NEWARK, NJ -- (MARKET WIRE) -- October 16, 2006 -- EPOLIN, INC. (the "Company") (
OTCBB:
EPLN)
(
www.epolin.com) today announced results for the three and six months ended
August 31, 2006.
Sales increased to $951,000 for the quarter ended August 31, 2006 from
$860,000 for the quarter ended August 31, 2005, an increase of $91,000 or
10.6%. Sales increased to $2,045,000 for the six months ended August 31,
2006 from $1,666,000 for the six months ended August 31, 2005, an increase
of $379,000 or 22.8%. Gross profit, defined as sales less cost of sales,
was $518,000 or 54.5% of sales for the quarter ended August 31, 2006
compared to $524,000 or 60.9% for the quarter ended August 31, 2005. For
the six months ended August 31, 2006, gross profit was $1,173,000 or 57.4%
of sales compared to $981,000 or 58.9% of sales for the same period of the
prior year.
Cost of sales was $433,000 for the quarter ended August 31, 2006 compared
to $336,000 for the quarter ended August 31, 2005, while for the six months
ended August 31, 2006, cost of sales was $872,000 compared to $685,000 for
the same period of the prior year. Selling, general and administrative
expenses increased to $352,000 for the quarter ended August 31, 2006 from
$338,000 for the quarter ended August 31, 2005, an increase of $14,000.
Selling, general and administrative expenses increased to $648,000 for the
six months ended August 31, 2006 from $589,000 for the six months ended
August 31, 2005, an increase of $59,000.
During the quarter ended August 31, 2006, we reported income before taxes
of $195,000 as compared to income before taxes of $200,000 for the quarter
ended August 31, 2005. During the six months ended August 31, 2006, we
reported income before taxes of $564,000 as compared to income before taxes
of $413,000 for the prior year period. Net income after taxes was $121,000
or $0.01 per share for the quarter ended August 31, 2006 as compared to net
income after taxes of $119,000 or $0.01 per share for the quarter ended
August 31, 2005. For the six months ended August 31, 2006, net income
after taxes was $347,000 or $0.03 per share as compared to net income after
taxes of $257,000 or $0.02 per share for the six months ended August 31,
2005.
About Epolin
Epolin, Inc. is a specialized chemical company primarily engaged in the
manufacturing, marketing, research and development of infrared dyes, laser
absorbing dyes and infrared dye formulations. The Company's business is
heavily weighted towards the development, manufacture and sale of near
infrared dyes. Applications for these dyes cover several markets that
include laser protection, welding, sunglasses, optical filters, glazing and
imaging and security inks and tagants. The Company also manufactures
specialty chemicals for certain chemical manufacturers.
Statements contained herein that are not based upon current or historical
fact are forward-looking in nature. Such forward-looking statements reflect
the Company's expectations about its future operating results, performance
and opportunities that involve substantial risks and uncertainties. When
used herein, the words "anticipate," "believe," "estimate," "plan,"
"intend" and "expect" and similar expressions, as they relate to Epolin,
Inc., or its management, are intended to identify such forward-looking
statements. These forward-looking statements are based on information
currently available to the Company and are subject to a number of risks,
uncertainties, and other factors that could cause the Company's actual
results, performance, prospects, and opportunities to differ materially
from those expressed in, or implied by, these forward-looking statements.
Factors that could cause or contribute to such differences include, but are
not limited to, such factors discussed in the Company's Annual Report on
Form 10-KSB for the fiscal year ended February 28, 2006 under the caption
"Uncertainties and Risk Factors" in Part I, Item 1 "Description of
Business." Except as required by the Federal Securities law, the Company
does not undertake any obligation to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the
date hereof or for any other reason.
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED AUGUST 31, 2006 AND 2005
2006 2005
------------ ------------
Sales $ 2,044,981 1,665,871
------------ ------------
Cost of sales and expenses:
Cost of sales 872,045 685,355
Selling, general and administrative 648,495 588,564
------------ ------------
Total 1,520,540 1,273,919
------------ ------------
Operating income 524,441 391,952
------------ ------------
Other income:
Rental income 12,000 12,000
Interest 27,466 8,825
------------ ------------
Total other income 39,466 20,825
------------ ------------
Income before taxes 563,907 412,777
Income taxes 216,959 155,753
------------ ------------
Net income $ 346,948 257,024
============ ============
Per share data:
Basic earnings per common share $ 0.03 0.02
============ ============
Fully diluted earnings per common share 0.03 0.02
============ ============
Weighted average number of common shares
outstanding 11,966,355 11,815,355
============ ============
THREE MONTHS ENDED AUGUST 31, 2006 AND 2005
2006 2005
------------ ------------
Sales $ 950,911 859,572
------------ ------------
Cost of sales and expenses:
Cost of sales 433,127 335,804
Selling, general and administrative 352,379 337,507
------------ ------------
Total 785,506 673,311
------------ ------------
Operating income 165,405 186,261
------------ ------------
Other income:
Rental income 7,500 9,000
Interest 21,924 4,756
------------ ------------
Total other income 29,424 13,756
------------ ------------
Income before taxes 194,829 200,017
Income taxes 73,780 81,145
------------ ------------
Net income $ 121,049 118,872
============ ============
Per share data:
Basic earnings per common share $ 0.01 0.01
============ ============
Fully diluted earnings per common share $ 0.01 0.01
============ ============
Weighted average number of common shares
outstanding 11,966,355 11,815,355
============ ============
Contact Information: For more detailed information, please contact:
Murray S. Cohen
Chairman of the Board
James Ivchenko
President
Greg Amato
Chief Executive Officer
(973) 465-9495