Innotrac Corporation Announces 2013 Second Quarter Results

          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
skeaveney@innotrac.com



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
 
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