COPPELL, Texas--Dec. 2, 2002--Impreso, Inc. (Nasdaq SmallCap: 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 FY2002.
Net sales for the fiscal year ended Aug. 31, 2002 increased approximately 28%, to $123.1 million, compared with net sales of $96 million in the previous fiscal year. FY2002 sales were the highest in Impreso, Inc.'s history. Net income rose 34.4% to approximately $1.7 million, or $0.32 per share, in the most recent fiscal year, compared with $1.25 million, or $0.24 per share, in FY2001, and $931,000, or $0.18 per share, in FY2000. Gross profits increased approximately 10.1% to $ 12.6 million in FY2002, versus approximately $11.5 million in the year ended Aug. 31, 2001.
For the three months ended Aug. 31, 2002, the Company earned $234,000 or $0.04 per share, on net sales of $38.3 million. These results compared with net income of $500,000, or $0.09 per share, and net sales of $ 30.5 million, in the corresponding period of the prior year.
"We are pleased to report that both sales and earnings increased substantially in our most recent fiscal year," commented Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "The improvement in operating cash flow was also impressive, with EBITDA rising approximately 27% to $5.7 million. This was partially attributable to the acquisition of United in the Company's third quarter.
"We also believe that our branding strategy should allow the Company to further improve its operating results in the current fiscal year. In Fiscal 2002, we began selling a line of Crayola® branded products. The introduction of such specialty lines has allowed management to market its branded product to other consumers.
"Although our earnings have steadily grown over the past few years the market has failed to reflect that achievement in a higher market price for the Company's shares. As a result, in September, the Board engaged Matrix Capital Market Groups, Inc., a wholly owned subsidiary of the MONY Group, Inc. (NYSE: MNY), to locate a strategic investor to purchase the outstanding public float."
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 Web site 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" 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.
(Financial Highlights Follow)
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three months ended
Aug. 31
-------------------------
2002 2001
------------ ------------
Net sales $38,296,645 $30,548,051
Cost of sales 34,796,797 26,888,534
------------ ------------
Gross profit 3,499,848 3,659,517
------------ ------------
Other costs and expenses:
Selling, general and administrative
expenses 2,636,081 2,291,111
Interest expense 481,722 492,605
Other expense (income), net (48,089) 86,379
------------ ------------
Total other costs and expenses 3,069,714 2,870,095
------------ ------------
Income before income taxes 430,134 789,422
------------ ------------
Income tax expense (benefit):
Current 513,169 291,798
Deferred (316,809) (2,856)
------------ ------------
Total income tax expense 196,360 288,942
------------ ------------
Net income 233,774 500,480
============ ============
Net income per common share
(basic and diluted) $0.04 $0.09
============ ============
Weighted average number of common shares
outstanding (basic and diluted): 5,278,780 5,281,583
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Year ended August 31
--------------------------
2002 2001
------------- ------------
Net sales $123,065,514 $96,208,411
Cost of sales 110,447,664 84,752,004
------------- ------------
Gross profit 12,617,850 11,456,407
------------- ------------
Other costs and expenses:
Selling, general and administrative
expenses 9,332,038 7,872,633
Interest expense 1,744,774 1,632,581
Other expense (income), net (1,188,800) (72,259)
------------- ------------
Total other costs and expenses 9,888,012 9,432,955
------------- ------------
Income before income taxes 2,729,838 2,023,452
------------- ------------
Income tax expense (benefit):
Current 1,428,875 725,560
Deferred (375,479) 50,947
------------- ------------
Total income tax expense 1,053,396 776,507
------------- ------------
Net income $1,676,442 $1,246,945
============= ============
Net income per common share
(basic and diluted) $0.32 $0.24
============= ============
Weighted average number of common shares
outstanding (basic and diluted):
5,278,780 5,281,583
Impreso, Inc.
Marshall Sorokwasz, 972/462-0100 (ext. 1103)
or
Tammy Yahiel, 972/462-0100 (ext. 1117)
yahiel@tstimpreso.com