ITEX | Quote | Chart | News | PowerRating -- ITEX Corporation (OTC Bulletin Board: ITEX), The Membership Trading Community(SM), a leading marketplace for cashless business transactions in North America, today filed its Form 10-K with the Securities and Exchange Commission and announced its results for the fourth quarter and fiscal year ended July 31, 2009.
"Despite the challenging economic climate, in fiscal year 2009 we recorded increases in revenues, total assets, stockholder equity, more than doubled our cash position and retired all long term debt," said Steven White, Chairman and CEO. "Revenues increased 3 percent and net cash provided by operating activities increased 21 percent in 2009 to $2,875,000."
"We had a strong fourth quarter - revenue increased 5% to $4,257,000 from $4,065,000 in the same period last year and operational income increased 26% to $426,000 from $339,000. We attribute these increases to our strategic initiatives, executed in the past two fiscal years, providing earlier than anticipated returns."
"During fiscal 2009, we continued to allocate resources for a number of strategic initiatives such as developing our Web Services program, executing a national strategic partnership strategy, launching ITEX Media Services, and beginning a national advertisement campaign in premier business publications. Many of the expenses incurred were for start up and one-time costs. Our strong operational cash flow and cash position will allow us to continue investing in strategic initiatives."
"We are very pleased with our Software as a Service initiative which resulted in two executed web services agreements - providing new revenue streams for the Company in addition to expanding trading opportunities for our members. Under the agreements, for a one-time platform subscription fee and a monthly transaction processing fee ITEX hosts the web interface, client relationship management platform and is responsible for transactional processing. We also provide a proprietary processing technology that enables members of any of our web services clients to seamlessly accept the digital currency of another web services client."
Mr. White concluded, "Another notable highlight for 2009 was a 38 percent increase in new member registrations compared to 2008. With the current economic uncertainty, we are well positioned to assist existing and prospective members in generating new sales and conserving precious cash. We have received considerable press in recent months and expect new member registrations to remain strong in 2010."
Fiscal Year 2009 Highlights
-- Marketplace revenue increased 3% in 2009 to $16,502,000 from $15,964,000
in 2008;
-- Cash and cash equivalents increased 141% in 2009 to $2,557,000 from
$1,061,000 in 2008;
-- Stockholders' equity increased 5% in 2009 to $13,981,000 from
$13,319,000 in 2008;
-- Total assets increased 3% in 2009 to $16,661,000 from $16,149,000 in
2008;
-- Acquisition and launch of ITEX Media Services;
-- National partnership strategy launched with execution of an agreement
with iCare, a division of SYSCO, Inc., a supplier of products and
services to the food service and hospitality industries;
-- Executed two web services agreements;
-- Registered 4,503 new members in 2009 verses 3,248, in the prior year
period, a 38% increase;
-- Retired early the remaining balances of notes for two acquisitions,
leaving the Company with no long-term debt;
-- Entered into an agreement with U.S. Bank to increase the maximum loan
amount under our revolving credit facility from $1.0 million to $1.5
million with a lower interest rate;
-- Fourth quarter revenue increased 5% to $4,257,000 compared to $4,065,000
last year;
-- Fourth quarter income from operations increased 26% to $426,000 from
$339,000 in 2008.
ITEX Corporation's report on Form 10-K can be found at www.sec.gov.
About ITEX
ITEX, The Membership Trading Community(SM), is a thriving network of participating member businesses. Members increase sales through an exclusive distribution channel managed by franchisees, licensees and corporate-owned locations, by utilizing ITEX dollars to exchange goods and services. ITEX is powered by ITEX Payment Systems, the leading payment technology platform for processing cashless business transactions. ITEX is headquartered in Bellevue, WA. For more information, please visit ITEX's website at www.itex.com. We routinely post important information on the investor relations portion of our website.
ITEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
July 31, July 31,
2009 2008
-------- --------
ASSETS
Current assets:
Cash and cash equivalents 2,557 1,061
Accounts receivable, net of allowance
of $351 and $361 895 1,331
Prepaid expenses 82 238
Loans and advances 57 67
Prepaid Advertising Credits 157 -
Deferred tax asset 739 819
Notes receivable - corporate office sales 242 204
Other current assets 19 13
-- --
Total current assets 4,748 3,733
Property and equipment, net of Accumulated
depreciation of $280 and $151 247 176
Goodwill 3,318 3,168
Deferred tax asset, net of current portion 5,798 6,061
Intangible assets, net of amortization
of $1,703 and $1,078 1,572 2,093
Notes receivable - corporate office
sales, net of current portion 624 886
Other long-term assets 354 32
--- --
Total assets 16,661 16,149
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and other expenses payable 98 215
Commissions payable to brokers 691 666
Accrued commissions to brokers 828 713
Accrued expenses 521 445
Deferred revenue 144 75
Advance payments 138 117
Current portion of notes payable - 591
--- ---
Total current liabilities 2,420 2,822
Long-term liabilities:
Other long-term liabilities 260 8
--- -
Total Liabilities 2,680 2,830
Commitments and contingencies
Stockholders' equity:
Common stock, $.01 par value; 50,000 shares
authorized; 17,856 shares and 17,816 shares
issued and outstanding, respectively 179 178
Additional paid-in capital 28,962 28,908
Accumulated deficit (15,160) (15,767)
------- -------
Total stockholders' equity 13,981 13,319
Total liabilities and stockholders'
equity 16,661 16,149
====== ======
ITEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Year ended July 31
2009 2008
Marketplace revenue $16,502 $15,964
Cost and expenses:
Costs of Marketplace revenue 10,481 10,335
Salaries, wages and employee benefits 1,895 1,634
Selling, general and administrative 2,337 1,869
Depreciation and amortization 762 625
--- ---
15,475 14,463
Income from operations 1,027 1,501
----- -----
Interest & Other income (expense) 1 16
--- --
Income before income taxes 1,028 1,517
----- -----
Income tax expense (benefit) 421 583
--- ---
Net Income $607 $934
==== ====
Weighted average shares outstanding
Basic 17,820 17,643
Diluted 17,825 17,858
Net income per common share
Basic 0.03 0.05
Diluted 0.03 0.05
Selected Quarterly Financial Results
Year ended
July 31, 2009 First Second Third Fourth
Quarter Quarter Quarter Quarter Total
------- ------- ------- ------- -----
Revenue 3,899 4,365 3,981 4,257 16,502
Income from operations 22 235 344 426 1,027
Net cash flows from
operating activities 706 481 348 1,340 2,875
Total stockholders'
equity 13,381 13,538 13,756 13,981 13,981
Year ended
July 31, 2008 First Second Third Fourth
Quarter Quarter Quarter Quarter Total
------- ------- ------- ------- -----
Revenue 3,853 4,175 3,871 4,065 15,964
Income from operations 272 482 408 339 1,501
Net cash flows from
operating activities 767 1,018 (15) 604 2,374
Total stockholders'
equity 12,341 12,754 13,008 13,319 13,319
This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance (as described without limitation in the quotations from current management in this release) and comments within the safe harbor provisions established under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of our future performance. We believe that these potential risks and uncertainties include, without limitation: the continuing development of successful marketing strategies for our concepts; our ability to increase revenues and sustain profitability; the availability of adequate working capital; our dependence both on key personnel and our franchise network; and the effect of changes in the overall economy and in technology. Statements in this release should be evaluated in light of these factors. These risk factors and other important factors that could affect our business and financial results are discussed in our periodic reports and filings with the Securities and Exchange Commission, including our Forms 10-K and Forms 10-Q, which are available at www.sec.gov. All information set forth in this release is as of October 15, 2009, and ITEX undertakes no duty to update this information.
For more information, please visit www.itex.com
SOURCE ITEX Corporation
http://www.itex.com
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