Angelica Reports Third Quarter Fiscal 2004 Results; Third Quarter Net Income from Continuing Operations Increases 22%.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 reported financial results for the third quarter and nine months ended October October: see month. 30, 2004. Continuing operating results exclude the Company's Life Uniform retail division, which was sold during the second quarter of 2004 and is shown as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Revenues 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 for the third quarter of fiscal 2004 were $78.7 million, an increase of 11.6% from $70.6 million in the third quarter of fiscal 2003. The year-over-year improvement in revenues was due to organic growth of 5.2% and growth from acquisitions, net of divestitures, of 6.4%. Net income from continuing operations increased 21.9% for the third quarter of fiscal 2004 to $2.7 million, or $0.29 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, compared to $2.2 million, or $0.24 per diluted share, in the third quarter of fiscal 2003. Fiscal 2004 third-quarter results included non-operating income of $364,000. Income from operations for the third quarter of fiscal 2004 was $3.1 million, up from $3.0 million in the same period last year. The Company continued to experience increased expenses associated with natural gas and delivery fuel as well as professional service fees and other expenses associated with a union corporate campaign during the third quarter of 2004. However, volume growth and operating efficiency improvements offset these incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. . The third quarter net loss from 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 $1.1 million. While Angelica completed the sale of its Life Uniform retail division in July July: see month. 2004, the Company incurred additional expenses during the third quarter related to contractual working capital adjustments and added accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. for health insurance and 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 at Life Uniform. Angelica expects to record no further significant charges from the sale. For the nine months ended October 30, 2004, revenues increased 10.1% to $234.3 million from $212.9 million for the same period in 2003. The year-over-year increase in revenues for the first nine months of 2004 was due to organic growth of 3.6% and growth from acquisitions net of divestitures, of 6.5%. Net income from continuing operations was relatively flat at $8.0 million, or $0.87 per diluted share, as compared to $8.0 million, or $0.90 per diluted share, during the same period in 2003. The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of the increase in revenues was offset by higher energy costs and direct labor costs. For the nine-month period of 2004, net loss from the discontinued Life Uniform operations was $4.7 million, including the $1.1 million in additional expenses discussed above. "We are pleased with our third quarter results," said 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. . "Despite a continuation of the challenging energy markets, we posted solid revenue growth and improved 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. . Through operational discipline and the pursuit of operating efficiency, we continue to strive to offset the rising cost of energy. Nevertheless, as energy and workers' compensation costs continue to offset margin gains from higher revenue, we expect fiscal year 2004 earnings from continuing operations to be at the low end of our previous guidance of $1.15 to $1.30 per share. Mr. O'Hara continued, "We remain excited about Angelica's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth opportunities in healthcare linen management. As Angelica continues to invest in energy-efficient equipment and make selective acquisitions, such as the recently announced Golden State Laundry Laundry can be:
Before industrialization Service acquisition, we expect our efforts will translate into continued revenue growth and improved margin performances and earnings next year." Angelica Corporation will host a conference call on December 1, 2004 at 10:00 AM CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. (11:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy ) to discuss its fiscal year 2004 third quarter results. The earnings release will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the 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 December 15, 2004 by calling 800-475-6701 and using the pass-code 758080. 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. 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, 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 third quarter and nine months ended October 30,
2004 compared with same periods ended October 25, 2003 (dollars in
thousands, except per share amounts):
Third Quarter Ended Nine Months Ended
------------------------- ---------------------------
October October Percent October October Percent
30, 25, Inc 30, 25, Inc
2004 2003 (Dec) 2004 2003 (Dec)
-------- -------- ------- --------- --------- -------
Continuing
Operations:
Textile service
revenues $78,737 $70,576 11.6 $234,331 $212,922 10.1
Cost of textile
services (65,616) (57,699) 13.7 (196,533) (172,589) 13.9
-------- -------- ------- --------- --------- -------
Gross profit 13,121 12,877 1.9 37,798 40,333 (6.3)
Selling, general
and
administrative
expenses (9,766) (9,737) 0.3 (30,041) (30,082) (0.1)
Other operating
(expense)
income, net (213) (105) 102.9 849 (234) nm
-------- -------- ------- --------- --------- -------
Income from
operations 3,142 3,035 3.5 8,606 10,017 (14.1)
Interest expense (244) (106) 130.2 (825) (473) 74.4
Non-operating
income, net 364 23 nm 2,466 1,938 27.2
-------- -------- ------- --------- --------- -------
Income from
continuing
operations
before taxes 3,262 2,952 10.5 10,247 11,482 (10.8)
Provision for
income taxes (587) (757) (22.5) (2,278) (3,452) (34.0)
-------- -------- ------- --------- --------- -------
Income from
continuing
operations 2,675 2,195 21.9 7,969 8,030 (0.8)
-------- -------- ------- --------- --------- -------
Discontinued
Operations:
Loss from operations of
discontinued segment,
net of tax (508) (11) nm (1,143) (526) 117.3
Loss on disposal
of discontinued
segment, net of
tax (561) - nm (3,569) - nm
-------- -------- ------- --------- --------- -------
Loss from
discontinued
operations (1,069) (11) nm (4,712) (526) 795.8
-------- -------- ------- --------- --------- -------
Net income $1,606 $2,184 (26.5) $3,257 $7,504 (56.6)
======== ======== ======= ========= ========= =======
Basic earnings
per share:
Income from
continuing
operations $0.30 $0.25 20.0 $0.90 $0.91 (1.1)
Loss from
discontinued
operations (0.12) - nm (0.53) (0.06) 783.3
-------- -------- ------- --------- --------- -------
Net income $0.18 $0.25 (28.0) $0.37 $0.85 (56.5)
======== ======== ======= ========= ========= =======
Diluted earnings
per share:
Income from
continuing
operations $0.29 $0.24 20.8 $0.87 $0.90 (3.3)
Loss from
discontinued
operations (0.11) - nm (0.51) (0.06) 750.0
-------- -------- ------- --------- --------- -------
Net income $0.18 $0.24 (25.0) $0.36 $0.84 (57.1)
======== ======== ======= ========= ========= =======
Unaudited condensed balance sheets as of October 30, 2004 and January
31, 2004 (dollars in thousands):
October 30, January 31,
2004 2004
----------- -----------
ASSETS
----------------------------------------------
Current Assets:
Cash and short-term investments $ 4,131 $ 2,188
Receivables, net 38,424 36,978
Linens in service 35,323 35,464
Prepaid expenses and other current assets 6,992 4,513
Deferred income taxes 3,282 5,036
Assets of discontinued segment held for sale - 24,498
----------- -----------
Total Current Assets 88,152 108,677
Property and Equipment, net 92,287 82,252
Other Long-Term Assets 48,310 44,852
----------- -----------
Total Assets $ 228,749 $ 235,781
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------------------
Current Liabilities:
Accounts payable $ 16,702 $ 18,343
Accrued wages and other compensation 5,014 5,092
Other accrued liabilities 25,989 21,732
Liabilities of discontinued segment held for
sale - 7,783
----------- -----------
Total Current Liabilities 47,705 52,950
Long-Term Debt, less current maturities 16,741 19,542
Other Long-Term Obligations 16,041 16,629
Shareholders' Equity 148,262 146,660
----------- -----------
Total Liabilities and Shareholders' Equity $ 228,749 $ 235,781
=========== ===========
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