Source Reports Fourth Quarter and Fiscal Year-End Results

- Fiscal Year Revenue Up 11.2% -



Wire Manufacturing Sales Expected to Expand in Fiscal 2002



Highlights:

-- Letter of agreement to acquire The InterLink Companies, Inc., a

magazine distributor, is expected to quadruple size of company with

anticipated revenue of more than $350 million on a pro forma basis

-- Service revenue rises year over year to $24 million from $18 million on

increased expenses of only $1.8 million

-- Completion of program with EMS to receive point of sale data from 4,000

stores

-- Contracts with three major publishing companies to conduct pilot

studies to provide market basket data in connection with a joint

venture with Catalina Marketing

-- Completion of the Covers Insight program, which tracks daily sales of

each of the top 500 magazine titles



Apr 25, 2001, 01:00 ET from The Source Information Management Company

    ST. LOUIS, April 25 /PRNewswire/ --
 The Source Information Management Company (Nasdaq:   SORC) today reported
 revenue for the fourth quarter, ended January 31, 2001, of $18.3 million
 versus $24.8 million in the same period last year. Fourth quarter net income
 was $440,000, or $0.03 per diluted share, compared to net income of $3.4
 million, or $0.19 per diluted share, in the corresponding year ago period.
     EBITDA, defined as income from operations before non-recurring charges
 plus depreciation and amortization charged to operations, was $2.0 million in
 the fourth quarter versus $7.4 million in the year-earlier period.
     Leslie Flegel, Source chairman and chief executive officer, said, "Sales
 and profits in the fourth quarter were effected by a delay in the completion
 of large manufacturing orders to fiscal 2002 from the fourth quarter. However,
 we reduced SG&A by more than $500,000 in the quarter and continued to maintain
 our strong cash flow. For the year we maintained cash flow from operations of
 $8.7 million. In the second half of the year, cash flow was $14 million, which
 we used to reduce debt by $9.3 million, buyback 969,470 shares of common stock
 and to make the final $3.5 million payment to the former owners of Huck
 Manufacturing."
     For the fiscal year ended January 31, 2001, revenue rose 11.2% to $91.7
 million from $82.5 million in the prior fiscal year. Net income was $5.8
 million, or $0.32 per diluted share, after a one-time charge of $4.1 million,
 taken during the third quarter, to write off receivables and inventory
 associated with acquired manufacturing facilities. Before the one-time charge,
 net income was $8.1 million, or $0.45 per diluted share. This compared to net
 income of $10.1 million, or $0.60 per diluted share, in fiscal 2000. Fiscal
 2001 EBITDA was $20.9 million compared to $22.6 million in fiscal 2000.
     Revenue from services rose 33% year over year to $24 million from $18
 million on only $1.8 million in additional expenses. Flegel said, "We achieved
 a number of important goals during the year: our information technology
 division continues to develop and ICN continues to grow; we completed a
 program with EMS to receive point of sale data from 4,000 stores and we are in
 negotiation to expand the program to 30,000 stores; we entered contracts with
 three major publishing companies to conduct a pilot study to provide market
 basket data in connection with the joint venture with Catalina Marketing, and
 we completed the Covers Insight program receiving very positive responses from
 the publishing community. The Covers Insight program is the first program of
 its kind utilizing daily sales to evaluate cover treatment by tracking sales
 of each of the top 500 magazine titles by issue and by class of retail trade."
     Flegel said, "We enter fiscal 2002 confident about our prospects for
 growth. We anticipate strong sales growth in our wire manufacturing business
 with improved margins as our manufacturing facilities are more efficiently
 used. We are in a strong position to grow services revenue. In addition, the
 acquisition of InterLink, which we anticipate closing in the second quarter,
 is expected to more than quadruple sales increasing revenue to more than $350
 million on a pro forma basis."
     ICN is Source's proprietary business-to-business e-commerce platform that
 provides retailers, vendors and publishers the ability to instantly download
 timely, critical sales, inventory and distribution information regarding the
 front-end checkout. ICN is the sole source of this information available on
 the Internet.
     Source is a leading provider of information and management services for
 retail magazine sales to U.S. and Canadian retailers and magazine publishers.
 Source is also a leading manufacturer of display racks used by retailers at
 checkout counters. From its core businesses, industry knowledge and
 relationships with retailers, publishers and vendors of mass merchandise
 products, Source has developed its ICN website that offers retailers and
 publishers a forum for communication and e-commerce. Additional information is
 available at the Company's website, http://www.sorc-info.com/.
 
