SOURCE: Epolin, Inc.

January 16, 2007 17:06 ET

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

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