PR Newswire: news distribution, targeting and monitoring
2014

Innotrac Corporation Announces 2012 Fourth Quarter and Year End Results

Share with Twitter Share with LinkedIn

ATLANTA, March 28, 2013 /PRNewswire/ -- Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the fourth quarter and year ended December 31, 2012.  The Company reported a 28.6% increase in service revenues to $30.1 million for the quarter versus $23.4 million reported in the comparable period in 2011.  For the year ended December 31, 2012, the Company reported a 25.4% increase in service revenues to $94.0 million from $74.9 million reported in the comparable period in 2011.  The increase in service revenue for both the quarter and year ended December 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 36.4% to $34.9 million from $25.6 million for the three months ended December 31, 2012 and 2011 respectively and increased 27.2% to $107.7 million from $84.7 million for the year ended December 31, 2012 and 2011 respectively.  Changes in freight revenue have minimal impact on the Company's operating income since they are billed as pass through expenses with a low markup over cost.

The Company reported net income of $1.5 million, or $0.11 per share, fully diluted, for the three months ended December 31, 2012, versus net income of $294,000, or $0.02 per share in the comparable period of 2011.  For the year ended December 31, 2012, the Company reported net income of $3.5 million, or $0.27 per share, fully diluted, versus a net loss of $1.5 million, or ($0.12) per share in the comparable period of 2011. 

"We continue to be pleased with the momentum the business is showing.  As our 'best-in-breed' model continues to gain market share our sales pipeline remains strong.  This past year we enjoyed both solid organic growth from our existing client base along with additional volume from several new premier brands.  Our overhead has been structured to handle higher volumes and as we have continued to produce incremental revenue, we have been able to realize increased profits.  We expect to add several new brands during 2013 that fit within our current footprint which should allow us to continue to push our business forward," said Scott Dorfman, Innotrac's CEO.

"Our balance sheet remains strong. We ended the year with a $4.0 million cash balance and no advance on our line of credit.  We were pleased to be able to operate during our most demanding quarter, using internal cash for the increase in working capital required to support our strong holiday season and continued growth," said Steve Keaveney, CFO.

Innotrac

Innotrac Corporation (NASDAQ: INOC), 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. 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. 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 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
Steve Keaveney
Chief Financial Officer
678-584-4020
skeaveney@innotrac.com

 

INNOTRAC CORPORATION

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)







Three Months Ended


Twelve Months Ended


December 31,


December 31,


(Unaudited)


(Unaudited)


2012


2011


2012


2011

Service revenue

$         30,149


$   23,444


$ 94,006


$ 74,943

Freight revenue

4,735


2,140


13,688


9,741

     Total revenue

34,884


25,584


107,694


84,684









Cost of service revenues

16,787


12,703


47,113


36,211

Freight expense

4,511


2,085


13,150


9,642

Selling, general and








    administrative expenses

11,035


9,611


39,966


36,802

Depreciation and amortization

988


842


3,699


3,380

    Total operating expenses

33,321


25,241


103,928


86,035

Operating income (loss)

1,563


343


3,766


(1,351)

    Interest expense

80


48


292


186

    Other expense

(1)


1


(1)


3

        Total other expense

79


49


291


189

Income (loss) before income taxes and

   noncontrolling interest in net loss

1,484


294


3,475


(1,540)

   Income tax

-


-


-


-

   Noncontrolling interest in net loss

1


-


1


2

Net income (loss) attributable to Innotrac 

$            1,485


$       294


$   3,476


$  (1,538)









Earnings per share:








    Basic

$            0.11


$     0.02


$     0.27


$   (0.12)

    Diluted

$            0.11


$     0.02


$     0.27


$   (0.12)









Weighted average shares








    outstanding:








    Basic

13,170


13,035


13,063


12,940

    Diluted

13,170


13,035


13,063


12,940

 


INNOTRAC CORPORATION


Condensed Consolidated Balance Sheets


(in thousands)










December 31, 2012


December 31, 2011


ASSETS

(Unaudited)



Current Assets:





 Cash

$            4,005


$            3,283


 Accounts receivable (net of allowance for doubtful accounts of  $136 at December 31, 2012 and $97 at December 31, 2011)

23,216


16,977


 Inventory

740


743


 Prepaid expenses and other

1,107


1,066


       Total current assets

29,068


22,069






 Property and equipment, net

13,843


11,173

 Other assets, net

1,281


1,100


        Total assets

$          44,192


$          34,342







LIABILITIES AND SHAREHOLDERS' EQUITY




Current Liabilities:





 Accounts payable

$          10,409


$            7,914


 Line of credit

-


-


 Equipment loan

1,620


-


 Accrued expenses and other

6,363


4,484


       Total current liabilities

18,392


12,398






Noncurrent Liabilities:





 Other non-current liabilities

2,344


2,128


       Total noncurrent liabilities

2,344


2,128







       Total shareholders' equity

23,456


19,816


       Total liabilities and shareholders' equity

$          44,192


$          34,342






 


INNOTRAC CORPORATION



Condensed Consolidated Statements of Cash Flows



(in thousands)














Twelve Months Ended

December 31,






(Unaudited)






2012


2011



CASH FLOWS FROM OPERATING ACTIVITIES:






Net income (loss)

$        3,475


$     (1,540)



Adjustments to net income (loss):







Depreciation and amortization

3,699


3,380




Provision for bad debts

49


43




Gain (loss) on disposal of fixed assets

4


(15)




Stock compensation expense-stock options

-


2




Stock compensation expense-restricted stock

164


39




Changes in operating assets and liabilities:








Accounts receivable, gross

(6,288)


(1,741)





Inventory

3


2,883





Prepaid assets and other

(7)


116





Other long-term assets

(68)


10





Accounts payable, accrued expenses and other

4,015


2,040




     Other long-term liabilities

(178)


532




Net cash provided by operating activities

4,868


5,749











CASH FLOWS FROM INVESTING ACTIVITIES:






Capital expenditures

(5,292)


(2,389)



Proceeds from disposition of assets

1


26



Net change in noncurrent assets and liabilities

(9)


(10)




Net cash used in investing activities

(5,300)


(2,373)











CASH FLOWS FROM FINANCING ACTIVITIES:






Borrowings on equipment loan

1,800


-



Payments on equipment loan

(180)


-



Capital lease payments

(429)


(314)



Contribution from non-controlling interest

-


17



Loan commitment fees

(37)


(34)




Net cash provided by (used in) financing activities

1,154


(331)











Net (decrease) increase  in cash

722


3,045



Cash, beginning of period

3,283


238



Cash, end of period

$       4,005


$       3,283










SOURCE Innotrac Corporation



RELATED LINKS
http://www.innotrac.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release