     About ICN
     ICN is a proprietary business-to-business e-commerce web environment,
 which receives approximately 5,000 visits per day from more than 350 retail
 chains accounting for more than 60,000 stores, and publishers representing
 approximately 1,700 magazine titles. ICN provides critical information to
 retailers about current pricing and promotions and enables manufacturers to
 download front-end merchandising information on a chain-by-chain basis. ICN
 offers manufacturers and retailers the ability to execute transactions, make
 timely Uniform Product Code updates, and access critical information online.
 ICN is an innovative e-commerce solution that fills the information void for
 magazines sold at the retail level as well as general merchandise and
 confection products purchased on impulse at the checkout counter. The ICN
 platform brings together all marketing and sales elements for participating
 partners including retailers, publishers, distributors, general merchandise
 vendors, and confection vendors on a real time basis.
 
     The information contained in this release includes statements regarding
 matters which are not historical facts (including statements regarding the
 plans, beliefs or expectations of The Source Information Management Company)
 which are forward-looking statements within the meaning of the federal
 securities law. When used in this press release, the words "believes,"
 "anticipated," "intends," "expects" and similar expressions are intended to
 identify forward-looking statements. Because such forward-looking statements
 involve certain risks and uncertainties, the company's actual results and the
 timing of certain events could differ materially from those discussed herein.
 Factors that could cause or contribute to such differences include, but are
 not limited to: increased competition; significant changes in the marketing
 strategies of publishers; and the inability of the company to successfully
 manage its expansion, assimilate acquired entities and the availability of
 suitable acquisition candidates. Investors are also directed to consider other
 risks and uncertainties discussed in other reports previously and subsequently
 filed by the company with the Securities and Exchange Commission. Readers are
 cautioned not to place undue reliance on forward-looking statements, which
 speak only as of the date hereof. The company undertakes no obligation to
 publicly release the results of any revisions to those forward-looking
 statements which may be made to reflect events or circumstances after the date
 hereof or to reflect the occurrence of unanticipated events.
 
 
 
                   The Source Information Management Company
 
                   Condensed Consolidated Statement of Income
                                  (unaudited)
                      (in thousands except per share data)
 
 
                            Three Months Ended           Year Ended
                                January 31,              January 31,
                          2000             2001       2000      2001
 
     Service Revenues    5,320            6,211     18,249    24,238
 
     Product Sales      19,489           12,113     64,239    67,510
 
     Cost of Service
      Revenues           2,501            2,736      9,305    11,152
     Cost of
      Goods Sold        11,479           10,955     39,564    48,678
 
     Gross Profit       10,829            4,633     33,619    31,918
 
     Selling, General
      and Administrative
      Expense            4,378            3,857     14,880    15,973
     Unusual Items          --               --         --     4,059
 
     Operating Income    6,451              776     18,739    11,886
 
     Income Before
      Income Taxes       5,909              158     17,668     9,610
 
     Net Income          3,420              440     10,111     5,834
 
     Earnings Per
      Share:
       Basic               .20              .03        .66       .33
 
     Weighted Average
      of Shares
      Outstanding:
       Basic            17,115           17,463     15,332    17,591
 
     Earnings
      Per Share:
       Diluted             .19              .03        .60       .32
 
     Weighted
      Average of
      Shares
      Outstanding:
       Diluted          18,479           17,579     16,815    18,303
 
 
                      Condensed Consolidated Balance Sheet
                                  (unaudited)
                                 (in thousands)
 
