COPPELL, TX--Dec 17, 2003 -- Impreso, Inc., 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 sales and earnings for FY2003.
Net sales for the fiscal year ended August 31, 2003, decreased approximately 2%, to $120.5 million, compared with net sales of $123.1 million in the previous fiscal year. Net income declined 63% to approximately $617,800, or $0.12 per share, in the most recent fiscal year, compared with $1.7 million, or $0.32 per share, in FY 2002, and $1.2 million, or $0.24 per share, in FY2001. Gross profits increased approximately 1% to $12.7 million in FY2003, versus approximately $12.6 million in the year ended August 31, 2002.
For the three months ended August 31, 2003, the Company lost $228,000, or $0.04 per share, on net sales of $28.1 million. These results compared with net income of $233,800, or $0.04 per share, and net sales of $38.3 million, in the corresponding period of the prior year.
"I am pleased that this is our fifth year of positive earnings," commented Marshall Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "This is especially significant since the current economic climate has put many other businesses in a loss position or out of business altogether.
"In September, the Company implemented numerous cost-savings measures such as a 15% reduction in our workforce and reductions of various benefits. We believe these actions, combined with our in-progress reconfiguration and consolidation of operations, will have a significant effect on income and profitability in the future. We intend to exit and sell two plants and have exited four public warehouses, combining all of these operations in a Chambersburg, Pennsylvania, building we leased. The landlord of the building is renovating the project, and we expect to fully occupy the facility in January 2004. In addition, we are expanding our Itasca, Illinois, plant by 34,800 square feet, and intend to exit our leased building in Elk Grove, Illinois, consolidating it in Itasca. We expect this construction to be completed in March 2004. Once both projects are completed, the company will have reduced the number of manufacturing locations the company operates from six to four, with square footage increasing from approximately 420,000 to 690,000," 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" 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)
Quarter Ended August 31,
------------------------
2003 2002
---- ----
Net sales $ 28,105,606 $ 38,296,645
Cost of sales 25,068,828 34,796,797
------------ ------------
Gross profit 3,036,778 3,499,848
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Other costs and expenses:
Selling, general and
administrative expenses 3,088,804 2,636,081
Interest expense 405,014 481,722
Other expense (income), net (69,462) (48,089)
------------ ------------
Total other costs and expenses 3,424,356 3,069,714
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Income before income taxes (387,578) 430,134
------------ ------------
Income tax expense (benefit):
Current (56,874) 513,169
Deferred (103,005) (316,809)
------------ ------------
Total income tax (benefit) expense (159,879) 196,360
------------ ------------
Net income (227,699) 233,774
============ ============
Net income per common share
(basic and diluted) $ (0.04) $ 0.04
============ ============
Weighted average number of common
shares outstanding (basic and diluted): 5,278,780 5,278,780
IMPRESO, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Year Ended August 31,
---------------------
2003 2002
---- ----
Net sales $ 120,460,870 $ 123,065,514
Cost of sales 107,755,550 110,447,664
------------- -------------
Gross profit 12,705,320 12,617,850
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Other costs and expenses:
Selling, general and
administrative expenses 10,212,927 9,332,038
Interest expense 1,787,950 1,744,774
Other expense (income), net (313,489) (1,188,800)
------------- -------------
Total other costs and expenses 11,687,388 9,888,012
------------- -------------
Income before income taxes 1,017,932 2,729,838
------------- -------------
Income tax expense (benefit):
Current 388,319 1,428,875
Deferred 11,782 (375,479)
------------- -------------
Total income tax expense 400,101 1,053,396
------------- -------------
Net income $ 617,831 $ 1,676,442
============= =============
Net income per common share
(basic and diluted) $ 0.12 $ 0.32
============= =============
Weighted average number of common
shares outstanding (basic and diluted): 5,278,780 5,278,780
Contact:
For further information, please contact:
Marshall Sorokwasz
(972) 462-0100 (ext. 1103)
Tammy Yahiel
General Counsel
(972) 462-0100 (ext. 1117)
e-mail at yahiel@tstimpreso.com