OLAB Oralabs

OraLabs Holding Corp. (NASDAQ: OLAB) today announced that third quarter revenues were $4,385,608 with a profit of $.03 per share, or $155,072. The same period in 2005 reported revenues of $2,944,492 with a loss of $.03 per share, or $146,018. Revenues increased $1,441,116 or 49%. The Company received increased orders on its breath freshening products as well as new customers for its new and core products in the third quarter of 2006. The combination of increased revenues and a greater concentration of sales to higher margin customers offset in part by increased operating expenses yielded an increase in Net Income of $301,090. A more detailed explanation of these results can be found in the September 30, 2006 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 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. ORALABS HOLDING CORP. AND SUBSIDIARIES � Consolidated Balance Sheets � September 30, 2006 December 31, 2005 Unaudited Assets Current assets Cash and cash equivalents $ 1,204,142� $ 1,834,144� Accounts receivable-trade, net of allowance for doubtful accounts of $68,686 (2006) and $86,639 (2005) 2,434,113� 1,795,898� Inventories 3,398,068� 2,555,634� Prepaid expenses 174,014� 173,533� Deposits and other assets 417,907� 257,949� Total current assets 7,628,244� 6,617,158� Non-current assets Deferred tax assets, net 179,000� Property and equipment, net 2,083,242� 1,858,754� Total non-current assets 2,083,242� 2,037,754� Total assets $ 9,711,486� $ 8,654,912� Liabilities and Stockholders' Equity � Current liabilities Accounts payable - trade $ 901,120� $ 1,021,153� Deferred revenue 88,848� 630,000� Accrued liabilities 296,671� 121,321� Reserve for returns 52,810� 100,810� Income tax payable 66,211� Current portion of long-term debt 6,300� 6,300� Deferred tax liability - current 248,178� 221,724� Total current liabilities 1,660,138� 2,101,308� Non-current liabilities Long-term debt, less current portion 2,100� 6,825� Deferred tax liability - long-term 63,034� Total non-current liabilities 65,134� 6,825� � Commitments and contingencies � Stockholders' equity Preferred stock, $.001 par value, 1,000,000 shares authorized; none issued and outstanding � Common stock, $.001 par value; 25,000,000 shares authorized, 4,848,265 (2006) and 4,693,015 (2005) issued and outstanding � 4,848� 4,693� Additional paid-in capital 2,008,141� 1,511,820� Retained earnings 5,973,225� 5,030,266� Total stockholders' equity 7,986,214� 6,546,779� � Total liabilities and stockholders' equity $ 9,711,486� $ 8,654,912� ORALABS HOLDING CORP. AND SUBSIDIARIES � Consolidated Statements of Operations Three Months and Nine Months Ended September 30, 2006 andSeptember 30, 2005 Unaudited � Three Months Ended Nine Months Ended � � 09/30/06� � 09/30/05� � � 09/30/06� � 09/30/05� � Product sales, net $ 4,385,608� $ 2,944,492� $ 13,304,462� $ 9,068,516� Cost of sales 2,826,257� 1,920,431� 7,940,115� 5,898,903� Gross profit 1,559,351� 1,024,061� 5,364,347� 3,169,613� Operating Expenses: Engineering 71,889� 40,312� 145,653� 168,021� Selling and marketing costs 435,501� 406,184� 1,299,943� 1,062,595� General and administrative 835,542� 792,638� 2,453,346� 2,195,761� Other 13,404� 12,768� 43,462� 38,675� Total operating expenses 1,356,336� 1,251,902� 3,942,404� 3,465,052� Net operating income (loss) 203,015� (227,841) 1,421,943� (295,439) Interest and other income 40,692� 13,113� 76,035� 53,371� Income (loss) before provision for income taxes 243,707� (214,728) 1,497,978� (242,068) � Income tax (expense) benefit (88,635) 68,710� (555,019) 77,459� Net income (loss) $ 155,072� $ (146,018) $ 942,959� $ (164,609) Basic and diluted income (loss) per common share $ .03� $ (.03) $ .20� $ (.04) Weighted average shares outstanding - basic 4,812,866� 4,693,015� 4,761,415� 4,677,195� Weighted average shares outstanding - diluted 4,832,779� 4,693,015� 