Ableauctions Announces First Quarter 2007 Results
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15 May 2007, 10:00am ET
OJAI, Calif., May 15, 2007 (BUSINESS WIRE) --
Ableauctions.com Inc. (AMEX:AAC) (the "Company") announced today the results of operations for the quarter ended March 31, 2007.
FINANCIAL HIGHLIGHTS
Revenues. During the three months ended March 31, 2007, the Company reported revenues of $1,014,911 compared to revenues of $2,039,152 during the same period in 2006, a decrease of $1,024,241 or 50%. The decrease in revenues was attributed to a 62% decrease in revenues earned from the Company's liquidation services, primarily Unlimited Closeouts Inc. Revenues from liquidation services totaled $651,803 (or 64% of total revenue) compared to revenues of $1,707,891 (or 84% of total revenue) during the same period in 2006. The Company expects revenues from its liquidation services to increase for the remainder of 2007. 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.
Revenues from the Company's live auction operations group which includes iCollector and NAALive, grew 7% to $221,745 during the three months ended March 31, 2007 compared to the same period in 2006. The number of auction sessions facilitated in the first quarter of 2007 increased by 86% to 399 compared to 214 auction sessions for the same period in 2006.
Gross Profit. The Company reported an increase in gross profit percentage for the three months ended March 31, 2007. Gross profit was $474,820 (or 47% of revenues) for the three-months ended March 31, 2007 as compared to $709,386 (or 35% of revenues) for the three-months ended March 31, 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 operations. The revenue of the auction services group increased while the revenue of the liquidation services group declined. The Company expects future gross profit margins to vary considerably from quarter-to-quarter depending on the performance of various divisions. Over time, the gross profit as a percentage of revenue is expected to range between 25% and 30%, based on the anticipated returns from its various divisions.
Operating Expenses. During the three month period ended March 31, 2007, the Company reported operating expenses of $534,514 or approximately 53% of revenue compared to $689,069 or approximately 34% of revenue for the same period in 2006.
Operating expenses as a percentage of revenue were higher than the corresponding period in the previous year due to the decrease in revenue and a significant fixed cost component of the Company's operating expenses. The Company's most significant fixed costs include salaries and benefits, management fees, and office and administration costs. Operating expenses are estimated to be approximately 40% to 45% of revenue for the remainder of the year.
The decrease in total operating expenses resulted primarily from a decrease of $214,830 in commissions paid, which was due to the decrease in the number of liquidation transactions the Company facilitated and adjustments in the Company's commission structures, and a decrease of $66,102 in accounting and legal fees.
During the three month period ended March 31, 2007, the cost of investor relations and shareholder information services was $17,531. There was no similar cost for investor relations and shareholder information services for the same period in 2006. The Company expects the cost of investor relations in 2007 to increase significantly as it plans is to increase its shareholder services.
Mentioned Last Change
AAC 0.20 0.03dollars or (13.04%)
During the three month period ended March 31, 2007, salaries and benefits totaled $231,213 compared to $154,457 for the same period in 2006. The increase of $76,756 or approximately 49.7% from the previous year was due to new employees and increased benefits. Salaries and benefits are expected to remain the same for the duration of the year.
Net Income. The Company reported net income of $19,998 for the three months ended March 31, 2007 compared to net income of $140,310 for the three month period ended March 31, 2006.
Shareholders Equity. The Company reported shareholders' equity, defined as the carrying amount of the Company's assets minus its liabilities, totaling $13,029,312 at March 31, 2007 compared to $12,892,032 at December 31, 2006.
About Ableauctions.com
Sono curioso per il 1°Q. Staremo a vedere 
