For the nine months ended May 31, 2003, the Company's net sales increased 8.9% to $92 million, compared with net sales of $85 million, in the first nine months of FY2002. Pretax income declined 38.9% to $1,406,000 from $2,300,000 in the prior-year period. Net income decreased to $846,000 or $.16 per share, in the nine months ended May 31, 2003, versus $1,443,000 or $.27 per share, in the corresponding period of the prior year.
"Net income trails prior-year levels as a percentage of sales for the nine months ended May 31, 2003, resulting from other income in the first quarter of fiscal 2002 of an approximate $1 million award from a class action lawsuit involving international and domestic manufacturers' attempt to fix jumbo roll thermal facsimile paper prices in the United States," stated Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "Although gross margins remained relatively stable during the three and nine month periods ended May 31, 2003, as compared to the same periods of the prior year, I am pleased to report that gross margins have improved sequentially during the past two quarters," continued Marshall Sorokwasz. "The 11.3% gross margin in our third quarter represented an improvement relative to a 10% gross margin in the second quarter."
"The slowed economy has affected our sales and results of operations. In May 2003, one of our larger customers filed for bankruptcy owing us approximately $450,000. This customer was purchasing a monthly average of $850,000 prior to its failure. The loss of those purchases, combined with fewer opportunities to replace those sales, may have a significant impact on our profitability," 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,
2003 2002
Net sales $28,872,753 $33,050,470
Cost of sales 25,624,297 29,342,219
----------- -----------
Gross profit 3,248,456 3,708,251
Selling, general and administrative expenses 2,339,476 2,474,356
----------- -----------
Operating income 908,980 1,233,895
Other (income) expenses:
Interest expense 425,199 431,980
Miscellaneous (income) (57,683) (11,087)
----------- -----------
Total other expenses 367,516 420,893
Income before income tax expense 541,464 813,002
Income tax expense:
Current 111,692 359,985
Deferred 105,257 (60,713)
----------- -----------
Total income tax expense 216,949 299,272
Net income $324,515 $513,730
=========== ===========
Net income per common share
(basic and diluted) $0.06 $0.10
=========== ===========
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,
2003 2002
----------- -----------
Net sales $92,384,516 $84,846,921
Cost of sales 82,686,722 75,665,209
----------- -----------
Gross profit 9,697,794 9,181,712
Selling, general and administrative expense 7,124,124 6,695,957
----------- -----------
Operating income 2,573,670 2,485,755
Other (income) expenses:
Interest expense 1,382,937 1,263,052
Miscellaneous (income) (214,777) (1,077,001)
----------- -----------
Total other expenses 1,168,160 186,051
Income before income tax expense 1,405,510 2,299,704
Income tax expense:
Current 445,193 915,706
Deferred 114,787 (58,670)
----------- -----------
Total income tax expense 559,980 857,036
Net income $845,530 $1,442,668
=========== ===========
Net income per common share
(basic and diluted) $0.16 $0.27
=========== ===========
Weighted average shares outstanding
(basic and diluted) 5,278,780 5,278,780
=========== =========== Contact: Marshall Sorokwasz
Voice: 972-462-0100 (ext. 1103)
Contact: Tammy Yahiel
Title: General Counsel
Voice: 972-462-0100 (ext. 1117)
Email: yahiel@tstimpreso.com