Innotrac Corporation Announces 2012 First Quarter Results

ATLANTA, May 15, 2012 /PRNewswire/ -- Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the first quarter ended March 31, 2012.  The Company reported a 23.3% increase in service revenues to $21.3 million for the quarter versus $17.3 million reported in the comparable period in 2011.  The increase in service revenue for the quarter ended March 31, 2012 was primarily due to the addition of new client programs and a net increase in volume from existing clients. 

Total revenues, which include service and freight revenue, increased 15.3% for the three months ended March 31, 2012 when compared to the same periods in 2011.  Total revenues were $24.2 million for the three months ended March 31, 2012 compared to $21.0 million for the same period in 2011.  Freight revenues declined for the three month period when compared to comparable period in 2011 but have minimal impact on the Company's operating income since they are billed as pass through expenses.

The Company reported net income of $445,000, or $0.03 per share, fully diluted, for the three months ended March 31, 2012, versus a net loss of $526,000, or ($0.04) per share in the comparable period of 2011. 

"Our 23.3% service revenue growth in the first quarter was largely focused in the online retail segment.  Since some of our new clients are just beginning their eCommerce programs, we are eagerly working with them to increase their market presence.  Operationally, our ability to absorb the additional volumes on our existing infrastructure gives us the leverage we've been expecting and resulted in our generating $445,000 of net income in the quarter," said Scott Dorfman, Innotrac's CEO. 

"In anticipation of future growth, we increased our capital expenditures in the quarter to $1.6 million from $365,000 in 2011 and expect to have our new Groveport, Ohio facility on line in the second quarter.  Consistent with our expectations, we ended the quarter with no outstanding advances on our line of credit and $1.1 million in cash," said George Hare, CFO.

Innotrac

Innotrac Corporation, founded in 1984 and based near Atlanta, Georgia, is a best-of-breed commerce provider integrating digital technology, fulfillment and contact center solutions to support global brands.  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.  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 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. 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 and developing new business, Innotrac's ability to maintain or improve gross margins in the face of increasing revenues and pricing pressures, realization of expected revenues from new clients, the general state of the  industries that the Company serves, changing technologies, and numerous other factors discussed in Innotrac's 2011 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 Consolidated Statements of Operations

(in thousands, except per share amounts)






Three Months Ended




March 31,



(Unaudited)



2012


2011


Service revenue

$         21,320


$   17,287


Freight revenue

2,850


3,682


     Total revenue

24,170


20,969







Cost of service revenues

10,334


7,752


Freight expense

2,765


3,638


Selling, general and





    administrative expenses

9,749


9,208


Depreciation and amortization

825


851


    Total operating expenses

23,673


21,449


Operating income (loss)

497


(480)


    Interest expense

53


46


    Other expense

(1)


-


        Total other expense

52


46


Net income (loss) before income taxes

445


(526)


   Income tax

-


-


Net income (loss)

445


(526)


   Net loss attributable to noncontrolling

   interest

-


-


Net income (loss) attributable to Innotrac

$              445


$      (526)







Earnings (loss)  per share:





    Basic

$             0.03


$     (0.04)


    Diluted

$             0.03


$     (0.04)







Weighted average shares








    outstanding:








    Basic

13,029


12,861





    Diluted

13,029


12,861















 


INNOTRAC CORPORATION


Condensed Consolidated Balance Sheets


(in thousands)










March 31, 2012


December 31, 2011


ASSETS

(Unaudited)



Current Assets:





 Cash

$            1,102


$            3,283


 Accounts receivable (net of allowance for doubtful

   accounts of  $99 at March 31, 2012 and $97

   at December 31, 2011)

16,137


16,977


 Inventory

689


743


 Prepaid expenses and other

1,155


1,066


       Total current assets

19,083


22,069






 Property and equipment, net

13,229


11,173

 Other assets, net

1,267


1,100


        Total assets

$          33,579


$          34,342







LIABILITIES AND SHAREHOLDERS' EQUITY




Current Liabilities:





 Accounts payable

$            6,830


$            7,914


 Line of credit

-


-


 Accrued expenses and other

4,101


4,484


       Total current liabilities

10,931


12,398






Noncurrent Liabilities:





 Other non-current liabilities

2,353


2,128


       Total noncurrent liabilities

2,353


2,128







       Total shareholders' equity

20,295


19,816


       Total liabilities and shareholders' equity

$          33,579


$          34,342







 


 

INNOTRAC CORPORATION



Condensed Consolidated Statements of Cash Flows



(in thousands)














Three Months Ended

December 31,






(Unaudited)






2012


2011



CASH FLOWS FROM OPERATING ACTIVITIES:






Net income (loss)

$            445


$         (526)



Adjustments to net loss:







Depreciation and amortization

825


851




Provision for bad debts

3


22




Stock compensation expense (income)-stock options

-


1




Stock compensation expense-restricted stock

31


(74)




Changes in operating assets and liabilities:








Accounts receivable, gross

837


(956)





Inventory

54


2,846





Prepaid assets and other

(77)


(61)





Other long-term assets

(87)


19





Accounts payable, accrued expenses and other

(2,360)


(1,268)




     Other long-term liabilities

(59)


103




Net cash provided by operating activities

(388)


957











CASH FLOWS FROM INVESTING ACTIVITIES:






Capital expenditures

(1,664)


(365)



Net change in noncurrent assets and liabilities

-


(6)




Cash used in investing activities

(1,664)


(371)











CASH FLOWS FROM FINANCING ACTIVITIES:






Net borrowings under line of credit

-


-



Capital lease payments

(114)


(65)



Loan fees paid

(15)


(30)




Cash used in financing activities

(129)


(95)











Net (decrease) increase  in cash

(2,181)


491



Cash, beginning of period

3,283


238



Cash, end of period

$        1,102


$          729










 

SOURCE Innotrac Corporation



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