International Monetary Systems Files 1st Quarter Report
NEW BERLIN, Wis., May 7, 2012 /PRNewswire/ -- International Monetary Systems, Ltd. (OTCBB: ITNM), a worldwide leader in business-to-business barter services, has recently filed its first quarter report on Form 10-Q.
Don Mardak, IMS' Chairman of the Board, stated, "Historically, the first quarter is the slowest quarter of our year. In the three months ending March 31, 2012, however, IMS showed a nice year-to-year increase in trading activity and the resulting net revenue. The company also had a small profit from operations. This compares to operating losses for the same period in most recent years. We believe this result is a good indicator for the balance of 2012."
HIGHLIGHTS
Operations
Revenue increased 9.7% in the first quarter of 2012, compared to the first quarter of 2011.
Cash provided by operations was $149,307 in the first three months of 2012, compared to cash provided by operations of $94,832 for the same period in 2011.
Return to Shareholders
During the first quarter of 2012, 346,804 shares of the Company's stock have been repurchased under the Company's stock buyback plan and stock buyback guarantees.
CURRENT QUARTER
During the quarter ended March 31, 2012, International Monetary Systems ("IMS" or "the Company") generated revenues of $3,266,779, an increase of $287,934 or 9.7%, compared to the first quarter of 2011. This is the result of a 9.5% increase in transactions processed, attributable in part to our 2011 acquisitions.
Operating expenses in the quarter were $3,254,606 an increase of $53,426 or 1.7% compared to the first 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 $12,173 for the first quarter, compared to an operating loss of $(222,336) in the first quarter of 2011. After adjusting for interest and income taxes, the net loss for the quarter narrowed from $(184,555) in the first quarter of 2011 to $(44,883) in the first quarter of 2012. 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 quarters ended March 31, 2012 and 2011 were as follows:
| Adjustments to Reconcile GAAP Net Income to EBITDA
|
||||||||
| 2012 |
2011 |
|||||||
| Net (loss) |
$ |
(44,883) |
$ |
(184,555) |
||||
| Interest expense |
80,701 |
45,118 |
||||||
| Income tax expense (benefit) |
(23,074) |
(82,781) |
||||||
| Depreciation and amortization |
388,678 |
408,809 |
||||||
| EBITDA |
$ |
401,422 |
$ |
186,591 |
||||
|
INTERNATIONAL MONETARY SYSTEMS, LTD. CONSOLIDATED BALANCE SHEETS
|
||||||||
| March 31 ,2012 |
December 31, 2011 |
|||||||
| (UNAUDITED) |
||||||||
| ASSETS |
||||||||
| Current assets |
||||||||
| Cash |
$ |
746,295 |
$ |
1,018,250 |
||||
| Restricted cash |
- |
206,956 |
||||||
| Marketable securities |
186,040 |
162,323 |
||||||
| Accounts receivable, net |
830,809 |
1,006,278 |
||||||
| Earned trade account |
277,097 |
210,582 |
||||||
| Prepaid expenses |
186,052 |
188,715 |
||||||
| Total current assets |
2,226,293 |
2,793,104 |
||||||
| Other assets |
||||||||
| Property and equipment, net |
666,987 |
651,118 |
||||||
| Membership lists and other intangibles, net |
5,389,316 |
5,718,435 |
||||||
| Goodwill |
3,507,522 |
3,507,522 |
||||||
| Assets held for investment |
170,936 |
169,031 |
||||||
| Total non-current assets |
9,734,761 |
10,046,106 |
||||||
| Total assets |
$ |
11,961,054 |
$ |
12,839,210 |
||||
| LIABILITIES |
||||||||
| Current liabilities |
||||||||
| Accounts payable and accrued expenses |
$ |
906,677 |
$ |
1,091,823 |
||||
| Credit lines, short term notes, and current portion of long term debt |
1,164,146 |
1,009,897 |
||||||
| Current portion of notes payable to related parties, including short term note |
179,345 |
90,000 |
||||||
| Common stock subject to guarantee |
104,975 |
418,495 |
||||||
| Total current liabilities |
2,355,143 |
2,610,215 |
||||||
| Long-term liabilities |
||||||||
| Long term debt, net of current portion |
2,271,702 |
2,159,434 |
||||||
| Notes payable related parties, net of current portion |
312,465 |
275,000 |
||||||
| Deferred compensation |
291,000 |
290,000 |
||||||
| Deferred income taxes |
932,629 |
1,015,325 |
||||||
| Total long-term liabilities |
3,807,796 |
3,739,759 |
||||||
| Total liabilities |
6,162,939 |
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 8,097,017 |
||||||||
| issued and outstanding at both March 31, 2012 and December 31, 2011 |
810 |
810 |
||||||
| Paid in capital |
9,450,506 |
9,137,003 |
||||||
| Treasury stock, 519,507 and 172,703 shares respectively |
(1,330,388) |
(351,614) |
||||||
| Accumulated other comprehensive income |
37,648 |
18,615 |
||||||
| Accumulated deficit |
(2,360,461) |
(2,315,578) |
||||||
| Total stockholders' equity |
5,798,115 |
6,489,236 |
||||||
| Total liabilities and stockholders' equity |
$ |
11,961,054 |
$ |
12,839,210 |
||||
|
INTERNATIONAL MONETARY SYSTEMS, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
||||||||
| Three Months Ended March 31, |
||||||||
| 2012 |
2011 |
|||||||
| Revenue |
$ |
3,266,779 |
$ |
2,978,842 |
||||
| Operating expenses |
||||||||
| Employee costs |
1,997,080 |
1,926,708 |
||||||
| Selling, general and administrative |
868,848 |
865,661 |
||||||
| Depreciation and amortization |
388,678 |
408,809 |
||||||
| Total operating expenses |
3,254,606 |
3,201,178 |
||||||
| Income (loss) from operations |
12,173 |
(222,336) |
||||||
| Other income (expense) |
||||||||
| Interest income |
571 |
118 |
||||||
| Interest expense |
(80,701) |
(45,118) |
||||||
| Total other income (expense) |
(80,130) |
(45,000) |
||||||
| Loss before income taxes |
(67,957) |
(267,336) |
||||||
| Income tax benefit |
23,074 |
82,781 |
||||||
| Net loss |
(44,883) |
(184,555) |
||||||
| Components of comprehensive income (loss): |
||||||||
| Foreign currency translation adjustment |
(2,497) |
4,765 |
||||||
| Unrealized gain on available for sale securities |
21,530 |
5,966 |
||||||
| Comprehensive loss |
$ |
(25,850) |
$ |
(173,824) |
||||
| Net loss per common share |
||||||||
| –basic |
$ |
(.01) |
$ |
(.02) |
||||
| --dilutive |
$ |
(.01) |
$ |
(.02) |
||||
| Weighted average common shares outstanding |
||||||||
| – basic |
8,097,017 |
10,544,800 |
||||||
| --dilutive |
8,097,017 |
10,544,800 |
||||||
About International Monetary Systems
Founded in 1985, International Monetary Systems (IMS) serves 21,000 cardholders in 52 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 May 7, 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.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article