Impreso, Inc. Reports Second Quarter FY2006 Results of Operations
COPPELL, TX -- 04/12/2006 -- 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 2006.
Net sales for the three months ended February 28, 2006 were $16.1 million,
as compared to net sales of $18.6 million in the three months ended
February 28, 2005, a decrease of $2.5 million, or 13.5%. Net sales for the
six months ended February 28, 2006 were $34 million, as compared to net
sales of $38.6 million in the six months ended February 28, 2005, a
decrease of $4.6 million, or 12%.
Net loss decreased to $616,000, or $(0.12) per share, in the most recent
quarter, compared with a loss of $1.2 million, or $(0.23) per share, in the
prior-year period. For the six months ended February 28, 2006, the Company
reported a net loss of $951,000, or $(0.18) per share, on net sales of $34
million. These results compared with a net loss of $2 million, or $(0.37)
per share, on net sales of $38.6 million, in the first half of FY2005.
"Our results of operations for the first half of fiscal 2006 reflect the
company's continuing struggle to stabilize as a result of the decrease in
purchases by a significant customer in Fiscal Year 2005," stated Marshall
Sorokwasz, President and Chief Executive Officer of Impreso, Inc. "Although
a substantial number of elements in the company's recovery plan have been
completed, a few of the longer lead time activities, such as subleasing
portions of our unused real estate, have been consummated in Calendar
2006."
"The paper market has tightened dramatically since January 2006, which has
boosted profit margins," continued Mr. Sorokwasz, "and our bottled water
business is entering its busiest season of the year. This will be the first
full season that our operations and marketing personnel are fully prepared
to aggressively market our new product segment. We are also introducing new
packaging options in the bottled water division, such as a sport top and
thicker bottle, for certain end-user convenience."
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.impreso.com,
www.tstimpreso.com, www.hotsheet.com and www.alexasprings.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.
(Financial Highlights to Follow)
IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
February 28, February 28,
2006 2005
------------ ------------
Net sales $ 16,118,727 $ 18,629,137
Cost of sales 14,876,462 18,072,991
------------ ------------
Gross profit 1,242,265 556,146
Gain on sale of assets (42,686) (42,685)
Embezzlement Recovery (50) (37,527)
Selling, General and administrative expenses 1,911,634 2,092,286
------------ ------------
Operating loss (626,633) (1,455,928)
Other expenses (income):
Interest expense 274,395 339,332
Other expense (income), net (1,592) (28,749)
------------ ------------
Total other expense 272,803 310,583
Loss before income tax expense (899,436) (1,766,511)
Income tax (benefit) expense :
Current 6,250 (1,227,623)
Deferred (289,436) 670,130
------------ ------------
Total income tax benefit (283,186) (557,493)
Net loss $ (616,250) $ (1,209,018)
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Net loss per share (basic and diluted) $ (0.12) $ (0.23)
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Weighted average shares outstanding (basic) 5,278,780 5,278,780
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Weighted average shares outstanding (diluted) 5,286,389 5,301,493
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IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended
February 28, February 28,
2006 2005
------------ ------------
Net sales $ 33,959,420 $ 38,605,771
Cost of sales 31,113,801 37,069,767
------------ ------------
Gross profit 2,845,619 1,536,004
Gain on sale of assets (95,484) (101,909)
Embezzlement Recovery (75) (290,840)
Selling, General and administrative expenses 3,746,658 4,378,136
------------ ------------
Operating loss (805,480) (2,449,383)
Other expenses (income):
Interest expense 579,767 578,262
Other expense (income), net 21,315 (107,969)
------------ ------------
Total other expense 601,082 470,293
Loss before income tax expense (1,406,562) (2,919,676)
Income tax (benefit) expense :
Current 12,500 (1,221,373)
Deferred (468,025) 270,752
------------ ------------
Total income tax benefit (455,525) (950,621)
Net loss $ (951,037) $ (1,969,055)
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Net loss per share (basic and diluted) $ (0.18) $ (0.37)
============ ============
Weighted average shares outstanding (basic) 5,278,780 5,278,780
============ ============
Weighted average shares outstanding (diluted) 5,286,389 5,301,493
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