ABATIX CORP. Reports Operating Results for Third Quarter 2004
DALLAS, Nov. 4 /PRNewswire-FirstCall/ -- ABATIX CORP. (NASDAQ:ABIX) today
announced net sales of $14,409,000 in the third quarter of 2004 increased 17%
from net sales of $12,360,000 in 2003 and net earnings of $283,000 or $.17 per
share for the third quarter of 2004 increased from net earnings of $75,000 or
$.05 per share in 2003. Net sales of $38,845,000 in the first nine months of
2004 increased 2% from net sales of $37,984,000 in 2003 and the net loss of
($40,000) or ($.02) per share in the first nine months of 2004 decreased from
net earnings of $214,000 or $.13 per share in 2003. The increase in sales and
earnings for the third quarter is primarily attributable to sales to
restoration customers in response to the recent hurricanes in Florida. The
increase in sales for the first nine months of 2004 is primarily attributed to
the homeland security market, although these sales are at lower margins and
thereby affected profitability.
Mr. Shaver stated, "We expect some revenue from the Florida hurricanes to
continue through at least the fourth quarter although the revenues will most
likely decline each month. We remain hopeful that as the economy continues to
recover, there will be additional spending in the other markets we serve. In
addition, we have implemented cost reduction and containment programs to align
our costs with revenues and turn the Company towards profitability." Mr. Shaver concluded, "We plan to continue to look for new products and
customers, additional sales and customer service personnel and more cost
efficiencies to further improve our position. Finally, we are required to
comply with Section 404 of the Sarbanes-Oxley Act by December 31, 2005 and are
beginning the process now. Although we currently do not know the full cost to
comply, we know it will be significant." Except for the historical information contained herein, the matters and
comments set forth in this release are forward looking and involve a number of
risks and uncertainties. Among the factors that could cause actual results to
differ materially are, but not limited to, the following: continued recovery
of the general economy and the construction market; war, terrorism or similar
events, or lack thereof, and their impact on homeland security sales; the
long-term impact of insurance coverage on mold remediation; adverse weather
conditions; inability to hire and train quality people or retain current
personnel; changes in interest rates; strong or increased competition; changing
customer or product mix; ability to implement sustainable cost reduction and
containment programs; or negative effects from investor issues. In addition,
increases in oil prices or shortages in oil supply could significantly impact
the Company's petroleum based products and its ability to supply those products
at a reasonable price.
ABATIX CORP. is a full line supplier to the construction tool, industrial
safety, hazardous materials, and environmental industries. The Company
currently has seven distribution centers in Dallas, Houston, San Francisco, Los
Angeles, Phoenix, Seattle, and Las Vegas. In addition, the Company has a
facility in Tampa to serve customers responding to the damage caused by the
hurricanes. These distribution centers serve customers throughout the
Southwest, Midwest, Pacific Coast, Alaska, Hawaii and Florida.
ABATIX CORP. SELECTED FINANCIAL INFORMATION
(Unaudited) Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003 Net sales $14,408,758 $12,359,999 $38,845,084 $37,984,174
Cost of sales 10,453,408 8,813,862 28,334,197 26,923,331
Gross profit 3,955,350 3,546,137 10,510,887 11,060,843
Selling, general and
administrative
expenses 3,438,832 3,384,098 10,369,524 10,553,790
Operating profit
(loss) 516,518 162,039 141,363 507,053
Other expense, net (67,306) (39,826) (167,385) (134,024)
Earnings (loss)
before income taxes 449,212 122,213 (26,022) 373,029
Income tax expense (166,600) (47,184) (14,157) (158,569)
Net earnings (loss) $282,612 $75,029 $(40,179) $214,460 Basic and diluted
earnings (loss) per
share $.17 $.05 $(.02) $.13 Basic and diluted
weighted average
shares outstanding 1,711,148 1,711,148 1,711,148 1,711,148 As of:
September 30, December 31,
2004 2003
Current assets $18,717,805 $14,616,969
Total assets $20,247,672 $16,341,775
Current liabilities $11,535,800 $7,589,724
Total stockholders' equity $8,711,872 $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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