CASTLE ROCK, CO--(Marketwire - March 26, 2008) -
Selected Highlights:
-- Fourth quarter revenue up 50% to $688,500 from $460,100
-- Highest revenue quarter in Company's history
-- 2007 full-year revenue up 50% to $2,307,800 from $1,539,900
-- Gross margin increases 86% in fourth quarter, 77% for full year
-- S,G&A expense declines 27% in Q4, 10% for full year
-- USVerified™ solutions revenue up 71% for full year
-- Combined CattleNetwork.com and CattleStore.com revenue up 31% in '07
Integrated Management Information, Inc. (IMI Global) (
OTCBB:
INMG), a
leading provider of verification and Internet solutions for the
agricultural/livestock industry, today announced strong revenue growth, a
lower expense base and improving bottom line results for its fourth quarter
and year ended December 31, 2007.
"Fifty percent revenue growth in both our fourth quarter and full year,
combined with a sharply lower expense base in both periods due to economies
of scale and careful cost management, enabled us to dramatically improve
our bottom line results and position the Company to transition to
profitability in 2008," said John Saunders, president and CEO. "We are
particularly pleased with the revenue growth from our core USVerified
solutions portfolio, which continues to set the standard in cattle
verification and identification while generating new revenue opportunities
that leverage our brand, market position and growing customer base. We
believe we have an excellent opportunity to accelerate our USVerified
revenue growth and intend to devote more resources in this area in the
future."
2007 Full Year Results
Full year revenue increased 50% to $2,307,800 from $1,539,900 in 2006. The
continued strong growth was primarily attributable to steadily increasing
demand for the Company's USVerified solutions and growth in the
CattleNetwork advertising business. USVerified revenue was up 71% to
$1,254,600 from $734,900 in 2006. Revenue from the Company's networks,
including advertising and product sales from CattleNetwork.com and
CattleStore.com, respectively, increased 31% to $1,053,200 from $805,000 in
2006.
Gross profit increased 77% in 2007 to $1,339,300, or 58% of revenue, as
compared with gross profit of $758,400, or 49% of revenue, in 2006. This
improvement was attributable to higher overall revenue -- particularly a
growing contribution by the higher-margin USVerified solutions and
CattleNetwork advertising businesses -- in conjunction with leverage
benefits resulting from a relatively fixed cost base.
The Company remained tightly focused on managing its expenses throughout
the year, which in turn contributed to a 10% decrease in selling, general
and administrative expense to $2,069,800 from $2,302,200 a year ago. The
combination of lower expenses and improved gross margins enabled the
Company to cut its net loss by 51% to $759,600, or $0.04 per share, from
$1,559,000, or $0.08 per share, in 2006. The net loss of $759,600 included
$41,300 in non-cash costs associated with stock based compensation.
Fourth Quarter Results
Revenue in the fourth quarter increased 50% to $688,500 from $460,100 in
the fourth quarter last year. On a sequential basis, revenue grew 11% over
third quarter revenue of $618,100. Both USVerified solutions and
CattleNetwork/CattleStore revenue showed strong increases.
Gross profit in the fourth quarter increased 86% to $423,400, or 61% of
revenue, from $227,300, or 49% of revenue, in the same quarter last year.
This increase resulted from strong growth in the Company's higher-margin
USVerified solutions and CattleNetwork advertising business in combination
with the positive effects of a relatively fixed cost structure in both
businesses.
Selling, general and administrative expense in the fourth quarter improved
by 27% to $483,500 from $665,000. The Company achieved an 84% reduction in
net loss in the fourth quarter, to $71,400, or less than one cent per
share, from $441,800, or $0.02 per share, in the same quarter last year.
The net loss of $71,400 included $4,400 in non-cash costs associated with
stock based compensation.
Conference Call
IMI Global will conduct a conference call and Webcast today at 9:30 a.m.
Mountain Time (11:30 a.m. Eastern Time). Dial 800-240-5318 for domestic
toll free or 303-262-2138 for local and international. Conference ID
#11111000. A telephone replay will be available through April 10, 2008, at
800-405-2236 or 303-590-3000, passcode 11111000#.
To access a live Webcast of the call, please visit IMI Global's website at
www.imiglobal.com and click the Webcast link. A replay of the Webcast will
be available at that website through April 25, 2008.
About IMI Global
Founded in 1995, IMI Global 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. IMI operations
include
www.CattleNetwork.com, an online service offering market
information and industry news to the cattle industry, and
www.CattleStore.com, an online source for livestock supplies, such as
animal identification, medical equipment and veterinarian supplies.
Additional IMI web sites include
www.USVerified.com,
www.AgNetwork.com and
www.PetSupplyVerified.com.
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, the 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 three and
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.
Condensed Statements of Operations
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
---------- ----------- ----------- -----------
Revenues $ 688,457 $ 460,100 $ 2,307,808 $ 1,539,933
Costs of revenue 265,077 232,755 968,475 781,494
---------- ----------- ----------- -----------
Gross profit 423,380 227,345 1,339,333 758,439
Selling, general and
administrative expenses 483,491 664,964 2,069,770 2,302,248
---------- ----------- ----------- -----------
Loss from operations (60,111) (437,619) (730,437) (1,543,809)
Other expense (income):
Interest expense 12,494 7,044 36,444 24,301
Other income, net (1,207) (2,861) (7,321) (9,068)
---------- ----------- ----------- -----------
Loss before income taxes (71,398) (441,802) (759,560) (1,559,042)
Income taxes - - - -
---------- ----------- ----------- -----------
Net loss $ (71,398) $ (441,802) $ (759,560) $(1,559,042)
========== =========== =========== ===========
Loss per share, basic
and diluted $ (0.00) $ (0.02) $ (0.04) $ (0.08)
========== =========== =========== ===========
Weighted average shares
outstanding, basic and
diluted 19,662,172 17,867,515 19,512,401 18,885,183
========== =========== =========== ===========
Integrated Management Information, Inc.
Condensed Balance Sheets
December 31, December 31,
2007 2006
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 170,882 $ 230,539
Accounts receivable, net 193,737 178,159
Inventories 18,759 14,185
Prepaid expenses and other current assets 43,495 33,435
------------ ------------
Total current assets 426,873 456,318
Cash restricted for payment on line of credit - 50,000
Property and equipment, net 54,134 31,617
Goodwill 418,208 418,208
Intangible assets, net 28,395 46,633
------------ ------------
Total assets $ 927,610 $ 1,002,776
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 259,104 $ 206,466
Accrued expenses and other current liabilities 40,406 8,287
Deferred revenues 5,750 10,820
Short-term debt and current portion of notes
payable 420,000 156,622
------------ ------------
Total current liabilities 725,260 382,195
Notes payable and other long-term debt 300,000 350,000
Stockholders' equity (deficit):
Preferred stock - -
Common stock 28,245 27,024
Additional paid-in capital 4,705,679 4,315,571
Treasury stock (1,485,000) (1,485,000)
Accumulated deficit (3,346,574) (2,587,014)
------------ ------------
Total stockholders' equity (97,650) 270,581
------------ ------------
Total liabilities and stockholders' deficit $ 927,610 $ 1,002,776
============ ============
Contact Information: Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044