COPPELL, Texas--July 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 third quarter and first nine months of FY 2002.
Net sales for the three months ended May 31, 2002 increased 42.8% to a record of $33 million, compared with net sales of $23 million in the third quarter of FY 2001. Pretax income rose 7.8% to $822,000 from $763,000 in the prior-year period. Net income totaled $523,000, or $.10 per share, in the most recent quarter, compared with $457,000 or $.09 per share, in the prior-year period.
For the nine months ended May 31, 2002, the Company's net sales increased 29.1% to $85 million, compared with net sales of $66 million, in the first nine months of FY2001. Pretax income rose 87.1% to $2,309,000, from $1,234,000 in the prior-year period. Net income improved to $1,451,740, or $.28 per share, in the nine months ended May 31, 2002, versus $746,000, or $.14 per share, in the corresponding period of the prior year.
"We completed the acquisition of our fifth plant and other assets of United Computer Supplies, Inc. and subsidiaries in the third quarter. Sales from United were included in our operating results for a portion of March and the months of April and May. Although gross margins trailed the prior-year period during our third quarter, primarily related to increased raw material costs and increased freight charges due to our consolidation of warehouses to eliminate duplication caused by the United acquisition, I am pleased to report that gross margins have improved sequentially during the past two quarters," noted Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "The 11.2% gross margin in our third quarter represented an improvement relative to a 10.7% gross margin in the second quarter and 10.2% in the first three months of the current fiscal year. We are encouraged by this trend and optimistic that earnings for the quarter and fiscal year ending August 31, 2002 will exceed prior-year levels. This would continue an earnings turnaround that began in Fiscal 1999."
At a Board Meeting held on July 12, 2002, Blackman Kallick Bartelstein, LLP was appointed our new auditors at the recommendation of our Audit Committee. Previously, our auditors were Arthur Andersen, LLP," continued Sorokwasz, "We anticipate this will be an easy transition. TST has little or no "off balance sheet" assets or transactions, and recognizes revenue the old fashioned way, when products are shipped and billed."
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
May 31,
2002 2001
---- ----
Net Sales $ 33,025,115 $ 23,120,706
Cost of Sales 29,335,644 20,068,465
------------- -------------
Gross Profit 3,689,471 3,052,241
------------- -------------
Other costs and expenses:
Selling, General and Admin.
Expenses 2,474,356 1,943,928
Interest Expense 422,908 410,107
Other income, net (29,867) (64,307)
------------- -------------
Total other costs and
expenses 2,867,397 2,289,728
------------- -------------
Income before income taxes 822,074 762,513
------------- -------------
Income tax expense (benefit):
Current 359,985 271,364
Deferred (60,713) 34,668
------------- -------------
Total income tax expense 299,272 306,032
------------- -------------
Net Income $ 522,802 $ 456,481
============= =============
Net Income per common share $ 0.10 $ 0.09
============= =============
(basic and diluted)
Weighted Avg. number of
common shares 5,278,780 5,278,780
Outstanding (basic and
diluted)
IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Nine Months Ended
May 31,
2002 2001
---- ----
Net Sales $ 84,768,869 $ 65,660,360
Cost of Sales 75,650,867 57,863,470
------------- -------------
Gross Profit 9,118,002 7,796,890
------------- -------------
Other costs and expenses:
Selling, General and Admin.
Expenses 6,695,957 5,581,522
Interest Expense 1,253,980 1,139,976
Other income, net (1,140,711) (158,638)
------------- -------------
Total other costs and
expenses 6,809,226 6,562,860
------------- -------------
Income before income taxes 2,308,776 1,234,030
------------- -------------
Income tax expense (benefit):
Current 915,706 433,762
Deferred (58,670) 53,803
------------- -------------
Total income tax expense 857,036 487,565
------------- -------------
Net Income $ 1,451,740 $ 746,465
============= =============
Net Income per common share $ 0.28 $ 0.14
(basic and diluted) ============= =============
Weighted Avg. number of
common shares 5,278,780 5,282,527
Outstanding (basic and
diluted)
Impreso, Inc., Coppell
Marshall Sorokwasz, 972/462-0100 (ext. 1103)
or
Tammy Yahiel, 972/462-0100 (ext. 1117)
yahiel@tstimpreso.com