International Monetary Systems Files 3rd Quarter Report
NEW BERLIN, Wis., Nov. 9, 2012 /PRNewswire/ -- International Monetary Systems, Ltd. (OTCBB: ITNM), a worldwide leader in business-to-business barter services, has recently filed its third quarter report on Form 10-Q.
RESULTS OF OPERATIONS
HIGHLIGHTS
Operations
Revenue increased 4.2% in the first three quarters of 2012 compared to the same period in 2011.
Income from operations increased to $334,730 in the first three quarters of 2012 compared to an operating income of $149,378 in the first three quarters of 2011.
The Company has completed the sale of two franchise territories during the year, with a third sale to be completed in the fourth quarter. They are not expected to materially affect the Company's results of operations for the next twelve months.
Return to Shareholders
During the nine months ended September 30, 2012, 815,668 shares of the Company's stock have been repurchased under the Company's stock buyback plan and stock buyback guarantees.
During the nine months ended September 30, 2012, 624,385 shares of treasury stock were retired.
CURRENT QUARTER
During the quarter ended September 30, 2012 International Monetary Systems ("IMS" or "the Company") generated revenues of $3,256,392, an increase of $51,606 or 1.6%, compared to the third quarter of 2011.
Operating expenses in the quarter were $3,134,982 an increase of $119,498 or 3.9% compared to the third quarter of 2011. This increase is primarily due to increased employee costs, including staff costs in offices acquired in 2011, higher variable compensation tied to higher revenue, and expansion of the Company's tele-selling staff.
The Company generated operating income of $121,410 for the third quarter, compared to $189,302 in 2011. After adjusting for interest and income taxes, the net income for the quarter was $25,256 compared to net income of $105,490 in the third quarter of 2011. Interest expense has increased as the Company services the increased debt load taken on strategically to fund the stock buyback program expanded in 2011.
EBITDA for the three months ended September 30, 2012 and 2011 were as follows:
| Adjustments to Reconcile GAAP Net Income to EBITDA
|
||||||||
| 2012 |
2011 |
|||||||
| Net income |
$ |
25,256 |
$ |
105,490 |
||||
| Interest expense |
82,253 |
63,348 |
||||||
| Income tax expense |
11,438 |
20,098 |
||||||
| Depreciation and amortization |
371,977 |
409,909 |
||||||
| EBITDA |
$ |
490,924 |
$ |
598,845 |
||||
YEAR TO DATE
During the nine months ended September 30, 2012 International Monetary Systems ("IMS" or "the Company") generated revenues of $9,913,249, an increase of $396,482 or 4.2%, compared to the first nine months of 2011. This is the result of a 3.6% increase in transactions processed, attributable in part to our 2011 acquisitions.
Operating expenses for the first nine months were $9,578,519 an increase of $211,130 or 2.2% compared to first nine months of 2011. This increase is primarily due to increased employee costs, including staff costs in offices acquired in 2011, higher variable compensation tied to higher revenue, and expansion of the Company's tele-selling staff.
The Company generated operating income of $334,730 year to date, compared to operating income of $149,378 in 2011. After adjusting for interest and income taxes, the net income for the first nine months of 2012 was $79,068 compared to a net loss of $1,869 for the same period in 2011. Interest expense has increased as the Company services the increased debt load taken on strategically to fund the stock buyback program expanded in 2011.
EBITDA for the nine months ended September 30, 2012 and 2011 were as follows:
| Adjustments to Reconcile GAAP Net Income to EBITDA
|
||||||||
| 2012 |
2011 |
|||||||
| Net income (loss) |
$ |
79,068 |
$ |
(1,869) |
||||
| Interest expense |
246,994 |
160,971 |
||||||
| Income tax expense (benefit) |
12,542 |
(9,949) |
||||||
| Depreciation and amortization |
1,150,855 |
1,228,623 |
||||||
| EBITDA |
$ |
1,489,459 |
$ |
1,377,776 |
||||
| INTERNATIONAL MONETARY SYSTEMS, LTD.
