ITEX Corp., the Membership Trading Community(SM), serves as a marketplace for cashless business transactions in North America. The company today announced its financial results for the fourth quarter and fiscal year ended July 31, 2010, posting solid results generated from acquisitions and successful management guidance.
The company reported income from operations up 63 percent to $1.674 million from $1.027 million last year.
Net income increased 56 percent to $946,000 from $607,000 reported for the fourth quarter of last year.
Earnings per share increased 53 percent to $0.26 from $0.17 last year.
Revenue grew 3 percent to $16.925 million compared to $16.502 million reported in the comparable quarter of last year.
“I am pleased to report another strong fiscal year with impressive results,” Steven White, chairman and CEO stated in the press release. “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.”
As of July 31, 2010, the company posted a 102-percent increase in cash to $5.169 million from $2.5 million on July 31, 2009.
ITEX also noted its agreement with U.S. Bank to increase the company’s revolving credit facility from $1.5 million to $2.5 million with a lower interest rate; completed a 1-for-5 reverse stock split of its common stock, reducing the number of shares of common stock from 18,027,914 to approximately 3,605,320. The company also sold its San Francisco, Calif., corporate-owned office to an existing franchisee.
White said the company’s increased cash position reflects its operational income paired with the company’s “skillful” management of assets.
“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,” White stated. “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.”
For more information visit www.itex.com
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