin from the one less week in the quarter. For the twelve months ended January 29, 2005, revenues from continuing operations were $316.1 million, up 8.4% from $291.5 million in the prior year. Acquisitions net of divestitures added $18.2 million to fiscal year 2004 revenues, offset by the loss of $5.5 million of revenues from the extra week in fiscal year 2003. Healthcare revenues in fiscal year 2004 were $283.7 million, up 11.9% from $253.6 million in fiscal year 2003. Non-healthcare revenues declined 14.7% in fiscal year 2004, primarily reflecting our sale of the Daytona Beach, Florida “Daytona” redirects here. For other uses, see Daytona (disambiguation). Daytona Beach is a city in Volusia County, Florida, USA. According to 2006 U.S. Census Bureau estimates, the city has a population of 64,421. hospitality business. Net income from continuing operations for fiscal year 2004 was $10.4 million, down 6.0% from fiscal year 2003 net income from continuing operations of $11.0 million. Increased revenue and gross margin contribution from organic growth and acquisitions were insufficient to offset a $4.0 million increase in utilities and delivery fuel expense from the prior year. Diluted earnings per share for fiscal year 2004 were $1.14, compared to fiscal year 2003 earnings per share from continuing operations of $1.23. For fiscal year 2004, net loss from the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Life Uniform operations was $4.0 million, including a $3.0 million loss on disposal of the segment, versus a net loss of $1.8 million in fiscal year 2003. The Company does not expect any additional charges from this operation going forward. During the fourth quarter of fiscal year 2004, Angelica completed three strategic acquisitions. Facilities were purchased in Sacramento and Turlock, CA from Golden States Services; in Hempstead, NY from Tartan Tartan, in the Bible Tartan (tär`tăn), in the Bible, official title of two Assyrians sent to Hezekiah by Sennacherib and Sargon. tartan, pattern tartan: see plaid. Textiles; and in Dallas and Wichita Falls Wichita Falls, city (1990 pop. 96,259), seat of Wichita co., N Tex., on the Wichita River; inc. 1889. The city's name comes from the Wichitas and from the falls that have since been reduced to an area of rapidly flowing water in the Wichita River. , TX from National Linen Services. Each acquisition strengthened the company's market presence in their respective areas--Northern California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and the Southwest. Angelica continues to have significant borrowing capacity with its revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . The Company enhanced that borrowing capacity in the fourth quarter by increasing its credit facility to $150 million with an accordion accordion, musical instrument consisting of a rectangular bellows expanded and contracted between the hands. Buttons or keys operated by the player open valves, allowing air to enter or to escape. The air sets in motion free reeds, frequently made of metal. feature that could increase the amount to $175 million. Year-end debt was $66.5 million, net of cash, and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $151.4 million. Steve 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, "We are pleased to have been able to focus our business on healthcare linen services this past year by selling Life Uniform, streamlining our overhead, and accelerating our acquisition efforts. However, we are disappointed that our organic growth fell short of our target 5.0% organic revenue growth rate for fiscal year 2004 and that we were unable to offset the significant cost increases in energy and workers' compensation and benefits at the gross margin level." Mr. O'Hara continued, "Competitive pressure held average price increases below the rate of inflation which, along with the sharp increase in natural gas and delivery fuel contributed to our gross margin decline. Nevertheless, we continue to target a 20.0% gross margin for Angelica within the next three years as competitive pricing reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of underlying costs is restored to the market and our cost initiatives in linen procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , distribution efficiency, natural gas purchasing and capital investment lower our base costs." Angelica Corporation will host a conference call on March 18, 2005 at 10:00 AM CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. (11:00 EST EST electroshock therapy. EST abbr. electroshock therapy ) to discuss its fourth quarter and fiscal year 2004 results. The conference call will be broadcast live over the internet hosted at http://www.angelica.com and will be archived online within one hour of the completion of the conference call. Participating in the call will be Steve O'Hara, President and Chief Executive Officer, and Jim Shaffer, Chief Financial Officer. A telephonic replay of the call will be available through April 1, 2005 by calling 800-475-6701 and using the passcode 774246. 