SOURCE: Integrated Management Information (IMI Global)
CASTLE ROCK, CO–(Marketwire – August 11, 2010) – Integrated Management Information, Inc.
(IMI Global) (
-- Revenue up 24% in second quarter, 32% for six-month period -- Net income improves in both Q2 and six-month period -- Improved balance sheet with higher cash and working capital balances
Integrated Management Information, Inc. (IMI Global) (
leading provider of verification and Internet solutions for the
agricultural/livestock industry under the Where Food Comes From® brand,
today announced record financial results for its second quarter and six
month period ended June 30, 2010.
The Company reported revenue of $799,100 in the second quarter, up 24% from
revenue of $645,900 in the second quarter last year. It was IMI Global’s
highest-ever quarterly revenue total. Revenue from verification services,
which includes the company’s flagship USVerified™ solution, increased
20% to $652,600 from $542,400 a year ago due in part to higher demand for
the Company’s US Verified Non Hormone Treated Cattle (NHTC) solution.
Hardware revenue consisting primarily of cattle identification tags
increased 51% in the second quarter to $146,600 from $97,000 in the same
period a year ago. Gross margin in the second quarter remained relatively
flat at 54% of revenue.
Selling, general and administrative expense in the second quarter increased
23% to $359,700 from $293,200. This increase was directly attributable to
investments in the Company’s Where Food Comes From® program, specifically
in marketing and advertising campaigns designed to raise industry and
consumer awareness of the Where Food Comes From brand. Where Food Comes
From is a unique program that directly connects consumers with the food
supply chain in a way that fosters confidence 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.
The Company reported record second quarter net income of $65,600, a 33%
increase over net income of $49,300 in the same quarter last year.
Revenue for the first six months of 2010 increased 32% to $1,479,300 from
$1,123,200 in the same period last year. It was highest first half revenue
total in the Company’s history and was attributed to strong demand for US
Verified solutions, particularly NHTC and supply chain coordination
services. Verification revenue increased 29% to $1,226,900 from $955,000
in the first half last year. Hardware revenue in the first half grew by
62% to $252,400 from $156,100 in the same period last year. Gross margin
in the first half improved more than 7 basis points to 56% of revenue from
49% of revenue a year ago.
Selling, general and administrative expense in the first half grew by 10%
to $712,400 from $649,500 — an increase that was fully attributable to the
aforementioned second quarter investments in Where Food Comes From.
The Company reported net income of $106,200 in the first half compared with
a net loss of $112,700 in the same period last year. It was IMI Global’s
first profitable first half as a public company. EPS through six months
was $0.01 per basic and diluted share versus a net loss of $0.01 per basic
and diluted share a year ago.
IMI Global generated $157,200 in cash from operations in the first half of
2010, a positive swing of $211,000 over the same period last year. Cash
and cash equivalents at mid-year were $298,800, up from $214,300 at
December 31 year end. Working capital was $341,800, up from $274,600 in
the first quarter.
“Our ability to post record second quarter and six month financial results
in what remains a very challenging economy is a testament to the strength
of our solutions portfolio and the energy and commitment of our entire
team,” said John Saunders, CEO of IMI Global. “In addition to reporting
our highest ever revenue, we reported record profitability in spite of
making significant investments in Where Food Comes From, a program we
believe can become a major new source of revenue and profits for IMI
Global. At the same time, we continued to strengthen our balance sheet,
enhance our core verification business and expand our customer base, and we
are looking forward to continuing our momentum into the second half of the
year.”
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 Six Months Ended
June 30, June 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Revenues $ 799,130 $ 645,880 $ 1,479,313 $ 1,123,205
Costs of revenue 365,648 294,393 644,389 573,489
----------- ----------- ----------- -----------
Gross profit 433,482 351,487 834,924 549,716
Selling, general and
administrative expenses 359,710 293,168 712,393 649,475
Gain on sale of equipment - - - (4,000)
----------- ----------- ----------- -----------
Income (loss) from
operations 73,772 58,319 122,531 (95,759)
Other expense (income):
Interest expense 8,576 9,187 17,045 17,348
Other income, net (408) (133) (698) (394)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 65,604 49,265 106,184 (112,713)
Income taxes - - - -
----------- ----------- ----------- -----------
Net income (loss) $ 65,604 $ 49,265 $ 106,184 $ (112,713)
=========== =========== =========== ===========
Net income (loss) per
share:
Basic $ - $ - $ 0.01 $ (0.01)
=========== =========== =========== ===========
Diluted $ - $ - $ 0.01 $ (0.01)
=========== =========== =========== ===========
Weighted average shares
outstanding:
Basic 20,825,461 20,868,481 20,825,775 20,869,050
=========== =========== =========== ===========
Diluted 20,845,517 20,956,251 20,843,848 20,869,050
=========== =========== =========== ===========
Integrated Management Information, Inc.
Balance Sheets
June 30, December 31,
2010 2009
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 298,823 $ 214,329
Accounts receivable, net 179,740 204,596
Prepaid expenses and other current assets 49,603 65,695
------------ ------------
Total current assets 528,166 484,620
Property and equipment, net 132,145 134,035
Intangible assets, net 17,593 655
------------ ------------
Total assets $ 677,904 $ 619,310
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 151,398 $ 161,049
Accrued expenses and other current liabilities 23,734 51,115
Short-term debt and current portion of notes
payable 11,242 8,467
------------ ------------
Total current liabilities 186,374 220,631
Notes payable and other long-term debt 346,366 360,871
Stockholders' equity:
Preferred stock - -
Common stock 20,984 20,929
Additional paid-in capital 3,394,288 3,387,130
Treasury stock (26,185) (20,144)
Accumulated deficit (3,243,923) (3,350,107)
------------ ------------
Total stockholders' equity 145,164 37,808
------------ ------------
Total liabilities and stockholders' deficit $ 677,904 $ 619,310
============ ============
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044