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International Absorbents Announces Second Quarter and Six Months Results

September 11, 2009

FERNDALE, Wash., Sept. 11 /PRNewswire-FirstCall/ — International Absorbents Inc. (NYSE: IAX), a leading developer and producer of environmentally-friendly pet care and industrial products, today reported financial results for the second quarter and six months ended July 31, 2009.

Sales for the second quarter of fiscal year 2010 were slightly down at $9,256,000 versus $9,298,000 for the second quarter of fiscal year 2009. Sales for the first six months of fiscal year 2010 were $17,736,000 versus $17,759,000 for the first six months of fiscal year 2009.

Gross profit for the second quarter of fiscal year 2010 was $3,380,000 compared to $2,802,000 for the comparable quarter in fiscal year 2009, an increase of 21%. Gross profit for the first six months of fiscal year 2010 was $6,496,000 compared to $5,312,000 for the comparable period in fiscal year 2009, an increase of 22%.

Net income for the second quarter of fiscal year 2010 was $817,000, an improvement of 45% versus a net income of $562,000 for the second quarter of fiscal year 2009. Net income for the six months of fiscal year 2010 was $1,333,000 versus $905,000 for the comparable period in fiscal year 2009.

Gordon L. Ellis, Chairman of International Absorbents Inc. commented, “As is the case in many other industries, the pet care industry is experiencing a reduction in same store sales throughout most of the sector. To some extent, we have been able to counter this trend by expanding our customer base. The good news is that our margins have improved significantly. With a combination of greater efficiencies and all time low costs for our major inputs, our margins are improved by 21 percent for the quarter, even though we are producing a lower volume of product. We will continue to strive for greater efficiency as we weather the current economic downturn and anticipate being able to maintain a healthy bottom line in the foreseeable future.

We expect to face ongoing sales challenges in the coming quarters as the economy continues to be uncertain and unemployment grows. We are using this opportunity to expand our customer base both within North America and in international markets. Our objective is to be in a strong position with both lean and efficient manufacturing and a broad sales platform to take advantage of the next upturn in the global economy when it arrives.”

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 www.internationalabsorbents.com.

FINANCIAL HIGHLIGHTS

                                   3 Months Ended            6 Months Ended
                                      Jul. 31,                  Jul. 31,
                                 2009          2008        2009         2008
                                 ----          ----        ----         ----
    Sales, net               $9,256,000     $9,298,000 $17,736,000 $17,759,000
    Gross profit              3,380,000      2,802,000   6,496,000   5,312,000
    Net income before taxes   1,286,000        917,000   2,133,000   1,554,000
    Net income                  817,000        562,000   1,333,000     905,000
    Basic earnings per share       0.13           0.09        0.21        0.14
    Weighted average shares
     (basic)                  6,410,000      6,410,000   6,410,000   6,410,000

                           As at Jul. 31,  As at Jan. 31,
                               2009            2009
                               ----            ----
    Total assets            $32,779,000    $31,281,000
    Stockholders' equity     21,945,000     20,386,000

    Contact:
    Charles (Chuck) Tait
    International Absorbents Inc.
    Toll Free: 866-514-6559 or 604-681-6181
    info@internationalabsorbents.com

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 potential impact on the Company of the economic downturn; the Company’s ability to expand its customer base, reduce costs, increase efficiencies, enter into new markets, introduce new products, gain market share, improve profitability and execute on its future growth strategies; potential financial results; the capacity of the Company’s manufacturing facilities; forecasted 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, the effect on the Company of the ongoing global economic downturn, any potential decrease or change in consumer spending, the potential impact on the Company of any increases in energy and transportation costs; the performance of the Company’s manufacturing facilities, competitor reactions and their ability to market and price their products, and the 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, 2009 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.

SOURCE International Absorbents Inc.


Source: newswire



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