Exhibit 99.1
FOR IMMEDIATE RELEASE |
| NEWS |
July 29, 2008 |
| OTCBB: INMG |
Integrated Management Information (IMI Global) Reports Profitable Second Quarter and Strong Revenue Growth
Selected Highlights:
· |
| Transition to profitability with $42,700 in net income in Q2 |
· |
| Q2 revenue up 53% to $808,200 from $530,000 |
· |
| Highest revenue quarter in Company’s history |
· |
| Six-month revenue up 53% to $1,533,300 from $1,001,300 |
· |
| USVerified™ solutions revenue up 84% in Q2 |
· |
| IMI signs long term marketing agreement with Vance Publishing |
· |
| Born & Raised in the USA® uniquely solves the COOL issue for retailers |
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 it transitioned to profitability in the second quarter on the strength of strong revenue growth and a stable expense base.
“We are very pleased to report our first profitable quarter as a public company,” said John Saunders, president and CEO. “Employees at all levels of our organization have worked very hard to create a culture of profitable growth, and our second quarter performance validates our strategy of focusing on driving consistent top-line growth while maintaining a lean operating environment. As always, our USVerified™ verification and identification solutions led the way, both in terms of revenue growth and profit contribution. With our new long-term strategic marketing agreement with Vance Publishing, we are now more focused than ever on expanding our USVerified and Born & Raised in the USA® offerings and increasing our marketing efforts to support continued growth.”
The Company reported net income of $42,700, or less than one cent per basic and diluted share, in the second quarter ended June 30, 2008, compared with a net loss of $209,600, or $0.01 per basic and diluted share, in the same quarter last year. It was IMI Global’s first profitable quarter as a public company – the result of significantly higher revenue combined with a stable cost structure.
Revenue in the second quarter increased 53% to $808,200 from $530,000 in the second quarter a year ago. Demand for the Company’s USVerified solutions remained strong in the period, resulting in a 84% increase in revenue in that category – to $611,500, or 76% of total revenue, from $333,000 in the second quarter last year. The Company continued to add new customers for its third party food verification services during the second quarter and believes prospects for continued growth are good in light of the reopening of key export markets, the impending deadline for Country of Origin Labeling (COOL) in September of 2008, and growing consumer sentiment to better understand where food comes from.
Subsequent to the end of the second quarter the Company entered into a long-term marketing and support agreement with Vance Publishing in which IMI Global sold three of its online assets – CattleNetwork.com, CattleStore.com and AgNetwork. Vance Publishing is a leader in
agriculture-related magazine publications, web offerings and newsletters, including Drover’s, Pork, Bovine Veterinarian, and Dairy Herd Management. While the now-divested online businesses contributed approximately $197,000, or 24% of total revenue in the second quarter, these assets are much better utilized by Vance and their divestiture will allow IMI Global to sharpen its focus on its core solutions and a lean operating environment. Additionally, the transaction enables IMI Global to significantly strengthen its balance sheet, improve its working capital balance, and collaborate with the industry leader, Vance Publishing, on an aggressive advertising and promotion program in support of IMI Global’s USVerified and Born & Raised in the USA® solution offerings. The Born & Raised in the USA labeling solution, marketed exclusively by IMI Global, gives meat retailers a proven, streamlined third-party verification program to comply with the country of origin labeling (COOL) mandate under the 2002 Farm Bill, set to go into effect in the Fall of 2008.
Saunders added, “This new partnership has been structured to leverage the respective strengths of Vance Publishing and IMI Global, and we are very excited about our prospects for success. In addition to more effectively delivering the IMI Global message to a broader potential customer base in our traditional livestock markets, we have enhanced our ability to reach out to new food sectors, including fruits and vegetables, where Vance also has a strong presence. We couldn’t be more excited about the future.”
The Company’s strong second quarter performance contributed to a $518,000 positive swing on the bottom line through six months. Net loss for the year-to-date period was just $18,000, or less than one cent per basic and diluted share, compared with a net loss of $500,200, or $0.03 per basic and diluted share, in the six-month period ended June 30, 2007.
