For Immediate Release
IMPRESO, INC. REPORTS THIRD QUARTER RESULTS OF
OPERATIONS
COPPELL, Texas (July 15, 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 reported its third quarter
operating results.
The Company reported a net loss of $574,000
or $(0.11) per share in the three months ended May 31, 2005, compared with net
income of $348,000 or $0.07 per share, in the prior-year period. Net sales in the most recent quarter decreased
$5.6 million, or 22.2%, to $19.8 million, compared with net sales of $25.5
million in the third quarter of FY 2004.
For the nine months ended May 31, 2005, the
Company reported a net loss of $2.5
million or $(0.48) per share, compared
with net income of $1.1 million or $0.21 per share, in the corresponding period
of the prior year. For the nine months ended May 31, 2005, the Company’s net
sales decreased 25% to $58.4 million, compared with net sales of $77.9 million in
the first nine months of FY2004.
“The decrease in net income and net sales for
the three and nine months ended May 31, 2005, as compared to the corresponding
periods of the prior year was attributable to the reduction of continuous
business forms purchases by a key customer. This event, combined with our
unification of the Greencastle, Pennsylvania and Kearneysville, West Virginia
operations in Chambersburg, Pennsylvania, and start up of the bottled water
plant adversely affected our financial position and results of operations,” stated
Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc .
“In June and July 2005, we executed contracts
for sale on our Greencastle, Pennsylvania and Kearneysville, West Virginia plants” continued Mr. Sorokwasz, “We
combined these operations into a larger facility in Chambersburg last year and
have had these buildings on the market for sale since that time. We intend to
consummate these transactions in late August and early September. The sale of
these plants and the elimination of the mortgage payments will improve our monthly
cash flow, and a portion of the profits will be applied to reduce the
outstanding balance on our revolving line of credit,” 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)
or
Tammy Yahiel, General Counsel, at (972) 462-0100
(ext. 1117)
or via e-mail at [email protected]
(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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May 31, |
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May 31, |
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|
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|
|
|
2005 |
|
2004 |
|
|
Net
sales |
|
$ 19,829,734 |
|
$ 25,475,573 |
|
||
|
Cost
of sales |
|
18,733,138 |
|
21,959,557 |
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||
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|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
1,096,596 |
|
3,516,016 |
|
|
|
|
|
|
|
|
||
|
Gain
on sale of assets |
|
(42,685) |
|
(14,229) |
|
||
|
Selling,
General and administrative expenses |
|
2,220,005 |
|
2,626,119 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) Income |
|
(1,080,724) |
|
904,126 |
|
|
|
|
|
|
|
|
|
|
|
Other
expenses (income): |
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|
|
|
|
||
|
|
Interest
expense |
|
322,641 |
|
243,988 |
|
|
|
|
Extinguishment
of debt |
|
(489,645) |
|
--- |
|
|
|
|
Other
income, net |
|
(65,384) |
|
105,523 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before income tax expense |
|
(848,336) |
|
554,615 |
|
||
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|
|
|
|
|
|
Income
tax (benefit) expense : |
|
|
|
|
|
||
|
|
Current |
|
(407,828) |
|
324,915 |
|
|
|
|
Deferred |
|
133,138 |
|
(118,351) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
income tax (benefit) expense |
(274,690) |
|
206,564 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income |
|
$ (573,646) |
|
$ 348,051 |
|
||
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|
|
|
|
|
|
|
|
Net
(loss) income per share (basic and diluted) |
|
$
(0.11) |
|
$ 0.07 |
|
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|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
5,278,780 |
|
5,278,780 |
|
||
IMPRESO, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENT S
OF OPERATIONS (Unaudited)
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|
|
|
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Nine Months Ended |
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May 31, |
|
May 31, |
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|
|
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|
|
2005 |
|
2004 |
|
|
Net
sales |
|
$ 58,435,505 |
|
$ 77,885,681 |
|
||
|
Cost
of sales |
|
55,782,864 |
|
67,362,876 |
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||
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
2,652,641 |
|
10,522,805 |
|
|
|
|
|
|
|
|
||
|
Gain
on sale of assets |
|
(142,285) |
|
(14,229) |
|
||
|
Selling,
General and administrative expenses |
|
6,728,183 |
|
7,791,543 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) Income |
|
(3,933,257) |
|
2,745,491 |
|
|
|
|
|
|
|
|
|
|
|
Other
expenses (income): |
|
|
|
|
|
||
|
|
Interest
expense |
|
900,903 |
|
876,085 |
|
|
|
|
Embezzlement recovery |
|
(290,840) |
|
--- |
|
|
|
|
Extinguishment
of debt |
|
(489,645) |
|
--- |
|
|
|
|
Other
income, net |
|
(285,662) |
|
99,369 |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before income tax expense |
|
(3,768,013) |
|
1,770,037 |
|
||
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense : |
|
|
|
|
|
||
|
|
Current |
|
(1,629,201) |
|
865,160 |
|
|
|
|
Deferred |
|
403,890 |
|
(187,630) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
income tax (benefit) expense |
(1,225,311) |
|
677,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income |
|
$ (2,542,702) |
|
$ 1,092,507 |
|
||
|
|
|
|
|
|
|
|
|
|
Net
(loss) income per share (basic and diluted) |
|
$ (0.48) |
|
$ 0.21 |
|
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|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
5,278,780 |
|
5,278,780 |
|
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