CASTLE ROCK, CO--(Marketwire - November 10, 2010) - Integrated Management Information, Inc. (IMI Global) (
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Q3 net income up 50% to $105,500 from $70,400 a year ago
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Record Q3 revenue of $923,700, up 19% over $778,700 last year
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9-month net income increases to $211,700 -- $0.01 EPS -- from loss of $42,300
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9-month revenue up 26% to record $2,403,000 from $1,902,000
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Gross margins increase in both Q3 and 9-month period
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Cash from operations up 234% to $375,000 through first nine months
Integrated Management Information, Inc. (IMI Global) (
"With three consecutive quarters of record revenue and earnings, IMI Global is performing at a very high level in spite of the sluggish global economy," said John Saunders, CEO of IMI Global. "We continue to generate positive cash flow growth and improve our working capital and cash positions while at the same time enhancing core solutions and investing in new product initiatives designed to better serve our growing customer base and strengthen our competitive position. Our strategy is to continue the steady growth of our core solutions while gearing up for potentially explosive growth with our Where Food Comes From labeling program. With increasing consumer activism around food safety -- in the United States and abroad -- there is no question that demand for the kind of solutions we provide should increase steadily in coming years, and we are committed to developing and offering these solutions in a cost effective manner that fosters confidence among producers, retailers and consumers."
Third Quarter Results
The Company reported revenue of $923,700 in the third quarter, a 19% increase over revenue of $778,700 in the third quarter last year. It was IMI Global's highest-ever quarterly revenue total and the third consecutive quarter of increased revenue this year. Revenue from verification services, which includes the Company's industry leading USVerified™ solutions, increased 20% to $699,300 from $581,000 a year ago due in part to higher demand for the Company's US Verified Non Hormone Treated Cattle (NHTC) solution and supply chain coordination efforts. Hardware revenue consisting primarily of cattle identification tags increased 17% in the third quarter to $224,400 from $191,300 in the same quarter last year. Gross margin in the third quarter increased to 53.1% of revenue from 49.7% of revenue.
Selling, general and administrative expense in the third quarter increased 22% to $376,700 from $308,000, reflecting increased investment in marketing and advertising related initiatives designed to raise industry awareness of the Company's Where Food Comes From® program that connects consumers with the food supply chain at the point of purchase through an unprecedented level of transparency. The program uses U.S. Department of Agriculture (USDA) Process Verified Programs (PVP) to validate marketing claims. Participating suppliers are then able to market their food products with the WhereFoodComesFrom seal to offer consumers an added level of confidence in the product's attributes. For more information go to www.wherefoodcomesfrom.com
IMI Global reported record third quarter net income of $105,500, up 50% increase over net income of $70,400 in the same quarter last year.
Nine-Month Results
Revenue for the first nine months of 2010 increased 26% to $2,403,000 from $1,902,000 in the same period last year. It was Company's highest-ever nine-month revenue total and was attributed to growing demand for US Verified solutions, particularly NHTC and supply chain coordination services. Third-party verification revenue increased 25% to $1,926,200 from $1,536,100 in the first three quarters last year. Hardware revenue in the first nine months grew 37% to $476,800 from $347,300 in the same period a year ago. Gross margin for the nine-month period improved to 55.1% of revenue from 49.3% of revenue a year ago.
Selling, general and administrative expense through nine months increased 14% to $1,089,100 from $957,500 due to year-to-date investments in Where Food Comes From.
The Company reported net income of $211,700, or $0.01 per share, in the nine-month period versus a net loss of $42,300, or less than one cent per share, in the same period last year. It was Company's most profitable nine-month performance.
Balance Sheet Highlights
IMI Global generated $375,000 in cash from operations through the first nine months of 2010, a 234% increase over $112,200 in the same period a year ago. Cash and cash equivalents at September 30 were $488,400, up substantially from $298,800 at mid-year and $214,300 at December 31 year-end. Working capital at the end of the third quarter was $447,200, up from $341,800 at mid-year and $264,000 at year-end.
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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues | $ | 923,701 | $ | 778,736 | $ | 2,403,014 | $ | 1,901,941 | ||||||||
| Costs of revenue | 433,671 | 391,446 | 1,078,060 | 964,935 | ||||||||||||
| Gross profit | 490,030 | 387,290 | 1,324,954 | 937,006 | ||||||||||||
| Selling, general and administrative expenses | 376,740 | 308,030 | 1,089,132 | 957,505 | ||||||||||||
| Gain on sale of equipment | - | - | - | (4,000 | ) | |||||||||||
| Income (loss) from operations | 113,290 | 79,260 | 235,822 | (16,499 | ) | |||||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | 8,199 | 9,114 | 25,244 | 26,462 | ||||||||||||
| Other income, net | (426 | ) | (250 | ) | (1,123 | ) | (644 | ) | ||||||||
| Income (loss) before income taxes | 105,517 | 70,396 | 211,701 | (42,317 | ) | |||||||||||
| Income taxes | - | - | - | - | ||||||||||||
| Net income (loss) | $ | 105,517 | $ | 70,396 | $ | 211,701 | $ | (42,317 | ) | |||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | - | $ | - | $ | 0.01 | $ | - | ||||||||
| Diluted | $ | - | $ | - | $ | 0.01 | $ | - | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 21,528,782 | 20,868,481 | 21,535,540 | 20,868,859 | ||||||||||||
| Diluted | 21,548,342 | 20,996,910 | 21,554,064 | 20,868,859 | ||||||||||||
| Integrated Management Information, Inc. | ||||||||
| Balance Sheets | ||||||||
| September 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 488,363 | $ | 214,329 | ||||
| Accounts receivable, net | 192,796 | 204,596 | ||||||
| Prepaid expenses and other current assets | 14,647 | 65,695 | ||||||
| Total current assets | 695,806 | 484,620 | ||||||
| Property and equipment, net | 125,661 | 134,035 | ||||||
| Intangible assets, net | 16,159 | 655 | ||||||
| Total assets | $ | 837,626 | $ | 619,310 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 221,992 | $ | 161,049 | ||||
| Accrued expenses and other current liabilities | 16,268 | 51,115 | ||||||
| Short-term debt and current portion of notes payable | 10,359 | 8,467 | ||||||
| Total current liabilities | 248,619 | 220,631 | ||||||
| Notes payable and other long-term debt | 334,049 | 360,871 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 21,039 | 20,929 | ||||||
| Additional paid-in capital | 3,401,383 | 3,387,130 | ||||||
| Treasury stock | (29,058 | ) | (20,144 | ) | ||||
| Accumulated deficit | (3,138,406 | ) | (3,350,107 | ) | ||||
| Total stockholders' equity | 254,958 | 37,808 | ||||||
| Total liabilities and stockholders' deficit | $ | 837,626 | $ | 619,310 | ||||
Contact Information:
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044