COPPELL, Texas--Oct. 11, 2000--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 that it expects to report record sales and higher earnings for its fiscal year ended August 31, 2000.
Net sales for the twelve months ended August 31, 2000, increased 21% to approximately $72.0 million, which represents an all-time record during Impreso.com's history as a publicly traded company. Net sales totaled approximately $59.6 million in FY1999. Management expects to report that net income improved approximately 20% in FY2000, to approximately $930,000, or $0.18 per share, compared with net income of $774,352, or $0.15 per share, in the previous fiscal year. Gross profit margin expanded to approximately 13.2% of net sales in the most recent fiscal year, versus 12.9% of net sales in FY1999.
``We are pleased to report record sales, and we anticipate that earnings continued to improve during the most recent fiscal year,'' commented Marshall Sorokwasz, President and Chief Executive Officer of Impreso.com, Inc. ``Cash flow generated from operations, as measured by EBITDA (earnings before interest, taxes, depreciation and amortization), increased more than 30% to approximately $3.5 million in Fiscal 2000; the more modest gain in net income was primarily due to higher interest expense, which rose 71%, to support higher inventory carrying costs during the fiscal year. We have reduced inventories by approximately 19% since their Fiscal 2000 peak and believe that interest costs should decline in the current fiscal year.
``Our strategy of expanding Impreso.com's line of specialty and branded paper products resulted in accelerating sales growth towards the end of the fiscal year. This was evident in revenue gains of 16%, 19%, 18% and approximately 30% in the first, second, third and fourth quarters of Fiscal 2000, respectively. The improvement in gross profit margins, to 13.2% in Fiscal 2000, from 12.9% in the previous year, illustrates the influence of new products upon our sales mix.
``We continue to expand our customer base and have developed an aggressive marketing strategy that targets increased penetration of the office superstore channel and other traditional marketing channels,'' continued Sorokwasz. ``Based upon our current business outlook, we are optimistic that higher sales and reduced inventory carrying costs should propel earnings higher during the current fiscal year.''
The Company also reported that its HotSheet.com, Inc. subsidiary recently made available HotSheet LITE, an abridged version of the HotSheet directory that features the most popular links from each HotSheet category, while providing faster load time and an easier focus on the Web's leading destinations. The my.HotSheet service has also been enhanced to provide additional customization features and functions. Also, in anticipation of the upcoming Holiday shopping season, the sites featured on the SHOPsheet eCommerce portal have been integrated on the primary HotSheet directory page. ``We have provided an extremely easy and convenient method for Web shoppers to visit leading merchants through the www.shopsheet.com portal,'' commented HotSheet manager Bob Mersman. ``With the inclusion of these revenue-producing links on the main directory, we expect to increase our eCommerce revenues through the Holiday period and beyond.''
Impreso.com, Inc. expects to report final audited results for the fiscal year ended August 31, 2000, by mid-November 2000.
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.''
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, Coppell, Texas
Marshall Sorokwasz, 972/462-0100, ext. 103
or
RJ Falkner & Company, Inc.
Investor Relations Counsel, 800/377-9893
info@rjfalkner.com