Ableauctions Reports Third Quarter 2004 Results.FIFE Fife, council area, Scotland Fife, council area (1993 est. pop. 351,200), 510 sq mi (1,322 sq km), and former county, E Scotland, between the Firth of Forth and the Firth of Tay. The land rises to 1,500 ft (457 m) in the Lomond Hills. , Wash. -- 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") today announced the results of operations for the quarter ended September 30, 2004, reflecting growth in what is traditionally a slow time for the Company's auction and 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 business. The Company reported revenue of $1,293,110 for the quarter ended September 30, 2004, compared to revenue of $170,101 during the same period in 2003, an increase of 660%. For the nine-month period ended September 30, 2004, the Company reported revenue of $3,769,243, compared to $473,938 for the same period in 2003, an increase of 695%. The Company posted a better picture for income from operations for the quarter ended September 30, 2004, reporting income from operations of $82,590 before depreciation, amortization and loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , compared to $52,994 during the same period in 2003, an increase of 55.8%. The Company abandoned the computer resale operations of 652297 B.C. Ltd., doing business as ANO Noun 1. ANO - a Palestinian international terrorist organization that split from the PLO in 1974; has conducted terrorist attacks in 20 countries; "in the 1980s the Fatah-RC was considered the most dangerous and murderous Palestinian terror group" Office Automation (ANO), and took a one-time charge of $45,096 from discontinued operations as a result. The ANO operations, which were not related directly to the Company's primary line of business, were stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. and had a negative impact on the Company's overall operations. The divestment divestment to strip one's investment from an entity. of ANO enables Ableauctions to focus on its objective of becoming one of the leading auction and liquidation services companies in the world. After depreciation, amortization and loss from discontinued operations, the Company reported net earnings of $11,383 for the quarter ended September 30, 2004, compared to $40,902 during the same period in 2003. For the nine-month period ended September 30, 2004, the Company reported net earnings of $165,897 compared to $77,404 for the same period in 2003. 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 seventh consecutive quarter to $9,163,376 from $9,081,677 as of June 30, 2004. Gross profits were $300,455 or approximately 23% of revenues for the three-month period ended September 30, 2004, compared to $118,865 or approximately 70% of revenues for the period ended September 30, 2003. The decrease in gross profit as a percentage of revenue reflects the performance of the liquidation services group, Unlimited Closeouts, Inc. and iTrustee.com, which operate on 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 our auction broadcasting services. OUTLOOK Technology -- the Company, in its mission to be a world leader in providing auction houses with Internet auction technology and services related to broadcasting auctions on the Internet, released the latest version of its live auction broadcasting technology, incorporating new bidding and broadcasting functions. Following months of extensive development and collaboration with the auction industry, the Company released the latest version with numerous important enhancements. Effective December 4, 2004, the Company expects to run charity auctions monthly designed to illustrated and test the technology. The Company is also actively recruiting senior management staff from within the auction industry to facilitate broader deployment of the Company's auction technology. Expansion and Acquisitions -- looking forward, management has set a number of aggressive goals for the coming months as it continues to build on its strengths in the auction and liquidation industry for future growth. It continues to negotiate aggressively with industry leaders to further expand its operations 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):
The Company earns revenues from providing the following products and services: 1. Auction Broadcast Services -- The Company broadcasts industrial auctions over the Internet using its own technology (www.ableauctions.com/technology) through www.NAALive.com. The Company broadcasts antique 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 using eBay's Live Auction technology through www.iCollector.com and the Company provides auction-related products and services for a fee (www.icollectorlive.com/services.aspx). 2. Point-of-Sale (POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale ) -- Through its subsidiary, Rapidfusion Technologies, Inc. (www.rapidfusion.com/technology), the Company sells, installs and supports Point-Of-Sale (POS) software that it has developed, along with related hardware. 3. Liquidation Services -- The Company sells merchandise through its liquidation stores, auctions and through the operations of its subsidiary, Unlimited Closeouts, Inc. It also generates revenues through its inventory brokerage services, iTrustee.com (www.itrustee.com). In 2003 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 made significant progress towards accomplishing many of its objectives and milestones. In the first quarter of 2004, the Company's revenues exceeded all of the revenue earned during 2003. In the third quarter of 2004, the Company posted revenue of $1,293,110, bringing the nine-month year-to-date revenue for 2004 to $ 3,769,243. It has increased its outlook on the performance of its live auction services and has managed 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 also been successful in securing financing. In 2003, the Company raised $4 million in private offerings of securities that included large institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . It has no long term debt and over $5.5 million in cash and short-term investments. Shareholder's equity has increased to over $9 million and management is constantly looking for Looking for 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 iCollector.com ICollector.com is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Ableauctions and is the independent connection to the world's auction houses. It was the first company dedicated to trading antiques, fine art and premium collectibles on the Internet and today represents some of the world's leading auction houses. Since January 2001, it has broadcast hundreds of live auctions in real-time on eBay Live Auctions, directly from the salesroom as the auction happens. ICollector can help you find, buy or sell art, antiques and collectibles online. About Ableauctions.com Ableauctions.com is a high-tech auctioneer AUCTIONEER, contracts, commerce. A person authorized by law to sell the goods of others at public sale. 2. He is the agent of both parties, the seller and the buyer. 2 Taunt. 38, 209 4 Greenl. R. 1; Chit. Contr. 208. 3. that conducts auctions live and simultaneously broadcasts them over the Internet. With the experience of over 3,000 auctions, the Company has developed state-of-the-art technology to broadcast Internet auctions (www.ableauctions.com/technology) and currently provides technology and related services to auction houses, enabling them to broadcast auctions over the Internet. 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. 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. 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 on-line auction business, our ability to implement our inventory procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. 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. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 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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