Innotrac Corporation Announces 2013 First Quarter Results

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

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