ITEX Announces Results for Fiscal Year 2011

Oct 18, 2011, 06:30 ET from ITEX Corporation

BELLEVUE, Wash., Oct. 18, 2011 /PRNewswire/ -- ITEX Corporation (OTCBB: ITEX), The Membership Trading Community(SM), a leading marketplace for cashless business transactions in North America, today filed its Form 10-K with the Securities and Exchange Commission and announced results for its fourth quarter and fiscal year ended July 31, 2011.

"ITEX continues to execute sound strategy, ending the year in the best financial condition in its history. This is a significant accomplishment considering the lingering frail economy, the distractions and expense associated with a proxy contest and the defense and positive resolution of a longstanding litigation matter initiated over a 1999 contract dispute. As we have done in the previous eight years during my tenure as CEO, we minimized external distractions and focused on our business strategies and goals.  As a result, ITEX continues to be the leader in our industry and our strong financial condition allowed us to pay quarterly stock dividends, continue our stock repurchase plan, invest in our technology and Broker Network, and to make acquisitions," stated Steven White, Chairman and CEO.

Mr. White concluded, "It has taken a lot of hard work by our experienced, cohesive team and astute management of our resources and assets to get us where we are today. We have now completed eight consecutive years of profitable operations, returned $2.23 million to stockholders in the form of stock buybacks and dividend payments, and positioned ourselves with liquidity and flexibility in having $5.38 million in cash on the balance sheet."

Fiscal Year 2011 Highlights

  • Revenue of $16,424,000;
  • Income before income taxes of $1,252,000;
  • Cash at end of the fiscal year of $5,386,000;
  • Earnings per share of $0.19;
  • Increased our revolving credit facility to $3 million;
  • Paid four consecutive quarterly cash dividends, totaling $541,000;
  • Repurchased and retired 94,000 shares of common stock for $421,000;
  • Acquired membership lists from three commercial trade exchanges.

About ITEX

ITEX, The Membership Trading Community(SM), is a leading marketplace for cashless business transactions. Members increase sales through an exclusive distribution channel managed by our broker and franchise network, by utilizing ITEX dollars to exchange goods and services.  We generate revenue by charging members percentage-based transaction fees and association fees. ITEX is headquartered in Bellevue, WA.  We routinely post important information on the investor relations portion of our website.  For more information, please visit www.itex.com.

ITEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)


Year End July 31


2011


2010

ASSETS




Current assets:




    Cash

$                  5,386


$                5,169

    Accounts receivable, net of allowance of $354 and $349

805


859

    Prepaid expenses

131


118

    Loans and advances

10


55

    Prepaid advertising credits

60


157

    Deferred tax asset, net of allowance of $22 and $0

798


1,018

    Notes receivable - corporate office sales

180


125

    Other current assets

6


24

Total current assets

7,376


7,525





Property and equipment, net of accumulated depreciation of $468 and $380

89


169

Intangible assets, net of amortization of $2,691 and $2,205

855


994

Deferred tax asset, net of allowance of $130 and $0 and net of current portion

4,681


5,000

Notes receivable - corporate office sales, net of current portion

729


480

Other long-term assets

25


188

Goodwill

3,266


3,282

              Total assets

$                17,021


$              17,638





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$                       76


$                   124

Commissions payable to brokers

669


661

Accrued commissions to brokers

785


789

Accrued expenses

545


705

Deferred revenue

47


133

Advance payments

133


167

Total current liabilities

2,255


2,579





Long-term liabilities:




      Other long-term liabilities

8


190

Total Liabilities

2,263


2,769





Commitments and contingencies








Stockholders’ equity:




Common stock, $0.01 par value; 9,000 shares authorized; 3,646 and 3,576 shares issued and outstanding, respectively

36


36

Additional paid-in capital

28,867


29,138

Accumulated deficit

(14,145)


(14,305)

Total stockholders' equity

14,758


14,869

               Total liabilities and stockholders’ equity

$                17,021


$              17,638







ITEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)


Year End July 31


2011


2010

Revenue




       Marketplace revenue and other revenue

$             16,424


$        16,925





Cost and expenses:




Costs of marketplace revenue

10,159


10,777

Corporate salaries, wages and employee benefits

2,001


1,850

Selling, general and administrative

2,573


1,980

Depreciation and amortization

588


644


15,321


15,251





Income from operations

1,103


1,674





Other income/(expense):




      Interest, net

50


42

      Other expense, net

99


(159)


149


(117)





Income before income taxes

1,252


1,557

      Provision for income taxes

551


611

Net income

$                  701


$             946





Net income per common share:




Basic

$                 0.19


$            0.26

Diluted

$                 0.19


$            0.26





Weighted average shares outstanding:




Basic

3,604


3,572

Diluted

3,648


3,577



Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance (as described without limitation in the quotations from current management in this release) and comments 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:  our revenue growth and success being tied to the operations of our broker network; our future revenue growth remaining uncertain; adverse effects of a proxy fight and related litigation;  our brokers taking actions that could harm our business or our reputation; our failure to deal effectively with member disputes; our business being subject to online security risks; our brokers defaulting on their loans; unplanned system interruptions or system failures; claims and lawsuits against us that may result in adverse outcomes; 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. ITEX undertakes no duty to update or revise any forward-looking statements.

SOURCE ITEX Corporation



RELATED LINKS

http://www.itex.com