4,800,618� 4,677,195� OraLabs Holding Corp. (NASDAQ: OLAB) today announced that third quarter revenues were $4,385,608 with a profit of $.03 per share, or $155,072. The same period in 2005 reported revenues of $2,944,492 with a loss of $.03 per share, or $146,018. Revenues increased $1,441,116 or 49%. The Company received increased orders on its breath freshening products as well as new customers for its new and core products in the third quarter of 2006. The combination of increased revenues and a greater concentration of sales to higher margin customers offset in part by increased operating expenses yielded an increase in Net Income of $301,090. A more detailed explanation of these results can be found in the September 30, 2006 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 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. -0- *T ORALABS HOLDING CORP. AND SUBSIDIARIES Consolidated Balance Sheets September 30, December 31, 2006 2005 -------------- -------------- Unaudited Assets Current assets Cash and cash equivalents $ 1,204,142 $ 1,834,144 Accounts receivable-trade, net of allowance for doubtful accounts of $68,686 (2006) and $86,639 (2005) 2,434,113 1,795,898 Inventories 3,398,068 2,555,634 Prepaid expenses 174,014 173,533 Deposits and other assets 417,907 257,949 Total current assets 7,628,244 6,617,158 Non-current assets Deferred tax assets, net 179,000 Property and equipment, net 2,083,242 1,858,754 Total non-current assets 2,083,242 2,037,754 Total assets $ 9,711,486 $ 8,654,912 Liabilities and Stockholders' Equity Current liabilities Accounts payable - trade $ 901,120 $ 1,021,153 Deferred revenue 88,848 630,000 Accrued liabilities 296,671 121,321 Reserve for returns 52,810 100,810 Income tax payable 66,211 Current portion of long-term debt 6,300 6,300 Deferred tax liability - current 248,178 221,724 Total current liabilities 1,660,138 2,101,308 Non-current liabilities Long-term debt, less current portion 2,100 6,825 Deferred tax liability - long-term 63,034 Total non-current liabilities 65,134 6,825 Commitments and contingencies Stockholders' equity Preferred stock, $.001 par value, 1,000,000 shares authorized; none issued and outstanding Common stock, $.001 par value; 25,000,000 shares authorized, 4,848,265 (2006) and 4,693,015 (2005) issued and outstanding 4,848 4,693 Additional paid-in capital 2,008,141 1,511,820 Retained earnings 5,973,225 5,030,266 Total stockholders' equity 7,986,214 6,546,779 Total liabilities and stockholders' equity $ 9,711,486 $ 8,654,912 *T -0- *T ORALABS HOLDING CORP. AND SUBSIDIARIES Consolidated Statements of Operations Three Months and Nine Months Ended September 30, 2006 and September 30, 2005 Unaudited Three Months Ended Nine Months Ended 09/30/06 09/30/05 09/30/06 09/30/05 ---------------------------------------------------------------------- Product sales, net $4,385,608 $2,944,492 $13,304,462 $9,068,516 Cost of sales 2,826,257 1,920,431 7,940,115 5,898,903 Gross profit 1,559,351 1,024,061 5,364,347 3,169,613 Operating Expenses: Engineering 71,889 40,312 145,653 168,021 Selling and marketing costs 435,501 406,184 1,299,943 1,062,595 General and administrative 835,542 792,638 2,453,346 2,195,761 Other 13,404 12,768 43,462 38,675 Total operating expenses 1,356,336 1,251,902 3,942,404 3,465,052 Net operating income (loss) 203,015 (227,841) 1,421,943 (295,439) Interest and other income 40,692 13,113 76,035 53,371 Income (loss) before provision for income taxes 243,707 (214,728) 1,497,978 (242,068) Income tax (expense) benefit (88,635) 68,710 (555,019) 77,459 Net income (loss) $ 155,072 $ (146,018) $ 942,959 $ (164,609) Basic and diluted income (loss) per common share $ .03 $ (.03) $ .20 $ (.04) Weighted average shares outstanding - basic 4,812,866 4,693,015 4,761,415 4,677,195 Weighted average shares outstanding - diluted 4,832,779 4,693,015 4,800,618 4,677,195 *T