Innotrac Corporation Announces 2013 Third Quarter Results

          Innotrac Corporation Announces 2013 Third Quarter Results

PR Newswire

ATLANTA, Nov. 14, 2013

ATLANTA, Nov. 14, 2013 /PRNewswire/ --Innotrac Corporation (NASDAQ: INOC)
announced financial results today for the third quarter ended September 30,
2013. Total revenues for the quarter increased $4.1 million (15.8%) to $29.8
million from $25.7 million for the three months ended September 30, 2012.
Total revenue for the nine month period ended September 30, 2013, increased
$15.5 million (21.3%) to $88.3 million from $72.8 million for the nine months
ended September 30, 2012. Revenue from new clients and growth of existing
clients were the key drivers of this revenue growth.

The Company reported net income of $18.5 million, or $1.39 per share, fully
diluted, for the third quarter ended September 30, 2013, as compared to $1.1
million, or $0.08 per share for the quarter ended September 30, 2012. Net
income for the nine months ended September 30, 2013 was $20.4 million, or
$1.55 per share, as compared to $2.0 million, or $0.15 per share, for the nine
months ended September 30, 2012.

In the third quarter ended September 30, 2013, Innotrac released a valuation
allowance of $17.2 million that was previously recorded against deferred tax
assets primarily related to net operating loss carryforwards. The Company did
not generate any cash flow from the income tax benefit recorded in the
consolidated statements of operations for the period ended September 30,
2013. This income tax benefit did not have any impact on business operations
during the quarter. This $17.2 million income tax benefit recorded in the
quarter ended September 30, 2013 accounted for $1.30 of the total $1.39 fully
diluted earnings per share for the quarter ended September 30, 2013 and $1.30
of the total $1.55 earnings per share for the nine months ended September 30,
2013.

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                                  September 30, 2013 December 31, 2012
                                           (unaudited)
Current assets:
 
                                          $      3,450 $     4,005
 Cash and cash equivalents
 Accounts receivable (net of allowance
 for doubtful accounts of $134 at
  September 30, 2013 and $136 at       20,084             23,216
 December 31, 2012)
 Inventories, net                         704                740
 Deferred income taxes                    639                -
 Prepaid expenses and other               1,277              1,107
  Total current assets           26,154             29,068
Property and equipment:
 
                                          48,495             42,877
 Computers, machinery and equipment
 Furniture, fixtures and leasehold        10,405             10,055
 improvements
                                          58,900             52,932
 Less accumulated depreciation and        (41,990)           (39,089)
 amortization
                                          16,910             13,843
Deferred income taxes                     16,569             -
Other assets, net                         1,459              1,281
  Total assets                   $     61,092  $     44,192
 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                         $      7,957 $     10,409
 Line of credit                           -                  -
 Accrued salaries                         1,828              2,854
 Equipment lease payable                  652                421
 Accrued expenses and other               3,742              3,088
 Equipment loan                           -                  1,620
  Total current liabilities   14,179             18,392
Noncurrent liabilities:
 
                                          969                837
 Deferred compensation
 Equipment lease payable                  1,188              544
 Other noncurrent liabilities             697                963
 Total noncurrent liabilities   2,854              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
 September 30, 2013
 13,155,440 shares issued and        1,325              1,316
 outstanding at December 31, 2012
 Additional paid-in capital               66,930             66,784
 Accumulated other comprehensive loss     (2)                (2)
 Accumulated deficit                      (24,207)           (44,656)
  Total Innotrac shareholders'   44,046             23,442
 equity
  Noncontrolling interest        13                 14
  Total shareholders' equity      44,059             23,456
  Total liabilities and          $     61,092  $     44,192
 shareholders' equity







