International Monetary Systems 2008 Annual Report
International Monetary Systems (OTCBB:INLM), a worldwide leader in
business-to-business barter services, has unveiled its Annual Report
Gross Revenue & Expenses
In 2008 IMS experienced positive cash flows from operations of more
than $610,000, and operating profits (EBITDA) totaling nearly
$594,000. However after deducting amortization and impairment of its
membership lists, as well as bad debt expense and depreciation, the
company posted a net loss of $940,521, compared to a net loss of
$414,290, in 2007.
The impairment loss was recorded when estimated future cash flows
were calculated as less than anticipated at the time of the original
acquisitions. Management believes that these expenses represent
investment in infrastructure that will provide substantial future
During the year ended December 31, 2008, IMS processed more than
$114 million in trade sales transactions, generating gross revenue
of $14,203,550, compared to $14,772,045 in 2007. A substantial
portion of the decline in revenue was experienced in the corporate
barter division, resulting in a decline in trade revenue.
Total operating expenses increased from $14,945,745 in 2007 to
$15,448,086 for the year ended December 31, 2008, an increase of
Payroll expenses increased 2.7% from $9,228,485 in 2007 to
$9,483,364 in 2008, while occupancy expenses increased from $969,243
to $1,078,288, or 11.4%.
Selling expenses increased 22.4%, from $687,079 in 2007 to $840,926
in 2008. The increase in selling expenses was a direct result of an
expanded sales force early in the year. However, the sales
department has been reduced and expenses in 2009 should decrease
General and administrative expenses were reduced 13.1%, from
$2,319,680 to $2,014,856. Depreciation and amortization expenses
were increased 12.2%, from $1,465,367 to $1,643,534. This was mainly
a result of the new exchanges acquired in 2008.
Net cash flows from operations totaled $610,238 in 2008, compared to
$945,111 in 2007. EBITDA (earnings before interest, taxes,
depreciation and amortization) totaled $593,728, compared to EBITDA
of $1,375,839 in 2007.
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