UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
ý Quarterly Report Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
for the quarterly period ended June 30, 2004
or
o Transition Report Pursuant to
Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from to
Commission file number: 1-10184
ABATIX CORP.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
75-1908110
(I.R.S. Employer Identification No.)
(Address of principal executive offices)
75227
(Zip Code)
(214) 381-0322
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Common stock outstanding at August 5, 2004 was 1,711,148.
PART 1 – FINANCIAL INFORMATION
Item 1. Financial Statements
ABATIX CORP. AND SUBSIDIARY
Consolidated Balance Sheets
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June 30, |
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December 31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash |
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$ |
809,246 |
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$ |
176,078 |
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Trade accounts receivable, net of allowance for doubtful accounts of $249,848 in 2004 and $277,830 in 2003 |
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7,803,292 |
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7,187,563 |
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Inventories |
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6,841,620 |
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5,954,414 |
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Prepaid expenses and other assets |
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865,177 |
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842,498 |
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Refundable income taxes |
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378,249 |
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204,894 |
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Deferred income taxes |
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188,038 |
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251,522 |
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Total current assets |
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16,885,622 |
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14,616,969 |
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Receivables from employees |
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2,752 |
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— |
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Property and equipment, net |
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1,183,860 |
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1,293,608 |
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Deferred income taxes |
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457,539 |
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350,748 |
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Other assets |
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80,450 |
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80,450 |
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$ |
18,610,223 |
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$ |
16,341,775 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Notes payable |
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$ |
6,639,035 |
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$ |
4,523,290 |
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Accounts payable |
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2,856,949 |
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2,510,319 |
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Accrued compensation |
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180,610 |
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117,849 |
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Other accrued expenses |
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504,369 |
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438,266 |
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Total current liabilities |
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10,180,963 |
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7,589,724 |
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Stockholders’ equity: |
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Preferred stock - $1 par value, 500,000 shares authorized; none issued |
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— |
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— |
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Common stock - $.001 par value, 5,000,000 shares authorized; 2,437,314 shares issued in 2004 and 2003 |
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2,437 |
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2,437 |
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Additional paid-in capital |
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2,574,560 |
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2,574,560 |
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Retained earnings |
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8,109,605 |
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8,432,396 |
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Treasury stock at cost, 726,166 common shares in 2004 and 2003 |
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(2,257,342 |
) |
(2,257,342 |
) |
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Total stockholders’ equity |
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8,429,260 |
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8,752,051 |
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Commitments and contingencies |
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$ |
18,610,223 |
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$ |
16,341,775 |
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See accompanying notes to consolidated financial statements.
2
ABATIX CORP. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Net sales |
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$ |
12,464,008 |
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$ |
12,774,139 |
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$ |
24,436,326 |
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$ |
25,624,175 |
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Cost of sales |
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9,118,573 |
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9,042,785 |
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17,880,789 |
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18,109,469 |
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Gross profit |
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3,345,435 |
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3,731,354 |
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6,555,537 |
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7,514,706 |
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Selling, general and administrative expenses |
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3,623,256 |
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3,641,128 |
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6,930,692 |
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7,169,692 |
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Operating (loss) profit |
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(277,821 |
) |
90,226 |
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(375,155 |
) |
345,014 |
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Other (expense) income: |
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Interest expense |
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(52,494 |
) |
(48,520 |
) |
(99,231 |
) |
(95,323 |
) |
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Other (expense) income, net |
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(71 |
) |
348 |
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(848 |
) |
1,125 |
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(Loss) earnings before income taxes |
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(330,386 |
) |
42,054 |
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(475,234 |
) |
250,816 |
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Income tax benefit (expense) |
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127,649 |
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(18,600 |
) |
152,443 |
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(111,385 |
) |
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Net (loss) earnings |
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$ |
(202,737 |
) |
$ |
23,454 |
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$ |
(322,791 |
) |
$ |
139,431 |
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Basic and diluted (loss) earnings per common share |
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$ |
(.12 |
) |
$ |
.01 |
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$ |
(.19 |
) |
$ |
.08 |
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Basic and diluted weighted average shares outstanding (note 2) |
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1,711,148 |
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1,711,148 |
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1,711,148 |
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1,711,148 |
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See accompanying notes to consolidated financial statements.
3
ABATIX CORP. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
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Six Months Ended |
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2004 |
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2003 |
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Cash flows from operating activities: |
< | ||||||