nternational Absorbents Reports Third Quarter Results
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. |
