OLAB Oralabs

OraLabs Holding Corp. (Nasdaq:OLAB) today announced that third quarter revenues were $2,944,492 with a loss of $.03 per share, or $146,018. The same period in 2004 reported revenues of $2,831,826 with a loss of $.08 per share, or $360,205. The Company's increased revenues can be significantly attributed to expanded distribution in the retail marketplace, while the decrease in net loss can be attributed to a greater concentration of sales to higher gross profit margin. A more detailed explanation of these results can be found in the September 30, 2005 Form 10-QSB, Part II, Results of Operations. OraLabs, Inc. manufactures Ice Drops(R) brands oral care products; Sour Zone(TM) brands sour products; and Lip Rageous(R), Lip Naturals(R), Chap Ice(R), Extra Lip Moisturizer, Leashables(R), Chapgrip(R), Soothe & Shine(R) brands of lip balm. The product line includes breath drops and sprays, sour drops and sprays, lip balms and a variety of private label products. The Company distributes 5HTP, as its only dietary supplement; additionally the Company distributes Sanell (TM) hand sanitizer and Eyelieve (TM) sterile eye products. The Company's products are currently sold in the USA nationally as well as numerous foreign countries. The products are sold through wholesale distributors as well as by direct sale to mass retailers, grocery stores, convenience stores and drug stores. Forward-Looking and Cautionary Statements Except for historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties, and other factors that could cause results to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission. -0- *T ORALABS HOLDING CORP AND SUBSIDIARIES Consolidated Balance Sheets Sept. 30, 2005 Dec. 31, Unaudited 2004 ---------------------------------------------------------------------- Assets Current Assets Cash and cash equivalents $ 731,172 $ 866,432 Accounts receivable, net of allowance for doubtful accounts of $211,740 (2005) and $345,177 (2004) 1,348,210 1,275,820 Inventories 3,184,018 2,878,755 Deferred tax asset - current 239,488 285,117 Income taxes receivable 329,648 Prepaid expenses 150,607 264,451 Deposits and other assets 27,955 158,720 ----------------------------------------------- ---------- ---------- Total current assets 5,681,450 6,058,943 Non-current assets Deferred tax asset, long-term 122,795 45,336 Property and equipment, net 1,818,195 1,668,675 ----------------------------------------------- ---------- ---------- Total non-current assets 1,940,990 1,714,011 ----------------------------------------------- ---------- ---------- Total Assets $7,622,440 $7,772,954 =============================================== ========== ========== Liabilities and Stockholders' Equity Current liabilities Accounts payable - trade $ 806,680 $ 850,157 Accrued liabilities 261,893 131,812 Reserve for returns 249,902 362,342 Income tax payable 0 0 Current portion of long-term debt 8,437 12,581 ----------------------------------------------- ---------- ---------- Total current liabilities 1,326,912 1,356,892 ----------------------------------------------- ---------- ---------- Non-current Liabilities Long-term debt, less current portion 7,350 12,075 ----------------------------------------------- ---------- ---------- Total non-current liabilities 7,350 12,075 ----------------------------------------------- ---------- ---------- Commitments and contingencies Stockholders' equity Preferred stock, $.001 par value, 1,000,000 shares authorized; none issued and outstanding 0 0 Common stock, $.001 par value; 25,000,000 shares authorized, 4,693,015 issued and outstanding (2005), 4,668,615 issued and outstanding (2004). 4,693 4,669 Additional paid -in capital 1,511,820 1,463,044 Retained earnings 4,771,665 4,936,274 ----------------------------------------------- ---------- ---------- Total stockholders' equity 6,288,178 6,403,987 ----------------------------------------------- ---------- ---------- Total liabilities and stockholders' equity $7,622,440 $7,772,954 =============================================== ========== ========== ORALABS HOLDING CORP AND SUBSIDIARIES Consolidated Statements of Operations Three Months and Nine Months ended September 30, 2005 and September 30, 2004 Unaudited ---------------------------------------------------------------------- Three Months Ended Nine Months Ended 09/30/05 09/30/04 09/30/05 09/30/04 ---------------------------------------------------------------------- Revenues: Product sales $2,944,492 $2,831,826 $9,068,516 $9,622,482 ---------- ---------- ---------- ---------- Total Revenues 2,944,492 2,831,826 9,068,516 9,622,482 ---------- ---------- ---------- ---------- Cost of Sales 1,920,431 2,173,430 5,898,903 6,943,391 ---------- ---------- ---------- ---------- Gross profit 1,024,061 658,396 3,169,613 2,679,091 ---------- ---------- ---------- ---------- Operating Expenses: Engineering 40,312 54,749 168,021 237,726 Selling and marketing costs 406,184 274,088 1,062,595 975,022 General and administrative 792,638 903,830 2,195,761 2,380,849 Other 12,768 2,901 38,675 30,838 ---------- ---------- ---------- ---------- Total operating expenses 1,251,902 1,235,568 3,465,052 3,624,435 ---------- ---------- ---------- ---------- Net operating (loss) income (227,841) (577,172) (295,439) (945,344) Other income (expense) (24,148) Interest and other income 13,113 2,913 53,371 7,942 ---------- ---------- ---------- ---------- Total other income (expense) 13,113 2,913 53,371 (16,206) ---------- ---------- ---------- ---------- Net (loss) income before provision for income taxes (214,728) (574,259) (242,068) (961,550) Income tax benefit (expense) 68,710 214,054 77,459 358,233 ---------- ---------- ---------- ---------- Net (loss) income $ (146,018)$ (360,205) $ (164,609)$ (603,317) ========== ========== ========== ========== Basic and diluted (loss) income per common share $ (.03)$ (.08) $ (.04)$ (.13) ========== ========== ========== ========== Weighted average shares outstanding 4,693,015 4,580,615 4,677,195 4,580,615 ========== ========== ========== ========== *T