COMPANY NEWS>>>>>>>>
BELLINGHAM, Wash., Dec. 10 /PRNewswire/ -- International Absorbents Inc.
(OTC BB: IABS), a leading manufacturer and marketer of absorbent products made
from waste wood pulp, today announced results from the third quarter ended
October 31, 1997. The Company posted a loss of $31,594, or $0.00 (rounded)
per share on revenues of $1,394,804, compared to a loss of $835,222, or six
cents per share for the comparable period last year.
In a letter to shareholders also released today, Gordon L. Ellis, Chairman
of International Absorbents stated, "As 1997 and International Absorbents'
fiscal year draw to a close, we find ourselves in the ironic situation where
the performance and future prospects for the company are as promising as they
have ever been, yet its stock price is hovering around an all-time low. The
fact that it is tax-loss selling season at the end of an extraordinary year in
the equities markets is putting pressure on the price. However, communication
from the market suggests to management that the most significant contributing
factor to this low stock price is shareholder uncertainty of International
Absorbents' future. It is with this concern in mind that the following letter
to shareholders has been written."
"The management of International Absorbents is very optimistic about the
future of the Company. In the recently released 3rd quarter results (quarter
ended October 31, 1997) a loss of $31,594 on revenues of $1,394,804 was
reported. Although we fell somewhat short of our revenue and earnings goals,
we are pleased to have had another quarter of record revenues and to have
moved a step closer to profitability. Most of the past few quarters' revenue
growth has come from expanding sales in our Animal Care Division. While
growth in this division will continue, we are confident that our restructured
Industrial Products Division will increase growth velocity."
"The Animal Care Division has now recorded increasing revenues for 20 of
the past 21 quarters. Animal Care revenue growth is led by CareFRESH(TM), our
small animal and laboratory bedding which, quite simply, is the best product
of its kind on the market. CareFRESH's market share is still small (less than
3%), but the strong loyalty which users develop for this product, and the
increasing market awareness of its attributes suggest it can achieve a much
higher market share. With the addition of sales staff and complementary
products, management believes revenue growth will be accelerated."
"The past year has been one of transition for the Industrial Products
Division. Our industrial sorbents product line has been reformulated to
address the high-volume, commodity sorbent business, and our new products are
gaining support in the marketplace. We have targeted both a broader market
and higher profile users, and have captured multiple Fortune 500 customers
over the past year. At the same time our export business continues to grow.
The combination of the reformulated products, increasing market acceptance and
growing exports results in an overall positive outlook for the Industrial
Products Division."
"Over the past year International Absorbents has operated with a
"back-to-basics" philosophy. The products offered by both the Animal Care and
Industrial Products divisions are unique and fundamentally sound. The
energies of International Absorbents resources have been directed toward
building the core businesses of the two divisions, maximizing production
efficiencies and minimizing overhead. The resulting lean, energetic
organization is focused on being the best in our business and we believe this
will result in a faster growing, profitable business which will improve value
for our shareholders."
"We are appreciative of the continuing support of our shareholders and
look forward to sharing the rewards of our future successes with you."
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
October 31 October 31
1997 1996 1997 1996
Revenues $1,394,804 $1,166,719 $3,892,726 $3,388,514
Net Income (Loss) (31,602) (835,222) (349,832) (981,535)
Income (Loss) per
Common Share ($0.00) ($0.06) ($0.02) ($0.07)
Weighted Average
No. of Common
Shares 15,976,442 14,218,105 15,327,239 14,181,912
This press release contains forward-looking statements with respect to the
operations and business of the Company that involve risks and uncertainties.
These risks and uncertainties are detailed from time to time in the Company's
filings with the Securities and Exchange Commission.
SOURCE International Absorbents, Inc.
CO: International Absorbents, Inc.
ST: Washington
IN: PAP
SU: ERN
12/10/97 06:45 EST prnewswire.com |
