EX-99.1
3
press.htm
PRESS RELEASE FOR SALE OF SPRINGDALE SPECIALTY PLASTICS INC AND RAISING EARNINGS GUIDANCE FOR FISCAL YEAR BEGINNING JULY 1, 2006
Press release raising earning guidance for fiscal year beginning July 1, 2006
Press
Release
Source:
Industrial
Enterprises of America, Inc.
Industrial
Enterprises of America Raises Earning Guidance for Fiscal Year Beginning July
1,
2006
Friday
May 12, 10:30 am ET
NEW
YORK,
May 12, 2006 (PRIMEZONE) -- Industrial Enterprises of America, Inc. (OTC
BB:
ILNP.OB
-
News
), a specialty manufacturer and distributor of
automotive aftermarket supplies, announces that the Company has raised earnings
guidance to $10 million for the fiscal year ending June 30, 2007. Management
has
increased guidance by $2 million based upon the sale of Springdale Specialty
Plastics which allows the company to reduce current debt obligations and
decrease its overall costs of goods sold, as well as increases in profit margins
due to efficiencies in consolidation and purchasing.
Springdale
Specialty Plastics, a manufacturer of blow molded plastic bottles, was
originally purchased as part of the Pitt Penn acquisition and sold for $2.5
million. The sale of Springdale effectively reduces ILNP's purchase price of
Pitt Penn by more than half. The facility was purchased by Fortco Plastics
Inc,
a private company.
According
to management, Springdale was a relatively inefficient manufacturer, and the
purchaser of the blow mold facility will be upgrading and modernizing the
production equipment to increase the output of current operations. The purchaser
has agreed to continue supplying plastic containers to the Company, which will
result in a decrease in ILNP's packaging costs.
John
Mazzuto, Chief Executive Officer of Industrial Enterprises of America, stated,
"The 25% increase in earnings guidance is attributable to several factors.
The
recent sale of our Springdale facility eliminates overhead costs, reduces
current debt and lowers our cost of goods sold by outsourcing production of
containers to a more efficient facility. Additionally, our consolidation
following the Pitt Penn acquisition has given us greater purchasing power with
suppliers which has begun being realized and will be fully implemented beginning
July 1, 2006".
The
consolidation of the Company's Ohio manufacturing and warehousing operations
into Pitt Penn Oil Co.'s facility is actively underway. Engineering and plant
personnel have completed their review of the consolidation efforts, certain
operations have been transferred and production lines are currently in transit.
It is estimated that the relocation of liquid production lines to Pitt Penn
Oil
will be completed within the next thirty days.
About
Industrial Enterprises of America, Inc.
Industrial
Enterprises of America, Inc., headquartered in New York, N.Y., is an automotive
aftermarket supplier that specializes in the sale of anti-freeze, auto fluids,
charcoal fluids, and other additives & chemicals. The company has distinct
proprietary brands that collectively serve the retail, professional, and
discount automotive aftermarket channels.
Except
for the historical information contained herein, the matters discussed in this
press release may include forward-looking statements or information. All
statements, other than statements of historical fact, including, without
limitation, those with respect to the objectives, plans and strategies of
Industrial Enterprises of America set forth herein and those preceded by or
that
include the words "believes", "expects", "given", "targets,"
"intends", "anticipates", "plans", "projects", "forecasts" or similar
expressions, are forward-looking statements. Although the Company's management
believes that such forward-looking statements are reasonable, it cannot
guarantee that such expectations are, or will be, correct. These forward-looking
statements involve a number of risks and uncertainties which could cause the
Company's future results to differ materially from those anticipated, including:
(i) the Company's history of ongoing operating losses; (ii) the overall
marketplace and clients' usage of EMC Packaging's and Unifide Industries'
products, including demand therefore, the impact of competitive technologies,
products and pricing, particularly given the substantially larger size and
scale
of certain competitors and potential competitors, control of expenses, and
revenue generation by the acquisition of new customers; (iii) the ultimate
consequences of Hurricane Katrina on the supply and/or distribution chain;
(iv)
the consequent results of operations given the aforementioned factors; and
(v)
the requirement for the Company to raise additional working capital to fund
operations and the availability and terms of any such funding to the Company.
Without any such funding, the Company believes it may be forced to curtail
operations, and if no alternative to financing, such as an additional merger
or
acquisition, is consummated, the Company may not continue as a going concern.
Other risks are detailed from time to time in the Company's 2003 Annual Report
on Form 10-K, as amended, its Quarterly Reports on Form 10-QSB, and in its
other
Securities and Exchange Commission reports and statements. The Company assumes
no obligation to update any of the information contained or referenced in this
press release.
Contact:
Industrial
Enterprises of America, Inc.
Investors
& Public Relations:
David
Zazoff
(212)
505-5976
PressReleases@Za-Consulting.net
Source:
Industrial
Enterprises of America, Inc.

