COPPELL, TX -- July 16, 2004 -- Impreso, 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; (2) the development of eCommerce initiatives; and (3) water bottling and distribution, today reported its third quarter operating results. Net income increased to $348,000 or $ $0.07 per share in the three months ended May 31, 2004, compared with $325,000 or $.06 per share, in the prior-year period. Our gross profit margin also increased to 11.9% in the three months ended May 31, 2004, as compared to 11.25 % in the three months ended May 31, 2003. Net sales in the most recent quarter decreased 7.2%, to $ 26.8 million, compared with net sales of $ 28.9 million in the third quarter of FY 2003.
Net income increased to $1.1 million or $0.21 per share, in the nine months ended May 31, 2004, versus $846,000 or $.16 per share, in the corresponding period of the prior year. In the nine months ended May 31, 2004, our gross profit margin increased to 11.7%, as compared to 10.5 %, for the nine months ended May 31, 2003. In the nine months ended May 31, 2004, the Company's net sales decreased 11.6% to $81.7 million, compared with net sales of $92.4 million in the first nine months of FY2003.
"Net income exceeds prior-year levels for the three and nine months ended May 31, 2004," stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "The increase in net income for the three and nine months ended May 31, 2004, was attributable to the increase in gross profit margin. The increase in gross profit margin was attributable to lower overhead and raw material costs. We completed our efficiency consolidation in Itasca, IL in the fourth quarter of FY2004, and believe we will complete it in Chambersburg, PA within 90 days. I expect the efficiency consolidation to continue the reduction in our overhead," continued Mr. Sorokwasz.
"Our bottled water operation should begin production in early September. Our employees are being trained and we will begin sales as soon as operations commence. We believe sales from this product in the first year of operation should add to our profit in the year ending August 31, 2005. Operating 24 hours a day, seven days a week, our plant should produce in excess of 350 truck loads of water per month," concluded Mr. Sorokwasz.
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
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
May 31, May 31,
2004 2003
---- ----
Net sales $26,786,252 $28,872,753
Cost of sales 23,591,784 25,624,297
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Gross profit 3,194,468 3,248,456
Selling, general and administrative expenses 2,304,573 2,339,476
----------- -----------
Operating income 889,895 908,980
Other (income) expenses:
Interest expense 243,988 425,199
Miscellaneous (income) 91,292 (57,683)
----------- -----------
Total other expenses 335,280 367,516
Income before income tax expense 554,615 541,464
Income tax expense:
Current 324,915 111,692
Deferred (118,351) 105,257
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Total income tax expense 206,564 216,949
Net income $ 348,051 $ 324,515
=========== ===========
Net income per common share
(basic and diluted) $ 0.07 $ 0.06
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Weighted average shares outstanding
(basic and diluted) 5,278,780 5,278,780
=========== ===========
IMPRESO, INC. AND SUBSIDIARIES
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended
May 31, May 31,
2004 2003
---- ----
Net sales $81,716,107 $92,384,516
Cost of sales 72,133,020 82,686,722
----------- -----------
Gross profit 9,583,087 9,697,794
Selling, general and administrative expense 6,851,825 7,124,124
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Operating income 2,731,262 2,573,670
Other (income) expenses:
Interest expense 876,085 1,382,937
Miscellaneous (income) 85,140 (214,777)
----------- -----------
Total other expenses 961,225 1,168,160
Income before income tax expense 1,770,037 1,405,510
Income tax expense:
Current 865,160 445,193
Deferred (187,630) 114,787
----------- -----------
Total income tax expense 677,530 559,980
Net income $ 1,092,507 $ 845,530
=========== ===========
Net income per common share
(basic and diluted) $ 0.21 $ 0.16
=========== ===========
Weighted average 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