EXHIBIT 99.1
FOR IMMEDIATE RELEASE | | NEWS |
March 26, 2008 | | OTCBB: INMG |
Integrated Management Information (IMI Global) Reports
Fourth Quarter and 2007 Year-End Financial Results
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
CASTLE ROCK, Colo. — 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.
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
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 | |