 
                                                 January 31, 2000
 
     Trade Receivables                                     63,453
     Other Current Assets                                  12,273
     Non-Current Assets                                    81,382
       Total Assets                                       157,108
 
     Accounts Payable and Accrued Expenses                  6,096
     Other Current Liabilities                              7,343
     Non-Current Liabilities                               31,868
       Total Liabilities                                   45,307
 
     Equity                                               111,801
 
     Total Liabilities and Equity                         157,108
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23589187
 
 

SOURCE The Source Information Management Company
    ST. LOUIS, April 25 /PRNewswire/ --
 The Source Information Management Company (Nasdaq:   SORC) today reported
 revenue for the fourth quarter, ended January 31, 2001, of $18.3 million
 versus $24.8 million in the same period last year. Fourth quarter net income
 was $440,000, or $0.03 per diluted share, compared to net income of $3.4
 million, or $0.19 per diluted share, in the corresponding year ago period.
     EBITDA, defined as income from operations before non-recurring charges
 plus depreciation and amortization charged to operations, was $2.0 million in
 the fourth quarter versus $7.4 million in the year-earlier period.
     Leslie Flegel, Source chairman and chief executive officer, said, "Sales
 and profits in the fourth quarter were effected by a delay in the completion
 of large manufacturing orders to fiscal 2002 from the fourth quarter. However,
 we reduced SG&A by more than $500,000 in the quarter and continued to maintain
 our strong cash flow. For the year we maintained cash flow from operations of
 $8.7 million. In the second half of the year, cash flow was $14 million, which
 we used to reduce debt by $9.3 million, buyback 969,470 shares of common stock
 and to make the final $3.5 million payment to the former owners of Huck
 Manufacturing."
     For the fiscal year ended January 31, 2001, revenue rose 11.2% to $91.7
 million from $82.5 million in the prior fiscal year. Net income was $5.8
 million, or $0.32 per diluted share, after a one-time charge of $4.1 million,
 taken during the third quarter, to write off receivables and inventory
 associated with acquired manufacturing facilities. Before the one-time charge,
 net income was $8.1 million, or $0.45 per diluted share. This compared to net
 income of $10.1 million, or $0.60 per diluted share, in fiscal 2000. Fiscal
 2001 EBITDA was $20.9 million compared to $22.6 million in fiscal 2000.
     Revenue from services rose 33% year over year to $24 million from $18
 million on only $1.8 million in additional expenses. Flegel said, "We achieved
 a number of important goals during the year: our information technology
 division continues to develop and ICN continues to grow; we completed a
 program with EMS to receive point of sale data from 4,000 stores and we are in
 negotiation to expand the program to 30,000 stores; we entered contracts with
 three major publishing companies to conduct a pilot study to provide market
 basket data in connection with the joint venture with Catalina Marketing, and
 we completed the Covers Insight program receiving very positive responses from
 the publishing community. The Covers Insight program is the first program of
 its kind utilizing daily sales to evaluate cover treatment by tracking sales
 of each of the top 500 magazine titles by issue and by class of retail trade."
     Flegel said, "We enter fiscal 2002 confident about our prospects for
 growth. We anticipate strong sales growth in our wire manufacturing business
 with improved margins as our manufacturing facilities are more efficiently
 used. We are in a strong position to grow services revenue. In addition, the
 acquisition of InterLink, which we anticipate closing in the second quarter,
 is expected to more than quadruple sales increasing revenue to more than $350
 million on a pro forma basis."
     ICN is Source's proprietary business-to-business e-commerce platform that
 provides retailers, vendors and publishers the ability to instantly download
 timely, critical sales, inventory and distribution information regarding the
 front-end checkout. ICN is the sole source of this information available on
 the Internet.
     Source is a leading provider of information and management services for
 retail magazine sales to U.S. and Canadian retailers and magazine publishers.
 Source is also a leading manufacturer of display racks used by retailers at
 checkout counters. From its core businesses, industry knowledge and
 relationships with retailers, publishers and vendors of mass merchandise
 products, Source has developed its ICN website that offers retailers and
 publishers a forum for communication and e-commerce. Additional information is
 available at the Company's website, http://www.sorc-info.com/.
 
