ATLANTA, April 9 /PRNewswire-FirstCall/ -- Innotrac Corporation (NASDAQ:INOC) announced financial results today for the fourth quarter and year ended December 31, 2007. The Company reported revenues of $36.9 million for the quarter versus $29.3 million reported in the comparable period in 2006, an increase of 25.7%. For the year ended December 31, 2007, the Company reported revenues of $121.8 million compared to $82.3 million for the year ended December 31, 2006, an increase of 47.9%. The increase in revenue for the three months ended December 31, 2007 was primarily due to the addition of several new clients and increased revenue from existing clients in our retail/catalog and direct marketing verticals. The increase in revenue for the twelve months ended December 31, 2007 was primarily attributed to the addition of several new retail/catalog clients and additional revenue resulting from clients acquired in the ClientLogic acquisition in October, 2006.
The Company reported net income of $425,000, or $0.03 per share, for the three months ended December 31, 2007, versus a net loss of $2.7 million, or $0.22 per share, in the comparable period of 2006. For the year ended December 31, 2007, the Company reported net income of $712,000, or $0.06 per share, compared to a net loss of $5.3 million, or $0.43 per share, in the same period in 2006.
Conference Call Innotrac Corporation will hold a conference call to discuss this release this afternoon, April 9, 2008 at 5:00 PM Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 42006023) or by logging on to http://www.innotrac.com/ and clicking on "Webcasts and Presentations" in the "Investor Relations" section. The Webcast will be archived and available at the same Web address. Additionally, a 48-hour audio playback will be available at 1-800-642-1687 (Conference ID: 42006023).
Innotrac Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service fulfillment and logistics provider serving enterprise clients and world-class brands. The Company employs sophisticated order processing and warehouse management technology and operates eight fulfillment centers and two call centers in six cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, http://www.innotrac.com/.
Information contained in this press release, other than historical information, may be considered forward-looking in nature. Forward-looking statements in this press release include our expectations for future progress in our business and future generation of cash flows. 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 and attract new clients, realization of expected revenues from new clients, the state of the telecommunications and direct response industries in general, changing technologies, Innotrac's ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2006 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.
INNOTRAC CORPORATION
Condensed Statements of Operations
(in thousands, except per share amounts) Three Months Twelve Months
Ended Ended
December 31, December 31,
(Unaudited) (Unaudited)(Audited) 2007 2006 2007 2006
Service revenue $29,030 $24,845 $97,215 $69,318
Freight revenue 7,870 4,501 24,601 13,025
Total revenue 36,900 29,346 121,816 82,343 Cost of revenues 16,351 14,902 47,723 32,980
Freight expense 7,711 4,425 24,299 12,814
Selling, general and
administrative expenses 10,950 11,250 43,342 37,463
Depreciation and amortization 1,170 1,280 4,957 3,919
Total operating expenses 36,182 31,857 120,321 87,176
Operating income (loss) 718 (2,511) 1,495 (4,833)
Interest expense 293 151 783 429
Total other expense 293 151 783 429
Income (loss) before income taxes 425 (2,662) 712 (5,262)
Income tax (benefit) - - - -
Net Income (loss) $425 $(2,662) $712 $(5,262) Earnings per share:
Basic $0.03 $(0.22) $0.06 $(0.43)
Diluted $0.03 $(0.22) $0.06 $(0.43) Weighted average shares
outstanding:
Basic 12,586 12,281 12,490 12,281
Diluted 12,586 12,281 12,490 12,281 INNOTRAC CORPORATION
Condensed Balance Sheets
(in thousands) December 31, December 31,
2007 2006
ASSETS (Unaudited) (Audited)
Current Assets:
Cash $1,079 $1,014
Accounts receivable (net of
allowance for doubtful accounts
of $288 at December 31, 2007
and $257 at December 31, 2006) 28,090 22,939
Inventory 599 1,729
Prepaid expenses and other 1,100 1,088
Total current assets 30,868 26,770
Property and equipment, net 17,702 17,836
Goodwill 25,169 25,169
Other assets, net 1,192 1,765 Total assets $74,931 $71,540 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $14,050 $14,363
Line of credit 6,168 8,586
Term loan 5,000 -
Accrued expenses and other 5,708 4,981
Total current liabilities 30,926 27,930 Noncurrent Liabilities:
Other non-current liabilities 993 1,576 Total noncurrent liabilities 993 1,576 Total shareholders' equity 43,012 42,034 Total liabilities and
shareholders' equity $74,931 $71,540 INNOTRAC CORPORATION
Condensed Statements of Cash Flows
(in thousands) Twelve Months Ended
December 31,
(Unaudited) (Audited)
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $712 $(5,262)
Adjustments to net income (loss):
Depreciation and amortization 4,957 3,919
Loss on disposal of fixed assets 16 8
Provision for bad debts 43 54
Stock issued to settle
employee stock bonus 111 -
Amortization of deferred
compensation-stock options 102 105
Amortization of deferred
compensation-restricted stock 53 -
Changes in working capital:
Accounts receivable, gross (5,193) (10,248)
Inventory 1,130 2,947
Prepaid assets and other 400 206
Accounts payable, accrued
expenses and other 1,214 7,966
Net cash provided by
operating activities 3,545 (305) CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital expenditures (4,827) (8,260)
Acquisition of business, net of
cash acquired - (1,055)
Installment payment on previous
acquisition of business (800) -
Cash (used in) investing
activities (5,627) (9,315) CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under
line of credit (2,418) 8,586
Proceeds from term loan 5,000 -
Loan commitment fees (435) (20)
Cash provided by financing
activities 2,147 8,566 Net increase (decrease) in cash 65 (1,054)
Cash, beginning of period 1,014 2,068
Cash, end of period $1,079 $1,014
DATASOURCE: Innotrac Corporation CONTACT: George Hare, Chief Financial Officer, Innotrac Corporation, +1-678-584-4020, Web site: http://www.innotrac.com/
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