Message #70 From:
NewsBot Date: November 14, 2007 07:44:29 PM
Ableauctions Announces Third Quarter 2007 Results
Ableauctions.com Inc. (AMEX:AAC) (the “Company”)
announced today the results of operations for the third quarter ended
September 30, 2007.
FINANCIAL HIGHLIGHTS –
3 MONTHS ENDED SEPTEMBER 30, 2007
Revenues. During the three months ended September 30, 2007, the
Company reported revenues of $1,321,108 compared to revenues of
$1,237,671 during the same period in 2006, an increase of $83,437 or
approximately 6.7%.
Revenues from the Company’s liquidation
services accounted for $1,030,252 (or approximately 78% of total
revenue) compared to revenues of $913,391 (or approximately 74% of total
revenue) during the same period in 2006.
Revenues from the Company’s live auction
operations group, which includes iCollector and NAALive, remained
substantially unchanged from the same period in 2006. Revenues from live
auction operations totaled $222,157 during the three months ended
September 30, 2007, compared to revenues of $221,455 during the same
period in 2006. The number of auction sessions facilitated in the third
quarter of 2007 remained substantial unchanged at 334 compared to 328
auction sessions for the same period in 2006.
Gross Profit. The Company reported an increase in gross profit
percentage for the three months ended September 30, 2007. Gross profit
was $589,211 (or 45% of revenues) for the three-months ended September
30, 2007 as compared to $504,708 (or 41% of revenues) for the same
period in 2006. The increase in gross profit as a percentage of revenue
is a result of improved pricing and product offerings of the Company’s
liquidation and auction broadcasting services group. Future gross profit
margins may vary considerably from quarter-to-quarter depending on the
performance of various divisions.
Operating Expenses. Operating expenses for the three months ended
September 30, 2007 increased by $71,543 or approximately 12.8%. During
the three-months ended September 30, 2007, operating expenses were
$632,014 or approximately 48% of revenue compared to $560,471 or
approximately 45% of revenue for the three months ended September 30,
2006.
Net Income. The Company reported a net loss for the three months
ended September 30, 2007 of $16,949, or $0.000 per share, as compared to
a net gain of $47,525, or $0.001 per share, for the three months ended
September 30, 2006.
FINANCIAL HIGHLIGHTS –
9 MONTHS ENDED SEPTEMBER 30, 2007
Revenues. During the nine months ended September 30, 2007, the
Company reported revenues of $4,169,992 compared to revenues of
$5,079,597 during the same period in 2006, a decrease of $909,605 or
approximately 18%.
The decrease in revenues is primarily attributable to a decrease in
revenues earned from the Company’s liquidation
services in the first quarter of 2007. Revenues from liquidation
services totaled $3,152,046 (or approximately 76% of total revenue) for
the nine months ended September 30, 2007, compared to revenues of
$4,081,152 (or approximately 80% of total revenue) during the same
period in 2006, a decrease of $929,106 or approximately 22.8%. Revenues
earned in the future from liquidation services will fluctuate widely
based upon seasonality, the inventory available, the timing of orders,
and the Company’s ability to verify and ship
orders on a timely basis. The Company expects revenues from its
liquidation sector will continue to represent the majority of overall
revenues.
Revenues from the Company’s live auction
operations group, which includes iCollector and NAALive, remained
substantially unchanged from the same period in 2006 despite a sharp
increase in the number of auction sessions. Revenues from live auction
operations totaled $696,867 during the nine months ended September 30,
2007, compared to $697,984 during the same period in 2006. The number of
auction sessions facilitated in the first three quarters of 2007
increased by 32% to 1,187 compared to 898 auction sessions for the same
period in 2006. The number of auction sessions may vary from quarter to
quarter based on the auction company’s
product schedules and the number of auctions facilitated may not reflect
the total revenue realized by the live auctions business. In general,
approximately 80% of the Company’s auction
operations revenue is derived from almost 13% of its live auction
clients.
Gross Profit. Gross profit was $1,934,267 (or 46% of revenues)
for the nine-months ended September 30, 2007 as compared to $1,857,427
(or 37% of revenues) for the nine months ended September 30, 2006, an
increase of $76,840 or approximately 4.1%. The increase in gross profit
as a percentage of revenue is a result of improved pricing and product
offerings of the Company’s liquidation and
auction broadcasting services group. Future gross profit margins may
vary considerably from quarter-to-quarter depending on the performance
of various divisions.
Operating Expenses. During the nine months ended September 30,
2007, operating expenses declined slightly to $1,943,882 or
approximately 47% of revenue compared to $1,971,506 or approximately 39%
of revenue for the nine months ended September 30, 2006. The increases
in operating expenses as a percentage of revenue is attributable to a
decrease in revenue earned from the Company’s
liquidation services in the first quarter of 2007.
Net Income. The Company reported net income for the nine-months
ended September 30, 2007 of $192,622, or $0.003 per share, as compared
$227,605, or $0.004 per share, for the nine-months ended September 30,
2006.
Shareholders Equity. The Company reported shareholders’
equity, defined as the carrying amount of the Company’s
assets minus its liabilities, totaling $15,256,792 at September 30, 2007
compared to $12,890,232 at December 31, 2006.
About Ableauctions.com
Ableauctions.com Inc. (AMEX “aac”)
is a high-tech liquidator and on-line auction facilitator that operates
the domains iCollector.com, Naalive.com and Unlimited
Closeouts.com.
As an on-line auction facilitator, the Company, with the experience of
over 3,000 auctions, has developed state-of-the-art technology to
broadcast auctions over the Internet (www.ableauctions.com/technology)
and currently provides the technology and related services to auction
houses, enabling them to broadcast auctions over the Internet. The
Company broadcasts business and industrial auctions over the Internet
for auctioneers and members of the National Auctioneers Association
(NAA) and art, antique and collectible auctions for numerous galleries
and auction houses around the world through eBay Live Auctions.
As a liquidator, the Company, through Unlimited Closeouts, purchases
overstocks, order cancellations and discontinued products from major
manufacturers and importers, then sells the merchandise to major retail
chains, other resellers or the public.
For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com.For more information, contact Investor Relations at investorrelations@ableauctions.com