     About ICN
     ICN is a proprietary business-to-business e-commerce web environment,
 which receives approximately 5,000 visits per day from more than 350 retail
 chains accounting for more than 60,000 stores, and publishers representing
 approximately 1,700 magazine titles. ICN provides critical information to
 retailers about current pricing and promotions and enables manufacturers to
 download front-end merchandising information on a chain-by-chain basis. ICN
 offers manufacturers and retailers the ability to execute transactions, make
 timely Uniform Product Code updates, and access critical information online.
 ICN is an innovative e-commerce solution that fills the information void for
 magazines sold at the retail level as well as general merchandise and
 confection products purchased on impulse at the checkout counter. The ICN
 platform brings together all marketing and sales elements for participating
 partners including retailers, publishers, distributors, general merchandise
 vendors, and confection vendors on a real time basis.
 
     The information contained in this release includes statements regarding
 matters which are not historical facts (including statements regarding the
 plans, beliefs or expectations of The Source Information Management Company)
 which are forward-looking statements within the meaning of the federal
 securities law. When used in this press release, the words "believes,"
 "anticipated," "intends," "expects" and similar expressions are intended to
 identify forward-looking statements. Because such forward-looking statements
 involve certain risks and uncertainties, the company's actual results and the
 timing of certain events could differ materially from those discussed herein.
 Factors that could cause or contribute to such differences include, but are
 not limited to: increased competition; significant changes in the marketing
 strategies of publishers; and the inability of the company to successfully
 manage its expansion, assimilate acquired entities and the availability of
 suitable acquisition candidates. Investors are also directed to consider other
 risks and uncertainties discussed in other reports previously and subsequently
 filed by the company with the Securities and Exchange Commission. Readers are
 cautioned not to place undue reliance on forward-looking statements, which
 speak only as of the date hereof. The company undertakes no obligation to
 publicly release the results of any revisions to those forward-looking
 statements which may be made to reflect events or circumstances after the date
 hereof or to reflect the occurrence of unanticipated events.
 
 
 
                   The Source Information Management Company
 
                   Condensed Consolidated Statement of Income
                                  (unaudited)
                      (in thousands except per share data)
 
 
                            Three Months Ended           Year Ended
                                January 31,              January 31,
                          2000             2001       2000      2001
 
     Service Revenues    5,320            6,211     18,249    24,238
 
     Product Sales      19,489           12,113     64,239    67,510
 
     Cost of Service
      Revenues           2,501            2,736      9,305    11,152
     Cost of
      Goods Sold        11,479           10,955     39,564    48,678
 
     Gross Profit       10,829            4,633     33,619    31,918
 
     Selling, General
      and Administrative
      Expense            4,378            3,857     14,880    15,973
     Unusual Items          --               --         --     4,059
 
     Operating Income    6,451              776     18,739    11,886
 
     Income Before
      Income Taxes       5,909              158     17,668     9,610
 
     Net Income          3,420              440     10,111     5,834
 
     Earnings Per
      Share:
       Basic               .20              .03        .66       .33
 
     Weighted Average
      of Shares
      Outstanding:
       Basic            17,115           17,463     15,332    17,591
 
     Earnings
      Per Share:
       Diluted             .19              .03        .60       .32
 
     Weighted
      Average of
      Shares
      Outstanding:
       Diluted          18,479           17,579     16,815    18,303
 
 
                      Condensed Consolidated Balance Sheet
                                  (unaudited)
                                 (in thousands)
 
 
                                                 January 31, 2000
 
     Trade Receivables                                     63,453
     Other Current Assets                                  12,273
     Non-Current Assets                                    81,382
       Total Assets                                       157,108
 
     Accounts Payable and Accrued Expenses                  6,096
     Other Current Liabilities                              7,343
     Non-Current Liabilities                               31,868
       Total Liabilities                                   45,307
 
     Equity                                               111,801
 
     Total Liabilities and Equity                         157,108
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X23589187
 
 SOURCE  The Source Information Management Company