Revenue through six months increased 53% to $1,533,300 from $1,001,300 in the same period a year ago. Again, the key driver was the Company’s fast-growing verification solutions offerings. The Company’s e-commerce solutions, a new revenue stream in 2008, contributed revenue of $45,250 year-to-date.
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 800-257-6566 for domestic toll free or 303-262-2191 for local and international. The conference ID is 11117695. A telephone replay will be available through August 13, 2008, at 800-405-2236 or 303-590-3000, passcode 111117695#.
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 August 29, 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. Additional IMI web sites include www.USVerified.com, www.MyEquineNetwork.com, and www.AgTraderIndex.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 |
| Six months ended |
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| June 30, |
| June 30, |
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|
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||
Revenues |
| $ | 808,168 |
| $ | 529,952 |
| $ | 1,533,343 |
| $ | 1,001,267 |
|
Costs of revenue |
| 377,882 |
| 215,046 |
| 729,297 |
| 413,761 |
| ||||
Gross profit |
| 430,286 |
| 314,906 |
| 804,046 |
| 587,506 |
| ||||
Selling, general and administrative expenses |
| 374,333 |
| 517,808 |
| 796,900 |
| 1,075,660 |
| ||||
Income (loss) from operations |
| 55,953 |
| (202,902 | ) | 7,146 |
| (488,154 | ) | ||||
Other expense (income): |
|
|
|
|
|
|
|
|
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Interest expense |
| 13,334 |
| 7,740 |
| 26,222 |
| 14,863 |
| ||||
Other income, net |
| (115 | ) | (1,085 | ) | (1,260 | ) | (2,779 | ) | ||||
Income (loss) before income taxes |
| 42,734 |
| (209,557 | ) | (17,816 | ) | (500,238 | ) | ||||
Income taxes |
| — |
| — |
| — |
| — |
| ||||
Net income (loss) |
| $ | 42,734 |
| $ | (209,557 | ) | $ | (17,816 | ) | $ | (500,238 | ) |
Net income (loss) per share, basic and diluted |
| $ | 0.00 |
| $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.03 | ) |
Weighted average shares outstanding, basic and diluted |
| 19,984,506 |
| 19,328,839 |
| 19,988,797 |
| 19,189,950 |
| ||||
Integrated Management Information, Inc.
Balance Sheets
|
| June 30, |
| December 31, |
| ||
|
| 2008 |
| 2007 |
| ||
ASSETS |
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|
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Current Assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 63,859 |
| $ | 170,882 |
|
Accounts receivable, net |
| 404,739 |
| 193,737 |
| ||
Inventories |
| 15,062 |
| 18,759 |
| ||
Prepaid expenses and other current assets |
| 19,961 |
| 43,495 |
| ||
Total current assets |
| 503,621 |
| 426,873 |
| ||
Property and equipment, net |
| 71,377 |
| 54,134 |
| ||
Goodwill |
| 418,208 |
| 418,208 |
| ||
Intangible assets, net |
| 21,113 |
| 28,395 |
| ||
Total assets |
| $ | 1,014,319 |
| $ | 927,610 |
|
|
|
|
|
|
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LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
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|
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Current liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 319,140 |
| $ | 259,103 |
|
Accrued expenses and other current liabilities |
| 64,655 |
| 40,406 |
| ||
Deferred revenues |
| — |
| 5,750 |
| ||
Short-term debt and current portion of notes payable |
| 444,000 |
| 420,000 |
| ||
Total current liabilities |
| 827,795 |
| 725,259 |
| ||
Notes payable and other long-term debt |
| 300,000 |
| 300,000 |
| ||
Stockholders’ equity (deficit): |
|
|
|
|
| ||
Preferred stock |
| — |
| — |
| ||
Common stock |
| 28,246 |
| 28,246 |
| ||
Additional paid-in capital |
| 4,709,396 |
| 4,705,679 |
| ||
Treasury stock |
| (1,486,728 | ) | (1,485,000 | ) | ||
Accumulated deficit |
| (3,364,390 | ) | (3,346,574 | ) | ||
Total stockholders’ equity |
| (113,476 | ) | (97,649 | ) | ||
Total liabilities and stockholders’ deficit |
| $ | 1,014,319 |
| $ | 927,610 |
|