Innotrac Corporation Announces 2012 Third Quarter Results

          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
ghare@innotrac.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