Ableauctions Announces 2004 Financial Results, Exceeding Earnings Expectations - 619% Increase in Revenue, 191% Increase in Net Profits.OJAI, Calif. -- Ableauctions.com Inc. (AMEX AMEX See: American Stock Exchange :AAC (Advanced Audio Coding) An audio compression technology that is part of the MPEG-2 and MPEG-4 standards. AAC, especially MPEG-4 AAC, provides greater compression and better sound quality than MP3, which also came out of the MPEG standard. ) (the "Company") announced today the results of operations for the year ended December 31, 2004, reflecting growth for the eighth consecutive quarter. FINANCIAL HIGHLIGHTS The Company reported revenue of $4,423,171 for the year ended December 31, 2004, compared to revenue of $614,932 in 2003, an increase of 619%. The Company's reported net income of $421,246 for the year ended December 31, 2004, compared to net income of $144,516 in 2003, an increase of 191%. The Company posted a better picture for income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the year ended December 31, 2004, reporting income from continuing operations of $462,166, compared to $9,141 in 2003. The Company Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. , defined as the value of the Company's assets minus its liabilities, also increased for the eighth consecutive quarter to $11,505,806 at December 31, 2004 compared to $5,200,651 at December 31, 2003, an increase of 121%. Gross profit for 2004 was $1,281,575 or 28.9% of total revenue for the year ended December 31, 2004 as compared to $439,761 or 71.5% of total revenue for the year ended December 31, 2003. The increase in revenues and the decrease in gross profit as a percentage of revenue is attributable to the Company's expansion into the business of liquidating unwanted business inventory through Unlimited Closeouts, iTrustee and Jarvis Industries, which account for most of the Company's revenue. These businesses realize lower gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. than the Company's auction broadcasting services. OUTLOOK The Company's objective is to become a leading provider of liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy and on-line auction broadcasting services. The Company earns revenues from the following sources: 1. Liquidation Services - The Company sells merchandise through its liquidation stores, auctions and the operations of the subsidiary Unlimited Closeouts, Inc. in California. The Company also generates revenues through its inventory brokerage services at iTrustee.com. 2. Auction Broadcast Services - The Company broadcasts business and industrial auctions over the Internet for auctioneers and members of the National Auctioneers Association The National Auctioneers Association (NAA) is a group of auctioneers, auction businesses and related companies that seeks to promote the auction method of marketing and the practice of auctioneering in the United States The NAA is an interest group.. (NAA NAA Nomina Anatomica Avium. ). These auctions are facilitated using the Company's own proprietary technology (www.ableauctions.com/technology) through the website naalive.com. Additionally, the Company broadcasts antique antique. The term has been used collectively to designate classical Greek and Roman works of art, particularly sculptures; as an adjective to indicate an object, a period, or a style of ancient or early times; and as a noun, for objects of art, furniture, rugs, and collectible collectible An asset of limited supply that is sought for a variety of reasons including, it is hoped, an increase in value. Stamps, antiques, coins, and works of art are among the many things usually classified as collectibles. auctions over the Internet for numerous galleries and auction houses throughout the world. These auctions are facilitated using eBay's live auction technology through the iCollector.com website. The Company also provides auction-related products and services for a fee (www.icollectorlive.com/services.aspx). 3. Point-of-Sale (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale ) Services - The Company sells, installs and supports its proprietary point-of-sale (POS) sales processing A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. and reporting system to retailers through its subsidiary, Rapidfusion Technologies, Inc. (www.rapidfusion.com/technology). In 2004 the Company emerged with an impressive business model and laid a solid foundation on which to build an exciting technology company going forward. In the process, it has made significant progress towards accomplishing many of its objectives and milestones. The Company has taken a distinctive position in the liquidation and live auction marketplace and is moving forward on an aggressive initiative to increase the Company's live auction and liquidation businesses. The Company has increased its expectation of the performance of its live auction services and continues to attract some of the world's leading auction houses and service providers to partner with it in delivering its technology and services. The Company has developed innovative technology, that it continuously refines, that enables auction houses to broadcast auctions on the Internet, and it has established an experienced management team and board of directors, all dedicated to building a significant global technology company. The Company has reflected growth for eight consecutive quarters and has increased Shareholders' equity to over $11.5 million. Looking forward, management has set a number of aggressive goals for 2005 as it continues to build on its strengths in the auction and liquidation industry for future growth. The Company plans further expansion by partnering with or by acquiring companies that add breadth to its core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. new ways to produce revenue streams that will benefit the Company in years to come. With innovative technology, good management and the support of its shareholders, management looks forward to achieving its goals in the coming years. About Ableauctions.com Ableauctions.com Inc. (AMEX:AAC) is a high-tech liquidator Liquidator Person appointed by an unsecured creditor in the United Kingdom to oversee the sale of an insolvent firm's assets and the repayment of its debts. and on-line auction facilitator that operates the domains iCollector.com, Naalive.com, Unlimited Closeouts.com and iTrustee.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 auction over the Internet (www.ableauctions.com/technology) and currently provides 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 and iTrustee, purchases overstocks, order cancellations and discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: 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 Investor relations The process by which the corporation communicates with its investors. at investorrelations@ableauctions.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , particularly as related to, among other things, the business plans of the Company, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc goals, plans and projections regarding the Company's financial position and the Company's business strategy. The words or phrases "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our staff, management, financing, competition, on-line auction business, our ability to implement or manage our expansion strategy, general economic conditions, our ability to license our software to other auction houses, our ability to acquire profitable companies and integrate them into our business successfully and other factors that are detailed in our Annual Report on Form 10-KSB and on documents we file from time-to-time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. The Company does not realize nor book the full revenue of auctions that it facilitates in its financials, only the net auction fees, that can vary from time-to-time, that it realizes. |
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