INNOTRAC CORPORATION and SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 2013 and 2012
(in thousands, except per share amounts)
                                     Three Months Ended September 30,
                                     2013                 2012
                                     (unaudited)          (unaudited)
Service revenues                     $      26,410  $      22,088
Freight revenues                     3,345                3,606
Total revenues             29,755               25,694
Cost of service revenues             13,391               10,368
Freight expense                      3,240                3,463
Selling, general and administrative  10,816               9,674
expenses
Depreciation and amortization        996                  995
 Total operating expenses  28,443               24,500
 Operating income    1,312                1,194
Other expense (income):
 Interest expense               41                   90
 Other (income) expense         (1)                  (2)
Total other expense                  40                   88
Income before income taxes         1,272                1,106
Income tax benefit                   (17,184)             -
Net income                           18,456               1,106
Net loss attributable to             1                    (1)
noncontrolling interest
Net income attributable to Innotrac  $      18,457   $       1,105
Earnings per share:
 Basic                         $        1.39 $        0.08
 Diluted                       $        1.39 $        0.08
Weighted average shares outstanding:
 Basic                         13,245               13,058
 Diluted                       13,267               13,058









INNOTRAC CORPORATION and SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30, 2013 and 2012
(in thousands, except per share amounts)
                                           Nine Months Ended September 30,
                                           2013              2012
                                           (unaudited)       (unaudited)
Service revenues                           $     77,875 $     63,857
Freight revenues                           10,471            8,953
Total revenues                   88,346            72,810
Cost of service revenues                   38,839            30,326
Freight expense                            10,129            8,639
Selling, general and administrative        32,988            28,931
expenses
Depreciation and amortization              2,901             2,711
 Total operating expenses        84,857            70,607
 Operating income          3,489             2,203
Other expense:
 Interest expense                     196               212
 Other expense                        (1)               -
 Total other  195               212
expense
Income before income taxes                 3,294             1,991
Income tax benefit                         (17,154)          -
Net income                                 20,448            1,991
Net loss attributable to noncontrolling    1                 -
interest
Net income attributable to Innotrac        $            $      
                                           20,449           1,991
Earnings per share:
 Basic                               $          $       
                                           1.55              0.15
 Diluted                             $          $       
                                           1.55              0.15
Weighted average shares outstanding:
 Basic                               13,199            13,033
 Diluted                             13,215            13,033





INNOTRAC CORPORATION and SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2013 and 2012
(in thousands)
                                        Nine Months Ended September 30,
                                        2013              2012
                                        (unaudited)       (unaudited)
Cash flows from operating activities:
                                       $       
                                        20,448            $       1,991
 Net Income
 Adjustments to reconcile net income to
 net cash provided by
 operating activities:

 
 Depreciation and amortization          2,901             2,711
 Provision for bad debts                3                 18
 Deferred income taxes               (17,208)          -
 Stock compensation expense-restricted  155               124
 stock
 Changes in operating assets and
 liabilities:
 Accounts receivable, gross        3,129             (1,611)
 Inventory                         36                160
 Prepaid expenses and other        (126)             (230)
  Long-term assets                  52                (69)
 Accounts payable                  (3,929)           (1,661)
 Accrued expenses, accrued         (372)             396
 salaries and other
 Long-term liabilities             (266)             (91)
 Net cash provided by         4,823             1,738
 operating activities
Cash flows from investing activities:


 Capital expenditures                   (3,291)           (4,703)
 Proceeds from disposition of assets    -                 1
 Net change in noncurrent assets and    (10)              (9)
 liabilities
 
                                        (3,301)           (4,711)
 Net cash used in investing
 activities
Cash flows from financing activities:


 Borrowings on equipment loan           -                 1,800
 Payments on equipment loan             (1,620)           (90)
 Capital lease payments                 (326)             (321)
 Loan commitment fees                   (131)             (37)
 Net cash (used in) provided  (2,077)           1,352
 by financing activities
Net increase (decrease) in cash and     (555)             (1,621)
cash equivalents
Cash and cash equivalents, beginning of 4,005             3,283
period
Cash and cash equivalents, end of       $          $      1,662
period                                  3,450
Supplemental cash flow disclosures:
 Cash paid for interest                 $         $        148
                                        151
 Non-cash investing and financing
 activities:
 Capital lease for warehouse and   $          $        862
 computer equipment                     1,201
 Capital expenditures in accounts $          $        287
 payable                                1,477







SOURCE Innotrac Corporation

Website: http://www.innotrac.com
 
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