SOURCE: Epolin, Inc.

October 15, 2008 13:11 ET

Epolin, Inc. Announces Results for the Second Quarter of Fiscal 2009

NEWARK, NJ--(Marketwire - October 15, 2008) - EPOLIN, INC. (the "Company") (OTCBB: EPLN) (www.epolin.com) today announced results for the three and six months ended August 31, 2008.

For the three months ended August 31, 2008, sales were $852,000 as compared to $1,093,000 for the three months ended August 31, 2007, a decrease of $241,000 or 22.1%. Sales decreased to $1,764,000 for the six months ended August 31, 2008 from $1,935,000 for the six months ended August 31, 2007, a decrease of $171,000 or 8.8%. Gross profit, defined as sales less cost of sales, was $475,000 or 55.8% of sales, compared to $645,000 or 59.0% of sales for the three months ended August 31, 2007. For the six months ended August 31, 2008, gross profit was $998,000 or 56.6% of sales, compared to $1,158,000 or 60.0% of sales for the six months ended August 31, 2007.

Cost of sales was $376,000 for the three months ended August 31, 2008 which represented 44.2% of sales compared to $448,000 for the three months ended August 31, 2007 which represented 41.0% of sales. For the six months ended August 31, 2008, cost of sales was $767,000 which represented 43.4% of sales, compared to $777,000 for the six months ended August 31, 2007 which represented 40.0% of sales. Selling, general and administrative expenses decreased to $330,000 for the three months ended August 31, 2008 compared to $343,000 for the three months ended August 31, 2007, a decrease of $13,000, while selling, general and administrative expenses decreased to $624,000 for the six months ended August 31, 2008 from $639,000 for the six months ended August 31, 2007, a decrease of $15,000.

Operating income, in terms of absolute dollars, decreased to $145,000 for the three months ended August 31, 2008 from $302,000 for the three months ended August 31, 2007, a decrease of $157,000, while operating income decreased to $374,000 for the six months ended August 31, 2008 from $519,000 for the prior year period, a decrease of $145,000.

Net income after taxes was $107,000 or $0.01 per share for the three months ended August 31, 2008 as compared to net income after taxes of $197,000 or $0.02 per share for the three months ended August 31, 2007. For the six months ended August 31, 2008, net income after taxes was $256,000 or $0.02 per share as compared to net income after taxes of $350,000 or $0.03 per share for the six months ended August 31, 2007.

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 29, 2008 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, 2008 AND 2007

                                                   2008            2007
                                               ------------    ------------
Sales                                          $  1,764,471       1,934,559
                                               ------------    ------------
Cost of sales and expenses:
  Cost of sales                                     766,507         776,556
  Selling, general and administrative               624,065         638,999
                                               ------------    ------------
    Total                                         1,390,572       1,415,555
                                               ------------    ------------
Operating income                                    373,899         519,004
                                               ------------    ------------
Other income:
  Rental income                                       9,000           9,000
  Interest                                           31,009          27,184
                                               ------------    ------------
    Total                                            40,009          36,184
                                               ------------    ------------
Income before taxes                                 413,908         555,188
Income taxes                                        158,069         205,548
                                               ------------    ------------
Net income                                     $    255,839         349,640
                                               ============    ============
Per share data:
  Basic earnings per common share              $       0.02            0.03
                                               ============    ============
  Fully diluted earnings per common share      $       0.02            0.03
                                               ============    ============
  Weighted average number of common shares
   outstanding                                   11,966,355      11,966,355
                                               ============    ============
  Fully diluted number of common shares
   outstanding                                   12,006,791      12,003,424
                                               ============    ============


                           EPOLIN, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                   THREE MONTHS ENDED AUGUST 31, 2008 AND 2007


                                                   2008            2007
                                               ------------    ------------
Sales                                          $    851,680       1,092,558
                                               ------------    ------------
Cost of sales and expenses:
  Cost of sales                                     376,445         447,900
  Selling, general and administrative               330,418         343,000
                                               ------------    ------------
    Total                                           706,863         790,900
                                               ------------    ------------
Operating income                                    144,817         301,658
                                               ------------    ------------
Other income:
  Rental income                                       4,500           9,000
  Interest                                           18,504          12,244
                                               ------------    ------------
    Total                                            23,004          21,244
                                               ------------    ------------
Income before taxes                                 167,821         322,902
Income taxes                                         61,134         126,038
                                               ------------    ------------
Net income                                     $    106,687         196,864
                                               ============    ============
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      11,966,355
                                               ============    ============
  Fully diluted number of common shares
   outstanding                                   12,006,791      12,003,424
                                               ============    ============

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