NEW YORK, May 23, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTCBB:ILNP) a specialty automotive aftermarket supplier, today announced results for the fiscal third quarter ended March 31, 2006. The Company recorded revenues of $9,030,898 for the quarter, representing an increase of over 300% compared to the fiscal third quarter ended March 31, 2005. ILNP recorded a net loss of $2,276,927 for the quarter compared to a net loss of $703,211 in the same quarter last year.
The increase in net loss for the quarter was due to the disruption of filling lines during consolidation, expenses associated with the sale and closure of Springdale Specialty Plastics, and one time restructuring costs.
John Mazzuto, Chief Executive Officer of Industrial Enterprises of America, Inc., commented, "The significant revenue increase we experienced was overshadowed by one-time and short term expenses associated with the consolidation of our operations following the acquisition of Pitt Penn Oil Co. Actual consolidation, which is being done in conjunction with an upgrade of facilities, will be 90% complete within the next two weeks -- approximately 60 days ahead of schedule. ILNP accelerated the rate of the change as the level of sales orders increased substantially and we realized we would need the additional capacity earlier than anticipated. The Company recently increased guidance for fiscal year 2007, partly due to the sale of our Springdale facility which immediately reduced our debt, and better purchasing terms from our suppliers as we are dramatically increasing the quantities being ordered by our consolidated entity. As an indication of the progress made in the last 18 months, sales have gone from zero to a forecasted $80 million, equity has gone from zero to $6.5 million, and assets have grown to $35 million. Shareholders can anticipate seeing the Company generate $80 Million in revenue in the coming fiscal year and achieve earnings of approximately $0.90 - $1.00 per share on a split-adjusted, fully diluted basis with an application to a major exchange within the next 10 business days."
Additionally, the Company will host a conference call on Wednesday May 24, 2006, at 10:00 a.m. Eastern Time to discuss Third Quarter 2006 financial results as well as recent developments. To participate in the conference call, callers should dial 877-407-0782. International callers, please dial: 201-689-8567. The call will be webcast and can be accessed on the website, http://www.investorcalendar.com. A telephone replay of the call will also be available until May 31, 2006, by dialing 877-660-6853 or for international callers 201-612-7415 and entering account number 286 followed by conference ID 203299.
About Industrial Enterprises of America, Inc.
Industrial Enterprises of America, Inc., headquartered in New York, NY, is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives & chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.
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.