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Filed Pursuant to
Rule 424(b)(3)
Registration No. 333-12037
PROSPECTUS SUPPLEMENT, DATED NOVEMBER 22, 1996
TO PROSPECTUS DATED NOVEMBER 7, 1996
LOGO
QUARTERLY RESULTS OF OPERATIONS--QUARTER ENDED SEPTEMBER 30, 1996
The Company's sales for the quarter ended September 30, 1996 were $7.0
million, a 20.4% increase over sales of $5.9 million for the comparable
quarter in 1995. Operating income for the third quarter of 1996 was $1.1
million, a 42.4% increase over the same quarter in 1995 of $790,000.
For the nine months ended September 30, 1996, sales increased 18.4% to $19.4
million from $16.4 million for the comparable period in 1995. Operating income
for the nine months ended September 30, 1996 was $3.2 million, compared to
$2.1 million for the comparable period in 1995, a 49.6% increase.
Third quarter revenues from the Company's Year 2000 services increased to
$2.2 million, a 128.6% increase over the previous quarter. Revenues from the
Company's transitional outsourcing services (software development, application
maintenance and migration, and re-engineering services) were $3.5 million for
the third quarter of 1996.
Professional services revenues for the third quarter of 1996 were $815,000
or 53.9% less than professional services revenues of $1.8 million for the
third quarter of 1995 as the Company's resources were reallocated from short-
term, time-and-materials contract programming projects to multi-year, turnkey
Year 2000 and application maintenance engagements.
During November 1996, the Company acquired an additional 18.4% of IMR-India,
increasing its ownership of IMR-India to 63.1%. Subject to approval of the
Reserve Bank of India, the Company has an agreement to acquire an additional
35.1% of IMR-india, which will increase the Company's total ownership of IMR-
India to 98.2%.
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INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(IN THOUSANDS)
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<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1996 1995
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(UNAUDITED)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents..................... $ 352 $1,621
Accounts receivable........................... 4,550 2,906
Costs and estimated earnings in excess of
billings on uncompleted contracts............ 831 708
Other current assets.......................... 798 460
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Total current assets........................ 6,531 5,695
Property and equipment, net of accumulated de-
preciation..................................... 3,224 1,699
Capitalized software costs, net of accumulated
amortization................................... 664 549
Deposits and other assets....................... 836 264
Goodwill, net of accumulated amortization....... 1,653 451
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Total assets................................. $12,908 $8,658
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Revolving credit loans........................ $ 1,659 $ 655
Current portion of long-term debt............. 899 460
Notes payable--shareholder.................... -- 242
Accounts payable.............................. 1,356 490
Deferred revenue.............................. 1,146 17
Accrued expenses.............................. 1,769 1,485
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Total current liabilities.................... 6,829 3,349
Long-term debt.................................. 660 1,132
Notes payable--shareholder.................... -- 107
Deferred income taxes......................... 72 38
Other liabilities............................. 79 83
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Total liabilities............................ 7,640 4,709
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Minority interest............................... 1,728 1,241
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SHAREHOLDERS' EQUITY:
Preferred Stock............................... -- --
Common stock.................................. 640 906
Additional paid-in capital.................... -- 1,167
Retained earnings............................. 3,017 706
Cumulative foreign currency translation ad-
justments.................................... (117) (62)
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3,540 2,717
Less Treasury stock........................... -- (9)
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Total shareholders' equity................... 3,540 2,708
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Total liabilities and shareholders' equity... $12,908 $8,658
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INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
( IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Revenues............................. $ 7,048 $ 5,853 $ 19,445 $ 16,428
Cost of revenues..................... 4,106 3,607 11,328 10,360
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Gross Profit......................... 2,942 2,246 8,117 6,068
Selling, general and administrative
expenses............................ 1,817 1,456 4,909 3,924
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Income from operations............... 1,125 790 3,208 2,144
Other (expense) income............... (36) (105) (164) 75
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Income before provision for income
taxes and minority interest......... 1,089 685 3,044 2,219
Provision (benefit) for income taxes. 42 (22) 157 176
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Income before minority interest...... 1,047 707 2,887 2,043
Minority interest in net (income)
loss................................ (166) 89 (497) (266)
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Net income........................... $ 881 $ 796 $ 2,390 $ 1,777
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PRO FORMA INCOME DATA:
Income before provision for income
taxes and minority interest....... $ 1,089 $ 685 $ 3,044 $ 2,219
Pro forma provision for income tax-
es................................ 332 253 1,012 796
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Pro forma net income before minor-
ity interest...................... 757 432 2,032 1,423
Pro forma minority interest in net
(income) loss..................... (166) 89 (497) (266)
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Pro forma net income............... $ 591 $ 521 $ 1,535 $ 1,157
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Pro forma net income per share..... $ .05 $ .04 $ .14 $ .08
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Weighted average common and common
stock equivalent shares
outstanding....................... 11,255 1 4,202 11,336 14,175
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