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10/26/2010

ITEX Files Impressive 4th Quarter Results

ITEX has filed its Form 10-K with the Securities and Exchange Commission and announced results for its fourth quarter and fiscal year ended July 31, 2010.

�I am pleased to report another strong fiscal year with impressive results,� said Steven White, Chairman and CEO. �We are bearing the fruits of our timely acquisitions completed between 2005 and 2008. Cash flow from the acquired companies largely covered the related acquisition debt, and we were able to accelerate payments and eliminate all long-term debt early in calendar year 2009. In fiscal year 2010 we recorded a 63 percent increase in income from operations compared to the previous year, a 56 percent increase in net income, and we more than doubled our cash position to $5.2 million.

�Income from operations increased as a result of revenue growth and a reduction in selling, general and administrative costs, depreciation and amortization expense. Our increased cash position reflects our operational income and the skillful management of our assets by our executive and financial teams.� 

�Additionally,� White continued, �we have been successful in our efforts to increase our cash position during the last two years, providing the company with a very stable financial platform from which to operate. As the economic uncertainty persists we will continue to manage our finances in a disciplined and prudent manner while investing in our future to ensure our success.

�For our shareholders, we are pleased to have commenced a quarterly dividend, with our first-ever dividend paid in the fourth quarter. Also in the fourth quarter, we completed a company-wide computer upgrade benefiting our broker network and corporate operations.�

Fiscal year 2010 highlights:

  •  Income from operations increased 63% to $1.674 million, from $1.027 million last year.

  • Net income increased 56% to $946,000, from $607,000 last year.

  • Earnings per share increased 53% to $0.26, from $0.17 last year.

  • Revenue increased 3% to $16.925 million, from $16.502 million last year.

  • Cash at end of period increased 102% to $5.169 million, from $2.557 million on July 31, 2009.

  • Stockholder equity increased 6% to $14.869 million, from $13.981 million on July 31, 2009.

  • Completed a company-wide computer upgrade initiative in conjunction with the launch of Office 2010, expensing $129,000.

  • Entered into an agreement with U.S. Bank to increase the revolving credit facility from $1.5 million to $2.5 million, with a lower interest rate.

  • Completed a one-for-five reverse stock split of their common stock, reducing the number of shares of common stock from 18,027,914 to approximately 3,605,320.

  • Paid a $0.025 per share quarterly cash dividend in the fourth quarter.

  • Repurchased and retired 4,943 shares of common stock.

  • Sold the San Francisco (CA) corporate-owned office to an existing franchisee.

Subsequent to the year end report, on September 20, ITEX paid a quarterly cash dividend in the amount of $0.025 per share.

(The financial statements for all periods have been adjusted to reflect the 1:5 reverse stock split effective May 3, 2010.)

ITEX Corporation�s report on Form 10-K can be found at www.sec.gov.

For more on ITEX click here.



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