DALLAS, March 8, 2001 (PRIMEZONE) -- ABATIX Corp. (Nasdaq:ABIX) today reported revenue of $47,987,000 for 2000 increased 8% from 1999 revenues of $44,576,000. Net earnings of $598,000 ($.35 per share) for 2000 increased 30% from 1999 net earnings of $461,000 ($.26 per share). The growth in revenue in 2000 is primarily attributable to the expansion and diversification of the customer base, partially as a result of the June 1999 acquisition of North State Supply, and the addition of a new distribution channel at the Company's wholly-owned subsidiary. This increase in revenue was partially offset by a decline in sales to asbestos abatement contractors during 2000. The increase in net earnings in 2000 is primarily due to higher sales volume, partially offset by higher general and administrative expense and higher interest expense. The higher general and administrative costs are primarily due to increased facility rent expense. The higher interest expense is due to borrowings used to finance the acquisition of North State Supply and higher interest rates.
Mr. Terry W. Shaver, President, stated "We are pleased with revenue and earnings growth. We anticipated the decline in sales to asbestos abatement contractors would continue in 2001, however, the first two months of the year indicate slightly stronger sales to abatement customers. In addition, there has been an increase in sales to contractors responding to problems created by mold. We project the mold remediation industry to continue to grow in the coming years and are excited about the opportunities we have to serve this industry. To continue to grow the Company, we anticipate hiring and training more sales representatives in 2001 to continue penetrating the construction, industrial safety and environmental industries, while keeping costs in line with revenue to maintain profitability."
Mr. Shaver concluded, "We have experienced delays in the completion of our e-commerce solution; however, we expect beta testing to begin shortly. Several customers will be used during our 90-day beta testing period, after which, their suggestions will be evaluated and the appropriate enhancements made to our solution before making it available to all customers. Our solution offers features that compete with some of the top e-commerce sites found on the internet today in the B2B market. We are diligently working toward a successful launch."
Except for the historical information contained herein, the matters set forth in this release are forward looking and involve a number of risks and uncertainties. Factors that could cause actual results to differ materially are the following: inability to hire and train quality people, funding of environmental related projects, general economic and commercial real estate conditions in the local markets, changes in interest rates, inability to pass on price increases to customers, unavailability of products and strong competition. Furthermore, additional 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. In addition, lack of acceptance of our proposed e-commerce solution or problems in implementing this solution could cause actual results to differ materially.
ABATIX CORP. is a full line supplier to the construction tool, industrial safety, hazardous materials, and asbestos abatement 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.
ABATIX CORP.
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
Net sales $11,050,365 $11,366,633 $47,986,591 $44,576,180
Cost of sales 8,138,176 8,448,574 35,004,764 32,358,985
----------- ----------- ----------- -----------
Gross profit 2,912,189 2,918,059 12,981,827 12,217,195
Selling, general
and administrative
expenses 2,723,533 2,906,708 11,394,760 11,083,429
----------- ----------- ----------- -----------
Operating profit 188,656 11,351 1,587,067 1,133,766
Other expense, net 120,138 124,937 559,454 373,847
----------- ----------- ----------- -----------
Earnings (Loss)
before income
taxes 68,518 (113,586) 1,027,613 759,919
Income tax expense
(benefit) 48,118 (56,424) 429,699 298,461
----------- ----------- ----------- -----------
Net earnings
(loss) $ 20,400 $ (57,162) $ 597,914 $ 461,458
=========== =========== =========== ===========
Basic earnings
(loss) per share $ .01 $ (.03) $ .35 $ .26
=========== =========== =========== ===========
Diluted earnings
(loss) per share $ .01 $ (.03) $ .35 $ .26
=========== =========== =========== ===========
Weighted average
shares
outstanding:
Basic 1,711,148 1,721,915 1,711,148 1,779,029
=========== =========== =========== ===========
Diluted 1,711,148 1,721,915 1,711,148 1,779,029
=========== =========== =========== ===========
As of
-----------------------------------
December 31, December 31,
2000 1999
----------- -----------
Current assets $12,075,248 $13,220,493
Total assets $14,042,437 $15,204,808
Current liabilities $ 7,411,109 $ 9,171,394
Total stockholders' equity $ 6,631,328 $ 6,033,414