COPPELL, Texas--Nov. 28, 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 higher sales and earnings for FY2000.
Net sales for the fiscal year ended August 31, 2000, increased 21% to $74.1 million, compared with net sales of $61.5 million in the previous fiscal year. FY2000 sales were the highest in Impreso.com's history as a publicly traded company. Net income rose 20% to $931,317, or $0.18 per share, in the most recent fiscal year, compared with $774,352, or $0.15 per share, in FY1999, and a net loss of ($1,084,509), or ($0.20) per share, in FY1998. Gross profits increased 24% to approximately $9.5 million (12.8% of sales) in FY2000, versus approximately $7.7 million (12.5% of sales) in the year ended August 31, 1999.
For the three months ended August 31, 2000, the Company earned $188,289, or $0.04 per share, on net sales of $22.2 million. These results compared with net income of $261,080, or $0.05 per share, and net sales of $17.1 million, in the corresponding period of the prior year.
``We are pleased to report that both sales and earnings increased more than 20% in our most recent fiscal year,'' commented Marshall Sorokwasz, President and Chief Executive Officer of Impreso.com, Inc. ``The improvement in operating cash flow was even more impressive, with EBITDA rising approximately 32% to $3.5 million.''
``TST/Impreso, Inc.'s increased shipments of specialty and branded imaging products allowed Impreso.com to expand gross profit margins during Fiscal 2000, and we believe that a broader product mix and higher inventory turnover should allow the Company to further improve its operating results in the current fiscal year. The proliferation of new types of imaging equipment and processes in recent years has expanded the market for specialty papers, films and other hard copy media. The introduction of such specialty products as processed laser cut sheets, wide-format engineering and inkjet rolls, and point-of-purchase rolls to TST/Impreso's product line has allowed management to target rapidly growing new market opportunities with excellent profit potential. As an example, TST/Impreso has already bolstered sales in the retail channel with increased distribution of its desktop inkjet paper products. Management's goal is to satisfy the imaging needs of TST/Impreso's expanding customer base in the most cost-efficient manner possible, with a broad product line and the timely delivery of orders from our nationwide network of 49 warehouse locations. We believe the successful execution of this strategy will allow our Company to increase sales, earnings, market share and shareholder values in future years.''
``Our HotSheet.com, Inc. subsidiary continues to enhance the utility of its popular HotSheet.com and ShopSheet.com web portals,'' continued Sorokwasz. ``During Fiscal 2000, the business model for ShopSheet.com was transformed from a historical reliance upon banner advertising towards recurring revenue streams. Today, approximately 95% of the stores listed on ShopSheet.com are participants in an Affiliate Program which generates commission revenue from online sales by the retailers. The list of retailers on ShopSheet.com now includes a growing number of well-established, traditional `bricks and mortar' companies which have developed an online presence, while relying less upon novice `e-tailers.' This bodes well for the long-term growth and profitability of HotSheet.com, Inc.''
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 August 31
----------------------------
2000 1999
----------------- ----------------
Net sales $22,159,634 $17,109,937
Cost of sales 19,618,052 15,053,926
----------------- ----------------
Gross profit 2,541,582 2,056,011
----------------- ----------------
Other costs and expenses:
Selling, general and
administrative expenses 1,813,963 1,382,101
Interest expense 407,693 238,237
Other expense (income), net (55,551) (29,163)
----------------- ----------------
Total other costs and
expenses 2,166,105 1,591,175
----------------- ----------------
Income before income taxes 375,477 464,836
----------------- ----------------
Income tax expense (benefit):
Current 130,565 192,291
Deferred 56,623 11,465
----------------- ----------------
Total income tax expense
(benefit) 187,188 203,756
----------------- ----------------
Net income (loss) $188,289 $261,080
================= ================
Net income (loss) per common
share (basic and diluted) $ 0.04 $ 0.05
================= ================
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)
Year ended August 31
--------------------
2000 1999
----------------- ----------------
Net sales $74,117,661 $61,506,207
Cost of sales 64,624,852 53,844,953
----------------- ----------------
Gross profit 9,492,809 7,661,254
----------------- ----------------
Other costs and expenses:
Selling, general and
administrative expenses 6,837,737 5,605,959
Interest expense 1,304,369 832,539
Other expense (income), net (137,791) (41,971)
----------------- ----------------
Total other costs and
expenses 8,004,315 6,396,527
----------------- ----------------
Income before income taxes 1,488,494 1,264,727
----------------- ----------------
Income tax expense (benefit):
Current 534,273 478,390
Deferred 22,904 11,985
----------------- ----------------
Total income tax expense
(benefit) 557,177 490,375
----------------- ----------------
Net income (loss) $931,317 $774,352
================= ================
Net income (loss) per
common share
(basic and diluted) $ 0.18 $ 0.15
================= ================
Weighted average number of
common shares outstanding:
(basic and diluted) 5,292,780 5,292,780
Impreso.com, Coppell
Marshall Sorokwasz, 972/462-0100, ext. 103
or
RJ Falkner & Company, Inc.
Investor Relations Counsel, 800/377-9893
e-mail: info@rjfalkner.com