Innotrac Corporation Announces 2013 First Quarter Results

May 13, 2013, 17:00 ET from Innotrac Corporation

ATLANTA, May 13, 2013 /PRNewswire/ -- Innotrac Corporation (NASDAQ: INOC) announced financial results today for the first quarter ended March 31, 2013. The Company reported a 20% increase in net service revenues to $25.5 million for the three months ended March 31, 2013, up from $21.3 million for the same period last year. This growth was a result of Innotrac leveraging its infrastructure to serve clients' growing needs, as consumers focus more and more on eCommerce purchasing. Innotrac welcomed a number of new clients, and helped manage the revenue growth of long-standing client partners. Total revenues, which include service and freight revenue, increased $5.1 million (21%) to $29.3 million, up from $24.2 million for the same period last year.

The Company reported net income of $1.0 million, or $0.08 per share, fully diluted, for the three months ended March 31, 2013, and $0.5 million, or $0.03 per share in the comparable period of 2012.

"We have grown revenue by 20% over last year and doubled net income," said Scott Dorfman, Innotrac's CEO. "The recent launch of our SmartHub® operations dashboard has given us a competitive advantage in attracting clients that are now able to monitor service metrics in real time. This gives our clients complete transparency into critical performance information on demand. We continue to invest in our SmartHub® division, which provides clients with end-to-end research and analysis on the online buying experience. These new products allow our customers to be more competitive and cost effective in their offerings and to find solutions to serve their customers better."

"We ended the quarter with no outstanding advances on our line of credit, and over $4 million in cash," said Steve Keaveney, CFO. "Our balance sheet remains strong, affording us ample opportunity to continue investing in our distribution centers and infrastructure for our valued customer base. We believe the business is positioned as a platform for continued growth and we will strive to continually improve financial performance in order to drive return on investment for our shareholders."

Innotrac Innotrac (NASDAQ INOC) was founded in 1984, with the goal of providing the highest quality fulfillment services to both our clients and their customers. We have an integrated network of eight fulfillment centers, along with a contact center in North America. 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 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, Innotrac's ability to develop new products, 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 and SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

ASSETS

March 31, 2013

December 31, 2012

(unaudited)

Current assets:

     Cash and cash equivalents

$ 4,197

$ 4,005

     Accounts receivable (net of allowance for doubtful accounts of $108 at        March 31, 2013 and $136 at December 31, 2012)

20,001

23,216

    Inventories, net

861

740

    Prepaid expenses and other

1,139

1,107

        Total current assets

26,198

29,068

Property and equipment:

    Computers, machinery and equipment

43,812

42,877

    Furniture, fixtures and leasehold improvements

10,137

10,055

53,949

52,932

    Less accumulated depreciation and amortization

(40,039)

(39,089)

13,910

13,843

Other assets, net

1,347

1,281

        Total assets

$ 41,455

$ 44,192

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

    Accounts payable

$ 7,469

$ 10,409

    Line of credit

-

-

    Accrued salaries

1,862

2,854

    Equipment lease payable

443

421

    Accrued expenses and other

3,365

3,088

    Equipment loan

1,530

1,620

        Total current liabilities

14,669

18,392

Noncurrent liabilities:

    Deferred compensation

894

837

    Equipment lease payable, net

508

544

    Other noncurrent liabilities

868

963

        Total noncurrent liabilities

2,270

2,344

Shareholders' equity:

    Preferred stock: 10,000,000 shares authorized, $0.10 par value,

      no shares issued or outstanding

-

-

    Common stock: 50,000,000 shares authorized, $0.10 par value, 13,245,440       shares issued and outstanding at March 31, 2013 13,155,440 shares        issued and outstanding at December 31, 2012

1,325

1,316

    Additional paid-in capital

66,822

66,784

    Accumulated other comprehensive loss

(3)

(2)

    Accumulated deficit

(43,642)

(44,656)

        Total Innotrac shareholders' equity

24,502

23,442

        Noncontrolling interest

14

14

        Total equity

24,516

23,456

        Total liabilities and equity

$ 41,455

$ 44,192

INNOTRAC CORPORATION and SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended March 31,

2013

2012

(unaudited)

(unaudited)

Service revenues

$ 25,468

$ 21,320

Freight revenues

3,851

2,850

        Total revenues

29,319

24,170

Cost of service revenues

12,617

10,334

Freight expense

3,696

2,765

Selling, general and administrative expenses

10,963

9,749

Depreciation and amortization

950

825

        Total operating expenses

28,226

23,673

            Operating income

1,093

497

Other expense (income):

    Interest expense

78

53

    Other (income) expense

1

(1)

Total other expense

79

52

Income before income taxes

1,014

445

Income taxes

-

-

Net income

1,014

445

Net income (loss) attributable to noncontrolling interest

-

-

Net income attributable to Innotrac

$ 1,014

$ 445

Earnings per share:

    Basic

$ 0.08

$ 0.03

    Diluted

$ 0.08

$ 0.03

Weighted average shares outstanding:

    Basic

13,104

13,029

    Diluted

13,111

13,029

 

INNOTRAC CORPORATION and SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended March 31,

2013

2012

(unaudited)

(unaudited)

Cash flows from operating activities:

    Net income

$ 1,014

$ 445

    Adjustments to reconcile net income to net cash       provided by (used in) operating activities:

    Depreciation and amortization

950

825

    Provision for bad debts

(29)

3

    Stock compensation expense-restricted stock

47

31

    Changes in operating assets and liabilities:

        Accounts receivable, gross

3,244

837

        Inventory

(121)

54

        Prepaid expenses and other

(32)

(77)

        Long-term assets

-

(87)

        Accounts payable

(3,526)

(1,931)

        Accrued expenses, accrued salaries and other

(716)

(429)

        Long-term liabilities

(95)

(59)

            Net cash provided by (used in) operating activities

736

(388)

Cash flows from investing activities:

        Capital expenditures

(342)

(1,664)

        Net change in noncurrent assets and liabilities

(9)

-

        Net cash used in investing activities

(351)

(1,664)

Cash flows from financing activities:

        Payments on Equipment Loan

(90)

-

        Capital lease payments

(103)

(114)

        Loan commitment fees

-

(15)

            Net cash used in financing activities

(193)

(129)

Net increase (decrease) in cash and cash equivalents

192

(2,181)

Cash and cash equivalents, beginning of period

4,005

3,283

Cash and cash equivalents, end of period

$ 4,197

$ 1,102

Supplemental cash flow disclosures:

    Cash paid for interest

$ 57

$ 37

    Non-cash investing and financing activities:

        Capital lease for equipment

$ 89

$ 369

          Capital expenditures in accounts payable

$ 586

$ 847

SOURCE Innotrac Corporation



RELATED LINKS

http://www.innotrac.com