IMS Files Third-Quarter 2011 Report
International Monetary Systems (OTCBB:ITNM), a worldwide leader in
business-to-business barter services, recently filed its
Third-Quarter Report for 2011.
Cash provided by operations was $934,592 in 2011, compared to
$404,525 in the first nine months of 2010, a 131% increase.
During the current year, they completed the purchase of two trade
exchanges, one in Peterborough (Ontario) and one in St. Louis (MO),
adding approximately 900 members. It is expected that the additional
offices will be immediately accretive.
During the current year, selling, general and administrative costs
were reduced by $679,030, or 20.3%.
The company has begun the process of registering in a number of
states to offer IMS franchises.
Management and the board of directors feel that the company stock is
significantly undervalued, presenting an attractive opportunity to
reinvest. In the first nine months of 2011, the following steps were
taken to position IMS to take advantage of this opportunity:
The board of directors approved increases in the amount of stock
that is authorized to be repurchased, granting management discretion
to buy back company stock at up to $4.00 per share.
Financing was secured at attractive, flexible terms to allow for
repurchase of shares without hindering operating cash flow.
1,528,078 shares of IMS stock have been repurchased so far this year
under the stock purchase-back plan.
2,319,611 shares of Treasury stock have been retired through
September 30, 2011, reducing the number of outstanding shares to
During the quarter ended September 30, 2011, International Monetary
Systems generated revenues of $3,204,786, a decrease of $505,233 or
13.6%, compared to the third quarter of 2010. This decrease is
almost entirely due to decreased trade dollar revenue, including a
large non-recurring transaction in its media/corporate barter
division which provided approximately $240,000 in trade dollar
revenue in 2010.
Operating expenses in the quarter were $3,015,484, a decrease of
$497,257 or 14.2% compared to the third quarter of 2010. This
decrease is comprised of $95,000 of decreased occupancy expenses, a
decrease of $160,000 in legal and professional fees, $42,000 less
provision for uncollectable accounts, and $50,000 less investor
The net operating income was $189,302 for the quarter, compared to
net operating income of $197,278 in the third quarter of 2010. After
adjusting for interest and income taxes, net income for the current
period was $105,490 compared to a net loss of $(37,642) in the third
quarter of 2010.
more information on IMS