International Monetary Systems files 1st Quarter Report
NEW BERLIN, Wis., May 9, 2011 /PRNewswire/ -- International Monetary Systems, Ltd. (OTCBB: ITNM), a worldwide leader in business-to-business barter services, recently filed its 2011 first quarter report on form 10-Q.
HIGHLIGHTS
During the three months ended March 31, 2011, International Monetary Systems (IMS) offset a slowing of revenue with the benefits of the substantial reductions in overhead that the Company had worked so hard to achieve over the past year. Some highlights are:
- The Company completed the purchase of a trade exchange in Peterborough Ontario, adding approximately 450 members. It is expected that the added office will be immediately accretive.
- Selling, general and administrative costs were reduced by $292,588, or 25.3%. This decrease includes the $57,001 of unusual legal costs as well as lower occupancy costs and other professional fees incurred in 2010, which did not recur in 2011.
- At its February 10, 2011 meeting, the board of directors approved the repurchase of an additional 4% of the company's outstanding shares.
- 57,467 shares of the Company's stock were repurchased during the quarter and placed in treasury.
- A number of markets, including New York City, Wichita Kansas, and Columbus, Ohio, have shown double-digit percentage growth in cash fee revenue so far in 2011.
- Since December 31, 2010, total liabilities were reduced by $440, 476.
CURRENT QUARTER
During the quarter ended March 31, 2011 International Monetary Systems generated gross revenues of $2,978,842, a decrease of $240,890 or 7.5%, compared to the first quarter of 2010. Only $10,000 of this decrease is in cash revenue. The remaining $230,000 decrease is in trade dollar revenue, with $100,000 of that amount due to a large non-recurring 2010 transaction in our media/corporate barter division.
Operating expenses in the quarter were $3,201,178, a decrease of $277,758 or 7.9% compared to the first quarter of 2010. This decrease is primarily due to decreased occupancy, professional fees, and investor relations' costs.
The net operating loss was $222,336 for the quarter, compared to a net operating loss of $259,204 in the first quarter of 2010.
After adjusting for interest and income taxes, there was a net loss for the current period of $184,555 compared to a net loss of $320,762 in the first quarter of 2010.
EBITDA for the quarters ended March 31, 2011 and 2010 were as follows:
Adjustments to Reconcile GAAP Net (Loss) to EBITDA | |||
2011 | 2010 | ||
Net (loss) | $ (184,555) | $ (320,762) | |
Interest expense | 45,118 | 50,861 | |
Income tax expense (benefit) | (82,781) | 10,735 | |
Depreciation | 77,663 | 73,013 | |
Amortization | 331,146 | 333,969 | |
EBITDA | $ 186,591 | $ 147,816 | |
INTERNATIONAL MONETARY SYSTEMS, LTD. CONSOLIDATED BALANCE SHEETS | |||||
March 31, 2011 | December 31, 2010 | ||||
(UNAUDITED) | |||||
ASSETS | |||||
Current assets | |||||
Cash | $ 592,429 | $ 804,108 | |||
Restricted cash | 161,848 | 41,829 | |||
Marketable securities | 171,572 | 157,014 | |||
Accounts receivable, net | 903,386 | 1,075,965 | |||
Earned trade account | 210,974 | 285,282 | |||
Prepaid expenses | 168,742 | 184,513 | |||
Total current assets | 2,208,951 | 2,548,711 | |||
Other assets | |||||
Property and equipment, net | 713,761 | 727,549 | |||
Membership lists, net | 6,507,728 | 6,826,464 | |||
Goodwill | 3,455,722 | 3,435,479 | |||
Assets held for investment | 180,582 | 179,181 | |||
Total non-current assets | 10,857,793 | 11,168,673 | |||
Total assets | $ 13,066,744 | $ 13,717,384 | |||
LIABILITIES | |||||
Current liabilities | |||||
Accounts payable and accrued expenses | $ 973,286 | $ 1,294,213 | |||
Credit lines and current portion of long term debt | 598,014 | 465,120 | |||
Current portion of common stock subject to guarantee | 640,000 | 640,000 | |||
Total current liabilities | 2,211,300 | 2,399,333 | |||
Long-term liabilities | |||||
Long term debt, net of current portion | 1,325,087 | 1,491,377 | |||
Common stock subject to guarantee, less current portion | 163,500 | 178,500 | |||
Convertible notes payable, related parties, less current portion | 120,000 | 120,000 | |||
