FERNDALE, Wash., April 28 /PRNewswire-FirstCall/ -- International Absorbents Inc. , a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the fiscal year ended January 31, 2008.
Net income for fiscal year 2008 improved 188% to a record $2,016,000, or $0.31 per share, versus $701,000, or $0.11 per share, for fiscal year 2007. Sales increased 12% to a record $33,095,000 for fiscal year 2008, compared to $29,495,000 in the previous fiscal year. Gross profit for fiscal year 2008 was $9,956,000 compared to $9,593,000 the prior fiscal year.
Gordon L. Ellis, Chairman of International Absorbents Inc. commented on the Company's excellent financial results. "As the numbers indicate, the Company believes that it is on track to continue to deliver improved profitability. Net income is up considerably over the previous year despite the fact we shut down and moved our Bellingham, Washington manufacturing facility during the year. Our three-phase infrastructure build-out strategy we put in place a few years ago is now complete and we expect to be in position to take advantage of our up-to-date facilities and grow the business. From an operations viewpoint, we have moved from the build-out stage to working on optimizing efficiencies and fine-tuning our systems. As an example, our SG&A costs were reduced during fiscal year 2008 as compared to the prior year, even though sales increased.
From a corporate viewpoint, we believe we are now in a position to focus more resources on market and product expansion. We have recently hired additional market development and sales personnel and continue to look for more excellent people to help drive our market growth initiative. Management's objective continues to be to support long term growth and profitability while protecting the Company's core business. We anticipate that completion of the build-out phase and related recent improvements will allow us to dedicate more of our physical, financial and personnel resources towards a market expansion strategy. We look forward to interesting and productive times ahead."
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
Year Ended January 31, 2008
2008 2007
Sales, net $33,095,000 29,493,000
Gross profit 9,956,000 9,593,000
Net income before taxes 3,270,000 1,278,000
Net income 2,016,000 701,000
Basic earnings per share 0.31 0.11
Weighted average shares (basic) 6,410,000 6,404,000
Total assets $28,589,000 $27,691,000
Stockholders' equity 17,689,000 15,390,000
Net Cash Flows from
operating activities 3,571,000 2,416,000
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, prospects for the future, potential financial results and the Company's capacity to improve profitability, ability to expand and grow its markets and product lines, 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, changes in energy and transportation costs, 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 installed equipment performance, consumer acceptance of the Company's products at a new location, competitor reactions and their ability to market and price their products, general economic conditions outside of the control of the Company, 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, 2008 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.
