BELLEVUE, Wash., June 14, 2012 /PRNewswire/ -- ITEX Corporation (OTCBB: ITEX), The Membership Trading Community(SM), a leading marketplace for cashless business transactions in North America, today filed its Form 10-Q with the Securities and Exchange Commission and announced results for its fiscal 2012 third quarter ended April 30, 2012.
"I am pleased to report that transaction fees increased 9% and 5%, respectively, for the three and nine month periods ended April 30, 2012, as compared to the same periods last year. In addition, we managed our costs efficiently, reducing selling, general and administrative expenses by $167,000 and $381,000 or 28% and 19%, respectively, for the three and nine month periods ended April 30, 2012, as compared to the same periods last year," stated Steven White, Chairman and CEO.
Mr. White concluded, "In April we completed a tender offer of our common stock, purchasing and retiring 1,072,808 shares, which provided a liquidity event and return of capital to stockholders."
Third Quarter 2012 Highlights
- Revenue of $3.787 million compared to $3.960 million in the same period last year
- Income from operations of $324,000 compared to $388,000 in the same period last year
- Selling, general and administrative expenses decreased to $435,000 from $602,000
- Repurchased 1,072,808 shares for $4,505,793
- Paid a $0.04 per share cash dividend in March.
Subsequent Event
On June 1, 2012, the Board of Directors of ITEX Corporation declared a quarterly cash dividend of $0.04 per share payable on June 20, 2012, to stockholders of record as of the close of business on June 11, 2012.
About ITEX
ITEX, The Membership Trading Community(SM), is a leading marketplace for cashless business transactions. Members increase sales through an exclusive distribution channel managed by our broker and franchise network, by utilizing ITEX dollars to exchange goods and services. We generate revenue by charging members percentage-based transaction fees and association fees. ITEX is headquartered in Bellevue, WA. We routinely post important information on the investor relations portion of our website. For more information, please visit www.itex.com.
This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance 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: our revenue growth and success being tied to the operations of our broker network; our future revenue growth remaining uncertain; adverse effects of a proxy fight and related litigation; our business being subject to online security risks; our brokers defaulting on their loans; unplanned system interruptions or system failures; claims and lawsuits against us that may result in adverse outcomes; 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, which are available at www.sec.gov. ITEX undertakes no duty to update or revise any forward-looking statements.
For more information, please visit www.itex.com.
ITEX CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) | |||
April 30, | July 31, | ||
(unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 922 | $ 5,386 | |
Accounts receivable, net of allowance of $308 and $354 | 1,157 | 805 | |
Prepaid expenses | 109 | 131 | |
Loans and advances | 44 | 10 | |
Prepaid advertising credits | 8 | 60 | |
Deferred tax asset, net of allowance of $22 and $22 | 798 | 798 | |
Notes receivable | 309 | 180 | |
Other current assets | 26 | 6 | |
Total current assets | 3,373 | 7,376 | |
Property and equipment, net of accumulated depreciation of $419 and $468 | 50 | 89 | |
Goodwill | 3,191 | 3,266 | |
Deferred tax asset, net of allowance of $130 and $130, and net of current portion | 4,252 | 4,681 | |
Intangible assets, net of accumulated amortization of $2,884 and $2,691 | 586 | 855 | |
Notes receivable, net of current portion | 1,316 | 729 | |
Other long-term assets | 19 | 25 | |
Total assets | $ 12,787 | $ 17,021 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts and other expenses payable | $ 66 | $ 76 | |
Commissions payable to brokers | - | 669 | |
Accrued commissions to brokers | 1,393 | 785 | |
Accrued expenses | 371 | 545 | |
Deferred revenue | 28 | 47 | |
Advance payments | 106 | 133 | |
Total current liabilities | 1,964 | 2,255 | |
Long-term liabilities: | |||
Other long-term liabilities | 11 | 8 | |
Total Liabilities | 1,975 | 2,263 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock, $0.01 par value; 9,000 shares authorized; | 26 | 36 | |
Additional paid-in capital | 25,114 | 29,452 | |
Stockholder Note Receivable | (512) | (585) | |
Accumulated deficit | (13,816) | (14,145) | |
Total stockholders' equity | 10,812 | 14,758 | |
Total liabilities and stockholders' equity | $ 12,787 | $ 17,021 | |
ITEX CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) | |||||||||
Three-Months Ended April 30, | Nine-Months Ended April 30, | ||||||||
2012 | 2011 | 2012 | 2011 | ||||||
Revenue: | |||||||||
Marketplace revenue and other revenue | $ 3,787 | $ 3,960 | $ 11,986 | $ 12,490 | |||||
Costs and expenses: | |||||||||
Cost of Marketplace revenue | 2,445 | 2,336 | 7,763 | 7,578 | |||||
Corporate salaries, wages and employee benefits | 509 | 487 | 1,481 | 1,504 | |||||
Selling, general and administrative | 435 | 602 | 1,655 | 2,036 | |||||
Depreciation and amortization | 74 | 147 | 239 | 456 | |||||
3,463 | 3,572 | 11,138 | 11,574 | ||||||
Income from operations | 324 | 388 | 848 | 916 | |||||
Other income (expense) | |||||||||
Interest, net | 25 | 13 | 75 | 33 | |||||
Other income/(expense), net | - | - | 312 | 33 | |||||
25 | 13 | 387 | 66 | ||||||
Income before income taxes | 349 | 401 | 1,235 | 982 | |||||
Income tax expense | 119 | 162 | 421 | 389 | |||||
Net income | $ 230 | $ 239 | $ 814 | $ 593 | |||||
Net income per common share: | |||||||||
Basic | $ 0.07 | $ 0.07 | $ 0.23 | $ 0.17 | |||||
Diluted | $ 0.07 | $ 0.07 | $ 0.23 | $ 0.16 | |||||
Weighted average shares outstanding | |||||||||
Basic | 3,486 | 3,611 | 3,590 | 3,590 | |||||
Diluted | 3,488 | 3,634 | 3,591 | 3,630 | |||||
SOURCE ITEX Corporation
