COPPELL, Texas--June 30, 1999--TST/Impreso, Inc. , a leading manufacturer and distributor of paper and film hard copy imaging products for commercial and home office applications, today reported operating results for the third quarter and first nine months of its 1999 fiscal year.
For the three months ended May 31, 1999, the Company earned $117,136, or $0.02 per share, on net sales of $14.9 million. These results compared with a net loss of ($122,100), or ($0.02) per share, on net sales of $17.3 million in the third quarter of the previous fiscal year. Gross profit margin improved to 15.5% in the most recent quarter, versus 9.2% a year earlier.
Net sales for the nine-month period ended May 31, 1999 increased 24.4% to $43.0 million, versus net sales of $34.6 million in the first nine months of FY1998. Net income improved to $513,272, or $0.10 per share, compared with a net loss of ($992,136), or ($0.19) per share, in the corresponding period of the previous fiscal year. Gross profit margin expanded to 15.4% during the first nine months of FY1999, versus 9.8% in the prior-year period.
``This represents the Company's third consecutive quarter of profitability, despite a continuation of unsettled market conditions in the paper products industry, and we are optimistic that the fourth quarter will reflect another positive comparison,'' commented Marshall Sorokwasz, president and chief executive officer of TST/Impreso, Inc. ``TST/Impreso reported a $1.5 million, or $0.28 per share, improvement in after-tax profitability for the first nine months of fiscal 1999, as sales and gross profit margins benefited from the success of our specialty imaging and branded paper product lines and an expansion in our customer base. EBITDA (earnings before interest, taxes, depreciation and amortization), which represents an important measure of cash flow and the financial health of any company, improved to $1.8 million during the most recent nine-month period, versus negative EBITDA of ($500,000) in the corresponding period of the prior year.''
``Last month, we announced a new vendor relationship with Corporate Express, the world's leading supplier of non-production goods and services to large corporations,'' continued Sorokwasz. ``Our full line of IBM branded specialty imaging and paper products will be available to Corporate Express' customers, and we expect to receive initial orders under this vendor relationship in the current quarter. It now appears that fiscal 1999 will be a significant turnaround year for TST/Impreso, and we look forward to further progress in the upcoming fiscal year.''
During the third quarter, the Company also announced that the initial term under its trademark licensing agreement with IBM Corporation has been extended for an additional two years. The agreement was for an initial four-year term, with two automatic one-year renewal options. Under its amended agreement with IBM, the Company's authority to manufacture and distribute selected IBM branded office paper products under its initial term has been extended to six years, with two automatic one-year renewal options.
``Our working relationship with IBM has been excellent, and we are pleased to announce this two-year extension to our initial agreement,'' stated Sorokwasz. ``Sales of IBM branded products continue to increase as we introduce the products into a growing number of marketing channels and add new product categories to the line. IBM is one of the most-recognized brand names in the world, and we are excited to move into the 21st Century with IBM Corporation as a licensing partner.''
The Company continued to expand the effectiveness of its HotSheet.com® web portal during the quarter ended May 31, 1999. HotSheet.com, which can be accessed on the World Wide Web at www.hotsheet.com, is a unique single-page Internet directory which provides categorized links to premier web destinations. On June 1, 1999, the Company launched a redesign which makes HotSheet.com easier to use and incorporates co-branded searches in certain categories. ``We have received a very favorable response to the new page design, and we believe that it will enhance the value of HotSheet.com, along with the Company's e-commerce site Shopsheet.com, as revenue-generating business ventures,'' concluded Sorokwasz.
TST/Impreso, Inc. is a manufacturer and distributor of paper and film products for commercial and home use in domestic and international markets. The Company's product lines consist of continuous computer forms, facsimile paper, cut sheet paper, transparency films, photo paper and other specialty papers for use in copying machines, laser printers, ink jet printers, facsimile machines and overhead projectors. Customers include business forms dealers, wholesale stationers, office products dealers, paper merchants, office supply superstores, wholesale clubs, mass merchandisers, and direct catalog companies. Headquartered in Coppell. Texas (Dallas/Ft. Worth metroplex), TST/Impreso operates three manufacturing plants and distributes its products through 47 warehouse locations.
The common stock of TST/Impreso, Inc. is traded on Nasdaq's National Market System under the symbol ``TSTI''.
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.
TST/IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
May 31, May 31,
1999 1998
(Unaudited)
Net Sales $14,942,998 $17,274,209
Cost of Sales 12,630,625 15,682,893
------------- -----------
GROSS PROFIT 2,312,373 1,591,316
Selling, General and Admin. Exp. 1,889,414 1,604,379
Interest Expense 239,710 158,453
Other Expense, Net 4,243 22,083
-------------- ---------
Income (Loss) Before Taxes 179,006 (193,599)
Income Tax Expense (Benefit) 61,870 (71,499)
---------------- ---------------
NET INCOME (LOSS) $ 117,136 $ (122,100)
============== ==============
BASIC AND DILUTED
EARNINGS (LOSS) PER SHARE $ 0.02 $ (0.02)
================= ==============
Weighted Avg. Shares Outstanding:
Basic and Diluted 5,292,780 5,292,780
TST/IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended
May 31, May 31,
1999 1998
(Unaudited)
Net Sales $42,965,624 $34,550,589
Cost of Sales 36,368,727 31,155,106
------------- -----------
GROSS PROFIT 6,596,897 3,395,483
Selling, General and Admin. Exp. 5,215,512 4,213,326
Interest Expense
594,302 362,191
Other Income, Net
(12,808) (23,004)
-------- --------------
Income (Loss) Before Taxes 799,891 (1,157,030)
Income Tax Expense (Benefit) 286,619 (164,894)
--------------- ---------------
NET INCOME (LOSS) $ 513,272 $ (992,136)
============== ===============
BASIC AND DILUTED
EARNINGS (LOSS) PER SHARE $ 0.10 $ (0.19)
================= ===============
Weighted Avg. Shares Outstanding:
Basic and Diluted 5,292,780 5,292,780
TST/Impreso, Inc.
Marshall Sorokwasz, 972/462-0100
or
Investor Relations:
R.J. Falkner & Co.
R. Jerry Falkner, 800/377-9893
or www.rjfalkner.com