SOURCE: Epolin, Inc.

July 13, 2007 16:00 ET

Epolin, Inc. Announces Results for the First Quarter of Fiscal 2008

NEWARK, NJ--(Marketwire - July 13, 2007) - Epolin, Inc. (the "Company") (OTCBB: EPLN) (www.epolin.com) today announced results for the three months ended May 31, 2007.

For the three months ended May 31, 2007, sales were $842,000 as compared to $1,094,000 for the three months ended May 31, 2006, a decrease of $252,000 or 23.0%. Gross profit, defined as sales less cost of sales, was $513,000 or 61.0% of sales for the three months ended May 31, 2007 compared to $655,000 or 60.0% of sales for the three months ended May 31, 2006.

Cost of sales was $329,000 for the three months ended May 31, 2007 which represented 39.1% of sales compared to $439,000 for the three months ended May 31, 2006 which represented 40.1% of sales. For the three months ended May 31, 2007, selling, general and administrative expenses were $296,000 or 35.2% of sales compared to $296,000 or 27.1% of sales for the three months ended May 31, 2006.

Operating income decreased to $217,000 for the three months ended May 31, 2007 from $359,000 for the three months ended May 31, 2006, a decrease of $142,000. During the three months ended May 31, 2007, the Company reported income before taxes of $232,000 as compared to income before taxes of $369,000 for the three months ended May 31, 2006. Net income after taxes was $153,000 or $0.01 per share for the three months ended May 31, 2007 as compared to net income after taxes of $226,000 or $0.02 per share for the three months ended May 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
            THREE MONTHS ENDED MAY 31, 2007 AND 2006

                                                 2007            2006
                                              ------------    ------------
Sales                                         $    842,001       1,094,070
                                              ------------    ------------
Cost of sales and expenses:
  Cost of sales                                    328,656         438,918
  Selling, general and administrative              295,999         296,116
                                              ------------    ------------
     Total                                         624,655         735,034
                                              ------------    ------------
Operating income                                   217,346         359,036
                                              ------------    ------------
Other income:
  Rental income                                         --           4,500
  Interest                                          14,940           5,542
                                              ------------    ------------
    Total other income                              14,940          10,042
                                              ------------    ------------
Income before taxes                                232,286         369,078
Income taxes                                        79,510         143,179
                                              ------------    ------------
Net income                                    $    152,776         225,899
                                              ============    ============
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                                  11,964,806      11,959,942
                                              ============    ============
  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