International Monetary Systems files 2nd Quarter Report
NEW BERLIN, Wis., Aug. 9, 2012 /PRNewswire/ -- International Monetary Systems, Ltd. (OTCBB: ITNM), a worldwide leader in business-to-business barter services, has filed its second quarter report on Form 10-Q.
HIGHLIGHTS
Operations
Revenue increased 5.5% in the first two quarters of 2012 compared to the same period in 2011.
Income from operations increased to $213,273 in the first half of 2012 compared to an operating loss of $(39,925) in the first half of 2011.
The Company has completed the sale of two franchise territories during the year. They are not expected to have a material affect on the Company's results of operations for the next twelve months.
Return to Shareholders
During the six months ended June 30, 2012, 793,351 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 June 30, 2012 International Monetary Systems ("IMS" or "the Company") generated revenues of $3,390,078, an increase of $56,939 or 1.7 %, compared to the second quarter of 2011.
Operating expenses in the quarter were $3,188,978 an increase of $ 38,251 or 1.2% compared to the second 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 $201,100 for the second quarter, compared to $182,412 in 2011. After adjusting for interest and income taxes, the net income for the quarter was $98,647 compared to net income of $77,196 in the second 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 three months ended June 30, 2012 and 2011 were as follows:
| Adjustments to Reconcile GAAP Net Income to EBITDA |
||||||||
| 2012 |
2011 |
|||||||
| Net (loss) |
$ |
98,647 |
$ |
77,196 |
||||
| Interest expense |
84,040 |
52,505 |
||||||
| Income tax expense (benefit) |
24,179 |
52,734 |
||||||
| Depreciation and amortization |
390,200 |
409,905 |
||||||
| EBITDA |
$ |
597,066 |
$ |
592,340 |
||||
YEAR TO DATE
During the six months ended June 30, 2012 International Monetary Systems generated revenues of $6,656,857, an increase of $344,876 or 5.5 %, compared to the first six months of 2011. This is the result of a 6% increase in transactions processed, attributable in part to our 2011 acquisitions.
Operating expenses in the quarter were $6,443,584 an increase of $91,678 or 1.4% compared to the second 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 $213,273 year to date, compared to an operating loss of $(39,925) in 2011. After adjusting for interest and income taxes, the net income for the first six months of 2012 was $53,772 compared to a loss of $(107,359) for the same period in 2011. 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 six months ended June 30, 2012 and 2011 were as follows:
| Adjustments to Reconcile GAAP Net Income to EBITDA |
||||||||
| 2012 |
2011 |
|||||||
| Net income (loss) |
$ |
53,772 |
$ |
(107,359) |
||||
| Interest expense |
164,742 |
97,623 |
||||||
| Income tax expense (benefit) |
1,105 |
(30,047) |
||||||
| Depreciation and amortization |
778,878 |
818,714 |
||||||
| EBITDA |
$ |
998,497 |
$ |
778,931 |
||||
| INTERNATIONAL MONETARY SYSTEMS, LTD. |
||||||||
| June 30, 2012 |
December 31, 2011 |
|||||||
| (UNAUDITED) |
||||||||
| ASSETS |
||||||||
| Current assets |
||||||||
| Cash |
$ |
868,709 |
$ |
1,018,250 |
||||
| Restricted cash |
- |
206,956 |
||||||
| Marketable securities |
180,958 |
162,323 |
||||||
| Accounts receivable, net |
827,538 |
1,006,278 |
||||||
| Earned trade account |
388,244 |
210,582 |
||||||
| Prepaid expenses |
169,100 |
188,715 |
||||||
| Total current assets |
2,434,549 |
2,793,104 |
||||||
| Other assets |
||||||||
| Property and equipment, net |
690,186 |
651,118 |
||||||
| Membership lists and other intangibles, net |
