COPPELL, Texas--Dec. 3, 2001--Impreso, Inc., (Nasdaq SmallCap Market: "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 FY2001.
Net sales for the fiscal year ended August 31, 2001 increased approximately 30%, to $96.2 million, compared with net sales of $74.1 million in the previous fiscal year. FY2001 sales were the highest in Impreso, Inc.'s history. Net income rose 34% to approximately $1.25 million, or $0.24 per share, in the most recent fiscal year, compared with $931,317, or $0.18 per share, in FY2000, and $774,352, or $0.15 per share, in FY1999. Gross profits increased approximately 21% to $11.5 million in FY2001, versus approximately $9.5 million in the year ended August 31, 2000.
For the three months ended August 31, 2001, the Company earned $500,482 or $0.09 per share, on net sales of $30.5 million. These results compared with net income of $188,289, or $0.04 per share, and net sales of $22.2 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 30% to $4.5 million.''
``We believe that a broader product mix and increased channels of distribution should allow the Company to further improve its operating results in the current fiscal year. In Fiscal 2001, we began selling the Cash Register Dealer distribution channel our new line of ATM Rolls. The introduction of such specialty products as Wide Format Outdoor Banner Material in our Wide Format line of products has allowed management to increase customer loyalty as a single source supplier in new market channels. The proliferation of personal equipment in recent years has expanded the market for specialty papers, films and other hard copy media such as the recently introduced CD/DVD Sleeves and Labels. 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 57 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.''
The HotSheet.com web portal continues to provide a valuable web navigation service to thousands of Internet users daily. HotSheet is an easy to use single page directory focused on listing the web's most popular and useful destinations. ``Like most web portals, HotSheet has been affected by the downturn in Internet banner advertising,'' stated Mr. Sorokwasz, ``However, sales commission on close to 100% of the e-commerce sites listed in the shopping section of the directory has helped maintain consistent revenue.''
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'' 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. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three months ended August 31
2001 2000
------------ -------------
Net sales $30,548,051 $22,159,634
Cost of sales 26,888,534 19,618,052
------------ ------------
Gross profit 3,659,517 2,541,582
------------ ------------
Other costs and expenses:
Selling, general and administrative
expenses 2,291,111 1,813,963
Interest expense 492,605 407,693
Other expense (income), net 86,379 (55,551)
------------ ------------
Total other costs and expenses 2,870,095 2,166,105
------------ ------------
Income before income taxes 789,422 375,477
------------ ------------
Income tax expense (benefit):
Current 291,798 130,565
Deferred (2,856) 56,623
------------ ------------
Total income tax expense (benefit) 288,942 187,188
------------ ------------
Net income (loss) 500,480 $188,289
============ ============
Net income (loss) per common share
(basic and diluted) $0.09 $0.04
============ ============
Weighted average number of common shares
outstanding:
(basic and diluted) 5,281,583 5,292,780
IMPRESO, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Year ended August 31
2001 2000
----------- ------------
Net sales $96,208,411 $74,117,661
Cost of sales 84,752,004 64,624,852
----------- ------------
Gross profit 11,456,407 9,492,809
----------- ------------
Other costs and expenses:
Selling, general and administrative
expenses 7,872,633 6,837,737
Interest expense 1,632,581 1,304,369
Other expense (income), net (72,259) (137,791)
----------- ------------
Total other costs and expenses 9,432,955 8,004,315
----------- ------------
Income before income taxes 2,023,452 1,488,494
----------- ------------
Income tax expense (benefit):
Current 725,560 534,273
Deferred 50,947 22,904
----------- ------------
Total income tax expense (benefit) 776,507 557,177
----------- ------------
Net income (loss) $1,246,945 $931,317
=========== ============
Net income (loss) per common share
(basic and diluted) $0.24 $0.18
=========== ============
Weighted average number of common shares
outstanding:
(basic and diluted) 5,281,583 5,292,780
Impreso, Inc., Coppell
Marshall Sorokwasz, 972/462-0100 (ext. 103)
or
Tammy Yahiel, 972/462-0100 (ext. 117)
e-mail: yahiel@tstimpreso.com