International Monetary Systems Files 1st Quarter Report

News provided by

International Monetary Systems, Ltd.

May 07, 2012, 09:30 ET

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.