Innotrac Corporation Announces 2013 Second Quarter Results PR Newswire ATLANTA, Aug. 13, 2013 ATLANTA, Aug.13, 2013 /PRNewswire/ --Innotrac Corporation (NASDAQ: INOC) announced financial results today for the second quarter ended June 30, 2013. The Company reported a 27% increase in net service revenues to $26.0 million for the three months ended June 30, 2013, up from $20.4 million for the same period last year. This increase was fueled by the continued growth of strong blue chip clients as well as an expanded client base; driven by growth of eCommerce purchasing. Total revenues for the quarter increased $6.4 million (28%) to $29.3 million, up from $22.9 million last year. Total revenue for the six-month period ended June 30, 2013, increased $11.5 million (24%) to $58.6 million, from last year. The Company reported net income of $1.0 million, or $0.07 per share, fully diluted, for the quarter, as compared to $0.4 million, or $0.03 per share for the same quarter of last year. Net income for the six-month period ended June 30, 2013 was $2.0 million, or $0.15 per share, as compared to $0.9 million, or $0.07 per share, for the six months ended June 30, 2012. "We have grown revenue by 27% over last year, doubled net income and earnings per share," said Scott Dorfman, Innotrac's CEO. "The business is continuing to grow thanks to our flexible integration methodology and unique partnership approach with our clients. We take great pride in providing exceptional service and unparalleled metrics to manage their business, as consumers enjoy the convenience of eCommerce, and our clients continue to develop their omnichannel strategies to optimize inventory management. We continue to demonstrate our strong operating leverage and an ability to scale volumes throughout the year. We are committed to invest in technology and the expansion of our distribution network to offer exceptional solutions for our clients." "We ended the quarter with no outstanding advances on our line of credit, and over $4 million in cash," said Steve Keaveney, CFO. "We repaid a $1.6 million term loan from operating cash flow, further strengthening our balance sheet. In addition to this, we secured a $25 million revolver with SunTrust Bank, our new banking Partner." About Innotrac Innotrac Corporation, founded in 1984 and based near Atlanta, Georgia, is a best-in-class commerce provider integrating digital technology, fulfillment, contact center and business intelligence solutions to support global brands. Innotrac's fulfillment, order management and contact center solutions are integrated with all major web platforms, and seamlessly integrate with any required partner technologies. 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. Please refer to the Risk Factors discussed in Innotrac's 2012 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 Steve Keaveney Chief Financial Officer 678-584-4020 firstname.lastname@example.org INNOTRAC CORPORATION and SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) ASSETS June 30, December 2013 31, 2012 (unaudited) Current assets: $ $ Cash and cash equivalents 4,382 4,005 Accounts receivable (net of allowance for doubtful accounts of $134 at June 30, 2013 and $136 at December 31, 21,084 23,216 2012) Inventories, 820 740 net Prepaid expenses and other 1,493 1,107 Total current assets 27,779 29,068 Property and equipment: Computers, machinery and equipment 45,953 42,877 Furniture, fixtures and leasehold 10,319 10,055 improvements 56,272 52,932 Less accumulated depreciation and (40,994) (39,089) amortization 15,278 13,843 Other assets, net 1,408 1,281 $ $ Total assets 44,465 44,192 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: $ $ Accounts payable 10,261 10,409 Line of credit - - Accrued salaries 2,532 2,854 Equipment lease payable 446 421 Accrued expenses and other 3,594 3,088 Equipment loan - 1,620 Total current liabilities 16,833 18,392 Noncurrent liabilities: Deferred compensation 908 837 Equipment lease payable 389 544 Other noncurrent liabilities 786 963 Total noncurrent liabilities 2,083 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, 