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 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 fourth quarter and fiscal year ended January 29,
2005 compared with same periods ended January 31, 2004
(dollars in thousands, except per share amounts):
Fourth Quarter Ended Fiscal Year Ended
------------------------- --------------------------
Jan. 29, Jan. 31, Percent Jan. 29, Jan. 31, Percent
2005 2004 Change 2005 2004 Change
-------- -------- ------- -------- --------- -------
Continuing
operations:
Textile service
revenues $81,743 $78,577 4.0 $316,074 $291,499 8.4
Cost of textile
services (70,605) (64,672) 9.2 (267,138) (237,261) 12.6
-------- -------- ------ --------- --------- -------
Gross profit 11,138 13,905 (19.9) 48,936 54,238 (9.8)
Selling, general
and
administrative
expenses (8,325) (9,873) (15.7) (38,366) (39,955) (4.0)
Other operating
(expense) income,
net (171) (289) (40.8) 678 (523) nm
-------- -------- ------ --------- --------- -------
Income from
operations 2,642 3,743 (29.4) 11,248 13,760 (18.3)
Interest expense (531) (241) 120.3 (1,356) (714) 89.9
Non-operating
income, net 193 306 (36.9) 2,659 2,244 18.5
-------- -------- ------ --------- --------- -------
Income from
continuing
operations,
pretax 2,304 3,808 (39.5) 12,551 15,290 (17.9)
Provision for
income taxes 99 (809) nm (2,179) (4,261) (48.9)
-------- -------- ------ --------- --------- -------
Income from
continuing
operations 2,403 2,999 (19.9) 10,372 11,029 (6.0)
-------- -------- ------ --------- --------- -------
Discontinued
operations:
Income (loss) from
operations of
discontinued
segment, net of
tax 150 (1,300) nm (993) (1,826) (45.6)
Income (loss) on
disposal of
discontinued
segment, net of
tax 551 - nm (3,018) - nm
-------- -------- ------ --------- --------- -------
Income (loss)
from
discontinued
operations 701 (1,300) nm (4,011) (1,826) 119.7
-------- -------- ------ --------- --------- -------
Net income $3,104 $1,699 82.7 $6,361 $9,203 (30.9)
======== ======== ====== ========= ========= =======
Basic earnings
per share:
Income from
continuing
operations $0.27 $0.34 (20.6) $1.16 $1.25 (7.2)
Income (loss)
from
discontinued
operations 0.08 (0.15) nm (0.45) (0.21) 114.3
-------- -------- ------ --------- --------- -------
Net income $0.35 $0.19 84.2 $0.71 $1.04 (31.7)
======== ======== ====== ========= ========= =======
Diluted earnings
per share:
Income from
continuing
operations $0.26 $0.33 (21.2) $1.14 $1.23 (7.3)
Income (loss)
from
discontinued
operations 0.08 (0.14) nm (0.44) (0.20) 120.0
-------- -------- ------ --------- --------- -------
Net income $0.34 $0.19 78.9 $0.70 $1.03 (32.0)
======== ======== ====== ========= ========= =======
Unaudited condensed balance sheets as of January 29, 2005 and
January 31, 2004 (dollars in thousands):
January 29, January 31,
2005 2004
----------- -----------
ASSETS
------
Current Assets:
Cash and short-term investments $926 $2,188
Receivables, net 44,454 36,978
Linens in service 38,846 35,464
Prepaid expenses and other current assets 8,251 9,549
Assets of discontinued segment held for sale - 24,498
----------- -----------
Total Current Assets 92,477 108,677
Property and Equipment, net 101,665 82,252
Other Long-Term Assets 94,113 44,852
----------- -----------
Total Assets $288,255 $235,781
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable $21,091 $18,343
Other current liabilities 33,929 26,824
Liabilities of discontinued segment held for
sale - 7,783
----------- -----------
Total Current Liabilities 55,020 52,950
Long-Term Debt, less current maturities 67,811 19,542
Other Long-Term Obligations 14,068 16,629
Shareholders' Equity 151,356 146,660
----------- -----------
Total Liabilities and Shareholders' Equity $288,255 $235,781
=========== ===========
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