NEWARK, NJ -- (MARKET WIRE) -- January 16, 2007 -- EPOLIN, INC. (the "Company") (OTCBB: EPLN)
(www.epolin.com) today announced results for the three and nine months
ended November 30, 2006.
For the quarter ended November 30, 2006, sales decreased to $774,000 from
$966,000 for the quarter ended November 30, 2005, a decrease of $192,000 or
20.0%. Sales increased to $2,819,000 for the nine months ended November
30, 2006 from $2,632,000 for the nine months ended November 30, 2005, an
increase of $187,000 or 7.1%. Gross profit, defined as sales less cost of
sales, was $469,000 or 60.6% of sales for the quarter ended November 30,
2006 compared to $692,000 or 71.6% for the quarter ended November 30, 2005.
For the nine months ended November 30, 2006, gross profit was $1,642,000 or
58.2% of sales compared to $1,654,000 or 62.8% of sales for the same period
of the prior year.
Cost of sales was $305,000 for the quarter ended November 30, 2006 compared
to $275,000 for the quarter ended November 30, 2005, while for the nine
months ended November 30, 2006, cost of sales was $1,177,000 compared to
$979,000 for the same period of the prior year. Selling, general and
administrative expenses increased to $323,000 for the quarter ended
November 30, 2006 from $310,000 for the quarter ended November 30, 2005, an
increase of $13,000. Selling, general and administrative expenses
increased to $972,000 for the nine months ended November 30, 2006 from
$880,000 for the nine months ended November 30, 2005, an increase of
$92,000.
During the quarter ended November 30, 2006 we reported income before taxes
of $184,000 as compared to income before taxes of $394,000 for the quarter
ended November 30, 2005. During the nine months ended November 30, 2006,
we reported income before taxes of $748,000 as compared to income before
taxes of $807,000 for the nine months ended November 30, 2005. Net income
after taxes was $138,000 or $0.01 per share for the quarter ended November
30, 2006 as compared to net income after taxes of $249,000 or $0.02 per
share for the quarter ended November 30, 2005. For the nine months ended
November 30, 2006, net income after taxes was $485,000 or $0.04 per share
as compared to net income after taxes of $506,000 or $0.04 per share for
the nine months ended November 30, 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
NINE MONTHS ENDED NOVEMBER 30, 2006 AND 2005
2006 2005
------------ ------------
Sales $ 2,819,116 2,632,077
------------ ------------
Cost of sales and expenses:
Cost of sales 1,177,318 978,561
Selling, general and administrative 971,838 879,872
------------ ------------
Total 2,149,156 1,858,433
------------ ------------
Operating income 669,960 773,644
------------ ------------
Other income:
Rental income 15,000 21,000
Interest 63,156 12,338
------------ ------------
Total other income 78,156 33,338
------------ ------------
Income before taxes 748,116 806,982
Income taxes 263,503 300,862
------------ ------------
Net income $ 484,613 506,120
============ ============
Per share data:
Basic earnings per common share $ 0.04 0.04
============ ============
Fully diluted earnings per common share $ 0.04 0.04
============ ============
Weighted average number of common shares
outstanding 11,964,211 11,815,355
============ ============
Fully diluted number of common shares
outstanding 12,016,011 11,966,537
============ ============
THREE MONTHS ENDED NOVEMBER 30, 2006 AND 2005
2006 2005
------------ ------------
Sales $ 774,135 966,206
------------ ------------
Cost of sales and expenses:
Cost of sales 305,273 274,593
Selling, general and administrative 323,343 309,921
------------ ------------
Total 628,616 584,514
------------ ------------
Operating income 145,519 381,692
------------ ------------
Other income:
Rental income 3,000 9,000
Interest 35,690 3,513
------------ ------------
Total other income 38,690 12,513
------------ ------------
Income before taxes 184,209 394,205
Income taxes 46,544 145,109
------------ ------------
Net income $ 137,665 249,096
============ ============
Per share data:
Basic earnings per common share $ 0.01 0.02
============ ============
Fully diluted earnings per common share $ 0.01 0.02
============ ============
Weighted average number of common shares
outstanding 11,966,355 11,815,355
============ ============
Fully diluted number of common shares
outstanding 12,018,155 11,966,537
============ ============
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