CASTLE ROCK, CO--(Marketwire - May 13, 2010) - Integrated Management Information, Inc. (IMI Global) (
Revenue up 43% in first quarter to $680,200 from $477,300
Verification revenue up 39% and hardware revenue up 79%
Record first quarter net income of $40,600
Integrated Management Information, Inc. (IMI Global) (
The Company reported revenue of $680,200 in the first quarter, up 43% from revenue of $477,300 in the same quarter a year ago. Revenue from the Company's growing suite of verification solutions and web-based development services increased 39% to $574,400 from $412,600 year over year while revenue from cattle identification hardware increased 79% to $105,800 from $59,100.
Gross margin in the first quarter improved 11 basis points to 53% of revenue from 42% of revenue due to higher revenue in relation to a relatively fixed cost structure along with a shift in revenue mix to higher margin services.
Selling, general and administrative expense in the first quarter decreased $49,400, or 14% year over year, from $356,300 to $306,900 due to lower headcount partially offset by higher compensation expense.
The Company achieved record first quarter net income of $40,600, a more than $200,000 positive swing over the year-ago net loss of $162,000.
IMI Global generated $81,000 in cash from operations in the first quarter, a positive swing of more than $185,000 over the same quarter last year.
Cash and cash equivalents at March 31 were $250,800, up from $214,300 at year-end. Working capital increased to $274,600 over the same period.
"Our ability to grow revenue and earnings in a difficult economic environment underscores the value that existing and new customers see in our verification programs," said John Saunders, CEO of IMI Global. "Despite the lingering recession, we continue to add new customers and enhance and expand our industry leading suite of verification solutions around our new Where Food Comes From® brand, and today we count many of the nation's leading beef and pork producers and processors among our growing list of loyal customers. At the same time we are achieving double digit revenue growth and solid profitability, while generating an increasing amount of cash and strengthening our balance sheet."
During the first quarter the Company introduced Where Food Comes From®, a unique program designed to build consumer confidence in the food supply chain. The program uses a rigorous qualification protocol under which only those farmers, ranchers and processors who meet strict third-party verification requirements may display the distinctive 'Where Food Comes From' brand. (See Where Food Comes From Video). In addition to demanding increased transparency on the origins and safety of their food, consumers are taking more interest in producers' claims of humane handling, natural products, and even 'green' operations. The 'Where Food Comes From' consumer labeling program is the first of its kind that directly connects the consumer with the food supply chain in a way that fosters confidence at the point of purchase.
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, 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 three month period 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 | ||||||||
| (Unaudited) | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2010 | 2009 | |||||||
| Revenues | $ | 680,183 | $ | 477,324 | ||||
| Costs of revenue | 324,509 | 279,096 | ||||||
| Gross profit | 355,674 | 198,228 | ||||||
| Selling, general and administrative expenses | 306,914 | 356,307 | ||||||
| Gain on sale of equipment | - | (4,000 | ) | |||||
| Income (loss) from operations | 48,760 | (154,079 | ) | |||||
| Other expense (income): | ||||||||
| Interest expense | 8,469 | 8,162 | ||||||
| Other income, net | (290 | ) | (263 | ) | ||||
| Income (loss) before income taxes | 40,581 | (161,978 | ) | |||||
| Income taxes | - | - | ||||||
| Net income (loss) | $ | 40,581 | $ | (161,978 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic | $ | - | $ | (0.01 | ) | |||
| Diluted | $ | - | $ | (0.01 | ) | |||
| Weighted average shares outstanding: | ||||||||
| Basic | 20,846,814 | 20,869,626 | ||||||
| Diluted | 20,862,808 | 20,869,626 | ||||||
| Integrated Management Information, Inc. | ||||||||
| Balance Sheets | ||||||||
| (Unaudited) | March 31, | December 31, | ||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 250,758 | $ | 214,329 | ||||
| Accounts receivable, net | 158,195 | 204,596 | ||||||
| Prepaid expenses and other current assets | 61,601 | 65,695 | ||||||
| Total current assets | 470,554 | 484,620 | ||||||
| Property and equipment, net | 142,135 | 134,035 | ||||||
| Intangible assets, net | 9,046 | 655 | ||||||
| Total assets | $ | 621,735 | $ | 619,310 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 144,219 | $ | 161,049 | ||||
| Accrued expenses and other current liabilities | 39,574 | 51,115 | ||||||
| Current portion of notes payable | 12,128 | 8,467 | ||||||
| Total current liabilities | 195,921 | 220,631 | ||||||
| Notes payable and other long-term debt | 348,639 | 360,871 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | 20,929 | 20,929 | ||||||
| Additional paid-in capital | 3,387,193 | 3,387,130 | ||||||
| Treasury stock | (21,421 | ) | (20,144 | ) | ||||
| Accumulated deficit | (3,309,526 | ) | (3,350,107 | ) | ||||
| Total stockholders' equity | 77,175 | 37,808 | ||||||
| Total liabilities and stockholders' deficit | $ | 621,735 | $ | 619,310 | ||||
Contact Information:
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044