ITEX Announces Results for Third Quarter of Fiscal Year 2013

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Jun 13, 2013, 09:15 ET

BELLEVUE, Wash., June 13, 2013 /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-Q with the Securities and Exchange Commission and announced results for its fiscal 2013 third quarter ended April 30, 2013.

Third Quarter 2013 Highlights (Results Compared to Third Quarter 2012)

Income from operations increased 9% to $354,000 compared to $324,000
Earnings per share increased 43% to $0.10 compared to $0.07
Revenue declined 8% to $3.475 million compared to $3.787 million
Selling, general and administrative expenses decreased 21% to $345,000 from $435,000
Quarterly cash dividend increased 25% to $0.05 per share
During the nine-month period ended April 30, 2013, the Company repurchased and cancelled 23,763 shares of common stock

Subsequent Events

On May 31, 2013, the board declared a quarterly cash dividend of $0.05 per share payable on June 20, 2013.

On May 14, 2013, a new look and refresh of www.itex.com launched.

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)

	April 30, 2013	July 31, 2012
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$ 2,687	$ 1,942
Accounts receivable, net of allowance of $301 and $319	1,127	716
Prepaid expenses	131	98
Loans and advances	32	12
Prepaid advertising credits	-	3
Deferred tax asset, net of allowance of $23 and $23	603	603
Notes receivable	355	334
Other current assets	85	47
Total current assets	5,020	3,755

Property and equipment, net of accumulated depreciation of $419 and $425	64	43
Goodwill	3,191	3,191
Deferred tax asset, net of allowance of $163 and $163, and net of current portion	3,854	4,293
Intangible assets, net of accumulated amortization of $3,121 and $2,945	306	525
Notes receivable, net of current portion	1,149	1,285
Other long-term assets	19	19
Total assets	$ 13,603	$ 13,111

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and other expenses payable	$ 111	$ 85
Commissions payable to brokers	-	654
Accrued commissions to brokers	1,334	842
Accrued expenses	382	412
Deferred revenue	27	32
Advance payments	102	136
Notes payable	7	-
Total current liabilities	1,963	2,161

Long-term liabilities:
Other long-term liabilities	7	10
Notes payable - net of current portion	5	-
Total Liabilities	1,975	2,171

Commitments and contingencies

Stockholders' equity:
Common stock, $0.01 par value; 9,000 shares authorized; 2,638 and 2,614 shares issued and outstanding, respectively	26	26
Additional paid-in capital	25,316	25,183
Stockholder Note Receivable	(414)	(489)
Accumulated deficit	(13,300)	(13,780)
Total stockholders' equity	11,628	10,940
Total liabilities and stockholders' equity	$ 13,603	$ 13,111

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

		Three-Months Ended April 30,		Nine-Months Ended April 30,
		2013	2012	2013	2012

Revenue:
	Marketplace revenue and other revenue	$ 3,475	$ 3,787	$ 11,146	$ 11,986

Costs and expenses:
	Cost of Marketplace revenue	2,171	2,445	7,083	7,763
	Corporate salaries, wages and employee benefits	539	509	1,501	1,481
	Selling, general and administrative	345	435	1,179	1,655
	Depreciation and amortization	66	74	197	239
		3,121	3,463	9,960	11,138

Income from operations		354	324	1,186	848

Other income (expense)
	Interest, net	25	25	85	75
	Other income/(expense), net	(1)	-	(1)	312
		24	25	84	387

Income before income taxes		378	349	1,270	1,235

	Income tax expense	120	119	406	421

Net income		$ 258	$ 230	$ 864	$ 814

Net income per common share:
	Basic	$ 0.10	$ 0.07	$ 0.33	$ 0.23
	Diluted	$ 0.10	$ 0.07	$ 0.33	$ 0.23

Weighted average shares outstanding
	Basic	2,619	3,486	2,617	3,590
	Diluted	2,622	3,488	2,620	3,591