I bought ABIX today - recommended by 4 of our members
currently 4 1/2 x 4 3/4
shares outstanding 1.94 million
float 900k
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Abatix Environmental Corp. Announces First Quarter 1998 Results Net Earnings Increase 62%
DALLAS, May 6 /PRNewswire/ -- Abatix Environmental Corp. (Nasdaq: ABIX - news) today announced net earnings of $187,000 or $.10 per share on a diluted basis. The net earnings for the first quarter of 1998 increased 62% from 1997 first quarter net earnings of $116,000 or $.06 per share on a diluted basis. This increase primarily resulted from increased sales volume, improved pricing and lower interest expense. The lower interest expense is a result of continued improvement in accounts receivable and inventory management. Revenues for the first quarter of 1998 of $8,675,000 increased 2% from revenues in the first quarter of 1997 of $8,470,000.
Mr. Terry W. Shaver, President, stated ''The earnings increase is a result of efforts from all Abatix personnel. The continued focus of our sales force on pricing, while increasing our customer base, and the efforts to better manage assets and control costs have been the major factors in our improved results. Continued efforts on these items should provide quarterly and annual results that exceed 1997 results. As previously stated, our primary focus for 1998 was to increase revenues. Several marketing programs were implemented late in the first quarter of 1998 and are expected to increase Abatix's visibility and name recognition in the industrial safety market. These new marketing programs will provide additional tools to improve our sales force's efficiency and success, while broadening the geographic area covered by Abatix. We are currently designing a new and improved internet site which will also increase Abatix's visibility. In addition to product information for current and potential customers, our internet site will also provide more effective means of communicating financial information with stockholders and the investment community.''
Mr. Shaver concluded, ''Banc One Capital Corporation is in the final stage of their evaluation of strategic alternatives for Abatix. With the help of Banc One, the next step is to validate the assumptions used in the evaluation process and determine the probability of success for each strategic alternative presented.''
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. Among the 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 our local markets, changes in interest rates, inability to pass on price increases to customers, unavailability of products, strong competition and loss of key personnel. In addition, many of the Company's products are petroleum based. Increases in oil prices or shortages in supply could significantly impact the Company's business and its ability to supply customers with certain products at a reasonable price.
Abatix Environmental Corp. is a full line supplier to the asbestos abatement, hazardous materials, industrial safety and construction tool industries. The Company has eight distribution centers in Dallas and Houston, Texas, in Hayward and Santa Fe Springs, California, in Phoenix, Arizona, in Denver, Colorado, in Kent, Washington and in Las Vegas, Nevada. These distribution centers serve customers throughout the Southwest, Midwest, Pacific Coast, Alaska and Hawaii.
ABATIX ENVIRONMENTAL CORP.
SELECTED FINANCIAL INFORMATION
(Unaudited)
Three Months Ended
March 31,
1998 1997
Net sales $8,674,755 $8,469,872
Cost of sales 6,264,687 6,155,014
Gross profit 2,410,068 2,314,858
Selling, general and
administrative expenses 2,038,195 2,017,560
Operating profit 371,873 297,298
Other expense, net 49,741 103,879
Earnings from continuing
operations before
income taxes 322,132 193,419
Income tax expense 134,667 77,585
Net earnings $ 187,465 $ 115,834
Basic earnings per share $ .10 $ .06
Diluted earnings per share $ .10 $ .06
Weighted average shares outstanding:
Basic 1,937,564 1,986,508
Diluted 1,937,564 1,991,255
As of
March 31, December 31,
1998 1997
Current assets $ 9,652,000 $9,003,000
Total assets $10,467,000 $9,854,000
Current liabilities $ 5,102,000 $4,676,000
Total stockholders' equity $ 5,365,000 $5,178,000
SOURCE: Abatix Environmental Corp.
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--------------------Business Summary
ABIX markets and distributes personal protection and safety equipment, and durable and nondurable supplies predominantly to the asbestos abatement industry, as well as to the industrial safety and hazardous materials industries. For the fiscal year ended 12/31/97, sales rose 6% to $35 million. Net income from continuing operations rose 15% to $841 thousand. Results reflect further expansion and diversification of the customer base, and higher margins due to increased volumes.
Recent Earnings Announcement
For the 3 months ended 03/31/98, revenues were 8,675; after tax earnings were 187.
(preliminary; reported in thousands of dollars)
Statistics at a Glance -- ABIX Last Updated: May 8, 1998
Price and Volume
(updated May 8, 1998)
52-Week Low $1.75
Recent Price $4.50
52-Week High $4.875
Beta 0.64
Daily Volume (3-month avg) 7,045
Share-Related Items
Market Capitalization $8.72M
Shares Outstanding 1.94M
Float 900.0K
Dividend Information
Annual Dividend none
Per-Share Data
Book Value (mrq) $2.67
Earnings (ttm) $0.48
Sales (ttm) $18.47
Cash (mrq) $0.16
Valuation Ratios
Price/Book (mrq) 1.68
Price/Earnings (ttm) 9.39
Price/Sales (ttm) 0.24
Income Statements
Net Income (*ttm) $840.0K
Sales (ttm) $35.2M
Profitability
Profit Margin (*ttm) 2.4%
Management Effectiveness
Return on Assets (ttm) 8.24%
Return on Equity (ttm) 19.07%
Financial Strength
Current Ratio (mrq) 1.93
Total Debt/Equity (mrq) 0
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