IMS Future Looks Bright
International Monetary Systems (OTCBB:INLM), a worldwide leader in
business-to-business barter services, has filed its third-quarter
report on form 10-Q.
During the quarter ended September 30, 2008, IMS processed more than
$27 million in trade transactions compared to over $26 million in
the third quarter of 2007, an increase of more than 4.5%. The trade
volume generated gross revenues of $3,537,840, compared to revenue
of $3,563,578 in the third quarter of last year, a slight decrease
of 0.7%.
Total expenses decreased 5.5%, from $3,716,140 in the third quarter
of 2007 to $3,511,054 in the current period. The decrease is the
result of its efforts to consolidate administrative operations, and
to streamline sales and marketing costs by more quickly identifying
under-performing elements.
Despite slightly lower revenues, the net income from operations was
$26,786, compared to a loss from operations of $152,562 during the
same period last year. After adjusting for interest expense and the
income tax benefit, the net loss for the current period was
$121,516, a decrease of 9.5% over the loss of $134,232 in the third
quarter of 2007.
During the nine months ended September 30, 2008, International
Monetary Systems generated gross revenue of $10,596,113 compared to
$10,285,250 last year, an increase of 3.0%.
Total expenses increased from $10,573,326 in the first nine months
of 2007 to $11,039,616 for the same period in 2008, an increase of
4.4%. The net loss from operations was $443,503 for the first nine
months of 2008, compared to a loss of $288,076 for the same period
last year. Most of the 2008 operating loss was generated in the
first two quarters of this year.
The
deferred tax benefit represents the adjustment to the deferred tax
liability, which arises from the differences in basis of acquired
membership lists for financial reporting versus tax reporting.
Operating profit or EBITDA � earnings before interest, taxes,
depreciation and amortization � totaled $791,304, a decrease of
4.35% from the $827,295 reported for the same period of 2007. The
lower total for 2008 is primarily the result of greater non-cash
expenses such as depreciation and amortization. EBITDA is calculated
as follows:
|
Nine Months
Ended
September 30,
2008 |
Nine Months
Ended
September 30,
2007 |
Net loss |
$ (416,616) |
$ (261,594) |
Interest expense |
202,485 |
271,426 |
Income tax
(benefit) |
(219,718) |
(261,143) |
Depreciation |
222,192 |
180,228 |
Amortization |
1,002,961 |
898,378 |
|
$ 791,304 |
$ 827,295 |
Liquidity, Sources Of
Capital, Lines Of Credit
On
September 30, 2008, current assets were $3,258,814, and total assets
were $18,103,362. Current liabilities were $3,399,105 and total
liabilities were $9,073,204, resulting in total shareholder equity
of $9,030,158.
At
the end of the third quarter of 2008, the unrestricted cash balance
was $408,221 compared to $812,365 on December 31, 2007. Though
operations and financing activities generated $310,428 and $61,511,
respectively, the company used $765,834 in cash for investing
activities: $495,000 for business acquisitions, more than $70,000
for equipment purchases, nearly $11,000 for marketable securities
and life insurance, and nearly $192,000 to fund restricted cash.
Cash also decreased due to a foreign currency translation adjustment
of $10,249 from its Canadian operation.
In
March 2008, IMS drew $210,000 on a line of credit of which $100,000
was used as the down payment on the accelerated acquisition of New
York Commerce Group. In June of 2008, $50,000 was paid to reduce the
line of credit. In total the company has borrowed net $309,000
against lines of credit in 2008.
CEO, Don Mardak, asserted, �Considering the present economic
environment, we are quite pleased with our company�s third-quarter
results. Earlier this year, we made a commitment to reducing
expenses, and this process will continue into the fourth quarter of
2008 and beyond. As a result, we believe that IMS has turned the
corner toward ongoing profitability.�
For
more information visit
www.imsbarter.com