Net sales for the three months ended Feb. 28, 2003 were $31.6 million, as compared to net sales of $26.4 million in the three months ended Feb. 28, 2002, an increase of $5.2 million, or 20%. Net income increased to $216,400, or $0.04 per share, in the most recent quarter, compared with $163,000, or $0.03 per share, in the prior-year period.
For the six months ended Feb. 28, 2003, the Company reported net income of $521,000, or $0.10 per share, on net sales of $ 63.5 million. These results compared with net income of $ 928,950, or $0.18 per share, and net sales of $51.8 million, in the first half of FY2002.
"I am pleased to report that our net income improved in the second quarter of Fiscal 2003, when compared to the same period in Fiscal 2002," stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "For the six months ended Feb. 28, 2003 net income trails prior-year levels as a percentage of sales, resulting from other income in the first quarter of fiscal 2002 of an approximate $1 million award from a class action lawsuit involving international and domestic manufacturers' attempt to fix jumbo roll thermal facsimile paper prices in the United States."
"We are in the initial stages of expanding our Itasca, Ill. plant, continued Mr. Sorokwasz. "TST/Impreso recently received approval on a construction and takeout loan for adding 34,500 square feet to the Itasca building. We intend to begin construction in the third quarter of fiscal 2003."
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. The Company's Web site domains are www.hotsheet.com, www.impreso.com, and www.tstimpreso.com.
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.
IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
February 28
2003 2002
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Net Sales $31,639,782 $26,374,635
Cost of Sales 28,464,078 23,516,287
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GROSS PROFIT 3,175,704 2,858,348
Selling, General and Admin. Expenses 2,414,558 2,122,827
Interest Expense 474,098 378,578
Other expense (income), net (79,647) 71,018
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Income Before Taxes 366,695 285,925
Income Tax Expense 150,300 122,916
NET INCOME $216,395 $163,009
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BASIC AND DILUTED
EARNINGS PER SHARE $0.04 $0.03
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Weighted Avg. Shares Outstanding:
Basic and Diluted 5,278,780 5,278,780
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IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended
February 28
2003 2002
------------ ------------
Net Sales $63,511,763 $51,796,450
Cost of Sales 57,062,425 46,322,989
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GROSS PROFIT 6,449,338 5,473,461
Selling, General and Admin. Expenses 4,784,648 4,221,601
Interest Expense 957,737 831,072
Other expense (income), net (157,093) (1,065,914)
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Income Before Taxes 864,046 1,486,702
Income Tax Expense 343,031 557,764
NET INCOME $521,015 $928,938
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BASIC AND DILUTED
EARNINGS PER SHARE $0.10 $0.18
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Weighted Avg. Shares Outstanding:
Basic and Diluted 5,278,780 5,278,780
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Impreso, Inc., Coppell
Marshall Sorokwasz, 972/462-0100 (ext. 1103)
or
Tammy Yahiel, 972/462-0100 (ext. 1117)
yahiel@tstimpreso.com