Deferred compensation | 290,000 | 290,000 | |||
Deferred income taxes | 1,265,751 | 1,336,904 | |||
Total long-term liabilities | 3,164,338 | 3,416,781 | |||
Total liabilities | 5,375,638 | 5,816,114 | |||
Commitments and Contingencies | |||||
STOCKHOLDERS’ EQUITY | |||||
Preferred stock, $.0001 par value, 20,000,000 authorized, 0 outstanding | - | - | |||
Common stock, $.0001 par value 280,000,000 authorized, 10,544,800 | |||||
issued and outstanding March 31, 2011 and December 31, 2010 | 1,050 | 1,050 | |||
Paid in capital | 13,557,436 | 13,542,436 | |||
Treasury stock, 961,516 and 904,049 shares respectively | (3,221,911) | (3,170,571) | |||
Accumulated other comprehensive income (loss) | 26,849 | 16,118 | |||
Accumulated deficit | (2,672,318) | (2,487,763) | |||
Total stockholders’ equity | 7,691,106 | 7,901,270 | |||
Total liabilities and stockholders’ equity | $ 13,066,744 | $ 13,717,384 | |||
INTERNATIONAL MONETARY SYSTEMS, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||
Three Months Ended March 31, | |||||
2011 | 2010 | ||||
Net revenue | $ 2,978,842 | $ 3,219,732 | |||
Operating Expenses | |||||
Employee costs | 1,926,708 | 1,913,705 | |||
Selling, general and administrative | 865,661 | 1,101,248 | |||
Depreciation and amortization | 408,809 | 406,982 | |||
Unusual items cost of legal settlements | - | 57,001 | |||
Total operating expenses | 3,201,178 | 3,478,936 | |||
Income (loss) from operations | (222,336) | (259,204) | |||
Other income (expense) | |||||
Interest income | 118 | 38 | |||
Interest expense | (45,118) | (50,861) | |||
Total other income (expense) | (45,000) | (50,823) | |||
(Loss) before income taxes | (267,336) | (310,027) | |||
Income tax (expense) benefit | 82,781 | (10,735) | |||
Net (loss) | $ (184,555) | $ (320,762) | |||
Net income (loss) per | |||||
common share – basic | $ (.02) | $ (.03) | |||
– dilutive | $ (.02) | $ (.03) | |||
Weighted average common | |||||
shares outstanding – basic | 10,544,800 | 10,370,078 | |||
– dilutive | 10,544,800 | 10,370,078 | |||
About International Monetary Systems
Founded in 1985, International Monetary Systems (IMS) serves 23,000 cardholders in 50 North American markets. Based in New Berlin, Wisconsin, and managed by seasoned industry veterans, IMS is one of the largest publicly traded barter companies in the world. The company's proprietary transaction clearing software enables businesses and individuals to trade goods and services online using an electronic currency known as trade dollars. The IMS network allows companies to create cost savings and connect to new customers by incorporating barter opportunities in their business models. Further information can be obtained at the company's Web site at: www.imsbarter.com.
Forward-Looking Statement
This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance as described without limitation in comments about the company's performance within the safe harbor provisions established under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of our future performance. We believe that these potential risks and uncertainties include, without limitation: the continuing development of successful marketing strategies for our concepts; our ability to increase revenues and sustain profitability; the availability of adequate working capital; our dependence both on key personnel, and the effect of changes in the overall economy and in technology. Statements in this release should be evaluated in light of these factors. These risk factors and other important factors that could affect our business and financial results are discussed in our periodic reports and filings with the Securities and Exchange Commission, including our Forms 10-K and Forms 10-Q, which are available at www.sec.gov. All information set forth in this release is as of May 6, 2011, and International Monetary Systems, Ltd. undertakes no duty to update this information.
Contact:
International Monetary Systems, Ltd., New Berlin, WI
Company Contact:
John Strabley – Executive V.P.
(800) 559-8515
SOURCE International Monetary Systems, Ltd.
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