IAX Intl Absorbents

FERNDALE, Wash., Sept. 11 /PRNewswire-FirstCall/ -- International Absorbents Inc. (AMEX: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, 2006. Sales for the second quarter of fiscal year 2007 were $7,300,000, a 20% increase compared to $6,074,000 for the same period in the prior fiscal year. Sales for the six months ended July 31, 2006 increased by 16% to $13,921,000, compared to $11,966,000 for the same six-month period in fiscal year 2006. Net income for the second quarter of fiscal year 2007 increased by 446% to $262,000 versus $48,000 for the same period in the prior fiscal year. Net income for the six months ended July 31, 2006 increased by 89% to $404,000, compared to $214,000 for the same six-month period in fiscal year 2006. Gross profit for the quarter was $2,158,000, compared to $1,727,000 for the comparable quarter in the prior fiscal year, an increase of 25%. Gross profit for the six months ended July 31, 2006 was $4,213,000, compared to $3,686,000 for the same six-month period in fiscal year 2006, an increase of 14%. "Continued sale growth and improved cash flow during the quarter highlight the Company's progress towards overcoming its recent poor performance," stated Gordon L. Ellis, Chairman of International Absorbents Inc. "We are working on improving margins and are optimistic that progress will continue. CareFRESH(R) Colors(TM) continues to lead the way, accounting for the majority of recent growth in existing markets and provides the incentive for entry into new markets." 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 Jul. 31, 6 Months Ended Jul. 31, 2006 2005 2006 2005 Sales, net $7,300,000 $6,074,000 $13,921,000 $11,966,000 Net income before taxes 446,000 103,000 719,000 329,000 Net income 262,000 48,000 404,000 214,000 Basic earnings per share 0.04 0.01 0.06 0.03 Weighted average shares (basic) 6,410,000 6,261,000 6,397,000 6,257,000 As at Jul. 31, As at Jan. 31, 2006 2006 Total assets $25,411,000 $24,513,000 Stockholders' equity 14,948,000 14,154,000 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, the Company's ability to control expenses, 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 delays related to commissioning a new manufacturing plant, contractor performance, newly 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, 2006 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. DATASOURCE: International Absorbents Inc. CONTACT: Charles (Chuck) Tait of International Absorbents Inc., +1-866-514-6559, or +1-604-681-6181, or Web site: http://www.internationalabsorbents.com/

Copyright