IMS Third-Quarter Report Reveals Revenue & Cash Flow Increases
Monetary Systems (OTCBB:INLM), a worldwide leader in
business-to-business barter services, has filed its third-quarter
report on form 10-QSB.
In the third
quarter of 2007 IMS continued implementing its “Best Practices”
program. As an integral part of this program, the company made
substantial investments in infrastructure by acquiring new
state-of-the-art equipment and hiring additional skilled employees.
Some of the
events and expenditures during the first nine months of 2007 were:
Spending more than
$500,000 on new computers, monitors, printers, servers, and other
equipment to enhance the efficiency of its trade brokering staff.
Acquiring the source
code for TradeWorks—IMS’ proprietary clearing system—and migrating
the entire program from its original RPGII format into a more
current .NET technology.
web site in the process of creating a fully interactive online
technicians to service the new equipment, to convert and enhance the
software, and to develop the web site. The company has expanded its
IT department to three employees, with plans to add a fourth.
Enhancing sales and
brokering departments by hiring a full-time national sales trainer
and a full-time national broker trainer.
Doubling the size of
its Columbus (OH) office for the purpose of expanding its
telemarketing and telesales staff. There are now 14 people working
to support the outside sales force.
Hiring a full-time
marketing and public relations director, who has helped advance the
new IMS web site and is designing a campaign to develop and
strengthen the IMS brand in the marketplace. A resulting
comprehensive PR program is scheduled for launch in the first
quarter of 2008.
its commitment to the “Best Practices” program, the firm further
expanded its outside sales force which enrolled nearly 900 new
clients during the quarter.
investments in infrastructure affect the bottom line, IMS management
believes that it is in the company’s best interest to spend funds
now on strategic initiatives that will produce significant future
In the third
quarter of 2007, IMS processed more than $25 million in trade
transactions (measured in sales only) which generated gross revenues
of $3,565,885, compared to revenues of $1,687,573 in the third
quarter of 2006, an increase of 111%.
revenue is a result of two acquisitions completed in September of
2006 and January of 2007, along with continuing internal growth. The
company also converted $300,000 of debt to equity.
increased 106%, from $1,803,266 in the third quarter of 2006 to
$3,716,140 in the current period. The increased expenses are
attributable to the costs of integrating the acquisitions described
above, higher non-cash charges for amortization of membership lists,
and the hiring of additional sales staff, trainers, public relations
staff, and IT specialists.
In spite of the
record revenues, the company had a third quarter net loss of
$150,255 before the income tax benefit, compared to a net loss
before taxes of $115,693 in the same period of 2006. After adding
interest expense and making the adjustment for the tax benefit, the
net loss for the current quarter was $47,406 compared to $120,198
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.
gross revenue ending September 30 totaled $10,298,396, compared to
$5,240,400 for the same period in 2006, an increase of 97%. Total
year-to-date expenses were $10,573,326, compared to $5,241,215 for
the corresponding period in 2006, an increase of 102%.
year-to-date net loss, before the income tax benefit, was $522,737,
compared to a before taxes loss of $181,369 for the same period in
2006. After adjustments for the tax benefit (expense), the losses
were $261,594 and $192,369, respectively.
profit or EBITDA (earnings before interest, taxes, depreciation and
amortization) totaled $827,295, an increase of 37% over the $602,425
reported for the same period last year.
September 30, 2007, the company had positive cash flow provided by
operating activities of $976,872, compared to $475,863 for the same
period of 2006, an increase of 105%.
Monetary Systems’ total assets increased to $18,630,615 from
$15,203,887 at the end of 2006, with stockholders’ equity increasing
to $9,045,350 from $7,779,357.
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“Tax Free Swaps” Book Now Available
professor Bradley T. Borden, Associate Professor of Law at
University School of Law, and DNA Press have announced the
publication of Tax-Free Swaps: Using Section 1031 Like-Kind
Exchanges to Preserve Investment Net Worth.
the wake of extensive press coverage of section 1031, this timely
publication details the potential benefits, requirements, and scope
of tax-free like-kind exchanges of the Internal Revenue Code. Using
diagrams, practical examples and an easy narrative style, Borden’s
book demystifies like-kind exchanges, making them accessible to all
owners understand that section 1031 provides that no gain or loss is
recognized when a property owner exchanges business-use or
investment property (the “relinquished property”) for like-kind
business-use or investment property (the “replacement property”).
They are not, however, aware of section 1031's scope.
example (typical of those in the book) illustrates the benefits of
section 1031. Tim owns Redstone Apartments, which he purchased for
$100,000, and are now worth $500,000. Ben owns Quarry Warehouse,
which he purchased for $150,000, and now is worth $500,000.
