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Innotrac Corporation Announces 2013 First Quarter Results

          Innotrac Corporation Announces 2013 First Quarter Results

PR Newswire

ATLANTA, May 13, 2013

ATLANTA, May 13, 2013 /PRNewswire/ -- Innotrac Corporation (NASDAQ: INOC)
announced financial results today for the first quarter ended March 31, 2013.
The Company reported a 20% increase in net service revenues to $25.5 million
for the three months ended March 31, 2013, up from $21.3 million for the same
period last year. This growth was a result of Innotrac leveraging its
infrastructure to serve clients' growing needs, as consumers focus more and
more on eCommerce purchasing. Innotrac welcomed a number of new clients, and
helped manage the revenue growth of long-standing client partners. Total
revenues, which include service and freight revenue, increased $5.1 million
(21%) to $29.3 million, up from $24.2 million for the same period last year.

The Company reported net income of $1.0 million, or $0.08 per share, fully
diluted, for the three months ended March 31, 2013, and $0.5 million, or $0.03
per share in the comparable period of 2012.

"We have grown revenue by 20% over last year and doubled net income," said
Scott Dorfman, Innotrac's CEO. "The recent launch of our SmartHub® operations
dashboard has given us a competitive advantage in attracting clients that are
now able to monitor service metrics in real time. This gives our clients
complete transparency into critical performance information on demand. We
continue to invest in our SmartHub® division, which provides clients with
end-to-end research and analysis on the online buying experience. These new
products allow our customers to be more competitive and cost effective in
their offerings and to find solutions to serve their customers better."

"We ended the quarter with no outstanding advances on our line of credit, and
over $4 million in cash," said Steve Keaveney, CFO. "Our balance sheet remains
strong, affording us ample opportunity to continue investing in our
distribution centers and infrastructure for our valued customer base. We
believe the business is positioned as a platform for continued growth and we
will strive to continually improve financial performance in order to drive
return on investment for our shareholders."

Innotrac (NASDAQ INOC) was founded in 1984, with the goal of providing the
highest quality fulfillment services to both our clients and their customers.
We have an integrated network of eight fulfillment centers, along with a
contact center in North America. 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 or

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 growing its existing client base
and 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, Innotrac's ability to develop new
products, 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.


Steve Keaveney
Chief Financial Officer

(in thousands, except share data)
ASSETS                                            March 31, 2013  December 31,
Current assets:
 Cash and cash equivalents                    $ 4,197         $ 4,005
 Accounts receivable (net of allowance for
doubtfulaccounts of $108 at                      20,001          23,216
 March 31, 2013 and $136 at December 31,
 Inventories, net                              861             740
 Prepaid expenses and other                    1,139           1,107
 Total current assets                      26,198          29,068
Property and equipment:
 Computers, machinery and equipment            43,812          42,877
 Furniture, fixtures and leasehold             10,137          10,055
                                                  53,949          52,932
 Less accumulated depreciation and             (40,039)        (39,089)
                                                  13,910          13,843
Other assets, net                                 1,347           1,281
 Total assets                              $ 41,455        $ 44,192
Current liabilities:
 Accounts payable                              $ 7,469         $ 10,409
 Line of credit                                -               -
 Accrued salaries                              1,862           2,854
 Equipment lease payable                       443             421
 Accrued expenses and other                    3,365           3,088
 Equipment loan                                1,530           1,620
 Total current liabilities                 14,669          18,392
Noncurrent liabilities:
 Deferred compensation                         894             837
 Equipment lease payable, net                  508             544
 Other noncurrent liabilities                  868             963
 Total noncurrent liabilities              2,270           2,344
Shareholders' equity:
 Preferred stock: 10,000,000 shares
authorized, $0.10 par value,
 no shares issued or outstanding             -               -
 Common stock: 50,000,000 shares authorized,
$0.10 par value, 13,245,440
shares issued and outstanding at March 31,  1,325           1,316
2013 13,155,440 shares
 issued and outstanding at December 31, 2012
 Additional paid-in capital                    66,822          66,784
 Accumulated other comprehensive loss          (3)             (2)
 Accumulated deficit                           (43,642)        (44,656)
 Total Innotrac shareholders' equity       24,502          23,442
 Noncontrolling interest                   14              14
 Total equity                              24,516          23,456
 Total liabilities and equity              $ 41,455        $ 44,192

(in thousands, except per share amounts)
                                                  Three Months Ended March 31,
                                                  2013            2012
                                                  (unaudited)     (unaudited)
Service revenues                                  $ 25,468        $ 21,320
Freight revenues                                  3,851           2,850
 Total revenues                            29,319          24,170
Cost of service revenues                          12,617          10,334
Freight expense                                   3,696           2,765
Selling, general and administrative expenses      10,963          9,749
Depreciation and amortization                     950             825
 Total operating expenses                  28,226          23,673
 Operating income                      1,093           497
Other expense (income):
 Interest expense                              78              53
 Other (income) expense                        1               (1)
Total other expense                               79              52
Income before income taxes                        1,014           445
Income taxes                                      -               -
Net income                                        1,014           445
Net income (loss) attributable to noncontrolling  -               -
Net income attributable to Innotrac               $ 1,014         $ 445
Earnings per share:
 Basic                                         $ 0.08          $ 0.03
 Diluted                                       $ 0.08          $ 0.03
Weighted average shares outstanding:
 Basic                                         13,104          13,029
 Diluted                                       13,111          13,029

(in thousands)
                                                  Three Months Ended March 31,
                                                  2013            2012
                                                  (unaudited)     (unaudited)
Cash flows from operating activities:
 Net income                                    $ 1,014         $ 445
 Adjustments to reconcile net income to net
 provided by (used in) operating activities:
 Depreciation and amortization                 950             825
 Provision for bad debts                       (29)            3
 Stock compensation expense-restricted stock   47              31
 Changes in operating assets and liabilities:
 Accounts receivable, gross                3,244           837
 Inventory                                 (121)           54
 Prepaid expenses and other                (32)            (77)
 Long-term assets                          -               (87)
 Accounts payable                          (3,526)         (1,931)
 Accrued expenses, accrued salaries and    (716)           (429)
 Long-term liabilities                     (95)            (59)
 Net cash provided by (used in)        736             (388)
operating activities
Cash flows from investing activities:
 Capital expenditures                      (342)           (1,664)
 Net change in noncurrent assets and       (9)             -
 Net cash used in investing activities     (351)           (1,664)
Cash flows from financing activities:
 Payments on Equipment Loan                (90)            -
Capital lease payments                    (103)           (114)
 Loan commitment fees                      -               (15)
 Net cash used in financing activities (193)           (129)
Net increase (decrease) in cash and cash          192             (2,181)
Cash and cash equivalents, beginning of period    4,005           3,283
Cash and cash equivalents, end of period          $ 4,197         $ 1,102
Supplemental cash flow disclosures:
 Cash paid for interest                        $ 57            $ 37
 Non-cash investing and financing activities:
 Capital lease for equipment               $ 89            $ 369
 Capital expenditures in accounts        $ 586           $ 847

SOURCE Innotrac Corporation