Ableauctions Announces Third Quarter 2007 Results.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 third quarter ended September September: see month. 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 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 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 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. may vary considerably from quarter-to-quarter depending on the performance of various divisions. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . 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 (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. 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 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 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 December: see month. 31, 2006. About Ableauctions.com Ableauctions.com Inc. (AMEX "aac") is a high-tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. 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 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 Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the (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 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. ) and art, 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 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 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." 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, loss of management personnel, an inability to obtain financing as and when we need it, competition from other on-line auction businesses, 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. E.&O.E. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] Note: See filing on Form 10-Q Form 10-Q See 10-Q. for notes referenced in tables. |
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