5,054,924 |
5,718,435 |
||||||
| Goodwill |
3,507,522 |
3,507,522 |
||||||
| Assets held for investment |
171,861 |
169,031 |
||||||
| Total non-current assets |
9,424,493 |
10,046,106 |
||||||
| Total assets |
$ |
11,859,042 |
$ |
12,839,210 |
||||
| LIABILITIES |
||||||||
| Current liabilities |
||||||||
| Accounts payable and accrued expenses |
$ |
1,008,501 |
$ |
1,091,823 |
||||
| Credit lines, short term notes, and current portion of long term debt |
1,173,491 |
1,009,897 |
||||||
| Current portion of notes payable to related parties, including short term note |
405,317 |
90,000 |
||||||
| Common stock subject to guarantee |
89,975 |
418,495 |
||||||
| Total current liabilities |
2,677,284 |
2,610,215 |
||||||
| Long-term liabilities |
||||||||
| Long term debt, net of current portion |
2,429,324 |
2,159,434 |
||||||
| Notes payable related parties, net of current portion |
230,765 |
275,000 |
||||||
| Deferred compensation |
291,000 |
290,000 |
||||||
| Deferred income taxes |
833,581 |
1,015,325 |
||||||
| Total long-term liabilities |
3,784,670 |
3,739,759 |
||||||
| Total liabilities |
6,461,954 |
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 8,107,020 and |
||||||||
| 8,097,020 issued and outstanding at June 30, 2012 and December 31, 2011 respectively |
811 |
810 |
||||||
| Paid in capital |
9,472,306 |
9,137,003 |
||||||
| Treasury stock, 699,383 shares at June 30, 2012 and 172,703 shares at December 31, 2011 |
(1,840,074) |
(351,614) |
||||||
| Accumulated other comprehensive income |
25,851 |
18,615 |
||||||
| Accumulated deficit |
(2,261,806) |
(2,315,578) |
||||||
| Total stockholders' equity |
5,397,088 |
6,489,236 |
||||||
| Total liabilities and stockholders' equity |
$ |
11,859,042 |
$ |
12,839,210 |
||||
| INTERNATIONAL MONETARY SYSTEMS, LTD. |
||||||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||||||||
| Net revenue |
$ |
3,390,078 |
$ |
3,333,139 |
$ |
6,656,857 |
$ |
6,311,981 |
||||||||
| Operating expenses: |
||||||||||||||||
| Employee costs |
2,000,061 |
1,875,275 |
3,997,141 |
3,801,983 |
||||||||||||
| Selling, general and administrative |
798,717 |
865,547 |
1,667,565 |
1,731,209 |
||||||||||||
| Depreciation and amortization |
390,200 |
409,905 |
778,878 |
818,714 |
||||||||||||
| Total operating expenses |
3,188,978 |
3,150,727 |
6,443,584 |
6,351,906 |
||||||||||||
| Income (loss) from operations |
201,100 |
182,412 |
213,273 |
(39,925) |
||||||||||||
| Other income (expense) |
||||||||||||||||
| Interest income |
94 |
23 |
674 |
142 |
||||||||||||
| Gain on sales of assets |
5,672 |
-- |
5,672 |
-- |
||||||||||||
| Interest expense |
(84,040) |
(52,505) |
(164,742) |
(97,623) |
||||||||||||
| Total other income (expense) |
(78,274) |
(52,482) |
(158,396) |
(97,481) |
||||||||||||
| Income (loss) before income taxes |
122,826 |
129,930 |
54,877 |
(137,406) |
||||||||||||
| Income tax (expense) benefit |
(24,179) |
(52,734) |
(1,105) |
30,047 |
||||||||||||
| Net income (loss) |
98,647 |
77,196 |
53,772 |
(107,359) |
||||||||||||
| Components of comprehensive income (loss): |
||||||||||||||||
| Foreign currency translation adjustment |
(4,466) |
1,802 |
(6,963) |
6,567 |
||||||||||||
| Unrealized gain on available for sale securities |
(7,331) |
(370) |
14,199 |
5,596 |
||||||||||||
| Comprehensive income (loss) |
$ |
86,850 |
78,628 |
$ |
61,008 |
(95,196) |
||||||||||
| Net income (loss) per |
||||||||||||||||
| common share – basic |
$ |
.01 |
$ |
.01 |
$ |
.01 |
$ |
(.01) |
||||||||
CONTACT: John Strabley, 1-800-559-8515
SOURCE International Monetary Systems, Ltd.
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