Innotrac Corporation Announces 2012 Third Quarter Results PR Newswire ATLANTA, Nov. 13, 2012 ATLANTA, Nov. 13, 2012 /PRNewswire/ --Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the third quarter and nine months ended September 30, 2012. The Company reported a 25.3% increase in service revenues to $22.1 million for the quarter versus $17.6 million reported in the comparable period in 2011. For the nine months ended September 30, 2012, the Company reported a 24.0% increase in service revenues to $63.9 million from $51.5 million reported in the comparable period in 2011. The increase in service revenue for both the quarter and nine months ended September 30, 2012 was primarily due to the addition of new client programs and a net increase in volume from existing clients. Total revenues, which include service and freight revenue, increased 31.6% to $25.7 million from $19.5 million for the three months ended September 30, 2012 and 2011 respectively and increased 23.2% to $72.8 million from $59.1 million for the nine months ended September 30, 2012 and 2011 respectively. Changes in freight revenue have minimal impact on the Company's operating income since they are billed as pass through expenses with a low markup over cost. The Company reported net income of $1.1million, or $0.08 per share, fully diluted, for the three months ended September 30, 2012, versus a net loss of $490,000, or ($0.04) per share in the comparable period of 2011. For the nine months ended September 30, 2012, the Company reported net income of $2.0 million, or $0.15 per share, fully diluted, versus a net loss of $1.8 million, or ($0.14) per share in the comparable period of 2011. "We are pleased with the results of the quarter, which saw a growth in service revenue of over 25% for the quarter and 24% year-to-date. We are seeing very nice momentum as our 'best-of-breed' offering continues to gain market share. In addition, growth in online sales continues to outperform traditional brick-and-mortar, which has provided solid organic growth throughout our client base. Our addition of new clients along with a strong sales pipeline gives us confidence that our efforts are paying off. We are actively adding new leading brands looking for best-of-breed services that fit within our robust network of eight fulfillment centers across the U.S. ," said Scott Dorfman, Innotrac'sCEO. "Our balance sheet remains strong. We ended the quarter with a $1.7 million cash balance and no advance on our line of credit as we approach the higher seasonal volumes expected at the end of the year," said George Hare, CFO. Innotrac Innotrac Corporation (NASDAQ INOC), founded in 1984 and based near Atlanta, Georgia, is a best-of-breed commerce provider integrating digital technology, fulfillment and contact center solutions to support global brands. The Company employs sophisticated order processing and warehouse management technology and operates eight fulfillment centers and one call center spanning all time zones across the continental United States. Innotrac Europe GmbH has a network of fulfillment centers, call centers, and returns processing facilities with operations in the UK, Germany, France, Denmark, Sweden, Poland, Austria, Italy, Switzerland, Ireland, Spain and the Netherlands. Connect with Innotrac at www.innotrac.com or http://www.linkedin.com/company/innotrac. Information contained in this press release, other than historical information, may be considered forward-looking in nature. Forward-looking statements in this release include statements relating to future events and developments, as well as management's expectations, beliefs, plans, estimates and projections relating to the future. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Innotrac's operating results, performance or financial condition are competition, the demand for Innotrac's services, Innotrac's ability to retain its current clients, Innotrac's success in developing new business, Innotrac's ability to maintain or improve gross margins in the face of increasing revenues and pricing pressures, realization of expected revenues from new clients, the general state of the industries that the Company serves, changing technologies, and numerous other factors discussed in Innotrac's 2011 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission. Innotrac disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise. Contact George Hare Chief Financial Officer 678-584-4020 email@example.com INNOTRAC CORPORATION Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, (Unaudited) (Unaudited) 2012 2011 2012 2011 Service revenue $ $ 17,623 $ 63,857 $ 51,499 22,088 Freight revenue 3,606 1,894 8,953 7,601 Total revenue 25,694 19,517 72,810 59,100 Cost of service revenues 10,368 8,072 30,326 23,508 Freight expense 3,463 1,855 8,639 7,557 Selling, general and administrative expenses 9,674 9,189 28,931 27,191 Depreciation and amortization 995 847 2,711 2,538 Total operating expenses 24,500 19,963 70,607 60,794 Operating income (loss) 1,194 (446) 2,203 (1,694) Interest expense 90 44 212 138 Other expense (2) 2 - 2 Total other expense 88 46 212 140 Income (loss) before income taxes and 1,106 (492) 1,991 (1,834) noncontrolling interest in net loss Income tax - - - - Noncontrolling interest in (1) 2 - 2 net loss Net income (loss) $ $ (490) $ 1,991 $ (1,832) 1,105 Earnings per share: Basic $ $ (0.04) $ 0.15 $ (0.14) 0.08 Diluted $ $ (0.04) $ 0.15 $ (0.14) 0.08 Weighted average shares outstanding: Basic 13,058 13,045 13,033 12,908 Diluted 13,058 13,045 13,033 12,908 INNOTRAC CORPORATION Condensed Consolidated Balance Sheets (in thousands) September 30, 2012 December 31, 2011 ASSETS (Unaudited) Current Assets: Cash $ 1,662 $ 3,283 Accounts receivable (net of allowance for doubtful accounts of $114 at September 18,570 16,977 30, 2012 and $97 at December 31, 2011) Inventory 583 743 Prepaid expenses and other 1,331 1,066 Total current assets 22,146 22,069 Property and equipment, net 14,313 11,173 Other assets, net 1,272 1,100 Total assets $ 37,731 $ 34,342 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 6,540 $ 7,914 Line of credit - - Equipment loan 1,710 - Accrued expenses and other 5,020 4,484 Total current liabilities 13,270 12,398 Noncurrent Liabilities: Other non-current liabilities 2,529 2,128 Total noncurrent liabilities 2,529 2,128 Total shareholders' equity 21,932 19,816 Total liabilities and $ 37,731 $ 34,342 shareholders' equity INNOTRAC CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands) Nine Months Ended September 30, (Unaudited) 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 1,991 $ (1,834) Adjustments to net income (loss): Depreciation and amortization 2,711 2,538 Provision for bad debts 18 37 Loss on disposal of fixed assets - (16) Stock compensation expense-stock options - 2 Stock compensation expense-restricted stock 124 4 Changes in operating assets and liabilities: Accounts receivable, gross (1,611) 3,580 Inventory 160 2,719 Prepaid assets and other (230) (6) Other long-term assets (69) 38 Accounts payable, accrued expenses and (1,265) (2,948) other Other long-term liabilities (91) 607 Net cash provided by operating activities 1,738 4,721 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (4,703) (1,467) Proceeds from disposition of assets 1 17 Net change in noncurrent assets and (9) (8) liabilities Net cash used in investing activities (4,711) (1,458) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings on equipment loan 1,800 - Payments on equipment loan (90) - Capital lease payments (321) (212) Contribution from non-controlling interest - 17 Loan commitment fees (37) (34) Net cash provided by (used in) financing 1,352 (229) activities Net (decrease) increase in cash (1,621) 3,034 Cash, beginning of period 3,283 238 Cash, end of period $ 1,662 $ 3,272 SOURCE Innotrac Corporation Website: http://www.innotrac.com
Innotrac Corporation Announces 2012 Third Quarter Results
Press spacebar to pause and continue. Press esc to stop.