International Monetary Systems files 1st Quarter Report

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International Monetary Systems, Ltd.

May 09, 2011, 12:48 ET

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.