For Immediate Release

 

 

IMPRESO, INC. REPORTS

SECOND QUARTER FY2005 RESULTS OF OPERATIONS

 

 

 

COPPELL, Texas (April 19, 2005) -- Impreso, Inc. (Nasdaq SmallCap Market: “ZCOM”), which through its subsidiaries is involved in (1) the manufacture and distribution of paper and film hard copy imaging products for commercial and home office applications, (2) the development of eCommerce initiatives, and (3) natural spring water bottling and distribution, today announced sales and earnings for the second quarter of Fiscal 2005.

 

Net sales for the three months ended February 28, 2005 were $ 18.6 million, as compared to net sales of $25.8 million in the three months ended February 29, 2004, a decrease of $7.1 million, or 27.7%. Net income decreased to a loss of $1.2 million, or $ (0.23) per share, in the most recent quarter, compared with net income of $262,200, or $0.05 per share, in the prior-year period.

 

For the six months ended February 28, 2005, the Company reported a net loss of $2 million, or $ (0.37) per share, on net sales of $38.6 million.  These results compared with net income of $744,000, or $0.14 per share, on net sales of $ 52.5 million, in the first half of FY2004.

 

“Our results of operations for the first half of fiscal 2005 were very disappointing as a result of the decrease in continuous forms purchases by a significant customer.  In January we began downsizing our operations and implemented cost savings measures, the full effects of which should impact our future results,” stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc.  The timing of this reduction of sales combined with the simultaneous start up of our spring water bottling operations contributed to the material adverse affect on our financial statements. However, the long term investment in the bottled water business will maximize the efficiency of our selling force, administration, and distribution infrastructure due to opposite seasonal cycles of consumption, in summer when we may experience a slow down in sales of paper products, the bottled water business is at its peak, ” concluded Mr. Sorokwasz. 

 

About Impreso, Inc.

               

Impreso, Inc. is a holding company for TST/Impreso, Inc. and HotSheet.com, Inc.  TST/Impreso, Inc. is a manufacturer and distributor of hard copy imaging products for commercial and home use in domestic and international markets.  HotSheet.com, Inc. primarily owns HotSheet.com, a single-page, online Internet directory with categorized links to premier web destinations.  Alexa Springs, Inc. is a natural spring water bottling operation. The Company’s website domains are and

 

Impreso, Inc. is headquartered in Coppell, Texas, and its common stock trades on the Nasdaq SmallCap Market under the symbol “ZCOM”.

 

This press release may include statements that constitute “forward-looking” statements, usually containing the words “believe”, “estimate”, “project”, “expect”, “should” or similar expressions.  These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.  Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products in the marketplace, competitive factors, new products and technological changes, paper prices and raw material costs, dependence upon third-party vendors, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission.  By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

 

For further information, please contact:

Marshall Sorokwasz at (972) 462-0100 (ext. 1103)

Tammy Yahiel, General Counsel, at (972) 462-0100 (ext. 1117)

(Financial Highlights to Follow)

 

IMPRESO, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENT S OF OPERATIONS (Unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

 

 

February 28,

 

 February 29,

 

 

 

 

 

2005

 

                2004

 

Net sales

 

  $                   18,629,137

 

 $                  25,762,472

 

Cost of sales

 

                      18,072,991

 

                      22,754,614

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

                            556,146

 

                        3,007,858

 

 

 

 

 

 

 

Gain on sale of assets

 

                            (42,685)

 

                                          -

 

Selling, General and administrative expenses

 

                        2,092,286

 

                        2,265,260

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) Income

 

                      (1,493,455)

 

                            742,598

 

 

 

 

 

 

 

 

 

Other expenses (income):

 

 

 

 

 

 

Interest expense

 

                            339,332

 

                            295,083

 

 

Embezzlement  recovery

 

                            (37,527)

 

                                          -

 

 

Other income, net

 

                            (28,749)

 

                                    715

 

 

 

 

 

 

 

 

 

 

 

Total other expense

 

                            273,056

 

                            295,798

 

 

 

 

 

 

 

 

 

 

 

 

 

                      (1,766,511)

 

                            446,800

 

(Loss) income before income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense :

 

 

 

 

 

 

Current

 

                      (1,227,623)

 

                            224,522

 

 

Deferred

 

                            670,130

 

                            (39,962)

 

 

 

 

 

 

 

 

 

 

 

Total income tax (benefit) expense  

                         (557,493)

 

                            184,560

 

 

 

 

 

 

 

 

 

Net (loss) income 

 

 $                  (1,209,018)

 

 $                        262,240

 

 

 

 

 

 

 

 

 

Net (loss) income per share (basic and diluted)

 

 $                             (0.23)

 

 $                               0.05

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

                        5,278,780

 

                        5,278,780

 

 

 

 

 

 

 

 

 

IMPRESO, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENT S OF OPERATIONS (Unaudited)

 

 

 

 

 

 

Six Months Ended

 

 

 

 

February 28,

 

 February 29,

 

 

 

 

 

2005

 

                2004

 

Net sales

 

         $             38,605,771

 

$                       52,489,187                 

 

Cost of sales

 

37,069,767                   

 

46,100,568         

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1,536,004                           

 

6,388,619

 

 

 

 

 

 

 

Gain on sale of assets

 

(101,909)                       

 

                                          -

 

Selling, General and administrative expenses

 

4,378,136                       

 

4,547,254                     

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) Income

 

(2,740,223)                  

 

1,841,365                   

 

 

 

 

 

 

 

 

 

Other expenses (income):

 

 

 

 

 

 

Interest expense

 

578,262              

 

632,097                          

 

 

Embezzlement  recovery

 

(290,840)                    

 

                                          -

 

 

Other income, net

 

(107,969)                   

 

(6,154)                                

 

 

 

 

 

 

 

 

 

 

 

Total other expense

 

179,453                         

 

625,943                          

 

 

 

 

 

 

 

 

 

(Loss) income before income tax expense

 

 (2,919,676)

 

1,215,422 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense :

 

 

 

 

 

 

Current

 

(1,221,373)                 

 

540,245                         

 

 

Deferred

 

270,752                          

 

(69,279)                       

 

 

 

 

 

 

 

 

 

 

 

Total income tax (benefit) expense 

(950,621)                     

 

470,966                          

 

 

 

 

 

 

 

 

 

Net (loss) income 

 

$                     (1,969,055)                 

 

$                            744,456                        

 

 

 

 

 

 

 

 

 

Net (loss) income per share (basic and diluted)

 

$                              (0.37)                        

 

$                                 0.14                              

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

                        5,278,780

 

                        5,278,780