FERNDALE, Wash., June 13 /PRNewswire-FirstCall/ -- International Absorbents Inc. , a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the first fiscal quarter ended April 30, 2007.
Sales increased for the first quarter of fiscal year 2008 by 26% to $8,365,000, compared to $6,621,000 for the same period of fiscal year 2007.
Net income for the first quarter grew by more than three times to $623,000, or $0.10 per share, versus $142,000, or $0.02 per share, for the first quarter in the prior fiscal year.
Gross profit for the first quarter increased by 35% to $2,767,000, compared to $2,055,000 for the comparable quarter in the previous fiscal year.
"We are pleased with these results for our first quarter, especially when we consider that during the same period we completed the move of our Bellingham, Washington plant to our new Ferndale, Washington facility, which required us to temporarily shut down west coast production," commented Douglas Ellis, President of Absorption Corp, the Company's wholly-owned subsidiary. "Pulling this off took a tremendous effort from the whole team. Our Georgia facility ramped up to a round-the-clock, 7-day operation in order to compensate for shutting down the Washington plant. Logistics, planning, sales, marketing and customer service all did a great job of coordinating with customers to ensure everyone's needs were met at a time when we had near record sales and limited production capabilities. It was an outstanding effort all around."
"Traditionally our first quarter is the slowest quarter of the year, so we were happy with the strong sales. And, our team's ability to satisfy customer needs while shutting down our west Coast plant is a tribute to their dedication and abilities," commented Gordon L. Ellis, Chairman of International Absorbents Inc. "With this final stage of our three-stage infrastructure build-out nearing completion we anticipate continued sales growth backed by improved production capabilities and efficiencies."
International Absorbents Inc. develops, manufactures and markets patented and proprietary, cost effective consumer and commercial products derived from recycled, renewable materials. These environmentally safe products outperform conventional products used in a broad range of consumer and industrial applications, including retail/commercial pet bedding and litter, oil and hazardous liquid spill cleanup and control, oil/water filtration, and packaging. Further information is available at http://www.internationalabsorbents.com/.
FINANCIAL HIGHLIGHTS
3 Months Ended Apr. 30,
2007 2006
Sales, net $8,365,000 $6,621,000
Gross profit 2,767,000 2,055,000
Net income before taxes 1,034,000 273,000
Net income 623,000 142,000
Basic earnings per share 0.10 0.02
Weighted average
shares (basic) 6,410,000 6,384,000
As at Apr. 30, As at Jan. 31,
2007 2007
Total assets $28,141,000 $27,691,000
Stockholders' equity 16,024,000 15,390,000
Contact:
Charles (Chuck) Tait
International Absorbents Inc.
Toll Free: 866-514-6559 or 604-681-6181
A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, including without limitation, statements referring to the Company's future growth strategies and sales results, ability to improve production capabilities and efficiencies, prospects for the future, potential financial results, market and product line growth, abilities to enter new markets, ability to introduce new products, benefits from infrastructure improvements and the Company's competitiveness and profitability as a result of new sales and marketing programs, are forward- looking statements. The words "believe," "expect," "intend," "estimate," "assume" and "anticipate," variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and it is important to note that the Company's actual results could differ materially from those projected, due to various risk factors. Those risks include, but are not limited to, risks related to commissioning a new manufacturing plant, newly installed equipment performance, consumer acceptance of the Company's products, competitor reactions, the Company's ability to market and price its products, general economic conditions outside of the control of the Company, fuel prices, and the economic availability of sources of raw materials to meet demand rates necessary to sustain growth. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's reports filed with the SEC, including, but not limited to, the Company's annual report on Form 10-K for the fiscal year ended January 31, 2007 and its quarterly filings on Form 10-Q. This press release speaks only as of its date, and the Company disclaims any duty to update the information herein.
