SOURCE: Epolin, Inc.

October 16, 2006 11:32 ET

Epolin, Inc. Announces Results for the Second Quarter of Fiscal 2007

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