ATLANTA, Nov. 13 /PRNewswire-FirstCall/ -- Innotrac Corporation (NASDAQ:INOC) announced financial results today for the third quarter and nine months ended September 30, 2007. The Company reported revenues of $29.1 million for the quarter versus $19.1 million reported in the comparable period in 2006, an increase of 52.4%. For the nine months ended September 30, 2007, the Company reported revenues of $84.9 million compared to $53.0 million for the same period in 2006, an increase of 60.2%. The increase in revenue for both the three and nine month periods 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 $1.0 million, or $0.08 per share, for the three months ended September 30, 2007, versus a net loss of $488,000, or $0.04 per share, in the comparable period of 2006. For the nine months ended September 30, 2007, the Company reported net income of $287,000, or $0.02 per share, compared to a net loss of $2.6 million, or $0.21 per share, in the same period in 2006.
AT&T recently notified us that they have decided to transition their fulfillment business in-house. AT&T indicated that their expectation is to transition the business late in 2008 and that they plan to start the details of transition timelines over the next several months. For the nine months ended September 30, 2007, the AT&T business represented approximately 13% of our total revenue. During this transition period we will be reviewing our operations to provide a stable transition in our operating infrastructure. Our communications with AT&T on their decision have confirmed that we have a very positive relationship with them and that our services are highly regarded within the AT&T organization.
Conference Call Innotrac Corporation will hold a conference call to discuss this release this afternoon, November 13, 2007 at 5:00 PM Eastern Standard Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 24017841) 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: 24017841).
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 Consolidated Statements of Operations
(in thousands, except per share amounts) Three Months Ended Nine Months Ended
September 30, September 30,
(Unaudited) (Unaudited)
2007 2006 2007 2006
Revenues $29,087 $19,091 $84,916 $52,996
Cost of revenues 16,215 9,589 47,960 26,467
Selling, general and
administrative expenses 10,490 8,914 32,392 26,212
Depreciation and amortization 1,185 956 3,787 2,639
Total operating expenses 27,890 19,459 84,139 55,318 Operating (loss) 1,197 (368) 777 (2,322)
Interest expense 161 120 490 278
Total other expense 161 120 490 278 Income (loss) before income taxes 1,036 (488) 287 (2,600)
Income tax (benefit) - - - -
Net Income (loss) $1,036 $(488) $287 $(2,600) Earnings per share:
Basic $0.08 $(0.04) $0.02 $(0.21)
Diluted $0.08 $(0.04) $0.02 $(0.21) Weighted average shares outstanding:
Basic 12,320 12,281 12,296 12,281
Diluted 12,320 12,281 12,296 12,281 Note: These statements should be read in conjunction with the Company's
Form 10-K filed with the Securities and Exchange Commission on April
17, 2007.
INNOTRAC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands) September 30, December 31,
2007 2006
ASSETS (Unaudited) (Audited)
Current Assets:
Cash $597 $1,014
Accounts receivable (net of
allowance for doubtful accounts
of $235 at September 30, 2007 and
$257 at December 31, 2006) 20,766 22,939
Inventory 919 1,729
Prepaid expenses and other 1,546 1,088
Total current assets 23,828 26,770 Property and equipment, net 17,956 17,836
Goodwill 25,169 25,169
Other assets, net 1,269 1,765 Total assets $68,222 $71,540 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $9,857 $14,363
Line of credit 4,005 8,586
Term loan 5,000 -
Accrued expenses and other 5,676 4,981
Total current liabilities 24,538 27,930 Noncurrent Liabilities:
Other non-current liabilities 1,165 1,576
Total noncurrent liabilities 1,165 1,576 Total shareholders' equity 42,519 42,034 Total liabilities and
shareholders' equity $68,222 $71,540 Note: These statements should be read in conjunction with the Company's
Form 10-K filed with the Securities and Exchange Commission on April
17, 2007.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands) Nine Months Ended
September 30,
(Unaudited)
2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $287 $(2,600)
Adjustments to net income (loss):
Depreciation and amortization 3,787 2,639
Loss on disposal of fixed assets - 8
Provision for bad debts (16) 73
Stock issued to settle
employee stock bonus 111 -
Amortization of deferred compensation 88 84
Changes in working capital:
Accounts receivable, gross 2,189 (2,149)
Inventory 810 2,599
Prepaid assets and other (7) (307)
Accounts payable, accrued
expenses and other (3,024) (131)
Net cash provided by
operating activities 4,225 216 CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (3,836) (7,034)
Installment payment on previous
acquisition of business (800) -
Cash (used in) investing activities (4,636) (7,034) CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under
line of credit (4,581) 5,892
Proceeds from term loan 5,000 -
Loan commitment fees (425) (20)
Cash (used in) provided by
financing activities (6) 5,872 Net (decrease) in cash (417) (946)
Cash, beginning of period 1,014 2,068
Cash, end of period $597 $1,122 Note: These statements should be read in conjunction with the
Company's Form 10-K filed with the Securities and Exchange
Commission on April 17, 2007. 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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