Certified Services, Inc. Sets Target Date for Completing StaffAmerica, American Staff Resources, and Related Companies Transaction.Business Editors NEW YORK--(BUSINESS WIRE)--May 8, 2003 Certified Services, Inc., a Nevada corporation, (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CSRV CSRV Civil Service Rifle Volunteers (British) CSRV Coates Spherical Rotary Valves ) a leading provider of professional employer organization A professional employer organization (PEO) provides outsourcing of payroll, workers' compensation, human resources and employee benefits administration. It does this by hiring a client company’s employees, thus becoming their employer of record. (PEO) services, today announced that it completed its valuation and is finalizing its due diligence relating to its acquisition on June 28th, 2003 of the PEO operations of StaffAmerica, Inc. from BACE n., a., & 1. See Base. International, Inc. "The agreed upon consideration for the transfer, involves the assumption of certain liabilities and an amount to be determined based upon StaffAmerica's results over the next three years," said Danny L. Pixler, the company's 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. . "StaffAmerica will add approximately 1,000 clients with over 30,000 worksite employees to our current base of 824 clients and 32,000 worksite employees." Mr. Pixler further pointed out that, the Company's approach to valuing StaffAmerica, while unique, had been used by CSRV in two prior transactions involving the Company's assumption of two smaller portfolios of business. Paying for the business acquired through assumptions of certain operating expense obligations and the tailored sharing of the incremental earnings is a strategy that works for us. Its initial effect will tend to be interpreted as negative cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , as CSRV reported in the quarter ended March 31, 2003. The customer accounts acquired however will soon outlive the expenses assumed and temporary profit sharing distributions leading to more profitable results in future years. In addition, the Company is relieved from the large amount of goodwill that would accumulate on its balance sheet using more conventional methods of acquiring businesses. The proof of our strategy was demonstrated by a $1,000,000 reduction in our bank borrowings during our last quarter. CSRV is a New York based holding company now entering its third year of operation with five consecutive quarters of profitability. It currently serves an estimated 824 clients with 32,000 worksite employees in 29 states. CSRV through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. the Cura CURA Community-University Research Alliance CURA Centre Universitaire de Recherche en Astrologie CURA Cambridge University Rifle Association Group, Inc. provides a broad range of services for small and medium size businesses including payroll and benefits administration, employee record keeping and regulatory compliance, health and workers' compensation insurance programs, and worksite safety management. This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied above. The company expressly disclaims any duty to update or revised forward-looking statements. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, the effect of governmental regulations, the economy, competition, the company's ability to implement price increases, the company's ability to integrate its enhanced payroll processing software and other risks detailed from time to time in the "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial " section of the Company's Form 10-KSB and other reports and filings with the Securities and Exchange Commission. |
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