COPPELL, Texas (April 16, 2002) -- 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 and (2) the development of eCommerce initiatives, today announced increased sales and earnings for the second quarter and first half of FY 2002.
Net sales for the three months ended February 28, 2002 increased 23.7% to a second quarter record of $26.3 million, compared with net sales of $21.3 million in the second quarter of the previous year. Net income remained stable at $163,009, or $0.03 per share, in the most recent quarter, compared with $162,818, or $0.03 per share, in the prior-year period.
For the six months ended February 28, 2002, the Company reported net income of $928,938, or $0.18 per share, on record net sales of $51.7 million. These results compared with net income of $289,984, or $0.05 per share, and net sales of $42.5 million, in the first half of FY2001.
``I am pleased to report that our gross profit improved in the first half of Fiscal 2002, when compared with the first six months of Fiscal 2001,'' stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. ``Second quarter Fiscal 2002 gross profit trails prior-year levels as a percentage of sales, resulting from the acquisition in April, 2001 of a commodity product producer which increased the Company's sales of lower margin products as a percentage of net sales.
``Last month, we announced the acquisition of the personal property assets of United Computer Supplies, Inc. and United Computer Supplies-East, Inc.,'' continued Sorokwasz,`` The purchase of the plant located in Itasca, Illinois, a suburb of Chicago, is expected to close within two weeks and will increase our manufacturing locations to five. This acquisition should increase our Company's annualized gross sales by approximately 15% to in excess of $125 million. United was one of the most outstanding companies in the continuous forms segment of the business forms industry, and its acquisition is expected to result in synergistic cost savings and productivity enhancements that are expected to benefit our future earnings. We will be alert to other acquisition opportunities which may emerge from the continuing consolidation trend within the paper products industry.''
On April 2, 2002, TST announced that it entered into a trademark licensing agreement with Binney & Smith Properties, Inc. The agreement provides for TST to manufacture and distribute a select line of Crayola® imaging products such as Laser and Ink Jet paper, card stock, post cards, magnets, and t-shirt transfers within the United States, Canada and Mexico.
``We are honored that Binney & Smith Properties, Inc., owner of the Crayola trademark and a leading producer of children's creative activity products, has selected our Company as a licensee for this program,'' commented Marshall Sorokwasz, ``Generations of children have grown up using Crayola products and according to research, the name Crayola is recognized by 98 out of every 100 American consumers.''
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 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.
IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaduited)
Three Months Ended
February 28
2002 2001
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Net Sales $ 26,342,394 $ 21,289,448
Cost of Sales 23,512,481 18,840,876
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GROSS PROFIT 2,829,913 2,448,572
Selling, General and Admin. Expenses 2,122,827 1,847,403
Interest Expense 378,578 383,369
Other expense (income), net 45,583 (47,348)
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Income Before Taxes 285,925 265,148
Income Tax Expense 122,916 102,330
NET INCOME $ 163,009 $ 162,818
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BASIC AND DILUTED
EARNINGS PER SHARE $ 0.03 $ 0.03
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Weighted Avg. Shares Outstanding:
Basic and Diluted 5,278,780 5,279,313
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IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended
February 28
2002 2001
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Net Sales $ 51,743,754 $ 42,539,654
Cost of Sales 46,315,223 37,795,005
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GROSS PROFIT 5,428,531 4,744,649
Selling, General and Admin. Expenses 4,221,601 3,637,594
Interest Expense 831,072 729,869
Other expense (income), net (1,110,844) (94,331)
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Income Before Taxes 1,486,702 471,517
Income Tax Expense 557,764 181,533
NET INCOME $ 928,938 $ 289,984
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BASIC AND DILUTED
EARNINGS PER SHARE $ 0.18 $ 0.05
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Weighted Avg. Shares Outstanding:
Basic and Diluted 5,278,780 5,284,432
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Impreso, Inc., Coppell
Marshall Sorokwasz, 972/462-0100 (ext. 103)
or
Tammy Yahiel, 972/462-0100 (ext. 117)
yahiel@tstimpreso.com