Date: Wed, 20 Nov 1996 20:58:32 GMT Server: Stronghold/2.0 Apache/1.2b10 Last-Modified: Sun, 10 Nov 1996 22:18:10 GMT ETag: "345f0-7335-328654a2" Content-Length: 29493 Accept-Ranges: bytes Connection: close Content-Type: text/html X-Pad: avoid browser bug Imtec Financials

 

One Imtec Lane, P.O. Box 809
Bellows Falls, VT 05101-0809
802/463-9502
Fax 802/463-4334


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Imtec Product News & Press Releases


Imtec's Quarterly Reports

Imtec's First Quarter FY' 97

arnings for the First Quarter of Fiscal 1997, ended September 30, 1996, were $158,646, or $0.10 per share, versus last year’s $195,626 or $0.13 per share. Sales were $2,100,143, down 18.4% from last year’s First Quarter sales of $2,573,224. Last year’s sales included $836,814 of non-recurring sales to UPS. Sales less UPS for the First Quarter were $2,100,143 versus $1,736,410 last year, an increase of 20.9%.

We plan to fully replace the non-recurring UPS business but realize that this requires an effort over more than one quarter. The efficiency of our overall operations continues to improve. Our gross profit margins and income from operations percentages were up for the quarter. We continue to benefit from emphasis on our high-performance and higher margin products.

Emphasis on the marketing and sale of our products continues to be our highest priority. During the quarter we expanded our international distributor network and are now represented in Brazil, China, Israel, the Philippines, and Turkey. Our distributor network in Mexico also expanded. In addition, we worked closer with our domestic distributors and developed several new selling aids and programs. Expanded exposure of our pace-setting high-performance products is key to our future growth.

During the quarter we completed the installation of a new high-speed label converting press. This equipment converts a variety of materials into labels. The installation not only doubles the overall capacity of our label operations, but also enables us to do multi-color and an expanded range of specialty labels. The supplier of this equipment, designed and built to our performance requirements, describes it as "the fastest in the world."

We also invested in a number of other capital improvements in our label manufacturing operations to improve overall throughput and process capability. As we continue to grow our label business, our investments in this area help to assure that we maintain top quality products and the industry’s fastest deliveries. Serviced properly, label customers provide the ongoing annuity to our equipment sales.

Internally generated capital from operations completely funded these capital investments. During the quarter, capital equipment investments totaled $449,981 with less than a 3% change in our cash position. Although unused, our banking partner expanded our credit line to $1,000,000 with improved terms. Stockholder’s Equity improved by 25.0% over last year’s quarter ending position. The stockholder value of our business continued to improve.

We plan to capitalize on the growing market for labels and labeling systems. We continue to develop our partnerships, both domestically and abroad, as well as invest in the marketing and sales of our products. Our products do quite well in competitive situations. Increased exposure of these products is important to achieve our planned growth.

We surveyed our new customers last year and determined that 53% of them were the result of referrals. Referrals are important to our growth. We would appreciate getting one or more from you. Give us a call!

Sincerely,

Richard L. Kalich
President and CEO

IMTEC, Inc.
Condensed Statement of Income
and Selected Financial Information

Three Months Ended September 30,

 

1996

1995

Net Sales

$2,100,143

$2,573,224

Income Before Taxes

$263,600

$324,239

Income Tax Expense

$104,954

$126,613

Net Income

$158,646

$195,626

Weighted Average Number of Shares Outstanding

$1,600,113

$1,547,735

Earnings per Common Share

$ 0.10

$ 0.13

     
 

1996

1995

Current Assets

$3,772,241

$3,597,805

Total Assets

$5,437,565

$5,133,772

Current Liabilities

$ 909,459

$1,511,079

Stockholder’s Equity

$4,528,106

$3,622,693

 

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Imtec's Second Quarter FY' 97

arnings for the Second Quarter of Fiscal 1997, ended December 31, 1996, were $113,071, or $0.07 per share, versus last year’s $223,964, or $0.14 per share. Last year’s earnings included $215,000, or $0.08 per share nonrecurring benefit from the reversal of a lower court verdict by the Vermont Supreme Court. Earnings less this non-recurring benefit for the Second Quarter were $0.07 versus last year’s earnings of $0.06 per share.

