TACOMA, Wash., Aug. 15, 2002 (PRIMEZONE) -- Ableauctions.com(tm), Inc. (AMEX:AAC) (the "Company") announced today the results of operations for the Company for the quarter ended June 30, 2002.
The Company reported net auction revenue of $2,111,104 during the three months ended June 30, 2002 compared to $3,232,635 for the corresponding period in the prior year, a decrease of 34.7%. The Company also reported gross profit margins of 55.7%, a loss from operations of $372,000 and a non-cash loss of $242,000 comprised primarily of stock option compensation, interest on a deferred compensation note, severance related to cost cutting and depreciation.
The Company, having embarked on an aggressive plan to restructure and consolidate its operations, expects to curb losses in both areas. The non-cash losses are expected to be reduced as a result of the conversion of the deferred compensation note to stock as reported after the Company's Annual General Meeting and following the payout of severance. The Company's current negative working capital of $3,707,384 is expected to become positive as a result of the conversion of the deferred compensation note, the sale of the Company's building in Arizona and the strategic restructuring. The Company's Operating Loss of $372,000 is also expected to be reduced significantly next quarter as it realizes the benefits of from already implemented cost cutting measures. Ableauctions wholly owned subsidiary iCollector International Ltd. realized a profit for the second consecutive quarter. Historically, iCollector had sustained losses exceeding $750,000 per quarter. In the second quarter, the restructured division of iCollector realized a profit of approximately $55,000; a dramatic improvement over its previous results. The Company continues to place emphasis on its strongest performing unit, its technology arm, as it aggressively pursues the deployment of its proprietary technology and services into the North American auction market.
The Company has implemented strong controls throughout its subsidiaries with a goal of attaining profitability before year-end. The benefits of these controls are expected to reflect strongly on future financials.
About Ableauctions.com
Ableauctions.com is a high-tech business-to-business and consumer auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet. The Company liquidates a broad range of products including computers, electronics, office equipment, furniture and industrial equipment that are acquired through bankruptcies, insolvencies and defaults. For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com. For more information contact Investor Relations at 604-521-3375 or investorrelations@ableauctions.com.
About iCollector.com
iCollector.com is the independent connection to the world's auction houses. Founded in 1994, it was the first company dedicated to trading antiques, fine art and premium collectibles on the Internet. Today iCollector.com represents some of the world's leading auction houses. Hundreds of thousands of collectors use icollector.com to search its global client base of auction houses and place bids, with the support of its extensive catalog archive. Since January 2001, its alliance with eBay Live Auctions has resulted in hundreds of Live Auctions being broadcast in real-time, direct to the saleroom as the auction happens, selling tens of thousands of lots to many thousands of users online. With its unparalleled understanding and expertise in this sector, iCollector can help you to maximize your opportunities to find, buy or sell art, antiques and collectibles online.
This press release contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our auction houses, our ability to implement our inventory procurement strategy, general economic conditions, our ability to license our software to other auction houses, and other factors that are detailed in our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ materially from the Company's expectations and estimates.