IMS Files Second Quarter 2011 Report
International Monetary Systems (OTCBB:ITNM) announced that it has
filed its second quarter report on Form 10-Q.
Operations
Cash provided by operations was $567,946 in 2011, compared to
$183,410 in the first six months of 2010, a 210% increase.
The company completed the purchase of a trade exchange in
Peterborough Ontario at a cost of $61,325, adding approximately 450
members. It is expected that the added office will be immediately
accretive.
Selling, general and administrative costs were reduced by $396,015,
or 18.6%.
Return to Shareholders
Management and the board of directors feel that the stock of the
company is significantly undervalued and presents an attractive
opportunity to reinvest. In the first six months of 2011, the
following steps were taken to position the company to take advantage
of this opportunity:
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At its April 26 and June 14 meetings, the board of directors
approved increases in the amount of stock authorized to be
repurchased: up to 15% of the company�s outstanding shares.
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Financing was secured at attractive, flexible terms to allow for
repurchase of shares without hindering operating cash flow.
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To date 764,017 shares of the company�s stock have been repurchased
this year.
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In June, 1,648,064 shares of Treasury stock were retired, reducing
the number of outstanding shares to 8,911,736.
Current Quarter
During the quarter ended June 30, 2011, International Monetary
Systems generated revenues of $3,333,139, a decrease of $304,894 or
8%, compared to the second quarter of 2010. This decrease is almost
entirely due to a large non-recurring transaction in its
media/corporate barter division, which provided approximately
$298,000 in trade dollar revenue in 2010.
Operating expenses in the quarter were $3,150,727, a decrease of
$50,544 or 1.6% compared to the second quarter of 2010. This
decrease is primarily due to decreased occupancy, professional fees,
and investor relations costs. The savings in these areas are
partially offset by an increase in employee costs, resulting from
higher health insurance costs, higher state unemployment rates, and
continued investment in our tele-selling marketing model.
The net operating income was $182,412 for the quarter, compared to
net operating income of $436,762 in the second quarter of 2010.
After adjusting for interest and income taxes, there was net income
for the current period of $77,196 compared to net income of $222,717
in the second quarter of 2010.
