DALLAS, August 9, 2000 (PRIMEZONE) -- Abatix Corp. (Nasdaq:ABIX) today announced that revenues for the three months ended June 30, 2000, of $13,110,000 increased 16% from revenues of $11,262,000 for the second quarter of 1999. Net earnings of $302,000 or $.18 per share for the second quarter of 2000 increased 44% from 1999 net earnings of $210,000 or $.12 per share. Consolidated net sales for the six months ended June 30, 2000, increased 15% to $24,375,000 from $21,140,000 in 1999. Net earnings for the six months ended June 30, 2000, of $354,000 or $.21 per share increased $29,000 from net earnings of $325,000 or $.18 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 stable 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 higher general and administrative costs and increased interest expense.
Mr. Terry W. Shaver, President, stated, "We are pleased with our performance in the second quarter, but realize we need to continue to diversify our customer base and improve internal operations to provide long-term success. We have grown our construction and industrial supply business significantly in the last eighteen months which has decreased our reliance on the asbestos abatement market. In addition, we are evaluating and implementing several programs to create internal efficiencies that allow our people to continue to work on strengthening relationships with our customers and vendors."
Mr. Shaver concluded, "We are disappointed our e-commerce solution testing has experienced a delay of 60 days; however, we are excited about its content and customer interface. Our system features an interface that makes it easy for the customer to place orders online with access to their most recent purchases and a sophisticated, but easy to use, search engine. It has the potential to further diversify our customer base and improve efficiencies in the supply chain. Our extensive beta testing program is expected to last 60-90 days and we anticipate the solution to be available before the end of the 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 Six Months Ended
June 30, June 30,
----------------- ------------------
2000 1999 2000 1999
---- ---- ---- ----
Net sales $13,110,321 $11,262,132 $24,374,823 $21,140,326
Cost of sales 9,654,001 8,185,853 17,845,891 15,329,031
----------- ----------- ----------- -----------
Gross profit 3,456,320 3,076,279 6,528,932 5,811,295
Selling, general
and
administrative
expenses 2,808,347 2,641,993 5,648,515 5,117,775
----------- ----------- ----------- -----------
Operating
profit 647,973 434,286 880,417 693,520
Other expense,
net 146,222 65,972 290,755 134,509
----------- ----------- ----------- -----------
Earnings before
income taxes 501,751 368,314 589,662 559,011
Income tax
expense 199,848 158,581 235,452 234,019
----------- ----------- ----------- -----------
Net
earnings $ 301,903 $ 209,733 $ 354,210 $ 324,992
=========== =========== =========== ===========
Basic and
diluted
earnings
per share $ .18 $ .12 $ .21 $ .18
=========== =========== =========== ===========
Basic and diluted
weighted average
shares
outstanding 1,711,148 1,762,148 1,711,148 1,816,027
=========== =========== =========== ===========
As of
-----------------------------------
June 30, December 31,
2000 1999
---------------- -----------------
Current assets $ 14,954,066 $ 13,220,493
Total assets $ 16,939,226 $ 15,204,808
Current liabilities $ 10,551,602 $ 9,171,394
Total stockholders' equity $ 6,387,624 $ 6,033,414