NEW BERLIN, Wis., Aug. 11, 2010 (GLOBE NEWSWIRE) -- International Monetary Systems, Ltd. (OTCBB:ITNM), a worldwide leader in business-to-business barter services, has reported its financial results for the second quarter and six-month period ended June 30, 2010.
For the second quarter ended June 30, 2010, gross revenue improved to $3,541,872 compared with $3,481,819 in the year-ago quarter. The improvements in gross revenue were the results of the company's successful efforts to increase activity in its corporate barter division. Operating expenses for the quarter were $3,105,100, compared with $3,190,938 in the year-ago second quarter. Operating income for the second quarter 2010 increased 50.2% to $436,762 for the quarter, compared with $290,881 in the second quarter 2009. Net income for the quarter increased 23.8% to $222,717, or $0.02 per diluted share, compared with $179,951, or $0.02 per diluted share reported in the year-ago second quarter. EBITDA (Earnings before interest, taxes, depreciation, and amortization), reached a quarterly record of $840,857, compared with $703,715 for the year-ago second quarter.
For the six months ended June 30, 2010, gross revenue was $6,612,293 compared with $6,833,043 in the year-ago six-month period. Operating expenses for the six-month period were $6,434,735, compared with $6,485,848 in the six-month period of 2009. Operating income for the six-month period was $177,558 compared with $347,195 during the comparable 2009 six-month period. Net loss for the six-month period 2010 was $98,045 or $0.01 per share, compared with net income of $125,582 or $0.01 per share in the year-ago six-month period.
Donald F. Mardak, Chief Executive Officer of International Monetary Systems said, "Our financial results this quarter benefited from an improved mix of business, including an increase in national accounts and a newly instituted program for small- to- medium-sized start-up companies, combined with operational efficiencies that we instituted over the past year. As we continue to demonstrate the benefits of our barter system to larger companies, we have been successful in attracting new business throughout the country, with particular strength from the hospitality industry, where new member enrollment has been brisk."
"In addition to the improved revenue attributable to national accounts, we also continue to benefit from our core base of small business clients. The combination of these two segments has added much depth to the unique benefits that we offer our expanding group of members, as businesses strive to reduce their inventory levels, and barter for products and services that help to improve their own financial results," he added.
Mr. Mardak concluded, "We continue to work on improvements to our infrastructure, and expect to launch our new operating system in the third quarter. This, combined with our anticipated growth in national accounts, is expected to continue driving improvements in all aspects of our operation."
Use of Non-GAAP Measures
The company feels that EBITDA (Earnings before interest, taxes, depreciation and amortization) is an important measure of operations as it shows the contribution of ongoing operations, without the significant non-cash expenses associated with acquiring the markets.
Forward-Looking Statement
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 August 10, 2010, and International Monetary Systems, Ltd. undertakes no duty to update this information.
About International Monetary Systems
Founded in 1985, International Monetary Systems (IMS) serves 23,000 cardholders in 50 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/">www.imsbarter.com.
