COPPELL, TX -- Apr 15, 2004 -- Impreso, Inc. (NasdaqSC: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 and (2) the development of eCommerce initiatives, today announced increased sales and earnings for the second quarter of FY 2004.
Net sales for the three months ended February 29, 2004 were $ 26.8 million, as compared to net sales of $31.6 million in the three months ended February 28, 2003, a decrease of $ 4.9 million, or 15.4%. Net income increased to $262,200, or $0.05 per share, in the most recent quarter, compared with $216,400, or $0.04 per share, in the prior-year period.
For the six months ended February 29, 2004, the Company reported net income of $744,000, or $0.14 per share, on net sales of $ 54.9 million. These results compared with net income of $521,000, or $0.10 per share, on net sales of $ 63.5 million, in the first half of FY2003.
"I am pleased to report that our net income improved in the three and six months periods ended February 29, 2004, when compared to the same periods in Fiscal 2003," stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc.
"We are in the final stages of the reconfiguration of our operating facilities," continued Mr. Sorokwasz. "We intend to exit the leased Elk Grove, IL location and move those operations into our Itasca plant expansion by June 2004. We also expect to start moving our Kearneysville, West Virginia and Greencastle, Pennsylvania operations into the renovated Chambersburg, PA plant in May 2004. We intend to sell the West Virginia and Greencastle buildings as soon as possible. Although we do not have contracts on either of these buildings we are currently negotiating with interested parties on the sale. These projects should make the Company more cost efficient, which we expect to translate into increased earnings in the year ending August 31, 2005, when the full impact of the savings should be realized, although the partial loss of a significant customer in Fourth Quarter Fiscal 2004 could offset any gains" concluded Mr. Sorokwasz.
After the annual Board meeting on January 28, 2004, TST announced it was entering the bottled spring water business. The Company has agreed to lease the water production and a building, which houses the spring, from Alexa Springs, Inc. On March 23, 2004, the Company submitted orders to manufacturers for the water processing equipment with a promised delivery date of July 2004.
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 website 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 29, February 28,
2004 2003
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Net Sales $ 26,760,584 $ 31,639,782
Cost of Sales 23,752,727 28,464,078
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GROSS PROFIT 3,007,857 3,175,704
Selling, General and Admin. Expenses 2,265,258 2,414,558
Interest Expense 295,083 474,098
Other expense (income), net 716 (79,647)
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Income Before Taxes 446,800 366,695
Income Tax Expense 184,560 150,300
NET INCOME $ 262,240 $ 216,395
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BASIC AND DILUTED
EARNINGS PER SHARE $ 0.05 $ 0.04
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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 29, February 28,
2004 2003
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Net Sales $ 54,929,855 $ 63,511,763
Cost of Sales 48,541,236 57,062,425
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GROSS PROFIT 6,388,619 6,449,338
Selling, General and Admin. Expenses 4,547,254 4,784,648
Interest Expense 632,097 957,737
Other expense (income), net (6,154) (157,093)
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Income Before Taxes 1,215,422 864,046
Income Tax Expense 470,966 343,031
NET INCOME $ 744,456 $ 521,015
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BASIC AND DILUTED
EARNINGS PER SHARE $ 0.14 $ 0.10
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Weighted Avg. Shares Outstanding:
Basic and Diluted 5,278,780 5,278,780
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Contact:
For further information, please contact:
Marshall Sorokwasz
(972) 462-0100 (ext. 1103)
or
Tammy Yahiel
General Counsel
(972) 462-0100 (ext. 1117)
yahiel@tstimpreso.com