CASTLE ROCK, CO--(Marketwire - May 12, 2011) - Integrated Management Information, Inc. (IMI Global) (OTCBB: INMG)
Revenue up 21% to $821,800 from $680,200
Net income up 91% to $77,400 from $40,600
Fifth consecutive quarter of profitability and increasing revenue
Integrated Management Information, Inc. (IMI Global) (OTCBB: INMG), a leading provider of verification and Internet solutions for the agricultural/livestock industry under the Where Food Comes From® brand, today announced record revenue and net income for its first quarter ended March 31, 2011.
"We continue to generate strong revenue and profit growth based on steady demand for our core solutions and initial revenue from our Where Food Comes From program," said John Saunders, CEO of IMI Global. "We view Where Food Comes From as a potential game changer both for IMI Global and the food industry at large. The solution offers retailers the ability to give consumers an unprecedented level of transparency into the food supply chain, and our revenue model represents tremendous upside for our shareholders.
"In addition to achieving steady year-over-year revenue and earnings gains, we recently lowered the interest rate on our term loan to 6% from 9% and initiated a new working capital loan to strengthen our balance sheet and provide funds for potential M&A activity as a means of augmenting our solid organic growth."
First Quarter Results
The Company reported revenue of $821,800 in the first quarter, a 21% increase over revenue of $680,200 in the first quarter last year. It was the Company's fifth consecutive quarter of year-over-year revenue growth. Revenue from verification services, which includes the Company's industry leading USVerified™ solutions, increased 19% year over year to $684,800 from $574,400. Hardware revenue consisting primarily of cattle identification tags increased 29% in the first quarter to $137,000 from $105,800 in the same quarter a year ago.
Gross profit in the first quarter increased to $452,100 from $401,400 in the first quarter of 2010.
Selling, general and administrative increased slightly in the first quarter to $367,000 from $352,700 in the same quarter a year ago. The increase was attributable to continued investments in marketing and advertising initiatives related to ramping up the Company's Where Food Comes From program. Where Food comes from is a unique and potentially high-growth solution that connects consumers with the food supply chain at the point of purchase through high levels of transparency into the production process. For more information go to www.wherefoodcomesfrom.com.
The Company achieved record first quarter net income of $77,400, up 91% from net income of $40,600 in the first quarter last year. It was IMI Global's fifth consecutive profitable quarter.
Balance Sheet Highlights
Cash and cash equivalents at March 31, 2011, were $476,400, up 90% over $250,800 a year ago. Working capital totaled $612,000, up from $555,100 at 2010 year-end. In April 2011 the Company lowered the interest rate on its existing $300,000 term loan to 6% from 9% and initiated a new $200,000, 10-year loan with Great Western Bank at a rate of prime plus 2.5% -- a current effective rate of 5.75%. The 10-year loan will be used for working capital and potential M&A activity.
About IMI Global
Founded in 1995, IMI Global is a USDA Process Verified (PVP) company and is a leading provider of verification and Internet solutions for the agriculture industry. Go to www.IMIGlobal.com for additional information. IMI has worked with some of the largest agricultural organizations in the United States, providing web-based applications for verification and identification as well as a range of consulting services tailored to meet each customer's needs.
CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company's predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about growth, profitability, potential, leadership, momentum, the demand for, and impact and efficacy of, the Company's products and services on the marketplace are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition, governmental regulation of the beef industry, the market for beef and other factors. In addition, financial results for the twelve-month periods are not necessarily indicative of future results. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update its forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company's business, please refer to the Company's SEC filings at www.sec.gov.
Integrated Management Information, Inc.
Statements of Operations
Three months ended
March 31,
2011 2010
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Revenues $ 821,819 $ 680,183
Costs of revenue 369,746 278,741
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Gross profit 452,073 401,442
Selling, general and administrative expenses 367,007 352,682
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Income (loss) from operations 85,066 48,760
Other expense (income):
Interest expense 8,205 8,469
Other income, net (562) (290)
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Income (loss) before income taxes 77,423 40,581
Income taxes - -
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Net income (loss) $ 77,423 $ 40,581
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Net income (loss) per share:
Basic $ - $ -
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Diluted $ - $ -
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Weighted average shares outstanding:
Basic 20,764,368 20,846,814
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Diluted 20,810,526 20,862,808
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Integrated Management Information, Inc.
Balance Sheets
March 31, December 31,
2011 2010
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ASSETS
Current Assets:
Cash and cash equivalents $ 476,375 $ 513,076
Accounts receivable, net 301,946 222,480
Prepaid expenses and other current assets 26,491 34,580
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Total current assets 804,812 770,136
Property and equipment, net 99,695 114,544
Intangible assets, net 13,288 14,724
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Total assets $ 917,795 $ 899,404
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 157,763 $ 172,324
Accrued expenses and other current liabilities 25,740 33,608
Short-term debt and current portion of
notes payable 9,304 9,130
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Total current liabilities 192,807 215,062
Notes payable and other long-term debt 309,282 331,687
Stockholders' equity:
Common stock 21,039 21,039
Additional paid-in capital 3,401,383 3,401,383
Treasury stock (61,789) (47,417)
Accumulated deficit (2,944,927) (3,022,350)
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Total stockholders' equity 415,706 352,655
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Total liabilities and stockholders' deficit $ 917,795 $ 899,404
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Contact Information:
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044