27 Jan 2006 16:30
BB Holdings Ltd27 January 2006 BB HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2005 Belize City, Belize, January 27, 2006 -- BB Holdings Limited (NASDAQ: BBHL,London: BBHL) ("BB Holdings") reported revenue of $208.5m (2004 -- $197.4m) andincome from continuing operations of $10.2m (2004 -- $9.8m) for the quarterended December 31, 2005, the third quarter of fiscal 2006. Earnings per sharefrom continuing operations for the quarter ended December 31, 2005 was $0.17(2004 -- $0.16). For the nine months ended December 31, 2005, revenue was $611.6m (2004 --$589.2m) and income from continuing operations was $27.6m (2004 -- $27.7m).Earnings per share from continuing operations for the nine months ended December31, 2005 was $0.46 (2004 -- $0.46). Commenting on corporate performance, Chairman, Lord Ashcroft, KCMG, said: "OneSource is consistently meeting its revenue objectives and produced asatisfactory set of results. Successful customer retention efforts werecomplemented by the addition of several new contract wins and the expansion ofexisting relationships with some of our largest clients. "As the leading and largest banking institution in Belize, the Belize Bankcontinues to build on its strengths. The Bank enjoyed solid loan portfoliogrowth and made a strong contribution to the company's net income for thequarter. "Profitable growth and improving efficiency remain top priorities. Management inboth divisions remains firmly focused on developing cost-effective and highquality service solutions while also controlling costs." Third Quarter Operational Review Facilities Services The Facilities Services division reported operating income for the quarter endedDecember 31, 2005 of $2.6m (2004 -- $3.0m) on revenues of $208.5m (2004 --$197.4m). Operating income for the nine months ended December 31, 2005 amountedto $7.3m (2004 -- $6.9m) on revenues of $611.6m (2004 -- $589.2m). OneSource met performance objectives for the nine months ended December 31,2005. OneSource continues to pursue its strategy of customer retention andexpansion coupled with new business development as well as conducting ongoingreevaluation of clients' needs across its local and national customer portfoliosto further develop client relationships and service offerings . Efforts inthese areas resulted in more than twenty-five major contract wins and renewalsduring the third quarter in addition to the expansion of services with three ofthe top fifty customers. Management continues its focus on overall cost controls, driving efficienciesinto back-office environments and further advancing client-focused programsdesigned to deliver quality assurance and reliability. Financial Services Financial Services reported a strong performance for the quarter ended December31, 2005 with operating income amounting to $8.4m (2004 -- $7.7m). In thenine-month period ended December 31, 2005, operating income increased by 6.7percent to $23.9m (2004 -- $22.4m). The results reflect a 11.6 percent increasein net interest income driven by an 5.5 percent increase in the average loanportfolio. Discontinued Operations In August 2005, the company completed the demerger of its United Kingdom andIreland businesses into Carlisle Group Limited, a Belizean company listed on theAlternative Investment Market in London. As a consequence of the demerger, theconsolidated net income of the demerged company for the period up to the date ofthe demerger, amounting to $2.3m (2004 - $3.7m), has been reclassified andincluded as income from discontinued operations in the summarized consolidatedstatements of income for the nine month period ended December 31, 2005. Background Information Through its OneSource brand, BB Holdings is a leader in the outsourcedfacilities services sector in the US and provides janitorial, landscaping,general repair and maintenance and other specialized services for more than10,000 commercial, institutional and industrial accounts. Through the BelizeBank, the company is the largest, full service commercial and retail bankingoperation in Belize with a head office in Belize City and twelve branchesextending into each of the six regions of Belize. The principal operations ofthe bank are commercial lending, consumer lending, deposit-taking and relatedbanking activities Forward Looking Statements Certain statements in this press release constitute "forward looking statements"within the meaning of the United States Private Securities Litigation Reform Actof 1995. In particular, statements contained herein regarding the consummationand benefits of future acquisitions, as well as expectations with respect tofuture revenues, operating efficiencies, net income and business expansion, aresubject to known and unknown risks, uncertainties and contingencies, many ofwhich are beyond the control of BB Holdings, which may cause actual results,performance or achievements to differ materially from anticipated results,performance or achievements. Factors that might affect such forward lookingstatements include among others, overall economic and business conditions, thedemand for BB Holding's services, competitive factors, regulatory approvals andthe uncertainty of consummation of future acquisitions. Additional factorswhich may affect BB Holdings' businesses and performance are set forth insubmissions by BB Holdings Limited with the United States Securities andExchange Commission, (the SEC), which are available without charge from the SECat www.sec.gov. For further information contact: Makinson Cowell BB Holdings Limited+1 (212) 994 9044 UK +44 (0)20 7248 6700 Belize +501 227 7178 Note: This and other press releases are available at the Company's web site:http://www.bbholdingslimited.com. BB Holdings Limited Financial InformationSummarized Consolidated Statements of Income (unaudited)US dollars in millions except per share data 3 months 3 months 9 months 9 months ended ended ended ended December 31, December 31, December 31, December 31, 2005 2004 2005 2004 Net sales Facilities Services 208.5 197.4 611.6 589.2 Total net sales 208.5 197.4 611.6 589.2 Operating incomeFacilities Services 2.6 3.0 7.3 6.9Financial Services 8.4 7.7 23.9 22.4Corporate expenses (1.1) (0.9) (5.5) (2.8) Total operating income 9.9 9.8 25.7 26.5 Associates 1.9 1.1 5.8 3.6Net interest expense (0.9) (0.2) (1.4) (0.3) Income before income taxes 10.9 10.7 30.1 29.8Income taxes (0.1) (0.3) (0.7) (0.7) Income after income taxes 10.8 10.4 29.4 29.1Minority interests (0.6) (0.6) (1.8) (1.4) Income from continuing operations 10.2 9.8 27.6 27.7Income from discontinued operations - 1.1 2.3 3.7 Net income 10.2 10.9 29.9 31.4 Earnings per ordinary share: Basic and fully dilutedContinuing operations $0.17 $0.16 $0.46 $0.46Discontinued operations - $0.02 $0.04 $0.06Net income $0.17 $0.18 $0.50 $0.52 Number of shares - basic 60.2m 60.4m 60.1m 60.4mNumber of shares - diluted 60.9m 61.0m 60.7m 60.9m This information is provided by RNS The company news service from the London Stock Exchange