ITEX Announces Results for Third Quarter of Fiscal Year 2013

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