Company Name: Abatix Corporation

Symbol: ABIX
Market Capitalization (millions): 10.15
Current Share Price ($): $5.62
TBV CAGR (12/31/1994 – 6/30/2010): 9.60%

Fiscal Year Ending 12/31/2006 12/31/2007 12/31/2008 12/31/2009 MRQ**

(All Figures in $ millions)
Tangible Book Value (TBV): 11.97 13.23 14.75 15.68 16.17
Total Debt and Capital Lease Obligations: 5.63 6.03 4.30 - 2.18
Net Current Asset Value (NCAV)*: 10.07 11.64 13.49 14.64 15.16
Free Cash Flow (FCF): 3.66 (0.07) 1.52 4.65 (2.23)
Dividends Per Share: - - - - -

Investment Thesis: One word: Cheap. The company is trading at a 62% of MRQ TBV and 66.95% of
MRQ NCAV, making this slightly above the “Net-Net” Valuation. This
company is small and illiquid but its current valuation and track record of
performance are quite attractive. Recently, the Board has authorized the company
to repurchase up to $500,000 of stock. As of 6/30/2010 they used $27,881 of
these available funds. MRQ FCF figure is the result of an increase in inventory and
receivables and was financed with the company’s $5,000,000 line of credit. Finally,
The receivables balance is comprised of more than 1,600 accounts. The largest
customer receivable represented approximately 7% of the total receivables balance
as of 12/31/2009.
* Net Current Asset Value is calculated by subtracting Total Liabilities from Total Current Assets
** For Six Months with respect to Free Cash Flow

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