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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