TACOMA, Wash., May 9, 2002 (PRIMEZONE) -- Ableauctions.com(TM), Inc. (AMEX:AAC) (the "Company") announced today the results of operations for the Company for the quarter ended March 31, 2002.
The Company reported net auction revenue of $2,699,758 compared to $2,316,278 for the corresponding period in the prior year, an increase of 16%. The Company also reported a loss for the quarter of $368,241 compared to $435,785 for the corresponding period in the prior year. Gross profit margins were 53%.
Throughout the latter half of 2001, the Company embarked on an aggressive plan to restructure and consolidate its operations, complete the development of its technology and curb costs associated with its iCollector acquisition. In the first quarter of 2002, having successfully established a strong presence in the Canadian market and all but completed the development of its technology, the Company also reduced the salaries and wages of the respective operations by 50%, curbed marketing and promotional expenses and further reduced its technology development costs. The benefits of the cost-cutting measures will be realized in the second quarter of 2002. However, the costs associated with the staff reduction are borne in the first quarter.
Additionally, Ableauctions' wholly owned subsidiary, iCollector International Ltd., realized a profit for the first time in the history of its operations. Historically, iCollector had sustained losses exceeding $750,000 per quarter. For the three months ended March 31, 2002, the restructured division of iCollector realized a profit of approximately $16,500 -- a small profit, but a dramatic improvement over its previous results.
Over the last two years the Company has implemented strong controls over costs, inventory purchases and revenue tracking. The benefits of these controls implemented in the various subsidiaries are now starting to take effect. Over the next twelve months the Company will continue to strive towards profitability by increasing revenue through existing operations and through additional acquisitions. The most significant benefit realized over the last year has been the contribution the Internet broadcasting technology has added to the Company's "bricks & mortar" operations. Revenue has increased on average approximately 20% because of the additional audience created over the Internet.
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. For more information contact Randy White at 604-521-3369.
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 saleroom 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.