IRTA President David
Wallach Takes East Coast Swing
What began as a trip to Rochester (NY) to oversee the movement of
the International Reciprocal Trade Association headquarters office
from that city to Portsmouth (VA), evolved into a ten-day visit to
several east coast commercial barter industry members for David
Wallach, IRTA President.
�Initially, he had planned traveling from San Francisco to Rochester
to assist in the oversight of the IRTA headquarters move� said Ron
Whitney IRTA Executive Director. �We subsequently determined that it
would not only be very cost effective but extremely productive for
Dave to visit various east coast industry members delivering IRTA�s
message of unity, education and self regulation.�
After his arrival in Rochester on November 4 and aiding with the
preparation for the move, Wallach met with barter Hall-of-Famer
Steve Webster. They discussed the status and direction of the Modern
Trade and Barter Industry. �I came away from our conversations
impressed as always with Steve�s knowledge, insight and vision, for
our industry,� related Wallach. �Steve feels that the industry and
IRTA are proceeding in a positive and correct direction.�
Wallach also toured Rochester�s IMS Barter office, speaking with
several individual employees. it was noted that the office had both
a high morale and a very competent staff. �Myles Webster
demonstrated the IMS operating software�s ability to track client
projects, explaining that project management was the key to
increasing their clients� use of barter currency,� disclosed
Wallach.
From there Dave traveled to Maine to visit the Trade Exchange, a 300
member single office exchange located in downtown Portland. Natalie
Ladd manages and operates the company almost single handedly, having
only one part-time assistant. �Natalie is a wonder, last month she
not only did all of the trade direction, but she signed up nine new
client members,� marveled Wallach.
Boston was his next stop; there Dave was hosted at the home of his
longtime friend Allan Hackel. �Allan is a true pioneer of our
industry; he practically founded corporate barter and he holds
almost every industry honor including IRTA�s Barter Hall-of-Fame,�
observed Wallach.
Although he could have retired years ago, Allan is in his office and
working before any of his staff arrive in the morning, and is still
at it after they go home. He loves his work and is very involved in
the day to day operation of his company which is very competitive in
the corporate barter arena. �I totally support the renewal of the
Corporate Batter Council,� declared Hackel, �and feel that IRTA is
leading the entire barter industry where it needs to go.� A true
family business Allan�s staff includes his son Peter and daughter
Jody.
Also located in Boston is New England Trade, owned and operated by
Gary Oshry and Ken Meharg, which has over 1000 active members.
Wallach met with Gary and Ken primarily deliberating the acquisition
of new client members, with a focus on lead generation. �Keeping
your sales staff in front of potential customers is the single most
important factor in client acquisition,� Wallach elaborated. �They
are definitely on the right track for growth in their market.�
Another Boston area exchange he visited was Barter Connections, with
about 400 members owned and operated by Ken Barron. As Ken is not
presently a member of any industry association, Dave chatted with
him about the many benefits of joining other industry leaders in
supporting IRTA and its industry goals, code of ethics, and mission.
After the meeting Ken agreed to submit his application for IRTA
membership.
New
York and a meeting with IRTA member Alan Elkin, CEO of Active
International, the world�s largest corporate barter company, was the
last stop on the swing for Dave Wallach. Both Alan and his partner
Art Wagner are in the barter Hall-of-Fame, and legends in the
corporate barter industry. During the hour-and-a-half session with
Elkin and Dayna Frank, a full range of topics were examined
including effective use of IRTA�s Universal Currency, renewal of the
Corporate Barter Council, and more effectively interfacing the
corporate sector with the retail sector of the modern barter
industry.
Elkin definitely has committed himself to the renewal of the
Corporate Barter Council, and plans to become personally involved by
attending meetings of the Council. Action items were put in place
during the meeting to follow up on, along with other matters. �In my
view the world�s present economic situation provides an excellent
opportunity for our industry to demonstrate how business can
effectively profit from their excess business capacity and under
utilized assets,� asserted Alan Elkin.
(The International Reciprocal Trade Association (www.irta.com)
is a non-profit organization committed to promoting just and
equitable standards of practice and operation within the Modern
Trade and Barter Industry and Alternative Capital Systems, as well
as raising awareness and value of these processes to the entire
worldwide community.)
IRTA BULLETIN
11/18/08
� See
the excellent 11/13/08 New York Times article on barter.
IRTA was
contacted by the N.Y.Times and referred the reporter for interviews:
Click here
�
IRTA's
representation on the IRS's IRPAC Committee resulted in
the IRS updating their webs site's barter sections:
Click here
�
International visitors look for BARTER CONTACTS in our Global Barter
Section. If YOUR exchange isn�t listed see the forms on the lower
left of the page. (Click
here.)
�
Attention trade exchange owners...thousands of visitors every month
visit our BARTER CONTACTS section on our web site where we have
names & addresses of barter companies in the USA. If YOUR exchange
isn�t listed, or the information is incorrect, you can correct the
situation by using the forms to the lower left of the USA map. (Click
here.)
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Attention Trade Exchange
Owners. . .It�s GROW OR GO!
The
magic bullet for growth is sales, always has been and always will
be...yet the industry�s overall growth is anemic. Why? Maybe it�s
because we�re not providing on-going education about our unique way
of doing business. Knowledge is always a pre-requisite to taking
sustained action.
And
for those newcomers, the lifeblood of an exchange, awareness of and
understanding about the value of trading is even more important.
If
you expect prospects to come aboard and your members to be more
active traders, but you are perplexed when the results are less than
you desire...there�s a good reason. You must continually educate
and motivate every month--month after month after month!
Such action is necessary because, let�s face it, more cash business,
not trade, is of paramount importance to your members. You must
break through this �cash only� focus and redirect their thinking
toward barter. Although most exchanges don�t see the importance of
doing so, many industry leaders are taking action and so can you.
As
the owner of your own operation, there is an easy and
inexpensive solution for moving forward...look
into using The Competitive Edge newsletter. It�s a
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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
Money-Making Reports Available From BarterNews
Consumers Seek Bargains
Rather Than Gift Cards
The
National Retail Federation predicts a 5.6% decline in sales of gift
cards this holiday season, the first drop in six years. (Sales of
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$26.3 billion last year.)
Fewer people said they planned to buy gift cards this year�53.5%
compared with 56.6% in 2007. Many said they preferred to buy an item
on sale instead of a gift card, which doesn�t go on sale.
The
average amount shoppers spend on holiday gift cards is also expected
to decline by 5.7% to $147.33 according to the National Retail
Federation.
A
drop in gift card sales could have a significant impact on
retailers, who now restock their shelves after Christmas in
anticipation of shoppers coming in to redeem gift cards.
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