| INTERNATIONAL MONETARY SYSTEMS, LTD. | ||||
| CONSOLIDATED STATEMENTS OF OPERATION (UNAUDITED) | ||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||
| 2010 | 2009 | 2010 | 2009 | |
| Gross revenue | $ 3,541,872 | 3,481,819 | $ 6,612,293 | 6,833,043 |
| Expenses | ||||
| Employee costs | 1,828,398 | 1,940,741 | 3,742,103 | 3,984,990 |
| General and administrative | 529,405 | 408,830 | 1,196,158 | 850,592 |
| Occupancy | 273,392 | 315,905 | 543,428 | 621,152 |
| Selling | 69,879 | 117,138 | 142,028 | 203,829 |
| Depreciation | 73,013 | 76,764 | 146,026 | 153,388 |
| Amortization | 331,023 | 335,949 | 664,992 | 671,897 |
| Total expenses | 3,105,110 | 3,190,938 | 6,434,735 | 6,485,848 |
| Income (loss) from operations | 436,762 | 290,881 | 177,558 | 347,195 |
| Other income (expense) | ||||
| Interest income | 61 | 121 | 99 | 496 |
| Interest expense | (51,042) | (66,932) | (101,903) | (124,990) |
| Total other income (expense) | (50,981) | (66,811) | (101,804) | (124,494) |
| Income (loss) before income taxes | 385,781 | 224,070 | 75,754 | 222,701 |
| Income tax expense | (163,064) | (44,119) | (173,799) | (97,119) |
| Net income (loss) | $ 222,717 | $ 179,951 | $ (98,045) | 125,582 |
| Net income (loss) per | ||||
| common share – basic | $ .02 | $ .02 | $ (.01) | $ .01 |
| - dilutive | $ .02 | $ .02 | $ (.01) | $ .01 |
| Weighted average common | ||||
| shares outstanding – basic | 10,403,522 | 10,254,608 | 10,386,699 | 10,254,608 |
| - dilutive | 10,403,522 | 10,254,608 | 10,386,699 | 10,254,608 |
| INTERNATIONAL MONETARY SYSTEMS, LTD. | ||
| CONSOLIDATED BALANCE SHEETS | ||
|
June 30, 2010 |
December 31, 2009 |
|
| (UNAUDITED) | ||
| ASSETS | ||
| Current assets | ||
| Cash | $560,215 | $894,396 |
| Restricted cash | 202,271 | 149,682 |
| Marketable securities | 147,714 | 115,110 |
| Accounts receivable, net | 974,967 | 1,201,403 |
| Refundable income taxes | ---- | 133,000 |
| Earned trade account | 489,053 | 33,561 |
| Prepaid expenses | 262,437 | 103,027 |
| Total current assets | 2,636,657 | 2,630,179 |
| Property and equipment, net | 784,387 | 921,473 |
| Other assets | ||
| Membership lists, net | 7,488,132 | 8,153,093 |
| Goodwill | 3,435,479 | 3,435,479 |
| Assets held for investment | 99,298 | 99,298 |
| Investment in real estate | 26,000 | 26,000 |
| Cash surrender value | 52,484 | 49,361 |
| Total other assets | 11,101,393 | 11,763,231 |
| Total assets | $14,522,437 | $15,314,883 |
| INTERNATIONAL MONETARY SYSTEMS, LTD. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| Continued | ||
|
June 30, 2010 |
December 31, 2009 |
|
| (UNAUDITED) | ||
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable and accrued expenses | $696,919 | $867,469 |
| Income taxes payable | 379,461 | 422,995 |
| Credit lines | 234,879 | 246,385 |
| Current portion of notes payable | 105,686 | 236,997 |
| Current portion of convertible notes payable | 194,455 | 299,226 |
| Current portion of common stock subject to guarantee | 665,000 | 706,500 |
| Current portion of convertible notes payable, related parties | 50,000 | 50,000 |
| Total current liabilities | 2,326,400 | 2,829,572 |
| Long-term liabilities | ||
| Notes payable, less current portion | 80,000 | 100,000 |
| Convertible notes payable, less current portion | 1,478,628 | 1,423,445 |
| Common stock subject to guarantee, less current portion | 609,000 | 620,000 |
| Convertible notes payable, related parties, less current portion | 70,000 | 50,000 |
| Deferred compensation | 282,500 | 275,000 |
| Deferred income taxes | 1,505,118 | 1,679,565 |
| Total long-term liabilities | 4,025,246 | 4,148,010 |
| Total liabilities | 6,351,646 | 6,977,582 |
| Contingencies | ||
| STOCKHOLDERS' EQUITY | ||
| Preferred stock, $.0001 par value 20,000,000 authorized, 0 outstanding | -- | |
|
Common stock, $.0001 par value 280,000,000 authorized 10,436,800 and 10,343,467 issued and outstanding March 31, 2010 and December 31, 2009 respectively |
1,044 | 1,030 |
| Paid in capital | 12,914,223 | 12,772,904 |
| Treasury stock, 696,552 and 646,095 shares, respectively | (2,625,850) | (2,428,422) |
| Accumulated other comprehensive loss | (22,951) | (10,581) |
| Accumulated deficit | (2,095,675) | (1,997,630) |
| Total stockholders' equity | 8,170,791 | 8,337,301 |
| Total liabilities and stockholders' equity | $14,522,437 | $15,314,883 |