|
||||||||
| September 30, 2012 |
December 31, 2011 |
|||||||
| (UNAUDITED) |
||||||||
| ASSETS |
||||||||
| Current assets |
||||||||
| Cash |
$ |
968,207 |
$ |
1,018,250 |
||||
| Restricted cash |
- |
206,956 |
||||||
| Marketable securities |
193,145 |
162,323 |
||||||
| Accounts receivable, net |
723,219 |
1,006,278 |
||||||
| Earned trade account |
388,577 |
210,582 |
||||||
| Prepaid expenses |
167,985 |
188,715 |
||||||
| Total current assets |
2,441,133 |
2,793,104 |
||||||
| Other assets |
||||||||
| Property and equipment, net |
660,015 |
651,118 |
||||||
| Membership lists and other intangibles, net |
4,729,720 |
5,718,435 |
||||||
| Goodwill |
3,507,522 |
3,507,522 |
||||||
| Assets held for investment |
163,061 |
169,031 |
||||||
| Total non-current assets |
9,060,318 |
10,046,106 |
||||||
| Total assets |
$ |
11,501,451 |
$ |
12,839,210 |
||||
| LIABILITIES |
||||||||
| Current liabilities |
||||||||
| Accounts payable and accrued expenses |
$ |
1,008,236 |
$ |
1,091,823 |
||||
| Credit lines, short term notes, and current portion of long term debt |
1,396,894 |
1,009,897 |
||||||
| Current portion of notes payable to related parties, including short term note |
346,797 |
90,000 |
||||||
| Common stock subject to guarantee |
75,000 |
418,495 |
||||||
| Total current liabilities |
2,826,927 |
2,610,215 |
||||||
| Long-term liabilities |
||||||||
| Long term debt, net of current portion |
1,982,223 |
2,159,434 |
||||||
| Notes payable related parties, net of current portion |
213,816 |
275,000 |
||||||
| Deferred compensation |
291,000 |
290,000 |
||||||
| Deferred income taxes |
768,748 |
1,015,325 |
||||||
| Total long-term liabilities |
3,255,787 |
3,739,759 |
||||||
| Total liabilities |
6,082,714 |
6,349,974 |
||||||
| 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, and 7,482,632 and 8,097,020 issued and outstanding at September 30, 2012 and December 31, 2011 respectively |
749 |
810 |
||||||
| Paid in capital |
7,752,316 |
9,137,003 |
||||||
| Treasury stock, 97,313 shares at September 30, 2012 and 172,703 shares at December 31, 2011 |
(134,594) |
(351,614) |
||||||
| Accumulated other comprehensive income |
36,776 |
18,615 |
||||||
| Accumulated deficit |
(2,236,510) |
(2,315,578) |
||||||
| Total stockholders' equity |
5,418,737 |
6,489,236 |
||||||
| Total liabilities and stockholders' equity |
$ |
11,501,451 |
$ |
12,839,210 |
||||
| INTERNATIONAL MONETARY SYSTEMS, LTD.
|
||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||||||||
| Net revenue |
$ |
3,256,392 |
$ |
3,204,786 |
$ |
9,913,249 |
$ |
9,516,767 |
||||||||
| Operating expenses: |
||||||||||||||||
| Employee costs |
1,943,879 |
1,879,594 |
5,940,971 |
5,681,577 |
||||||||||||
| Selling, general and administrative |
819,126 |
725,981 |
2,486,693 |
2,457,189 |
||||||||||||
| Depreciation and amortization |
371,977 |
409,909 |
1,150,855 |
1,228,623 |
||||||||||||
| Total operating expenses |
3,134,982 |
3,015,484 |
9,578,519 |
9,367,389 |
||||||||||||
| Income from operations |
121,410 |
189,302 |
334,730 |
149,378 |
||||||||||||
| Other income(expense) |
||||||||||||||||
| Interest income |
137 |
43 |
802 |
184 |
||||||||||||
| Gain (Loss) on sales of assets |
(2,600) |
(409) |
3,072 |
(409) |
||||||||||||
| Interest expense |
(82,253) |
(63,348) |
(246,994) |
(160,971) |
||||||||||||
| Total other income (expense) |
(84,716) |
(63,714) |
(243,120) |
(161,196) |
||||||||||||
| Income (loss) before income taxes |
36,694 |
125,588 |
91,610 |
(11,818) |
||||||||||||
| Income tax (expense) benefit |
(11,438) |
(20,098) |
(12,542) |
9,949 |
||||||||||||
| Net income (loss) |
25,256 |
105,490 |
79,068 |
(1,869) |
||||||||||||
| Components of comprehensive income (loss): |
||||||||||||||||
| Foreign currency translation adjustment |
989 |
(13,267) |
(5,974) |
(6,700) |
||||||||||||
| Unrealized gain on available for sale securities |
9,937 |
(23,914) |
24,136 |
(18,318) |
||||||||||||
| Comprehensive income (loss) |
$ |
36,182 |
$ |
68,309 |
$ |
97,230 |
$ |
(26,887) |
||||||||
| Net income (loss) per |
||||||||||||||||
| common share – basic |
$ |
.00 |
$ |
.01 |
$ |
.01 |
$ |
(.00) |
||||||||
| - dilutive |
$ |
.00 |
$ |
.01 |
$ |
.01 |
$ |
(.00) |
||||||||
| Weighted average common |
||||||||||||||||
| shares outstanding – basic |
7,721,790 |
8,949,610 |
7,971,030 |
9,849,885 |
||||||||||||
| - dilutive |
7,721,790 |
10,273,087 |
7,971,030 |
9,849,885 |
||||||||||||
About International Monetary Systems
Founded in 1985, International Monetary Systems (IMS) serves 21,000 cardholders in 53 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.
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 November 9, 2012, and International Monetary Systems, Ltd. undertakes no duty to update this information.
Contact:
International Monetary Systems, Ltd., New Berlin, WI
Company Contact:
John Strabley – CEO.
(800) 559-8515
SOURCE International Monetary Systems, Ltd.
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