DALLAS, Aug. 9, 2001 (PRIMEZONE) -- Abatix Corp. (Nasdaq:ABIX) today announced net sales for the three months ended June 30, 2001, of $14,783,000 increased 12% from net sales of $13,221,000 for the second quarter of 2000. Net earnings of $368,000, or $.22 per share, for the second quarter of 2001 increased 22% from 2000 net earnings of $302,000, or $.18 per share. Consolidated net sales for the six months ended June 30, 2001, increased 10% to $26,916,000 from $24,583,000 in 2000. Net earnings for the six months ended June 30, 2001, of $564,000, or $.33 per share, increased $210,000 from net earnings of $354,000, or $.21 per share, for the same period in 2000. The increase in sales resulted from efforts to further expand and diversify the customer base. In addition, sales were significantly impacted by the increasing awareness of toxic molds in homes and buildings and by the effects of Tropical Storm Allison on the Houston area. The increase in net earnings is primarily due to higher sales volume and a decline in interest expense resulting from lower rates and lower borrowings.
Mr. Terry W. Shaver, President, stated, "We are pleased with the increase in earnings this year and anticipate a strong second half of 2001. We will continue to focus on expanding our product lines in all of our locations to support revenue growth and better serve our customers, while focusing on niche growth markets in the environmental and construction industries. In addition, we are continuing to focus on our internal operations by ensuring a platform for continued growth while keeping general and administrative costs in line with revenues."
Mr. Shaver concluded, "Customers now have the ability to purchase several thousand products from our new Website, www.abatix.com. This e-commerce platform tears down geographic boundaries, allowing us to sell our products anywhere in the world. Furthermore, this site helps solidify relationships with current customers by providing them an additional resource for information and another tool for ordering products. We will continue to add more products to our site and provide timely and useful information to customers."
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. Among the 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, restrictions on trade with foreign countries, changes in interest rates, inability to pass on price increases to customers, unavailability of products and strong competition. 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. Furthermore, lack of acceptance of our e-commerce solution or the impairment of goodwill resulting from the 1999 acquisitions could cause actual results to differ materially.
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 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 Six Months Ended
June 30, June 30,
------------------------ ------------------------
2001 2000 2001 2000
----------- ----------- ----------- -----------
Net sales $14,782,809 $13,220,965 $26,915,691 $24,582,709
Cost of sales 10,763,369 9,654,001 19,508,782 17,845,891
----------- ----------- ----------- -----------
Gross profit 4,019,440 3,566,964 7,406,909 6,736,818
Selling, general
and administrative
expenses 3,300,022 2,918,991 6,229,950 5,856,401
----------- ----------- ----------- -----------
Operating profit 719,418 647,973 1,176,959 880,417
Other expense, net 96,841 146,222 227,593 290,755
----------- ----------- ----------- -----------
Earnings before
income taxes 622,577 501,751 949,366 589,662
Income tax expense 254,298 199,848 385,014 235,452
----------- ----------- ----------- -----------
Net earnings $ 368,279 $ 301,903 $ 564,352 $ 354,210
=========== =========== =========== ===========
Basic and diluted
earnings per share$ .22 $ .18 $ .33 $ .21
=========== =========== =========== ===========
Basic and diluted
weighted average
shares outstanding 1,711,148 1,711,148 1,711,148 1,711,148
=========== =========== =========== ===========
As of
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June 30, December 31,
2001 2000
------------ ------------
Current assets $ 17,231,802 $ 12,075,248
Total assets $ 19,170,959 $ 14,042,437
Current liabilities $ 11,975,279 $ 7,411,109
Total stockholders' equity $ 7,195,680 $ 6,631,328