EX - 99 . 1 3 press . htm PRESS RELEASE FOR SALE OF SPRINGDALE SPECIALTY PLASTICS INC AND RAISING EARNINGS GUIDANCE FOR FISCAL YEAR BEGINNING JULY 1 , 2006 Press release raising earning guidance for fiscal year beginning July 1 , 2006 Press Release Source : Industrial Enterprises of America , Inc . Industrial Enterprises of America Raises Earning Guidance for Fiscal Year Beginning July 1 , 2006 Friday May 12 , 10 : 30 am ET NEW YORK , May 12 , 2006 ( PRIMEZONE ) -- Industrial Enterprises of America , Inc . ( OTC BB : ILNP . OB - News ) , a specialty manufacturer and distributor of automotive aftermarket supplies , announces that the Company has raised earnings guidance to $ 10 million for the fiscal year ending June 30 , 2007 . Management has increased guidance by $ 2 million based upon the sale of Springdale Specialty Plastics which allows the company to reduce current debt obligations and decrease its overall costs of goods sold , as well as increases in profit margins due to efficiencies in consolidation and purchasing . Springdale Specialty Plastics , a manufacturer of blow molded plastic bottles , was originally purchased as part of the Pitt Penn acquisition and sold for $ 2.5 million . The sale of Springdale effectively reduces ILNP 's purchase price of Pitt Penn by more than half . The facility was purchased by Fortco Plastics Inc , a private company . According to management , Springdale was a relatively inefficient manufacturer , and the purchaser of the blow mold facility will be upgrading and modernizing the production equipment to increase the output of current operations . The purchaser has agreed to continue supplying plastic containers to the Company , which will result in a decrease in ILNP 's packaging costs . John Mazzuto , Chief Executive Officer of Industrial Enterprises of America , stated , " The 25 % increase in earnings guidance is attributable to several factors . The recent sale of our Springdale facility eliminates overhead costs , reduces current debt and lowers our cost of goods sold by outsourcing production of containers to a more efficient facility . Additionally , our consolidation following the Pitt Penn acquisition has given us greater purchasing power with suppliers which has begun being realized and will be fully implemented beginning July 1 , 2006 " . The consolidation of the Company 's Ohio manufacturing and warehousing operations into Pitt Penn Oil Co . 's facility is actively underway . Engineering and plant personnel have completed their review of the consolidation efforts , certain operations have been transferred and production lines are currently in transit . It is estimated that the relocation of liquid production lines to Pitt Penn Oil will be completed within the next thirty days . About Industrial Enterprises of America , Inc . Industrial Enterprises of America , Inc . , headquartered in New York , N . Y . , is an automotive aftermarket supplier that specializes in the sale of anti - freeze , auto fluids , charcoal fluids , and other additives & chemicals . The company has distinct proprietary brands that collectively serve the retail , professional , and discount automotive aftermarket channels . Except for the historical information contained herein , the matters discussed in this press release may include forward - looking statements or information . All statements , other than statements of historical fact , including , without limitation , those with respect to the objectives , plans and strategies of Industrial Enterprises of America set forth herein and those preceded by or that include the words " believes " , " expects " , " given " , " targets , " " intends " , " anticipates " , " plans " , " projects " , " forecasts " or similar expressions , are forward - looking statements . Although the Company 's management believes that such forward - looking statements are reasonable , it can not guarantee that such expectations are , or will be , correct . These forward - looking statements involve a number of risks and uncertainties which could cause the Company 's future results to differ materially from those anticipated , including : ( i ) the Company 's history of ongoing operating losses ; ( ii ) the overall marketplace and clients ' usage of EMC Packaging 's and Unifide Industries ' products , including demand therefore , the impact of competitive technologies , products and pricing , particularly given the substantially larger size and scale of certain competitors and potential competitors , control of expenses , and revenue generation by the acquisition of new customers ; ( iii ) the ultimate consequences of Hurricane Katrina on the supply and / or distribution chain ; ( iv ) the consequent results of operations given the aforementioned factors ; and ( v ) the requirement for the Company to raise additional working capital to fund operations and the availability and terms of any such funding to the Company . Without any such funding , the Company believes it may be forced to curtail operations , and if no alternative to financing , such as an additional merger or acquisition , is consummated , the Company may not continue as a going concern . Other risks are detailed from time to time in the Company 's 2003 Annual Report on Form 10 - K , as amended , its Quarterly Reports on Form 10 - QSB , and in its other Securities and Exchange Commission reports and statements . The Company assumes no obligation to update any of the information contained or referenced in this press release . Contact : Industrial Enterprises of America , Inc . Investors & Public Relations : David Zazoff ( 212 ) 505 - 5976 PressReleases@Za-Consulting.net Source : Industrial Enterprises of America , Inc .
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