ITEX Announces Results for Fiscal Year 2012
BELLEVUE, Wash., Oct. 23, 2012 "Fiscal 2012 was a good year on a number of fronts – organic growth in our primary revenue streams, the reduction of our SG&A expenses by 13 percent, the return of cash to stockholders through quarterly dividends and a tender offer in which approximately 27 percent of our common stock was repurchased, and the launch of our social media presence," stated Steven White, Chairman and CEO.
Mr. White concluded, "Even with the disruption and expense caused by a proxy contest and related litigation, we completed our ninth consecutive year of profitable operations, returning approximately $5.2 million to stockholders in the form of stock buybacks and dividend payments, while maintaining a strong balance sheet with $1.94 million in cash and no long-term debt."
Fiscal Year 2012 Highlights
- Revenue of $15,786,000
- Income before income taxes of $1,524,000
- Cash at end of the fiscal year of $1,942,000
- Four quarterly cash dividends, returning $604,000 or $0.16 per share to shareholders
- Repurchased and retired 1,090,000 shares of common stock returning $4,574,000 to shareholders
- Earnings per share of $0.29
About ITEX
ITEX, The Membership Trading CommunitySM, 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) |
|||
| Year End July 31 |
|||
| 2012 |
2011 |
||
| ASSETS |
|||
| Current assets: |
|||
| Cash |
$ 1,942 |
$ 5,386 |
|
| Accounts receivable, net of allowance of$319 and $354 |
716 |
805 |
|
| Prepaid expenses |
98 |
131 |
|
| Loans and advances |
12 |
10 |
|
| Prepaid advertising credits |
3 |
60 |
|
| Deferred tax asset, net of allowance of $23 and $22 |
603 |
798 |
|
| Notes receivable |
334 |
180 |
|
| Other current assets |
47 |
6 |
|
| Total current assets |
3,755 |
7,376 |
|
| Property and equipment, net of accumulated depreciation of $425 and $468 |
43 |
89 |
|
| Goodwill |
3,191 |
3,266 |
|
| Deferred tax asset, net of allowance of $163 and $130 and net of current portion |
4,293 |
4,681 |
|
| Intangible assets, net of amortization of $2,945 and $2,691 |
525 |
855 |
|
| Notes receivable - net of current portion |
1,285 |
729 |
|
| Other long-term assets |
19 |
25 |
|
| Total assets |
$ 13,111 |
$ 17,021 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 85 |
$ 76 |
|
| Commissions payable to brokers |
654 |
669 |
|
| Accrued commissions to brokers |
842 |
785 |
|
| Accrued expenses |
412 |
545 |
|
| Deferred revenue |
32 |
47 |
|
| Advance payments |
136 |
133 |
|
| Total current liabilities |
2,161 |
2,255 |
|
| Long-term liabilities: |
|||
| Other long-term liabilities |
10 |
8 |
|
| Total Liabilities |
2,171 |
2,263 |
|
| Commitments and contingencies |
|||
| Stockholders' equity: |
|||
| Common stock, $0.01 par value; 9,000 shares authorized; |
26 |
36 |
|
| Additional paid-in capital |
25,183 |
29,452 |
|
| Stockholder note receivable |
(489) |
(585) |
|
| Accumulated deficit |
(13,780) |
(14,145) |
|
| Total stockholders' equity |
10,940 |
14,758 |
|
| Total liabilities and stockholders' equity |
$ 13,111 |
$ 17,021 |
|
| ITEX CORPORATION |
|||
| CONSOLIDATED STATEMENTS OF INCOME |
|||
| (In thousands, except per share amounts) |
|||
| Year End July 31 |
|||
| 2012 |
2011 |
||
| Revenue |
|||
| Marketplace revenue and other revenue |
$ 15,786 |
$ 16,424 |
|
| Cost and expenses: |
|||
| Costs of marketplace revenue |
10,165 |
10,159 |
|
| Corporate salaries, wages and employee benefits |
1,977 |
2,001 |
|
| Selling, general and administrative |
2,226 |
2,573 |
|
| Depreciation and amortization |
308 |
588 |
|
| 14,676 |
15,321 |
||
| Income from operations |
1,110 |
1,103 |
|
| Other income/(expense): |
|||
| Interest, net |
102 |
50 |
|
| Other expense, net |
312 |
99 |
|
| 414 |
149 |
||
| Income before income taxes |
1,524 |
1,252 |
|
| Income tax expense |
555 |
551 |
|
| Net income |
$ 969 |
$ 701 |
|
| Net income per common share: |
|||
| Basic |
$ 0.29 |
$ 0.19 |
|
| Diluted |
$ 0.29 |
$ 0.19 |
|
| Weighted average shares outstanding: |
|||
| Basic |
3,344 |
3,604 |
|
| Diluted |
3,345 |
3,648 |
|
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance 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 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, which are available at www.sec.gov. ITEX undertakes no duty to update or revise any forward-looking statements.
SOURCE ITEX Corporation
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