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)
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Three Months Ended |
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February 28, |
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February 29, |
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2005 |
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2004 |
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Net sales |
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$ 18,629,137
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$
25,762,472 |
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Cost of sales |
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18,072,991 |
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22,754,614 |
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Gross profit |
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556,146 |
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3,007,858 |
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Gain on sale of assets |
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(42,685) |
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- |
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Selling, General and
administrative expenses |
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2,092,286 |
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2,265,260 |
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Operating (loss) Income |
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(1,493,455) |
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742,598 |
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Other expenses (income): |
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Interest expense |
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339,332 |
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295,083 |
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Embezzlement recovery |
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(37,527) |
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- |
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Other income, net |
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(28,749) |
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715 |
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Total other expense |
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273,056 |
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295,798 |
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(1,766,511) |
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446,800 |
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(Loss) income before
income tax expense |
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Income tax (benefit) expense
: |
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Current |
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(1,227,623) |
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224,522 |
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Deferred |
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670,130 |
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(39,962) |
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Total income tax (benefit)
expense |
(557,493) |
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184,560 |
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Net (loss) income |
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$
(1,209,018) |
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$
262,240 |
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Net (loss) income per
share (basic and diluted) |
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$ (0.23) |
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$
0.05 |
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Weighted average shares
outstanding |
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5,278,780 |
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5,278,780 |
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IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT S OF OPERATIONS (Unaudited)
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Six Months Ended |
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February 28, |
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February 29, |
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2005 |
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2004 |
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Net sales |
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$ 38,605,771 |
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$ 52,489,187 |
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Cost of sales |
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37,069,767 |
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46,100,568 |
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Gross profit |
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1,536,004 |
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6,388,619 |
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