ITEX has filed its Form 10-K with the Securities and Exchange
Commission and announced results for its fourth quarter and fiscal
year ended July 31, 2010.
“I
am pleased to report another strong fiscal year with impressive
results,” said Steven White, Chairman and CEO. “We are bearing the
fruits of our timely acquisitions completed between 2005 and 2008.
Cash flow from the acquired companies largely covered the related
acquisition debt, and we were able to accelerate payments and
eliminate all long-term debt early in calendar year 2009. In fiscal
year 2010 we recorded a 63 percent increase in income from
operations compared to the previous year, a 56 percent increase in
net income, and we more than doubled our cash position to $5.2
million.
“Income from operations increased as a result of revenue growth and
a reduction in selling, general and administrative costs,
depreciation and amortization expense. Our increased cash position
reflects our operational income and the skillful management of our
assets by our executive and financial teams.”
“Additionally,” White continued, “we have been successful in our
efforts to increase our cash position during the last two years,
providing the company with a very stable financial platform from
which to operate. As the economic uncertainty persists we will
continue to manage our finances in a disciplined and prudent manner
while investing in our future to ensure our success.
“For our shareholders, we are pleased to have commenced a quarterly
dividend, with our first-ever dividend paid in the fourth quarter.
Also in the fourth quarter, we completed a company-wide computer
upgrade benefiting our broker network and corporate operations.”
Fiscal year 2010 highlights:
-
Income
from operations increased 63% to $1.674 million, from $1.027
million last year.
-
Net income increased
56% to $946,000, from $607,000 last year.
-
Earnings per share
increased 53% to $0.26, from $0.17 last year.
-
Revenue increased 3%
to $16.925 million, from $16.502 million last year.
-
Cash at end of
period increased 102% to $5.169 million, from $2.557 million on
July 31, 2009.
-
Stockholder equity
increased 6% to $14.869 million, from $13.981 million on July
31, 2009.
-
Completed a
company-wide computer upgrade initiative in conjunction with the
launch of Office 2010, expensing $129,000.
-
Entered into an
agreement with U.S. Bank to increase the revolving credit
facility from $1.5 million to $2.5 million, with a lower
interest rate.
-
Completed a
one-for-five reverse stock split of their common stock, reducing
the number of shares of common stock from 18,027,914 to
approximately 3,605,320.
-
Paid a $0.025 per
share quarterly cash dividend in the fourth quarter.
-
Repurchased and
retired 4,943 shares of common stock.
-
Sold the San
Francisco (CA) corporate-owned office to an existing franchisee.
Subsequent to the year end report, on September 20, ITEX paid a
quarterly cash dividend in the amount of $0.025 per share.
(The financial statements for all periods have been adjusted to
reflect the 1:5 reverse stock split effective May 3, 2010.)
ITEX Corporation’s report on Form 10-K can be found at
www.sec.gov.
For
more on ITEX click
here.
