NEW YORK, Dec. 16, 2005 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTCBB:ILNPE) a specialty automotive aftermarket supplier, filed its delayed quarterly report yesterday for the fiscal first quarter ended September 30, 2005.
The Company's operating subsidiaries, EMC Packaging and Unifide Industries, both experienced profitability for the quarter and contributed over $430,000 of net income even after taking into account one time merger expenses. On a pro forma basis, these subsidiaries demonstrated earnings of approximately 2 cents per share, however due to unexpected accounting changes recommended by the Company's auditors at the parent company level, ILNP recorded a net loss of $170,000 for the quarter rather than the previously reported net income of $265,000.
Financial highlights for the quarter ended September 30, 2005 include an increase in total assets to $12,733,032 and an increase in revenues to $4,909,803 as compared to September 30, 2004 when the Company's assets were negligible and the Company had no revenues.
"While unexpected alterations made by our auditors have negatively impacted the Company's net income for the first quarter, the Company has greatly increased its revenues and total assets, positioning itself for future growth and profitability. Our impending acquisition of an automotive products manufacturer is set to double annual revenues and streamline manufacturing operations. With these anticipated revenues and the non-recurring nature of this quarter's financial modifications, investors should look forward to seeing positive earnings in the coming quarter," commented John Mazzuto, Chief Executive Officer of Industrial Enterprises of America, Inc.
Industrial Enterprises of America, Inc., Headquartered in New York, NY, is a holding Company with three operating subsidiaries, EMC Packaging, Unifide Industries and Todays Way Manufacturing, LLC. EMC Packaging is one of the largest worldwide providers of refrigerant gases, specializing in converting hydroflurocarbon gases into branded and private label refrigerant and propellant products as well as packaging of "gas dusters" used in a variety of industries. Unifide Industries markets and sells specialty automotive products under proprietary trade names and private labels, and Todays Way Manufacturing manufactures and packages the products sold by Unifide Industries.
Except for the historical information contained herein, the matters discussed in this press release may include forward-looking statements or information. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of Industrial Enterprises of America set forth herein and those preceded by or that include the words "believes," "expects," "given," "targets," "intends," "anticipates," "plans," "projects", "forecasts" or similar expressions, are forward-looking statements. Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a number of risks and uncertainties which could cause the Company's future results to differ materially from those anticipated, including: (i) the Company's history of ongoing operating losses; (ii) the overall marketplace and clients' usage of EMC Packaging's and Unifide Industries' products, including demand therefore, the impact of competitive technologies, products and pricing, particularly given the substantially larger size and scale of certain competitors and potential competitors, control of expenses, and revenue generation by the acquisition of new customers; (iii) the ultimate consequences of Hurricane Katrina on the supply and/or distribution chain; (iv) the consequent results of operations given the aforementioned factors; and (v) the requirement for the Company to raise additional working capital to fund operations and the availability and terms of any such funding to the Company. Without any such funding, the Company believes it may be forced to curtail operations, and if no alternative to financing, such as an additional merger or acquisition, is consummated, the Company may not continue as a going concern. Other risks are detailed from time to time in the Company's 2003 Annual Report on Form 10-K, as amended, its Quarterly Reports on Form 10-QSB, and in its other Securities and Exchange Commission reports and statements. The Company assumes no obligation to update any of the information contained or referenced in this press release.