SOURCE: International Monetary Systems, Ltd.

May 19, 2010 16:20 ET

International Monetary Systems Files First Quarter Report

NEW BERLIN, WI--(Marketwire - May 19, 2010) -  International Monetary Systems, Ltd. (OTCBB: ITNM), a worldwide leader in business-to-business barter services, announced today that it has recently filed its 2009 first-quarter report on Form 10-Q.

During the three months ended March 31, 2010, International Monetary Systems (IMS) continued to realize the benefits of the substantial reductions in overhead that the Company had worked so hard to achieve over the past year. Some highlights are:

  • Employee costs were reduced by more than $130,000 or 6.4% compared to the first quarter of 2009.
  • Total liabilities were reduced by more than $484,000 since December 31, 2009.
  • 65,923 shares were repurchased and added to treasury stock since December 31, 2009.
  • Two outstanding lawsuits were settled.

During the quarter ended March 31, 2010, International Monetary Systems generated gross revenues of $3,070,421, a decrease of $280,803 or 8.4% compared to the first quarter of 2009. $214,861 of this decrease is a reduction in trade dollars generated due to the shifted emphasis of the corporate barter division. Fee revenue paid in cash was flat compared to Q1 of 2009.

Operating expenses in the quarter were $3,329,625, an increase of $34,715 or 1.1% compared to the first quarter of 2009. The increase is primarily due to substantially increased legal and professional fees, which were approximately $225,000 higher in 2010 versus 2009. The extraordinary professional fees resulted primarily from the Company's involvement in three separate lawsuits, two of which are now settled. This increase in fees offset savings in all other major expense categories. The largest decreases in other categories versus the first quarter of 2009 are primarily due to efficiencies realized in personnel and occupancy costs.

The combination of revenue decline and expense controls resulted in a net operating loss of $259,204 for the quarter, compared to net operating income of $56,314 in the first quarter of 2009. The increase in the net operating loss for the quarter ended March 31, 2010 was due to significantly higher legal fees and lower trade revenue.

Because of these unusual expenses, EBITDA -- earnings before interest, taxes, depreciation and amortization -- for the quarter totaled $147,816 a decrease of 68.5% compared to the $469,261 reported for the first quarter of 2009.

After adjusting for interest and income taxes, the net loss for the current period was $320,762 compared to a net loss of $54,369 in the first quarter of 2009. The net loss includes higher than ordinary income tax expense due to adjustment for the settlement of a federal income tax audit.

About International Monetary Systems

Founded in 1985, International Monetary Systems (IMS) serves 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. 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.

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