Sales were $2,097,066, down 4.0% from last year's Second Quarter sales of $2,184,273. Last year’s sales included $278,938 of non-recurring sales to UPS. Sales less UPS for the Second Quarter were $2,097,066 versus last year’s sales of $1,905,335, an increase of 10.1%. This is the final previous quarter which includes non-recurring UPS sales.

For the first six months ended December 31, 1996, earnings were $271,728 or $0.17 per share, versus last year’s $419,595 or $0.27 per share ($0.19 per share without non-recurring reversal). Sales totaled $4,197,209 versus last year’s $4,764,384. Last year’s sales include $1,115,752 of non-recurring sales to UPS. Year to date sales less UPS are $4,197,209 versus last year’s $3,648,632, an increase of 15.0%.

Emphasis on the marketing and sales of our products continues to be our highest priority. During the second quarter we continued to invest in our marketing and sales organizations and distributor network. We added two domestic distributors and one international distributor during the quarter. We continue to work diligently on the training and support of this network.

During the Quarter we introduced three new hardware products, positioned to provide Imtec quality and reliability in more economically priced labeling systems. Imtec is recognized as the industry leader in high-performance labels and labeling systems. These new products provide the means to compete for entry level purchases and work with customers to acquaint them with our higher performance systems. With our growing distributor network, these products enable our partners to compete favorably with any other competitive units.

The LabelKwik dispenses pressure sensitive labels for hand placement onto products or containers. Usage tests indicate a 100% increase in label application throughput and virtual elimination of label damage from hand peeling. This is a natural add-on product for the many customers that purchase labels for hand application from us.

The LabelShot is a unique printer applicator system that utilizes a variety of stand-alone printers. The applicator intercepts the printed label and blows it up to 4.0" away onto the side of a product or package. This provides an easy step both functionally and financially from hand application of labels.

The ValuePro provides a reliable, durable, and economically priced labeling system for high use environments. The equipment is designed for carton and product labeling in food, beverage, pharmaceutical, and consumer goods manufacturing.

This triad of products positions us into the mainstream labeling systems business and eliminates our vulnerability at lower price points. We are also able to capitalize on our high-performance reputation to provide outstanding customer value.

We also introduced new QuickStay labels which are designed for use with blow-on applicators. These labels provide terrific adhesion and essentially eliminate the problem of non-sticking labels in blow-on applications.

Expanding our market and product coverage are key to our future growth. Expanding our distribution and sales network and providing this organization with expanded product coverage are the cornerstones to this growth plan. We are well down this path.

As an organization and company we are focused on accelerating our growth. We participate in a growing market and have leading edge products to service this market. We continue to set the pace on new products and are increasing our products exposure via expanded sales and distribution.

Sincerely ,

Richard L. Kalich
President and CEO

IMTEC, Inc.
Condensed Statement of Income
and Selected Financial Information

Six Months Ended December 31,

  1996 1995
Net Sales $4,197,209 $4,764,384

Income Before Taxes

448,846 695,445
Income Tax Expense 177,118 275,850
Net Income $271,728 419,595

Weighted Average Number of Shares Outstanding

1,604,691 1,563,634
Earnings per Common Share $0.17 $0.27
     
  1996 1995
Current Assets $3,968,226 $3,387,113
Total Assets 5,586,233 4,870,564
Current Liabilities 945,045 1,023,909
Stockholder's Equity $4,641,188 $3,846,655

Three Months Ended December 31,

  1996 1995
Net Sales $2,097,066 $2,184,273
Income Before Taxes 185,235 371,201
Income Tax Expense 72,164 147,237
Net Income $113,071 $223,964
Weighted Average Number of Shares Outstanding 1,609,280 1,579,532
Earnings per Common Share $0.07 $0.14
     
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