COPPELL, Texas--April 17, 2001--Impreso.com, Inc., 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 FY2001.
Net sales for the three months ended February 28, 2001, increased 27% to a second-quarter record of $21.3 million, compared with net sales of $16.8 million in the second quarter of the previous year. Net income improved to $162,818, or $0.03 per share, in the most recent quarter, compared with $138,423, or $0.03 per share, in the prior-year period.
For the six months ended February 28, 2001, the Company reported net income of $289,984, or $0.05 per share, on record net sales of $42.5 million. These results compared with net income of $264,074, or $0.05 per share, and net sales of $33.9 million, in the first half of FY2000.
``I am pleased to report that our gross profit improved in the most recent quarter, when compared with the first three months of Fiscal 2001,'' stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso.com, Inc. ``Although gross profit trails prior-year levels as a percentage of sales, primarily due to higher raw material prices and changes in product mix, we are encouraged by the ability to implement modest price increases on certain finished goods during the first half of the fiscal year.''
``Earlier this month, we announced plans to acquire the assets of the Sky division of Durango-Georgia Converting, LLC (''Sky``),'' continued Sorokwasz. ``If this acquisition is completed in accordance with the terms of the Asset Purchase Agreement, it should increase our Company's annualized gross sales by approximately 50% to in excess of $115 million. Sky is one of the most outstanding companies in the continuous forms segment of the business forms industry, and its acquisition should result in synergistic cost savings and productivity enhancements that will 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.''
About Impreso.com, Inc.
Impreso.com, 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, www.shopsheet.com and www.tstimpreso.com.
Impreso.com, Inc. is headquartered in Coppell, Texas, and its common stock trades on the Nasdaq National 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.
IMPRESO.COM, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three months ended
2/28/2001 2/29/2000
--------- ---------
Net sales $ 21,289,448 $ 16,801,376
Cost of sales 18,840,876 14,627,973
---------- ----------
Gross profit 2,448,572 2,173,403
---------- ----------
Other costs and expenses:
Selling, general and administrative
expenses 1,847,403 1,683,706
Interest expense 383,369 313,878
Other income, net (47,348) (77,652)
---------- ----------
Total other costs and expenses 2,183,424 1,919,932
---------- ----------
Income before income taxes 265,148 253,471
---------- ----------
Income tax expense (benefit):
Current 91,595 108,102
Deferred 10,735 6,946
---------- ----------
Total income tax expense (benefit) 102,330 115,048
---------- ----------
Net income $ 162,818 $ 138,423
========== ==========
Net income per common share
(basic and diluted) $ 0.03 $ 0.03
========== ==========
Weighted average number of common
shares outstanding:
(basic and diluted) 5,279,313 5,292,780
IMPRESO.COM, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Six months ended
2/28/2001 2/29/2000
--------- ---------
Net sales $ 42,539,654 $ 33,906,444
Cost of sales 37,795,005 29,828,680
---------- ----------
Gross profit 4,744,649 4,077,764
---------- ----------
Other costs and expenses:
Selling, general and administrative
expenses 3,637,594 3,164,886
Interest expense 729,869 557,284
Other expense (income), net (94,331) (74,704)
---------- ----------
Total other costs and expenses 4,273,132 3,647,466
---------- ----------
Income before income taxes 471,517 430,298
---------- ----------
Income tax expense (benefit):
Current 162,398 183,902
Deferred 19,135 (17,678)
---------- ----------
Total income tax expense (benefit) 181,533 166,224
---------- ----------
Net income $ 289,984 $ 264,074
========== ==========
Net income per common share
(basic and diluted) $ 0.05 $ 0.05
========== ==========
Weighted average number of common
shares outstanding:
(basic and diluted) 5,284,432 5,292,780
Impreso.com, Coppell
Marshall Sorokwasz, 972/462-0100, ext. 103
or
RJ Falkner & Company, Inc.
Investor Relations Counsel, 800/377-9893
info@rjfalkner.com