ABATIX CORP. Reports Operating Results for 2004
DALLAS, March 14 /PRNewswire-FirstCall/ -- ABATIX CORP. (NASDAQ:ABIX) today
announced net sales of $52,892,000 for 2004 increased 8% from net sales of
$48,893,000 in 2003 and net earnings of $214,000 or $.13 per share for 2004
increased from net earnings of $61,000 or $.04 per share in 2003. The increase
in sales for 2004 is primarily attributable to sales to restoration customers
in response to the hurricanes in Florida, the sales to the homeland security
market, and the general improvement in the economy, resulting in increased
sales to the industrial market. The increase in profitability is primarily
attributed to the higher sales volume and lower labor and certain other costs,
partially offset by the lower margin homeland security sales and higher legal
costs.
Mr. Shaver stated, "Florida continued to positively impact our business during
the fourth quarter, although the business was declining as commercial jobs were
completed. In February, we closed our temporary office in Florida as most of
our customers who had mobilized to help with the cleanup had also left. We
have seen an increase in sales to the industrial market and remain hopeful that
as the economy improves, there will be additional spending in this market and
in the other markets we serve. In addition, we will continue working towards
improving our costs of operation so they are aligned with our revenues." Mr. Shaver concluded, "The SEC recently extended the time to comply with
Section 404 of the Sarbanes-Oxley Act for small companies, including Abatix,
until December 31, 2006. We are reassessing our original plan and project
start date based on this extended compliance deadline. We currently estimate
the costs, both internal and external, to comply to be approximately $500,000." This news release contains, among other things, certain statements of a
forward-looking nature relating to future events or the future business
performance of Abatix Corp. Such statements involve a number of risks and
uncertainties including, without limitation, global, national and local
economic and political conditions; changes in laws and regulations relating to
the Company's products and the import of such products; the outcome of
litigation; market acceptance of new products, existence or development of
competitive products the Company represents as a distributor that outperform
current product lines or are priced more competitively; inability to hire and
train quality people or retain current employees; changes in interest rates;
the financial status of key customers and vendors; efforts to control and/or
reduce costs; or the Company's success in the process of management's
assessment and auditor attestation of internal controls, as required by the
Sarbanes-Oxley Act of 2002. We do not undertake any obligation to publicly
update forward-looking statements to reflect events or circumstances after the
date on which the statement is made or to reflect the occurrence of
unanticipated events, except as required by law or regulation.
ABATIX CORP. is a full line supplier to the construction tool, industrial
safety, environmental and homeland security industries. The Company currently
has seven distribution centers in Dallas and Houston, Texas, in San Francisco
and Los Angeles, California, in Phoenix, Arizona, in Seattle, Washington and in
Las Vegas, Nevada. These distribution centers serve customers throughout the
Southwest, Midwest, Pacific Coast, Alaska and Hawaii. More information about
the Company can be found on the Abatix web site at http://www.abatix.com/ .
ABATIX CORP. SELECTED FINANCIAL INFORMATION
(Unaudited) Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003 Net sales $14,047,129 $10,909,246 $52,892,213 $48,893,420
Cost of sales 10,187,711 7,919,891 38,521,908 34,843,222
Gross profit 3,859,418 2,989,355 14,370,305 14,050,198
Selling, general and
administrative
expenses (3,350,419) (3,164,735) (13,719,943) (13,718,525)
Operating profit
(loss) 508,999 (175,380) 650,362 331,673
Other expense, net (73,495) (44,059) (240,880) (178,084)
Earnings (loss)
before income
taxes 435,504 (219,439) 409,482 153,589
Income tax expense (181,160) 66,170 (195,317) (92,398)
Net earnings (loss) $254,344 $(153,269) $214,165 $61,191 Basic and diluted
earnings (loss) per
share $.15 $(.09) $.13 $.04 Basic and diluted
weighted average
shares outstanding 1,711,148 1,711,148 1,711,148 1,711,148
As of:
December 31, December 31,
2004 2003
Current assets $17,832,010 $14,616,969
Total assets $19,271,924 $16,341,775
Current liabilities $10,305,708 $7,589,724
Total stockholders' equity $8,966,216 $8,752,051
DATASOURCE: ABATIX CORP.
CONTACT: Frank Cinatl of ABATIX CORP., +1-888-ABATIX-X, or +1-888-222-8499, or Web site: http://www.abatix.com/
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