SCOTTSDALE, Ariz., April 24, 2002 (PRIMEZONE) -- Ableauctions.com(TM), Inc. (AMEX:AAC) ("Ableauctions" or the "Company"), announced on Tuesday, April 23, 2002, that it has filed its annual report and audited financial statements for the year ended December 31, 2001.
The Company reported net auction revenue of U.S. $10,793,219 compared to U.S. $10,647,213 for the corresponding period in the prior year. Net losses for the year, after significant write-downs for declines in the value of certain of the Company's assets, were U.S. $11,434,029 compared to U.S. $11,837,363 for the corresponding period in the prior year. The overall loss in 2001 was mainly attributable to the write-down of the investment in Icollector, PLC of London, England.
During fiscal 2001 the Company realized gross margins on net sales of approximately 51%, compared to an average gross margin of 17% in fiscal 2000. The significant increase in gross margins resulted from the Company's execution of its inventory procurement model, which included purchasing product from distressed and liquidation opportunities. The Company also implemented very stringent buying practices during the year to ensure that inventory was carried for periods no greater than 30 days.
During the year the Company placed very tight controls over expenditures to ensure the efficiency and maintainability of its operations. Overall operating expenses decreased from $10,047,058 in 2000 to $7,268,723 in 2001, a decrease of 28%.
During the last quarter of fiscal 2001 the Company acquired the shares of Icollector, PLC of London, England. Icollector had a business model that included receiving a commission for items sold over the Internet through live auctions, a fee for arranging the live auctions, and fees for publishing catalogues and dealers' services. In November 2001 it became apparent that the business model presented to the Company by Icollector could not generate sufficient funds to maintain its operations as they were then structured. In December 2001 the operations of Icollector were suspended and the new Icollector International Ltd. was created in North America with a new web site and new technology team. The new Icollector offers the same services as offered by the previous Icollector but with a model that will soon become cash flow positive.
Ron Miller, the Chief Financial Officer of the Company, stated, "We are pleased with the overall direction for the Company for the fiscal year. We were able to implement our inventory procurement model, and as a result realize significant gains and gross margins on the sales of our products. We also now have a restructured Live-auction Internet broadcasting division that has drastically reduced its operating expenses with an infrastructure that can generate revenues efficiently and profitably."
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. This release and prior releases are available on the Company's Internet Auction web site located at www.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 more than 350 of the world's leading auction houses. Hundreds of thousands of collectors use icollector.com daily 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 salesroom as the auction happens, selling tens of thousands of lots to many thousands of users online. With offices in Europe, the U.S.A and Canada, its unparalleled understanding and expertise in this sector 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.