For Immediate Release
IMPRESO REPORTS RESULTSEARNINGS FOR
FY2005
COPPELL,
Texas (December 15, 2005) – Impreso, Inc. (Nasdaq Capital 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; (3) the
natural spring bottled water business, today announced sales and earnings for
FY2005.
Net
sales for the fiscal year ended August 31, 2005, decreased to $77.7 million,
compared with net sales of $104 million in the previous fiscal year. Net income
decreased to a loss of $2.9 million, or $(0.55) per share, compared with net
income of $1 million, or $0.19 per share, in FY 2004, and $618,000, or $0.12 per
share, in FY 2003. Gross profits decreased
to $4.2 million in FY2005, versus gross profits of $13.7 million in the prior-year
period.
For
the three months ended August 31, 2005, the Company reported a net loss of $366,000
or $(0.07) per share, on net sales of $19.3 million. These results compared with a net loss of $65,000, or $(0.01) per
share, and net sales of $26 million, in the corresponding period of the prior
year.
“This year our Company’s
net income declined materially, as we felt the impact of the losses of sales of
continuous computer forms to significant customers in the beginning of Fiscal
2005,”commented Marshall Sorokwasz, President and Chief Executive Officer of
Impreso, Inc. “In response to these losses, the Company implemented a cost
reduction savings plan, and was successful in achieving many of the planned
steps, such as selling real estate, reducing inventory, and other cost cutting
measures. However, unanticipated
escalating freight and fuel costs partially offset some of the potential gain
from the plan in the Fiscal 2005 year. In the first quarters of the year ending
August 31, 2006, we are introducing revised freight policies to recapture these
expenses.”
“For the first time in our Company’s 30 year history, sales
of continuous computer forms comprised less than 50% of our revenue in the
Fiscal 2005,” continued Mr. Sorokwasz, “The engineering roll and small point of
purchase rolls market have had excellent growth in the past few years, and are
now our largest hard copy imaging product categories.
“In Fiscal 2005, we had begun to build bottled water inventory at our five plant locations, when the multiple natural disasters in late Fiscal 2005 placed a great demand on our bottled water products. While the Company benefited during these disasters with increased water sales, the loss of sales of hard copy imaging products in the affected areas and escalating freight costs in the United States, materially affected results of operations in Fiscal 2005,” concluded Mr. Sorokwasz.
About
Impreso, Inc.
Impreso, Inc. is a holding company for TST/Impreso,
Inc. HotSheet.com, Inc., and Alexa Springs, 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 bottler. The Company’s website domains
are www.alexasprings.com, and
Impreso, Inc. is
headquartered in Coppell, Texas, and its common stock trades on the Nasdaq Capital
Market under the symbol “ZCOM”.
This press release may include statements that constitute “forward-looking” statements, usually containing the words “believe”, “estimate”, “project”, “expect” 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)
Or
Tammy Yahiel, General
Counsel at (972) 462-0100 (ext. 1117)
or via e-mail at
yahiel@tstimpreso.com
(Financial Highlights
Follow)
IMPRESO, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
|
|
Three Months Ended August 31, |
|
||
|
|
2005 |
|
2004 |
|
|
|
|
|
|
|
|
Net sales |
$ 19,292,466 |
|
$ 26,024,469 |
|
|
Cost of sales |
17,748,261 |
|
22,223,657 |
|
|
|
|
|
|
|
|
Gross profit |
1,544,205 |
|
3,800,812 |
|
|
|
|
|
|
|
|
Gain on sale of assets |
(409,780) |
|
-- |
|
|
Embezzlement recovery |
(253,313) |
|
-- |
|
|
Selling, general and administrative expenses |
2,457,839 |
|
3,705,937 |
|
|
|
|
|
|
|
|
Operating (loss) income |
(250,541) |
|
94,875 |
|
|
|
|
|
|
|
|
Other expenses (income): |
|
|
|
|
|
Interest expense |
339,891 |
|
207,204 |
|
|
Extinguishment of debt |
-- |
|
-- |
|
|
Other expense (income), net |
147,510 |
|
(44,687) |
|
|
|
|
|
|
|
|
Total other expenses |
487,401 |
|
162,517 |
|
|
|
|
|
|
|
|
(Loss) income
before income tax expense |
(737,942) |
|
(67,642) |
|
|
|
|
|
|
|
|
Income tax (benefit) expense: |
|
|
|
|
|
Current |
508,853 |
|
312,642 |
|
|
Deferred |
(880,168) |
|
(315,601) |
|
|
Total income tax (benefit) expense |
(371,315) |
|
(2,959) |
|
|
|
|
|
|
|
|
Net (loss) income |
$ (366,627) |
|
$ (64,683) |
|
|
|
|
|
|
|
|
Net (loss) income per common share |
$ (0.07) |
|
$ (0.01) |
|
|
(basic and diluted) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (basic) |
5,278,780 |
|
5,278,780 |
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
|
|
|
|
Years ended August 31,
|
||
|
|
|
|
|
|
2005 |
|
2004 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
$
77,727,971 |
|
$
103,989,229 |
|
|
Cost of sales |
|
|
|
73,551,166 |
|
90,283,782 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
4,176,805 |
|
13,705,447 |
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
|
(554,374) |
|
--- |
||
|
Embezzlement recovery |
|
|
(290,840) |
|
--- |
||
|
Selling, general and administrative expense |
|
9,055,980 |
|
10,879,310 |
|||
|
|
|
||||||