TACOMA, Wash., March 28, 2003 (PRIMEZONE) -- Ableauctions.com Inc. (AMEX:AAC) (the "Company") today announced today that it has filed its annual report and audited financial statements for the year ended December 31, 2002.
The Company's performance increased significantly during the course of the year and particularly in the fourth quarter, revealing a comforting trend. The Company reported net auction revenue of $417,841 for the fourth quarter with a gain of $10,604 before depreciation and amortization of capital assets. Factoring the gain on the disposition of subsidiaries and discontinued operations, the fourth quarter resulted in a gain of $253,935, resulting in the Company's best performing quarter.
For the year ending December 31, 2002, the Company reported net auction revenue from continuing operations of $2,274,136 for the year compared to $2,258,749 for the corresponding period in the prior year.
Sales of goods accounted for $1,084,756 or 49.4% of revenue as compared to $720,637 or 31.9% of revenue for the 2001 fiscal year. This increase in the sales of goods resulted from purchase controls on sellable merchandise. The Company anticipates revenues from the sales of goods will increase as a percentage of overall revenues, as it plans on increase revenue from its liquidation store and conducting a greater number of auctions using inventory it purchases, which generally result in higher gross profit margins.
Operating expenses totalled $3,003,917 for the year compared to $2,246,134 for the year ended December 31, 2001. The operating expenses were higher than the previous year as a result of significant increases in accounting and legal fees, consulting fees, interest related to the Deferred Consideration Note and the iCollector PLC acquisition, and the related website re-development. The extent of these costs are not likely to reappear and were largely incurred due to discontinued operations.
Cost of goods sold were $563,127 for the year compared to $564,395 for the year ended December 31, 2001. Gross profit was $1,711,009 or 75.2% of total revenue for the year compared to $1,694,354 or 75.0% of total revenue for the year ended December 31, 2001.
Net losses for the year were $1,316,637 or $0.05 per share compared to $11,434,029 or $0.52 per share for the year ended December 31, 2001.
Despite the loss in the year, the Company made significant strides in attaining and maintaining profitability, and eliminating long term debt. In 2001, the company had a working capital deficiency $3,349,317, long term debt of $1,030,718 and total liabilities of $5,650,330. As a result of the company's continuing restructuring plan and the conversion of debt to equity, the working capital deficiency has decreased to $62,114, long term debt has been eliminated and total liabilities are now at $884,221.
Our results reflect management's ongoing efforts to reduce costs and achieve profitability. We have implemented strong controls throughout the organization. The conversion of some of the Company's debt into common stock, the sale of the Company's building in Arizona, and the licensing agreement with Able Solutions have substantially reduced the Company's overall liabilities this fiscal year. We feel that we now have the right platform in place in order to build the Company for the future.
With the continued fallout from a very challenging business environment in both North America and Europe, there is a tremendous opportunity for the Company to capitalize on distressed situations in the marketplace. We believe that we have the knowledge, expertise and flexibility to be able to act swiftly, giving us an advantage over our competition and also allowing us to attract individual investors to participate in large-scale projects.
The Company also announced that while it is taking strong and aggressive steps in remedying or disposing of non-performing subsidiaries, it is also expanding its performing units and very actively pursuing an acquisition in the related field. It has also taken measures to expand its technology arm and further enhance iCollector and the related on-line auction services it provides, along with the Company's liquidation store. Both have expanded their workforce and have seen additional capital diverted to them.
The Company's common stock has recently traded at all time lows. Management believes that if it can successfully implement its business plan, build strong cash reserves and eliminate all debt, the depressed value of its shares represents a worthy investment for its excess cash. The Board of Directors has authorized the Company to initiate a variety of programs to rebuild its market, including the repurchasing of stock in the open market from time to time, as it sees fit.
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, read the 10KSB and visit www.ableauctions.com. For more information contact Investor Relations at 858-847-9667 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. 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.