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

• Press Release
• Source: Epolin, Inc.
• On 1:31 pm EST, Wednesday January 14, 2009

NEWARK, NJ--(MARKET WIRE)--Jan 14, 2009 -- EPOLIN, INC. (the "Company") (OTC BB:EPLN.OB - News) (www.epolin.com) today announced results for the three and nine months ended November 30, 2008.

Related Quotes Symbol Price Change EPLN.OB 0.31 0.00 {"s" : "epln.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""}

For the three months ended November 30, 2008, sales were $733,000 as compared to $827,000 for the three months ended November 30, 2007, a decrease of $94,000 or 11.3%. Sales decreased to $2,498,000 for the nine months ended November 30, 2008 from $2,761,000 for the nine months ended November 30, 2007, a decrease of $263,000 or 9.5%. Gross profit, defined as sales less cost of sales, was $416,000 or 56.7% of sales for the three months ended November 30, 2008, compared to $585,000 or 70.7% of sales for the three months ended November 30, 2007. For the nine months ended November 30, 2008, gross profit was $1,414,000 or 56.6% of sales, compared to $1,743,000 or 63.1% of sales for the nine months ended November 30, 2007.

Cost of sales was $317,000 for the three months ended November 30, 2008 which represented 43.3% of sales compared to $242,000 for the three months ended November 30, 2007 which represented 29.3% of sales. For the nine months ended November 30, 2008, cost of sales was $1,084,000 which represented 43.4% of sales, compared to $1,018,000 for the nine months ended November 30, 2007 which represented 36.9% of sales. Selling, general and administrative expenses increased to $321,000 for the three months ended November 30, 2008 compared to $301,000 for the three months ended November 30, 2007, an increase of $20,000, while selling, general and administrative expenses increased to $945,000 for the nine months ended November 30, 2008 from $940,000 for the nine months ended November 30, 2007, an increase of $5,000.

Operating income, in terms of absolute dollars, decreased to $95,000 for the three months ended November 30, 2008 from $284,000 for the three months ended November 30, 2007, a decrease of $189,000, while operating income decreased to $468,000 for the nine months ended November 30, 2008 from $803,000 for the prior year period, a decrease of $335,000.

Net income after taxes was $75,000 or $0.01 per share for the three months ended November 30, 2008 as compared to net income after taxes of $218,000 or $0.02 per share for the three months ended November 30, 2007. For the nine months ended November 30, 2008, net income after taxes was $331,000 or $0.03 per share as compared to net income after taxes of $568,000 or $0.05 per share for the nine months ended November 30, 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 (Unaudited)
              NINE MONTHS ENDED NOVEMBER 30, 2008 AND 2007

                                                   2008            2007
                                               ------------    ------------
Sales                                          $  2,497,516       2,761,168
                                               ------------    ------------
Cost of sales and expenses:
  Cost of sales                                   1,083,661       1,018,240
  Selling, general and administrative               945,395         940,149
                                               ------------    ------------
    Total                                         2,029,056       1,958,389
                                               ------------    ------------
Operating income                                    468,460         802,779
                                               ------------    ------------
Other income:
  Rental income                                      13,500          13,500
  Miscellaneous                                          --          61,281
  Interest                                           35,881          42,708
                                               ------------    ------------
    Total                                            49,381         117,489
                                               ------------    ------------
Income before taxes                                 517,841         920,268
Income taxes                                        187,021         352,714
                                               ------------    ------------
Net income                                     $    330,820         567,554
                                               ============    ============
Per share data:
  Basic earnings per common share              $       0.03            0.05
                                               ============    ============
  Fully diluted earnings per common share      $       0.03            0.05
                                               ============    ============
  Weighted average number of common shares
   outstanding                                   11,999,446      11,966,355
                                               ============    ============
  Fully diluted number of common shares
   outstanding                                   12,039,882      12,003,424
                                               ============    ============



                       EPOLIN, INC. AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
              THREE MONTHS ENDED NOVEMBER 30, 2008 AND 2007

                                                   2008            2007
                                               ------------    ------------
Sales                                          $    733,045         826,610
                                               ------------    ------------
Cost of sales and expenses:
  Cost of sales                                     317,154         241,684
  Selling, general and administrative               321,330         301,151
                                               ------------    ------------
    Total                                           638,484         542,835
                                               ------------    ------------
Operating income                                     94,561         283,775
                                               ------------    ------------
Other income:
  Rental income                                       4,500           4,500
  Miscellaneous                                          --          61,081
  Interest                                            4,872          15,724
                                               ------------    ------------
    Total                                             9,372          81,305
                                               ------------    ------------
Income before taxes                                 103,933         365,080
Income taxes                                         28,952         147,166
                                               ------------    ------------
Net income                                     $     74,981         217,914
                                               ============    ============
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                                   12,066,355      11,966,355
                                               ============    ============
  Fully diluted number of common shares
   outstanding                                   12,106,791      12,003,424
                                               ============    ============

     For more detailed information, please contact:
     Murray S. Cohen
     Chairman of the Board
     James Ivchenko
     President
     Greg Amato
     Chief Executive Officer
     (973) 465-9495