DALLAS, Nov. 9, 2000 (PRIMEZONE) -- ABATIX CORP. (Nasdaq:ABIX) today announced that revenues for the three months ended Sept. 30, 2000, of $12,244,000 increased 4% from revenues of $11,817,000 for the third quarter of 1999. Net earnings of $223,000 or $.13 per share for the third quarter of 2000 increased 15% from 1999 net earnings of $194,000 or $.11 per share. Consolidated net sales for the nine months ended Sept. 30, 2000, increased 11% to $36,619,000 from $32,958,000 in 1999. Net earnings for the nine months ended Sept. 30, 2000, of $578,000 or $.34 per share increased $59,000 from net earnings of $519,000 or $.29 per share for the same period in 1999. The increase in consolidated net sales resulted from efforts to further expand and diversify the customer base, including the acquisition of North State in June 1999, a construction supply distributor. The increase in net sales is also a result of the economic conditions in the geographic regions serviced by the Company's facilities. The increase in net earnings is primarily due to higher sales volume, partially offset by increased interest expense and, for the first nine months of the year, higher general and administrative costs.
Mr. Terry W. Shaver, President, stated, "We are pleased with our results in the third quarter. We are experiencing the effects of a more diverse customer base and improvements to our operations. Our focus is on continued development of our construction tool and industrial safety supply businesses. In addition, we are implementing several programs that allow our people to work more effectively and strengthen our relationships with customers and vendors."
Mr. Shaver concluded, "In the next few weeks, we will begin beta testing our e-commerce solution, which is expected to last approximately 60 days. We are excited about the features our solution offers to customers and the easy-to-use customer interface. We anticipate our e-commerce solution will be available to serve customers by the beginning of next year."
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 or problems in implementing this 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 and 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 CORP.
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
Net sales $12,244,133 $11,817,224 $36,618,956 $32,957,550
Cost of sales 9,020,697 8,581,380 26,866,588 23,910,411
--------- --------- ---------- ----------
Gross profit 3,223,436 3,235,844 9,752,368 9,047,139
Selling, general
and administrative
expenses 2,705,442 2,806,949 8,353,957 7,924,724
--------- --------- --------- ---------
Operating profit 517,994 428,895 1,398,411 1,122,415
Other expense, net
148,561 114,401 439,316 248,910
--------- --------- --------- ---------
Earnings before
income taxes
369,433 314,494 959,095 873,505
Income tax expense
146,129 120,866 381,581 354,885
--------- --------- --------- ---------
Net earnings $ 223,304 $ 193,628 $ 577,514 $ 518,620
========= ========= ========= =========
Basic and diluted
earnings per share $ .13 $ .11 $ .34 $ .29
========= ========== ========= =========
Basic and diluted
weighted average
shares outstanding 1,711,148 1,762,148 1,711,148 1,798,067
========= ========= ========= =========
As of
September 30, December 31,
2000 1999
----------- -----------
Current assets $14,483,947 $13,220,493
Total assets $16,442,224 $15,204,808
Current liabilities $ 9,831,296 $ 9,171,394
Total stockholders'
equity $ 6,610,928 $ 6,033,414
CONTACT: ABATIX CORP.
Frank Cinatl
(888) ABATIX-X (222-8499)
fcinatl@abatix.com