COPPELL, Texas--July 17, 2000--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 reported higher sales and earnings for the third quarter and first nine months of FY2000.
For the three months ended May 31, 2000, the Company earned $478,954, or $0.09 per share, which represented an increase of 309% in net income when compared with net income of $117,136, or $0.02 per share, in the third quarter of FY1999. Net sales for the most recent quarter increased 18% to approximately $17.6 million, versus $14.9 million in the year-earlier period. Gross profit margin improved to 16.3% in the quarter ended May 31, 2000, versus 13.0% in the prior-year quarter and 9.2% in the third quarter of FY1998. EBITDA (earnings before interest, taxes, depreciation and amortization) improved to approximately $1.2 million during the most recent quarter, compared with approximately $600,000 in last year's third quarter.
Net sales for the nine-month period ended May 31, 2000, increased 17% to approximately $50.4 million, versus net sales of $43.0 million in the first nine months of FY1999. Net income improved to $743,028, or $0.14 per share, compared with $513,272, or $0.10 per share, in the corresponding period of the previous fiscal year. Gross profit margin expanded to 13.8% during the first nine months of FY2000, versus 13.0% in the prior-year period. EBITDA approximated $2.5 million during the nine months ended May 31, 2000, versus $1.8 million in the first nine months of FY1999.
``Third quarter net income, which more than quadrupled prior-year levels, was even higher than anticipated in our news release dated June 28, 2000,'' stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso.com, Inc. ``Gross profits increased $938,253, or almost 50% when compared with last year's third quarter, as the Company's product mix improved with the growth in sales of higher margin specialty and branded imaging products. This is consistent with our product and marketing strategy, and current business trends suggest that fourth quarter sales and earnings should also exceed prior-year levels.''
``The consolidation which has characterized the paper products industry in recent years has created some unique opportunities, and we have been able to strengthen and expand our sales organization as certain competitors have exited the industry. We believe that our expanded sales capabilities should enable our paper and film subsidiary, TST/Impreso, Inc., to more aggressively capitalize upon the potential of its expanding line of specialty and branded imaging products within existing and new channels of distribution. We recently completed construction of a warehousing facility adjacent to our West Virginia plant, which should allow us to more efficiently serve customers in the Eastern U.S. and will reduce our utilization of more costly outside storage space.''
``Our HotSheet.com, Inc. subsidiary continued to enhance the capabilities of its HotSheet.com web portal during the first nine months of Fiscal 2000,'' continued Sorokwasz. ``The investing public has become much more selective in their support of eCommerce businesses in recent months, and we continue to develop a business strategy for HotSheet.com, Inc. that provides a clear path of profitability. We have demonstrated that HotSheet.com provides Internet users with a unique and valuable tool for accessing their favorite websites, and management is pursuing a number of revenue-generating strategies which capitalize upon the growing popularity of the branded web directory.''
About Impreso.com, Inc.
Impreso.com 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''.
IMPRESO.COM, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(UNAUDITED)
---------
Three months ended May 31
-------------------------
2000 1999
----------------- ----------------
Net sales $17,577,738 $14,942,998
Cost of sales 14,704,275 13,007,788
----------------- ----------------
Gross profit 2,873,463 1,935,210
----------------- ----------------
Other costs and expenses:
Selling, general and
administrative expenses 1,878,833 1,512,251
Interest expense 339,392 239,710
Other expense (income),
net (27,481) 4,243
----------------- ----------------
Total other costs and
expenses 2,190,744 1,756,204
----------------- ----------------
Income before income
taxes 682,719 179,006
----------------- ----------------
Income tax expense
(benefit):
Current 219,806 65,445
Deferred (16,041) (3,575)
----------------- ----------------
Total income tax
expense (benefit) 203,765 61,870
----------------- ----------------
Net income (loss) $478,954 $117,136
================= ================
Net income (loss) per
common share (basic and
diluted) $0.09 $0.02
================= ================
Weighted average number
of common shares
outstanding:
(basic and diluted) 5,292,780 5,292,780
IMPRESO.COM, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
------------------------------------
(UNAUDITED)
-----------
Nine months ended May 31
------------------------
2000 1999
----------------- ----------------
Net sales $50,407,787 $42,965,624
Cost of sales 43,456,560 37,360,381
----------------- ----------------
Gross profit 6,951,227 5,605,243
----------------- ----------------
Other costs and expenses:
Selling, general and
administrative expenses 5,043,719 4,223,858
Interest expense 896,676 594,302
Other expense (income),
net (102,185) (12,808)
----------------- ----------------
Total other costs and
expenses 5,838,210 4,805,352
----------------- ----------------
Income before income taxes 1,113,017 799,891
----------------- ----------------
Income tax expense
(benefit):
Current 403,708 286,099
Deferred (33,719) 520
----------------- ----------------
Total income tax expense
(benefit) 369,989 286,619
----------------- ----------------
Net income (loss) $743,028 $513,272
================= ================
Net income (loss) per
common share (basic
and diluted) $0.14 $0.10
================= ================
Weighted average number of
common shares outstanding:
(basic and diluted) 5,292,780 5,292,780
Impreso.com, Inc.
Marshall Sorokwasz, 972/462-0100, ext. 103
or
RJ Falkner & Company, Inc.
Investor Relations Counsel, 800/377-9893
info@rjfalkner.com