If Tim were to
sell Redstone for cash, he would recognize gain equal to (and would
have to pay tax on) the $400,000 of appreciation. Similarly, if Ben
were to sell Quarry for cash, he would recognize gain equal to (and
would have to pay tax on) the $350,000 of appreciation. If, however,
Tim and Ben both hold their respective properties for business or
investment, they can “swap” properties, under section1031 and avoid
neither would owe any tax on the exchange. Each of them would take a
carry-over basis in his replacement property: Tim would take Quarry
with a $100,000 basis, and Ben would take Redstone’s $150,000 basis.
If either person were to sell his replacement property at a later
date, he would recognize gain equal to—and would pay tax on—the
Either Tim or
Ben could, however, dispose of their replacement properties through
future exchanges. By engaging in serial exchanges, thus deferring
gain recognition and tax indefinitely.
taxpayers who are candidates for this type of direct trade rarely
find one another in the marketplace. More commonly, Tim would want
to sell Redstone to a third party and acquire Quarry from Ben.
Fortunately, in this situation, section 1031 permits Tim to sell
Redstone and to deposit the sale proceeds (often referred to as
exchange funds) with a qualified intermediary.
So long as Tim
meets certain time limits and other restrictions, he could use the
exchange funds to purchase replacement property. This type of
transaction is commonly referred to as a multi-party exchange. If
the transfer and acquisition do not occur simultaneously, the
transaction would be a deferred exchange.
situations, a property owner may not be able to sell relinquished
property before acquiring the replacement property, the property
owner may then benefit from a reverse exchange. If a person doing an
exchange wants to use proceeds from the sale of the relinquished
property to construct improvements on replacement property, an
improvements exchange may be appropriate. The broad scope of section
1031 depicted by these numerous exchange structures is beneficial to
property owners who are aware of their availability.
Swaps” explains the various exchange transactions and identifies
their potential benefits and risks. More importantly, says Christian
Johnson, tax law professor and CPA, “Borden is able to translate
such technical terms as improvements exchange, exchange
accommodation titleholder, and non-safe harbor reverse exchange into
understandable and readable prose.”
information on the publication see
Zillow Expands Classifieds Through Newspaper Alliances
In their latest
bid to counter shrinking print revenues, a group of eleven major
U.S. newspaper companies (representing 282 newspapers) have formed
an alliance with Zillow.com,
extending their classified ads to the popular real estate site.
agreement, local advertisers who run print and online “for sale” and
open-house ads with the newspapers will also have the option to
share listings on Zillow, which has 1.5 million registered users.
Newspapers will also be able to incorporate Zillow features into
their own sites, including the company’s “Zestimates,” or estimated
valuations of homes nationwide.
publishers so far include Hearst Newspapers, Journal Register
Company, Lee Enterprises, and MediaNews Group. Newspapers owned by
these companies include the San Francisco Chronicle, the Houston
Chronicle, and the San Jose Mercury News. More newspaper publishers
are expected to join the group before it launches in the first half
of the deal were not disclosed, but it’s expected to include an ad
revenue-sharing arrangement between Zillow and its newspaper
Work With Audio/Visual
Vendor On Barter
Collect cash, as usual, from the guest accounts staying at
your facility that require the use of professional AV
services. And rather than shouldering your ongoing employee
costs, or your current vendor’s cash agreement for AV
services, here’s a much better alternative:
Work with a proven national vendor (a sterling 25-year track
record) who will provide all of the AV services for your
hotel on a 100% TRADE BASIS! (Payment to be in the form of
Your hotel’s annual AV billings must be a minimum of
$200,000, and this offer is available only in the
continental United States.
For a confidential introduction contact Bob Meyer via
Attention Trade Exchange Owners:
If your member hotel(s) have a minimum of 10,000 sq. feet of
meeting space and annual billings of at least $200,000 for
AV services this is a great opportunity to earn substantial
cash service fees on the hundreds of thousands of trade
dollars your hotel member will be paying the vendor. Contact
Bob Meyer at the above e-mail.
How To Get More Sales In
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The Growth and Use of Secondary Capital (New Money) Creates
Unprecedented Wealth In Today’s New Age Of Possibility
many forms of secondary capital—which can be defined as any
financial instrument that measures and communicates value in a
common language. Would you like to see and learn more about the many
forms of secondary capital?
We have 70
free, informative and inspiring, articles for you in our “Secondary
Capital Section.” Check it out...
New Money-Making Ideas And Valuable Contacts!
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useful, informative ideas and contacts in every available back-issue
barter company in the world is listed on our web site,
click through to our Global List
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