13,245,440shares issued and outstanding at June 30, 201313,155,440 shares issued and outstanding at 1,325 1,316 December31, 2012 Additional paid-in capital 66,876 66,784 Accumulated other comprehensive (2) (2) loss Accumulated deficit (42,664) (44,656) Total Innotrac shareholders' 25,535 23,442 equity Noncontrolling 14 14 interest Total shareholders' 25,549 23,456 equity Total liabilities and shareholders' $ $ equity 44,465 44,192 INNOTRAC CORPORATION and SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30, 2013 and 2012 (in thousands, except per share amounts) Three Months Ended June 30, 2013 2012 (unaudited) (unaudited) Service revenues $ 25,997 $ 20,449 Freight revenues 3,275 2,497 Total revenues 29,272 22,946 Cost of service revenues 12,831 9,624 Freight expense 3,193 2,411 Selling, general and administrative expenses 11,209 9,508 Depreciation and amortization 955 891 Total operating expenses 28,188 22,434 Operating income 1,084 512 Other expense (income): Interest expense 77 69 Other (income) expense (1) 3 Total other expense 76 72 Income before income taxes 1,008 440 Income taxes 30 - Net income 978 440 Net loss attributable to noncontrolling interest - 1 Net income attributable to Innotrac $ 978 $ 441 Earnings per share: Basic $ 0.07 $ 0.03 Diluted $ 0.07 $ 0.03 Weighted average shares outstanding: Basic 13,245 13,010 Diluted 13,263 13,010 INNOTRAC CORPORATION and SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 2013 and 2012 (in thousands, except per share amounts) Six Months Ended June 30, 2013 2012 (unaudited) (unaudited) Service revenues $ 51,465 $ 41,769 Freight revenues 7,126 5,347 Total revenues 58,591 47,116 Cost of service revenues 25,448 19,958 Freight expense 6,889 5,176 Selling, general and administrative expenses 22,172 19,257 Depreciation and amortization 1,905 1,716 Total operating expenses 56,414 46,107 Operating income 2,177 1,009 Other expense: Interest expense 155 122 Other expense - 2 Total other expense 155 124 Income before income taxes 2,022 885 Income taxes 30 - Net income 1,992 885 Net loss attributable to noncontrolling interest - 1 Net income attributable to Innotrac $ 1,992 $ 886 Earnings per share: Basic $ 0.15 $ 0.07 Diluted $ 0.15 $ 0.07 Weighted average shares outstanding: Basic 13,175 13,020 Diluted 13,188 13,020 INNOTRAC CORPORATION and SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2013 and 2012 (in thousands) Six Months Ended June 30, 2013 2012 (unaudited) (unaudited) Cash flows from operating activities: Net Income $ 1,992 $ 885 Adjustments to reconcile net income to net cashprovided by operating activities: Depreciation and amortization 1,905 1,716 Provision for bad (1) 5 debts Stock compensation expense-restricted 102 68 stock Changes in operating assets and liabilities: Accounts receivable, 2,133 1,243 gross (80) 138 Inventory Prepaid expenses and other (342) (294) Long-term 41 (68) assets Accounts (1,503) (2,499) payable Accrued expenses, accrued 183 157 salaries and other Long-term (178) (105) liabilities Net cash provided by 4,252 1,246 operating activities Cash flows from investing activities: Capital expenditures (1,896) (3,753) Net change in noncurrent assets and (9) - liabilities Net cash used in (1,905) (3,753) investing activities Cash flows from financing activities: Borrowings on equipment loan - 1,800 Payments on equipment loan (1,620) - Capital lease payments (219) (216) Loan commitment fees (131) (37) Net cash (used in) (1,970) 1,547 provided by financing activities Net increase (decrease) in cash and cash 377 (960) equivalents Cash and cash equivalents, beginning of 4,005 3,283 period Cash and cash equivalents, end of period $ 4,382 $ 2,323 Supplemental cash flow disclosures: Cash paid for $ 123 $ 83 interest Non-cash investing and financing activities: Capital lease for warehouse and $ 89 $ 862 computer equipment Capital expenditures in accounts $ 1,355 $ 216 payable SOURCE Innotrac Corporation Website: http://www.innotrac.com
Innotrac Corporation Announces 2013 Second Quarter Results
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