International Monetary Systems Ltd. (fka ITNM)

[di4]

International Monetary Systems Files Quarterly Report
Cash Flow and Operating Profits Increase Substantially
May 18, 2009 9:00:00 AM
Copyright Business Wire 2009


Email Story Discuss on ZenoBank

View Additional ProfilesNEW BERLIN, Wis.--(BUSINESS WIRE)-- International Monetary Systems, Ltd. (OTCBB: INLM), a worldwide leader in business-to-business barter services, today filed its first-quarter report on Form 10-Q.

The three-month period ended March 31, 2009 showed much improvement in the financial performance of International Monetary Systems, Ltd. During the past nine months, IMS has made a great effort to achieve profitability by reducing payroll and other elements of overhead. As a result, net income from operations totaled $56,314 for the first quarter of 2009, and net cash provided by operating activities was $557,464, a substantial increase over all previous quarters. Operating profits (EBITDA) totaled $469,261, also a major improvement over past performances.

Primarily due to the global recession, first quarter revenue of $3,351,224 declined 4.8% from the $3,518,839 generated in the first quarter of 2008, despite an increase in trade transactions of 2.1%, from $24,847,894 in the first quarter of 2008 to $25,369,715 in the first quarter of 2009. As in the general economy IMS members are experiencing declines in their businesses, with resulting reductions in discretionary and luxury spending. Considering that U.S. gross domestic product declined 7.1% in 2008, the IMS 4.8% decline is not remarkable.

However, total expenses decreased from $3,828,108 in the first quarter of 2008 to $3,294,910 for the same period in 2009, a reduction in expenses of 13.9%. This substantial decrease was achieved because of payroll cuts and other overhead reductions. Over the past twelve months, IMS has trimmed its work force by 40 people, without substantial revenue reduction.

As a result, the net profit from operations was $56,314 for the first three months of 2009, compared to a loss of $309,269 for the same period last year. After deducting non-cash expenses such as depreciation, amortization, bad-debt expense and stock issued for services rendered, the loss before income taxes was just $1,369, compared to a loss of $371,407 for the same period of 2008. After deducting current and deferred income taxes, the net loss in the first three months of 2009 was $54,369, compared to $230,907 last year, which was net of a deferred tax benefit. The deferred tax represents the adjustment to the deferred tax liability, which arises primarily from the differences in basis of acquired membership lists for financial reporting versus tax reporting.

For the three months ended March 31, 2009, net cash provided by operating activities totaled $557,464, compared to $43,457 for the first quarter of 2008. A portion of this substantial increase was the result of one-time occurrences. However, management expects improvements in cash flow throughout the year, as

The effects of cost reductions are fully realized. Furthermore, third and fourth quarter revenues are typically significantly higher than the first quarter.

For the period ended March 31, 2009, operating profit or EBITDA - earnings before interest, taxes, depreciation and - totaled $469,261, an increase of 406% from the $92,674 reported for the first quarter of 2008.

Liquidity, Sources of Capital and Lines of Credit

On March 31, 2009, current assets were $2,151,542, and total assets were $15,978,055. Current liabilities were $2,994,553 and total liabilities were $8,004,458, resulting in total shareholder equity of $7,973,597.

At the end of the first quarter of 2009, the Company's unrestricted cash balance was $519,648 compared to $279,227 on December 31, 2008.

Don Mardak, CEO of IMS commented: "We are very pleased with International Monetary Systems' first-quarter results. The numbers demonstrate the progress that we have made in our quest for profitability. We believe that our lower overhead and ongoing strong sales should enable us to continue showing similar improvements in the months ahead, in spite of the current economic environment."

Safe Harbor Statement

Some statements in this release are "forward-looking statements" as that term is defined in Sections 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"), and are subject to certain risks and uncertainties, including, but not limited to, economic conditions, competition, changes in laws and the demand for the company's goods and services, which could significantly affect anticipated future results. Actual results may differ materially from any forward-looking statements, which have been issued under the safe harbor provisions established under the Private Securities Litigation Act of 1995. Statements in this release should be evaluated in light of these factors. All information set forth in this release is as of November 13, 2008, and International Monetary Systems, Ltd. undertakes no duty to update this information.

About International Monetary Systems

Founded in 1985, International Monetary Systems (IMS) serves 17,500 businesses representing 23,000 cardholders in 50 North American markets. Based in New Berlin, Wisconsin, and managed by seasoned industry veterans, IMS is one of the largest publicly traded barter companies in the world and is continually expanding its network by adding exchange locations. The company's proprietary transaction clearing software enables businesses and individuals to trade goods and services online using an electronic currency known as trade dollars. The IMS network allows companies to create cost savings and connect to new customers by incorporating barter opportunities in their business models. Further information can be obtained at the company's Web site at: www.imsbarter.com.



Source: International Monetary Systems, Ltd.


----------------------------------------------
International Monetary Systems
Ltd.
New Berlin
WI
Krista Vardabash
[phone]
ext. 19
[e-mail]
http://www.imsbarter.com