CASTLE ROCK, CO--(Marketwire - Aug 15, 2011) - Integrated Management Information, Inc. (IMI Global) (
- Q2 revenue up 41% to $1.1 million from $799,000
- Q2 net income up 322% to $277,000 from $65,600
- Sixth consecutive profitable quarter
- Six-month revenue up 32% to $1.9 million from $1.5 million
- Six-month net income up 234% to $354,400 from $106,200
- Company generates $303,400 in cash from operations, up from $165,700
- Working capital tops $1.0 million, including $915,800 cash and cash equivalents
Integrated Management Information, Inc. (IMI Global) (
"We are pleased to announce our sixth consecutive quarter of year-over-year revenue and earnings growth," said John Saunders, CEO of IMI Global. "We continue to generate strong cash flows and strengthen our balance sheet, resulting in record cash balances and working capital of more than $1.0 million at the end of the second quarter. We are particularly excited about our ability to consistently deliver double-digit revenue growth without corresponding growth rates in our expense base. We attribute this to a highly scalable business model anchored by talented individuals and efficient operating systems.
"Our ability to grow revenue streams from both legacy and new product and service initiatives, particularly in light of the ongoing economic downturn, is a testament to the hard work and creativity of IMI Global team members throughout the organization and to the efficacy of our growing solutions portfolio. As consumer awareness around safety of the food chain, humane handling, sustainability and other claims continues to grow, we are ideally positioned to support producers and retailers with the industry's most complete solutions portfolio. The cornerstone of our effort -- WhereFoodComesFrom® -- directly connects consumers with the food supply chain at the point of purchase through an unprecedented level of transparency." (For more information, go to www.wherefoodcomesfrom.com).
Second Quarter Results
The Company reported record second quarter revenue of $1,125,500, a 41% increase over revenue of $799,100 in the second quarter last year. It was IMI Global's sixth consecutive quarter of year-over-year revenue growth. Revenue from verification services, which includes the Company's industry leading USVerified™ solutions, increased 44% to $939,400 from $652,500 in the same quarter last year. Hardware revenue consisting primarily of cattle identification tags increased 27% in the second quarter to $186,000 from $146,600 in the same quarter last year.
Gross margin in the second quarter increased 56% to $677,200, or 60% of revenue, as compared with gross margin of $433,500, or 54% of revenue, in the second quarter a year ago.
Selling, general and administrative (SG&A) expense declined to 35% of revenue in the second quarter from 45% in the same quarter last year. Despite a $326,300, or 41%, increase in revenue during the second quarter, SG&A increased by just $33,400, or 9%, underscoring the scalability of the Company's business model.
Net income in the second quarter was a record $276,900, or $0.01 per share, a 322% increase over net income of $65,600, or less than $0.01 per share, in the same quarter last year. It was the Company's sixth consecutive quarter of profitability.
Six-Month Results
Revenue for the six-month period increased 32% to $1,947,300 from revenue of $1,479,300 in the first half of last year. It was Company's highest-ever mid-year revenue total. Verification revenue grew by 32% to $1,624,300 from $1,226,900 in the same period last year. Hardware revenue grew 28% to $323,000 from $252,400 a year ago.
Gross margin through six months increased 35% to $1,129,300, or 58% of revenue, from $834,900, or 56% of revenue, at the mid-year point of 2010.
Selling, general and administrative expense as a percent of revenue through the first six months of 2011 declined to 39% from 48% in the same period last year. While six-month revenue increased by $468,000, SG&A expense increased by just $48,100, again highlighting the efficiency of the Company's operations infrastructure.
The Company achieved record net income of $354,400, or $0.02 per share, through six months, a 234% increase over net income of $106,200, or $0.01 per share, in the same period last year.
Balance Sheet Highlights
IMI Global generated $303,400 in cash from operations in the first six months of 2011, an 83% increase over $165,700 in the same period a year ago. Cash and cash equivalents at June 30, 2011, were $915,800, up 92% over $476,400 at the end of the first quarter and up 78% from $513,100 at the end of the second quarter a year ago. Working capital at June 30, 2011, was $1,027,400 -- the Company's highest ever as a public company.
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 and www.wherefoodcomesfrom.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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues | $ | 1,125,472 | $ | 799,130 | $ | 1,947,291 | $ | 1,479,313 | ||||||||
| Costs of revenue | 448,274 | 365,648 | 818,021 | 644,389 | ||||||||||||
| Gross profit | 677,198 | 433,482 | 1,129,270 | 834,924 | ||||||||||||
| Selling, general and administrative expenses | 393,475 | 359,710 | 760,482 | 712,393 | ||||||||||||
| Income from operations | 283,723 | 73,772 | 368,788 | 122,531 | ||||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | 7,244 | 8,576 | 15,449 | 17,045 | ||||||||||||
| Other income, net | (465 | ) | (408 | ) | (1,028 | ) | (698 | ) | ||||||||
| Income before income taxes | 276,944 | 65,604 | 354,367 | 106,184 | ||||||||||||
| Income taxes | - | - | - | - | ||||||||||||
| Net income | $ | 276,944 | $ | 65,604 | $ | 354,367 | $ | 106,184 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.01 | $ | - | $ | 0.02 | $ | 0.01 | ||||||||
| Diluted | $ | 0.01 | $ | - | $ | 0.02 | $ | 0.01 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 20,716,923 | 20,825,461 | 20,740,515 | 20,825,775 | ||||||||||||
| Diluted | 21,078,226 | 20,845,517 | 20,988,471 | 20,843,848 | ||||||||||||
| Integrated Management Information, Inc. | ||||||||
| Balance Sheets | ||||||||
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 915,777 | $ | 513,076 | ||||
| Accounts receivable, net | 331,187 | 222,480 | ||||||
| Prepaid expenses and other current assets | 18,217 | 34,580 | ||||||
| Total current assets | 1,265,181 | 770,136 | ||||||
| Property and equipment, net | 82,364 | 114,544 | ||||||
| Intangible assets, net | 11,855 | 14,724 | ||||||
| Total assets | $ | 1,359,400 | $ | 899,404 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 180,227 | $ | 172,324 | ||||
| Accrued expenses and other current liabilities | 21,744 | 33,608 | ||||||
| Short-term debt and current portion of notes payable | 35,833 | 9,130 | ||||||
| Total current liabilities | 237,804 | 215,062 | ||||||
| Notes payable and other long-term debt | 428,255 | 331,687 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 21,049 | 21,039 | ||||||
| Additional paid-in capital | 3,407,561 | 3,401,383 | ||||||
| Treasury stock | (67,286 | ) | (47,417 | ) | ||||
| Accumulated deficit | (2,667,983 | ) | (3,022,350 | ) | ||||
| Total stockholders' equity | 693,341 | 352,655 | ||||||
| Total liabilities and stockholders' deficit | $ | 1,359,400 | $ | 899,404 | ||||
Contact Information:
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044