NEWARK, NJ--(Marketwire - October 15, 2007) - EPOLIN, INC. (the "Company") (
OTCBB:
EPLN)
(
www.epolin.com) today announced that its Board of Directors has declared a
special cash dividend of $0.02 per share to be payable on January 7, 2008
to shareholders of record at the close of business on December 20, 2007.
The Company also announced its results for the three and six months ended
August 31, 2007.
The Company reported that the special cash dividend represents the second
such special dividend declared by the Board since it adopted a dividend
policy in April 2006. Under the dividend policy, the Company intends to
issue a regular annual cash dividend and may issue a special cash dividend
from time to time as well. Since the adoption of the dividend policy, the
Company has issued two regular annual cash dividends and issued one other
special cash dividend in January 2007.
With regard to the results announced today, the Company reported that for
the three months ended August 31, 2007, sales were $1,093,000 as compared
to $951,000 for the three months ended August 31, 2006, an increase of
$142,000 or 14.9%. Sales decreased to $1,935,000 for the six months ended
August 31, 2007 from $2,045,000 for the six months ended August 31, 2006, a
decrease of $110,000 or 5.4%. Gross profit, defined as sales less cost
of sales, was $645,000 or 59.0% of sales for the three months ended August
31, 2007 compared to $518,000 or 54.5% of sales for the three months ended
August 31, 2006. For the six months ended August 31, 2007, gross profit
was $1,158,000 or 59.8% of sales compared to $1,173,000 or 57.4% of sales
for the six months ended August 31, 2006.
Cost of sales was $448,000 for the three months ended August 31, 2007 which
represented 41.0% of sales compared to $433,000 for the three months ended
August 31, 2006 which represented 45.5% of sales. For the six months ended
August 31, 2007, cost of sales was $777,000 which represented 40.2% of
sales, compared to $872,000 for the six months ended August 31, 2006 which
represented 42.6% of sales. Selling, general and administrative expenses,
although relatively unchanged, decreased to $343,000 or 31.4% of sales, for
the three months ended August 31, 2007 from $352,000 or 37.1% of sales for
the three months ended August 31, 2006, a decrease of $9,000. Selling,
general and administrative expenses decreased to $639,000 or 33.0% for the
six months ended August 31, 2007 from $648,000 or 31.7% of sales for the
six months ended August 31, 2006, a decrease of $9,000.
Operating income increased to $302,000 for the three months ended August
31, 2007 from $165,000 for the prior year period, an increase of $137,000,
although operating income for the six months ended August 31, 2007
decreased to $519,000 from $524,000 for the prior year period, a decrease
of $5,000. Net income after taxes was $197,000 or $0.02 per share for the
three months ended August 31, 2007 as compared to net income after taxes of
$121,000 or $0.01 per share for the three months ended August 31, 2006.
For the six months ended August 31, 2007, net income after taxes was
$350,000 or $0.03 per share as compared to net income after taxes of
$347,000 or $0.03 per share for the six months ended August 31, 2006.
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, 2007 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.
EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
SIX MONTHS ENDED AUGUST 31, 2007 AND 2006
2007 2006
------------ ------------
Sales $ 1,934,559 2,044,981
------------ ------------
Cost of sales and expenses:
Cost of sales 776,556 872,045
Selling, general and administrative 638,999 648,495
------------ ------------
Total 1,415,555 1,520,540
------------ ------------
Operating income 519,004 524,441
------------ ------------
Other income:
Rental income 9,000 12,000
Interest 27,184 27,466
------------ ------------
Total 36,184 39,466
------------ ------------
Income before taxes 555,188 563,907
Income taxes 205,548 216,959
------------ ------------
Net income $ 349,640 346,948
============ ============
Per share data:
Basic earnings per common share $ 0.03 0.03
============ ============
Fully diluted earnings per common share $ 0.03 0.03
============ ============
Weighted average number of common shares
outstanding 11,966,355 11,966,355
============ ============
Fully diluted number of common shares
outstanding 12,003,424 12,053,560
============ ============
EPOLIN, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED AUGUST 31, 2007 AND 2006
2007 2006
------------ ------------
Sales $ 1,092,558 950,911
------------ ------------
Cost of sales and expenses:
Cost of sales 447,900 433,127
Selling, general and administrative 343,000 352,379
------------ ------------
Total 790,900 785,506
------------ ------------
Operating income 301,658 165,405
------------ ------------
Other income:
Rental income 9,000 7,500
Interest 12,244 21,924
------------ ------------
Total 21,244 29,424
------------ ------------
Income before taxes 322,902 194,829
Income taxes 126,038 73,780
------------ ------------
Net income $ 196,864 121,049
============ ============
Per share data:
Basic earnings per common share $ 0.02 0.01
============ ============
Fully diluted earnings per common share $ 0.02 0.01
============ ============
Weighted average number of common shares
outstanding 11,966,355 11,966,355
============ ============
Fully diluted number of common shares
outstanding 12,003,424 12,053,560
============ ============
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