Pallet Management Systems, Inc. Fiscal 1997 Results; Sales Rise 22% / Sharp Increase in Lumber Costs

Business Wire, Sept 10, 1997

BOCA RATON, Fla.--(BUSINESS WIRE)--Sept. 10, 1997--Pallet Management Systems, Inc. (OTC/BB:PALT) today reported an increase of 22% in sales and a 56% reduction in losses for fiscal year 1997, the period ended June 30.

Sales reached $21,052,000 versus $16,848,000 for the previous fiscal year. Despite sharp increases in lumber costs, the company reduced its net loss 56% to $781,000, or 17 (cent) loss per share for the year, compared to a net loss of $1,778,000, or 42 (cent) loss per share for fiscal 1996.

President Zachary Richardson said the year's operations reflected several factor including sharp rises in lumber costs, the market's resistance to price increases, and non-operational expenses of $172,000 related to efforts to restructure corporate debt. "Profit margins suffered some decreases industry-wide with the marked increase in the cost of lumber, the primary raw material of pallets." Richardson noted that with the stabilization of lumber prices and expansion further into pallet services, fiscal 1998 could be a profitable year.

Pallet Management Systems, Inc. is the first United States-based publicity traded pallet company in the more than $6 billion U.S. pallet market. The company is a pioneer and leader in pallet management and recycling with sales along the East Coast of the United States. -0-

                    Pallet Management Systems, Inc.
                 Consolidated Statement of Operations
                       Fiscal Year Ended June 30

                                    1997           1996
                                    ----           ----
     Net Sales                   $21,052,000      $16,848,000
     Net Loss                    $  (781,000)    $ (1,778,000)
     Net Loss per common share         ($.17)           ($.42)
     Weighted Average Number of
     Shares Outstanding            4,597,148         4,200,754