Impreso Reports First Quarter FY 2005 Sales and Earnings
COPPELL, TX -- 01/14/2005 -- Impreso, 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, (2) the development of eCommerce initiatives, and (3) natural
spring water bottling and distribution, today announced sales and earnings
for the first quarter of Fiscal 2005.
Net sales decreased to $20 million in the First Quarter of Fiscal 2005,
from $26.7 million in the prior year period, a decrease of $6.8 million or
approximately 25.3%. Net income decreased to ($760,037), or ($0.14) per
share in the most recent quarter, compared with $482,000, or $0.09 per
share, in the prior-year period.
Our gross profit margin decreased to 4.9% in the three months ended
November 30, 2004, as compared to 12.6 % in the prior corresponding period.
"As a result of the loss of key customers in Fiscal 2004, in January 2005,
we began a plan to downsize operations to reduce costs and return to
profitability," stated Marshall Sorokwasz, President and Chief Executive
Officer of Impreso, Inc. "The key elements of the plan are better
utilization of space created by reduced operations; leasing available
space; liquidating buildings that are vacant as a result of east coast
consolidations; eliminating or reducing current work force and payroll;
reducing
inventories by $5 to $7 million; raising finished goods pricing as
necessary to recoup raw material price increases; and replacing lost sales
as quickly as possible," 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. Alexa Springs, Inc. is a natural spring water bottling
operation. 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
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended November 30,
2004 2003
---------- ----------
Net sales $ 19,976,634 $ 26,726,715
Cost of sales 18,996,776 23,345,954
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Gross profit 979,858 3,380,761
Selling, general and
administrative expenses 2,285,850 2,281,994
------------- -------------
Operating Income (1,305,992) 1,098,767
Other expenses and income:
Interest expense 238,930 337,014
Other income, net 391,757 (6,869)
------------- -------------
Total other costs
and expenses 152,827 330,145
Income before income
tax expense (1,153,165) 768,622
Income tax expense (benefit):
Current 6,250 315,723
Deferred (399,378) (29,317)
------------- -------------
Total income tax
benefit expense (393,128) 286,406
Net income $ (760,037) $ 482,216
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Net income per common share $ (0.14) $ 0 .09
(basic and diluted) ============= =============
Weighted average number of
common shares outstanding
(basic and diluted): 5,278,780 5,278,780
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