DALLAS, MAY 11, 2000 (PRIMEZONE) -- ABATIX CORP. (Nasdaq:ABIX) today announced that revenues for the three months ended March 31, 2000 of $11,265,000 increased 14% from revenues of $9,878,000 for the first quarter of 1999. Net earnings of $52,000 or $.03 per share for the first quarter of 2000 decreased 55% from 1999 net earnings of $115,000 or $.06 per share. The 14% increase in revenue from 1999 is primarily attributable to the acquisition of North State Supply Co. of Phoenix in June 1999. Increased interest expense is the principal factor contributing to the decline in net earnings. Borrowings used to finance the acquisition of North State combined with an increase in the prime rate resulted in the higher interest expense.
Mr. Terry W. Shaver, President, stated "Although the first quarter earnings are an improvement over the net loss in the fourth quarter of 1999, I am disappointed with the level of earnings considering the 14% increase in revenues. We will continue to focus on expanding our product lines in all of our locations to support revenue growth and the alignment of general and administrative costs with revenues to improve operating profits. Furthermore, improved collection and inventory management efforts will be made as an attempt to minimize borrowings on our line of credit to reduce interest costs."
Mr. Shaver concluded, "We are excited about our recently announced strategic relationship with NetCompliance, Inc. because it immediately puts Abatix in the business-to-business e-commerce arena. This partnership offers our customers additional training and compliance solutions, while NetCompliance will provide Abatix with technical guidance on the development of our e-commerce solution, which should begin testing by the end of June."
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: federal 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, 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 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, 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 ENVIRONMENTAL CORP.
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended
March 31,
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2000 1999
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Net sales $ 11,264,502 $ 9,878,194
Cost of sales 8,191,890 7,143,178
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Gross profit 3,072,612 2,735,016
Selling, general and
administrative expenses 2,840,168 2,475,782
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Operating profit 232,444 259,234
Other expense, net 144,533 68,537
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Earnings before income taxes 87,911 190,697
Income tax expense 35,604 75,438
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Net earnings $ 52,307 $ 115,259
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Basic and diluted earnings
per common share $ .03 $ .06
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Basic and diluted weighted
average shares outstanding 1,711,148 1,869,907
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As of
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March 31, December 31,
2000 1999
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Current assets $ 13,543,100 $ 13,220,493
Total assets $ 15,601,790 $ 15,204,808
Current liabilities $ 9,516,069 $ 9,171,394
Total stockholders' equity $ 6,085,721 $ 6,033,414