SOURCE: Integrated Management Information (IMI Global)

Integrated Management Information (IMI Global)

August 15, 2011 07:00 ET

Integrated Management Information (IMI Global) Reports Record Second Quarter and Six Month Financial Results

CASTLE ROCK, CO--(Marketwire - Aug 15, 2011) - Integrated Management Information, Inc. (IMI Global) (OTCBB: INMG)

  • 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) (OTCBB: INMG), a leading provider of verification and Internet solutions for the agricultural/livestock industry under the WhereFoodComesFrom® brand, today announced record revenue and net income for its second quarter and six-month period ended June 30, 2011.

"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