OLAB Oralabs

OraLabs Holding Corp. (NASDAQ: OLAB) today announced that year-end revenues were $13,585,165 with a profit of $.02 per share, or $93,992. This compares to 2004 reported revenues of $13,130,579 with a loss of ($.12) per share, or ($565,108). Revenues increased $454,586 and net income increased $659,100. The increase in revenues can be significantly attributed to improved on-time shipping, increased sales to major customers and a large sale to a new customer. The increase in net income was primarily through higher gross margin sales, reductions in labor costs and lower engineering costs for repairs and maintenance. This reflected benefits received by the Company from its capital investments in manufacturing equipment. A more detailed explanation of these results can be found in the 2005 Form 10-KSB, Part II Management's Discussion and Analysis or Plan of Operation. 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. Reference is made in particular to statements regarding anticipated sales growth, expectations regarding financial results for the quarter and expectations regarding future outcomes. These statements are based on the Company's current beliefs and expectations as to such future outcomes. 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. The Company can offer no assurance that the definitive agreement discussed in this press release will close on the terms described above, if at all. -0- *T ORALABS HOLDING CORP. AND SUBSIDIARIES Consolidated Balance Sheet December 31, 2005 Assets Current assets Cash $1,834,144 Accounts receivable - trade, net of allowance for doubtful accounts of $86,639 1,795,898 Inventories 2,555,634 Prepaid expenses 173,533 Deposits and other assets 257,949 ------------ Total current assets 6,617,158 ------------ Deferred tax assets, net 179,000 Property and equipment, net 1,858,754 ------------ Total non-current assets 2,037,754 ------------ Total assets $8,654,912 ============ Liabilities and Stockholders' Equity Current liabilities Accounts payable - trade $1,021,153 Deferred revenue 630,000 Accrued liabilities 121,321 Reserve for returns 100,810 Current portion of long-term debt 6,300 Deferred tax liability 221,724 ------------ Total current liabilities 2,101,308 ------------ Long-term debt, less current portion 6,825 ------------ Total non-current liabilities 6,825 ------------ Commitments and contingencies Stockholders' equity Preferred stock, $.001 par value, 1,000,000 authorized; none issued and outstanding - Common stock, $.001 par value; 25,000,000 shares authorized; 4,693,015 issued and outstanding (2005) and 4,668,615 issued and outstanding (2004) 4,693 Additional paid-in capital 1,511,820 Retained earnings 5,030,266 ------------ Total stockholders' equity 6,546,779 ------------ Total liabilities and stockholders' equity $8,654,912 ============ *T -0- *T ORALABS HOLDING CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended December 31, 2005 2004 ------------- ------------- Product sales $13,585,165 $13,130,579 Cost of goods sold 8,867,622 9,315,940 ------------- ------------- Gross profit 4,717,543 3,814,639 ------------- ------------- Operating expenses Engineering 218,009 319,828 Selling and marketing 1,324,648 1,325,935 General and administrative 3,036,827 3,047,940 Other 49,797 32,218 ------------- ------------- Total operating expenses 4,629,281 4,725,921 ------------- ------------- Income (loss) from operations 88,262 (911,282) ------------- ------------- Other income (expense) Interest and other income 68,617 110,965 Other expense (35,359) ------------- ------------- Total other income (expense) 68,617 75,606 ------------- ------------- Income (loss) before income taxes 156,879 (835,676) ------------- ------------- Income tax (expense) benefit Current 194,648 Deferred (62,887) 75,920 ------------- ------------- Total income tax (expense) benefit (62,887) 270,568 ------------- ------------- Net income (loss) $93,992 $(565,108) ============= ============= Basic weighted average common shares outstanding 4,681,116 4,668,615 ============= ============= Basic income (loss) per common share $0.02 $(0.12) ============= ============= Diluted weighted average common shares outstanding 4,702,820 4,668,615 ============= ============= Diluted income (loss) per common share $0.02 $(0.12) ============= ============= *T