Impreso, Inc. Reports Second Quarter FY2005 Results of Operations
COPPELL, TX -- 04/19/2005 -- 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 second quarter of Fiscal 2005.
Net sales for the three months ended February 28, 2005 were $18.6 million,
as compared to net sales of $25.8 million in the three months ended
February 29, 2004, a decrease of $7.1 million, or 27.7%. Net income
decreased to a loss of $1.2 million, or $(0.23) per share, in the most
recent quarter, compared with net income of $262,200, or $0.05 per share,
in the prior-year period.
For the six months ended February 28, 2005, the Company reported a net loss
of $2 million, or $(0.37) per share, on net sales of $38.6 million. These
results compared with net income of $744,000, or $0.14 per share, on net
sales of $52.5 million, in the first half of FY2004.
"Our results of operations for the first half of fiscal 2005 were very
disappointing as a result of the decrease in continuous forms purchases by
a significant customer. In January we began downsizing our operations and
implemented cost savings measures, the full effects of which should impact
our future results," stated Marshall Sorokwasz, President and Chief
Executive Officer of Impreso, Inc. The timing of this reduction of sales
combined with the simultaneous start up of our spring water bottling
operations contributed to the material adverse affect on our financial
statements. However, the long term investment in the bottled water business
will maximize the efficiency of our selling force, administration, and
distribution infrastructure due to opposite seasonal cycles of consumption,
in summer when we may experience a slowdown in sales of paper products, the
bottled water business is at its peak," 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," "should" 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. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
February 28, February 29,
2005 2004
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Net sales $18,629,137 $25,762,472
Cost of sales 18,072,991 22,754,614
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Gross profit 556,146 3,007,858
Gain on sale of assets (42,685) -
Selling, General and administrative expenses 2,092,286 2,265,260
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Operating (loss) Income (1,493,455) 742,598
Other expenses (income):
Interest expense 339,332 295,083
Embezzlement recovery (37,527) -
Other income, net (28,749) 715
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Total other expense 273,056 295,798
(Loss) income before income tax expense (1,766,511) 446,800
Income tax (benefit) expense :
Current (1,227,623) 224,522
Deferred 670,130 (39,962)
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Total income tax (benefit) expense (557,493) 184,560
Net (loss) income $(1,209,018) $ 262,240
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Net (loss) income per share (basic and diluted) $ (0.23) $ 0.05
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Weighted average shares outstanding 5,278,780 5,278,780
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IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended
February 28, February 29.
2005 2004
----------- -----------
Net sales $38,605,771 $52,489,187
Cost of sales 37,069,767 46,100,568
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Gross profit 1,536,004 6,388,619
Gain on sale of assets (101,909) -
Selling, General and
administrative expenses 4,378,136 4,547,254
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Operating (loss) Income (2,740,223) 1,841,365
Other expenses (income):
Interest expense 578,262 632,097
Embezzlement recovery (290,840) -
Other income, net (107,969) (6,154)
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Total other expense 179,453 625,943
(Loss) income before income tax expense (2,919,676) 1,215,422
Income tax (benefit) expense :
Current (1,221,373) 540,245
Deferred 270,752 (69,279)
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Total income tax
(benefit) expense (950,621) 470,966
Net (loss) income $(1,969,055) $ 744,456
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Net (loss) income per
share (basic and diluted) $ (0.37) $ 0.14
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Weighted average shares outstanding 5,278,780 5,278,780
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