2014

Innotrac Corporation Announces 2011 First Quarter Results

ATLANTA, May 16, 2011 /PRNewswire/ -- Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the first quarter ended March 31, 2011.  The Company reported an 8.3% increase in total revenues to $21.0 million for the quarter versus $19.4 million reported in the comparable period in 2010.  The increase in revenue for the quarter ended March 31, 2011, was primarily due to the launch of new business that was added during the end of 2010.

The Company reported a net loss of $526,000, or ($0.04) per share, fully diluted, for the three months ended March 31, 2011, versus a net loss of $973,000, or ($0.08) per share in the comparable period of 2010.  

"We were able to grow revenues by 8.3% with the addition of new business while keeping our gross margins strong at 45.7% compared to 45.0% in the comparable period last year.  Despite increasing investments in both our sales and marketing and information technologies areas we were still able to reduce our SG&A spending as a percentage of sales from 45.5% in the first quarter of 2010 to 43.9% this quarter.  As a result we significantly reduced our net loss when compared to first quarter 2010.  We feel we have substantial momentum in the business and with additional new clients scheduled to launch during 2011, we expect our operating results to continue to improve throughout the year," said George Hare, CFO.

Innotrac

Innotrac Corporation, founded in 1984 and based near 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 seven 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 and the Netherlands.  For more information about Innotrac, visit the Innotrac Website, www.innotrac.com.

Information contained in this press release, other than historical information, may be considered forward-looking in nature.  Forward-looking statements include statements relating to expected new clients and future operating results.  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, Innotrac's success in growing its existing client base, developing new business, Innotrac's ability to maintain or improve gross margins in the face of increasing revenues, reducing operating costs in response to reduced service revenues, realization of expected revenues from new clients, the general state of the  industries that the Company serves, changing technologies, Innotrac's ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2010 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

George Hare
Chief Financial Officer
678-584-4020
ghare@innotrac.com


INNOTRAC CORPORATION


Condensed Statements of Operations


(in thousands, except per share amounts)









Three Months Ended

March 31,

(Unaudited)








2011


2010


Service revenue


$          17,287


$   16,028


Freight revenue


3,682


3,325


    Total revenue


20,969


19,353








Cost of service revenues


7,752


7,346


Freight expense


3,638


3,291


Selling, general and






   administrative expenses


9,208


8,802


Depreciation and amortization


851


848


   Total operating expenses


21,449


20,287


Operating loss


(480)


(934)


   Interest expense


46


39


       Total other expense


46


39


Loss before income taxes


(526)


(973)


   Income tax


-


-


Net loss  


$             (526)


$      (973)








Loss  per share:






   Basic


$            (0.04)


$     (0.08)


   Diluted


$            (0.04)


$     (0.08)








Weighted average shares






   outstanding:






   Basic


12,861


12,607


   Diluted


12,861


12,607







INNOTRAC CORPORATION


Condensed Balance Sheets


(in thousands)










March 31, 2011


December 31, 2010


ASSETS

(Unaudited)



Current Assets:





Cash

$               729


$               238


Accounts receivable (net of allowance for doubtful accounts of  
$139 at March 31, 2011 and $242 at December 31, 2010)

16,213


15,279


Inventory

780


3,626


Prepaid expenses and other

1,240


1,149


      Total current assets

18,962


20,292






Property and equipment, net

11,076


11,380

Other assets, net

1,143


1,122


       Total assets

$          31,181


$          32,794







LIABILITIES AND SHAREHOLDERS' EQUITY




Current Liabilities:





Accounts payable

$            5,519


$            5,920


Line of credit

-


-


Accrued expenses and other

3,351


4,076


      Total current liabilities

8,870


9,996






Noncurrent Liabilities:





Other non-current liabilities

1,611


1,499


      Total noncurrent liabilities

1,611


1,499







      Total shareholders' equity

20,700


21,299


      Total liabilities and shareholders' equity

$          31,181


$         32,794













INNOTRAC CORPORATION



Condensed Statements of Cash Flows



(in thousands)














Three Months Ended

March 31,






(Unaudited)






2011


2010



CASH FLOWS FROM OPERATING ACTIVITIES:






Net loss

$         (526)


$         (973)



Adjustments to net loss:







Depreciation and amortization

851


848




Provision for bad debts

22


(48)




(Gain) loss on disposal of fixed assets

-


1




Stock compensation expense-stock options

1


(5)




Stock compensation expense-restricted stock

(74)


19




Decrease in other long-term assets

19


12




Increase in other long-term liabilities

103


108




Changes in working capital:








Accounts receivable, gross

(956)


1,745





Inventory

2,846


(880)





Prepaid assets and other

(61)


757





Accounts payable, accrued expenses and other

(1,268)


(566)




Net cash provided by operating activities

957


1,018











CASH FLOWS FROM INVESTING ACTIVITIES:






Capital expenditures

(365)


(285)



Net change in noncurrent assets and liabilities

(6)


(8)




Cash used in investing activities

(371)


(293)











CASH FLOWS FROM FINANCING ACTIVITIES:






Net repayments under line of credit

-


-



Capital lease payments

(65)


(59)



Loan fees paid

(30)


-




Cash used in financing activities

(95)


(59)











Net increase in cash

491


666



Cash, beginning of period

238


1,118



Cash, end of period

$           729


$       1,784













SOURCE Innotrac Corporation



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