COPPELL, Texas (July 17, 2001) – Impreso.com, Inc. (Nasdaq: “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 second quarter and first half of FY2001.
Net sales for the three months ended May 31, 2001 increased 28% to a record $23.1 million, compared with net sales of $18.1 million in the third quarter of FY2001. Pretax income rose 12% to $762,513, from $682,719 in the prior-year period. Net income totaled $456,481, or $0.09 per share, in the most recent quarter, compared with $478,954, or $0.09 per share, in the prior-year period. The Company accrued income taxes at a 40.1% rate in the quarter ended May 31, 2001, compared with a tax rate of 29.8% in the prior-year period.
For the nine months ended May 31, 2001, the Company's net sales increased 26% to $65.7 million, compared with net sales of $52.0 million, in the first nine months of FY2001. Pretax income rose 11% to $1,234,030, from $1,113,017 in the prior-year period. Net income improved modestly to $746,465, or $0.14 per share, in the nine months ended May 31, 2001, versus $743,028, or $0.14 per share, in the corresponding period of the prior year. The Company accrued income taxes at a 39.5% rate in the nine months ended May 31, 2001, compared with a tax rate of 33.2% in the prior-year period.
“While we completed the acquisition of the Sky Division of Durango-Georgia Converting LLC in the third quarter, sales from Sky were included in our operating results only for the month of May,” noted Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. “The assimilation of Sky into the Impreso organization is going well, and we are confident that the acquisition will enhance our competitiveness, sales and earnings in future years.”
“Although gross margins trailed the prior-year period during our third quarter, primarily related to increased freight charges due to our consolidation of warehouses to eliminate duplication caused by the Sky acquisition and the addition of new participants to our vendor commission and rebate programs, I am pleased to report that gross margins have improved sequentially during the past two quarters,” continued Sorokwasz. “The 13.2% gross margin in our third quarter represented a significant improvement relative to an 11.5% gross margin in the second quarter and 10.8% 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, 2001 will exceed prior-year levels. This will continue an earnings turnaround that began in Fiscal 1999.”
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
5/31/2001 5/31/2000
--------- ---------
Net sales $ 23,120,706 $ 18,051,583
Cost of sales 20,068,465 15,178,120
---------- ----------
Gross profit 3,052,241 2,873,463
---------- ----------
Other costs and expenses:
Selling, general and administrative
expenses 1,943,928 1,878,833
Interest expense 410,107 339,392
Other income, net (64,307) (27,481)
---------- ----------
Total other costs and expenses 2,289,728 2,190,744
---------- ----------
Income before income taxes 762,513 682,719
---------- ----------
Income tax expense (benefit):
Current 271,364 219,806
Deferred 34,668 (16,041)
---------- ----------
Total income tax expense (benefit) 306,032 203,765
---------- ----------
Net income $ 456,481 $ 478,954
========== ==========
Net income per common share
(basic and diluted) $ 0.09 $ 0.09
========== ==========
Weighted average number of common
shares outstanding:
(basic and diluted) 5,278,780 5,292,780
IMPRESO.COM, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Nine months ended
5/31/2001 5/31/2000
--------- ---------
Net sales $ 65,660,360 $ 51,958,027
Cost of sales 57,863,470 45,006,800
---------- ----------
Gross profit 7,796,890 6,951,227
---------- ----------
Other costs and expenses:
Selling, general and administrative
expenses 5,581,522 5,023,755
Interest expense 1,139,976 896,676
Other expense (income), net (158,638) (82,221)
---------- ----------
Total other costs and expenses 6,562,860 5,838,210
---------- ----------
Income before income taxes 1,234,030 1,113,017
---------- ----------
Income tax expense (benefit):
Current 433,762 403,708
Deferred 53,803 (33,719)
---------- ----------
Total income tax expense (benefit) 487,565 369,989
---------- ----------
Net income $ 746,465 $ 743,028
========== ==========
Net income per common share
(basic and diluted) $ 0.14 $ 0.14
========== ==========
Weighted average number of common
shares outstanding:
(basic and diluted) 5,282,527 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