NEW YORK, Nov. 15, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTCBB:IEAM), a specialty automotive aftermarket supplier, today announced the filing of its 2006 Form 10-KSB Annual Report.
Commenting on the results for the fourth quarter ended June 30, 2006, Chief Financial Officer of Industrial Enterprises of America, James Margulies, stated, "Results from operations were stronger than previously expected. When backing out non-cash deductions, earnings for the fourth quarter would have been $0.21, which was above the $0.20 per diluted share that was anticipated. The Company took additional non-cash charges during the year which lowered reported earnings, including the accounting treatment and depreciation of the Company's ownership in Power3 Medical common stock as well as the amortization of the derivative valuation that were incurred in prior quarters which resulted in a combined expense of approximately $2,650,000 in the fourth quarter. Additionally, we will file an amended report for the year-end because a long term liability was labeled as related party debt when in fact it is due to the Company's primary commercial lender."
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 and chemicals. The company has distinct proprietary brands that collectively serve the retail, professional, and discount automotive aftermarket channels.
Statement Under The Private Securities Litigation Reform Act
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 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; Other risks are detailed from time to time in the Company's 2006 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.