OLAB Oralabs

OraLabs Holding Corp. (NASDAQ: OLAB) today announced that second quarter revenues were $4,400,146 with a net profit of $.10 per share, or $453,992. The same period in 2005 reported revenues of $2,543,188 with net loss of $.01 per share, or $2,926. Revenues increased $1,856,958 or 73%. This increase in revenue was primarily a result of an increase in sales due to increased customer demand and higher sales at the retail level during the second quarter of 2006. The Company received increased orders on its breath freshening products as well as new customers for its new and core products in the second quarter of 2006. Net profit increased $456,918. Increases in cost of sales, selling and marketing, and administrative expenses were significantly attributable to the increased sales and the net effect was a net profit of $456,918. A more detailed explanation of these results can be found in the June 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 June 30, 2006 Dec. 31, 2005 ------------- ------------- Unaudited Assets Current assets Cash and cash equivalents $2,578,696 $1,834,144 Accounts receivable-trade, net of allowance for doubtful accounts of $67,064 (2006) and $86,639 (2005) 1,181,107 1,795,898 Inventories 2,812,677 2,555,634 Prepaid expenses 204,401 173,533 Deposits and other assets 324,137 257,949 ------------- ------------- Total current assets 7,101,018 6,617,158 ------------- ------------- Non-current assets Deferred tax assets, net 179,000 Property and equipment, net 2,115,348 1,858,754 ------------- ------------- Total non-current assets 2,115,348 2,037,754 ------------- ------------- Total assets $9,216,366 $8,654,912 ============= ============= Liabilities and Stockholders' Equity Current liabilities Accounts payable - trade $836,652 $1,021,153 Deferred revenue 85,148 630,000 Accrued liabilities 177,779 121,321 Reserve for returns 50,188 100,810 Income tax payable 130,365 Current portion of long-term debt 6,300 6,300 Deferred tax liability - current 248,016 221,724 ------------- ------------- Total current liabilities 1,534,448 2,101,308 ------------- ------------- Non-current liabilities Long-term debt, less current portion 3,675 6,825 Deferred tax liability - long-term 26,618 ------------- ------------ Total non-current liabilities 30,293 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, 4,789,015 (2006) and 4,693,015 (2005) issued and outstanding 4,789 4,693 Additional paid-in capital 1,828,683 1,511,820 Retained earnings 5,818,153 5,030,266 ------------- ------------- Total stockholders' equity 7,651,625 6,546,779 ------------- ------------- Total liabilities and stockholders' equity $9,216,366 $8,654,912 ============= ============= *T -0- *T ORALABS HOLDING CORP. AND SUBSIDIARIES Consolidated Statements of Operations Three Months and Six Months Ended June 30, 2006 and June 30, 2005 Unaudited ---------------------------------------------------------------------- Three Months Ended Six Months Ended 06/30/06 06/30/05 06/30/06 06/30/05 ---------------------------------------------------------------------- Product sales, net $4,400,146 $2,543,188 $8,918,855 $6,124,024 Cost of sales 2,405,372 1,597,957 5,113,858 3,978,471 ---------- ---------- ---------- ---------- Gross profit 1,994,774 945,231 3,804,997 2,145,553 ---------- ---------- ---------- ---------- Operating Expenses: Engineering 28,113 34,838 73,765 127,709 Selling and marketing costs 431,405 244,949 864,442 656,411 General and administrative 850,574 693,107 1,617,804 1,403,122 Other 4,235 5,554 30,058 25,907 ---------- ---------- ---------- ---------- Total operating expenses 1,314,327 978,448 2,586,069 2,213,149 ---------- ---------- ---------- ---------- Net operating income (loss) 680,447 (33,217) 1,218,928 (67,596) Interest and other income 22,938 28,908 35,343 40,258 ---------- ---------- ---------- ---------- Income (loss) before provision for income taxes 703,385 (4,309) 1,254,271 (27,338) Income tax (expense) benefit (249,393) 1,383 (466,384) 8,748 ---------- ---------- ---------- ---------- Net income (loss) $453,992 $(2,926) $787,887 $(18,590) ========== ========== ========== ========== Basic and diluted income (loss) per common share $.10 $(a) $.17 $(a) ========== ========== ========== ========== Weighted average shares outstanding - basic 4,777,047 4,669,688 4,735,263 4,669,154 ========== ========== ========== ========== Weighted average shares outstanding - diluted 4,818,368 4,669,688 4,778,253 4,669,154 ========== ========== ========== ========== (a) Amount is less than $(.01) per share *T