Ableauctions Reports Third Quarter 2006 Financial 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. ) announces the results of operations for the quarter ended September 30, 2006. During the three months ended September 30, 2006, the Company reported revenue of $1,237,671 compared to revenue of $ 1,358,240 during the same period in 2005. For the nine months ended September 30, 2006, the Company reported revenues of $5,079,597 compared to revenues of $3,121,833 during the same period in 2005. The Company reported net income of $47,525 for the quarter ended September 30, 2006, compared to net income of $422,676 (which included a $310,000 gain from legal settlement) during the same period in 2005. For the nine months ended September 30, 2006, the Company reported net income of $227,605 compared to net income of $300,914 (which included a $99,518 gain from legal settlement) during the same period in 2005. Gross profit was $504,708 (41% of revenues) for the three-months ended September 30, 2006, compared to $407,122 (30% of revenues) during the same period in 2005. For the nine months ended September 30, 2006, gross profit was $1,857,427 (37% of revenues) compared to gross profits of $960,938 (31% of revenues) during the same period in 2005. The increase in gross profit as a percentage of revenue is partly attributable to the performance of the Company's online auction business, which realizes higher 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 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. The Company expects gross profit margins to vary considerably from quarter-to-quarter depending on the performance of the Company's various divisions. Gross profits are also expected to fluctuate widely based upon the unpredictable nature of inventory available for the Company's liquidation services to purchase and the seasonal demand for certain inventories. 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. during the three-months ended September 30, 2006 were $560,471 (45% of revenue) compared to $496,165 (37% of revenue) for the same period in 2005. During the nine-months ended September 30, 2006, operating expenses were $1,971,506 (39% of revenue) compared to $1,134,788 (36% of revenue) for the same period in 2005. The increases in operating expenses are primarily due to increases in commissions, advertising and promotion, and professional (accounting and legal) expenses. 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 value of the Company's assets minus its liabilities, of $13,368,472 at September 30, 2006 compared to $12,789,331 at December 31, 2005. Looking forward, management continues to look for innovative ways to enhance its business. The Company's objective is to become a leading provider of liquidation, merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and marketing services. Management believes that the Company's long term success in this area of its business depends on its continued innovation and integration of technologies and services for auctioneers, liquidators and resellers worldwide. 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 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 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 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. |
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