Innotrac Corporation Announces 2013 Second Quarter Results
ATLANTA, Aug. 13, 2013 /PRNewswire/ -- Innotrac Corporation (NASDAQ: INOC) announced financial results today for the second quarter ended June 30, 2013. The Company reported a 27% increase in net service revenues to $26.0 million for the three months ended June 30, 2013, up from $20.4 million for the same period last year. This increase was fueled by the continued growth of strong blue chip clients as well as an expanded client base; driven by growth of eCommerce purchasing.
Total revenues for the quarter increased $6.4 million (28%) to $29.3 million, up from $22.9 million last year. Total revenue for the six-month period ended June 30, 2013, increased $11.5 million (24%) to $58.6 million, from last year.
The Company reported net income of $1.0 million, or $0.07 per share, fully diluted, for the quarter, as compared to $0.4 million, or $0.03 per share for the same quarter of last year. Net income for the six-month period ended June 30, 2013 was $2.0 million, or $0.15 per share, as compared to $0.9 million, or $0.07 per share, for the six months ended June 30, 2012.
"We have grown revenue by 27% over last year, doubled net income and earnings per share," said Scott Dorfman, Innotrac's CEO. "The business is continuing to grow thanks to our flexible integration methodology and unique partnership approach with our clients. We take great pride in providing exceptional service and unparalleled metrics to manage their business, as consumers enjoy the convenience of eCommerce, and our clients continue to develop their omnichannel strategies to optimize inventory management. We continue to demonstrate our strong operating leverage and an ability to scale volumes throughout the year. We are committed to invest in technology and the expansion of our distribution network to offer exceptional solutions for our clients."
"We ended the quarter with no outstanding advances on our line of credit, and over $4 million in cash," said Steve Keaveney, CFO. "We repaid a $1.6 million term loan from operating cash flow, further strengthening our balance sheet. In addition to this, we secured a $25 million revolver with SunTrust Bank, our new banking Partner."
About Innotrac
Innotrac Corporation, founded in 1984 and based near Atlanta, Georgia, is a best-in-class commerce provider integrating digital technology, fulfillment, contact center and business intelligence solutions to support global brands. Innotrac's fulfillment, order management and contact center solutions are integrated with all major web platforms, and seamlessly integrate with any required partner technologies. 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. Please refer to the Risk Factors discussed in Innotrac's 2012 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
[email protected]
| INNOTRAC CORPORATION and SUBSIDIARY |
|||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
| (in thousands, except share data) |
|||
| ASSETS |
June 30, 2013 |
December 31, 2012 |
|
| (unaudited) |
|||
| Current assets: |
|||
| Cash and cash equivalents |
$ 4,382 |
$ 4,005 |
|
| Accounts receivable (net of allowance for doubtful |
|||
| June 30, 2013 and $136 at December 31, 2012) |
21,084 |
23,216 |
|
| Inventories, net |
820 |
740 |
|
| Prepaid expenses and other |
1,493 |
1,107 |
|
| Total current assets |
27,779 |
29,068 |
|
| Property and equipment: |
|||
| Computers, machinery and equipment |
45,953 |
42,877 |
|
| Furniture, fixtures and leasehold improvements |
10,319 |
10,055 |
|
| 56,272 |
52,932 |
||
| Less accumulated depreciation and amortization |
(40,994) |
(39,089) |
|
| 15,278 |
13,843 |
||
| Other assets, net |
1,408 |
1,281 |
|
| Total assets |
$ 44,465 |
$ 44,192 |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
| Current liabilities: |
|||
| Accounts payable |
$ 10,261 |
$ 10,409 |
|
| Line of credit |
- |
- |
|
| Accrued salaries |
2,532 |
2,854 |
|
| Equipment lease payable |
446 |
421 |
|
| Accrued expenses and other |
3,594 |
3,088 |
|
| Equipment loan |
- |
1,620 |
|
| Total current liabilities |
16,833 |
18,392 |
|
| Noncurrent liabilities: |
|||
| Deferred compensation |
908 |
837 |
|
| Equipment lease payable |
389 |
544 |
|
| Other noncurrent liabilities |
786 |
963 |
|
| Total noncurrent liabilities |
2,083 |
2,344 |
|
| Shareholders' equity: |
|||
| Preferred stock: 10,000,000 shares authorized, $0.10 par |
|||
| - |
- |
||
| Common stock: 50,000,000 shares authorized, $0.10 par |
|||
| 1,325 |
1,316 |
||
| Additional paid-in capital |
66,876 |
66,784 |
|
| Accumulated other comprehensive loss |
(2) |
(2) |
|
| Accumulated deficit |
(42,664) |
(44,656) |
|
| Total Innotrac shareholders' equity |
25,535 |
23,442 |
|
| Noncontrolling interest |
14 |
14 |
|
| Total shareholders' equity |
25,549 |
23,456 |
|
| Total liabilities and shareholders' equity |
$ 44,465 |
$ 44,192 |
|
| INNOTRAC CORPORATION and SUBSIDIARY |
|||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
| For the Three Months Ended June 30, 2013 and 2012 |
|||
| (in thousands, except per share amounts) |
|||
| Three Months Ended June 30, |
|||
| 2013 |
2012 |
||
| (unaudited) |
(unaudited) |
||
| Service revenues |
$ 25,997 |
$ 20,449 |
|
| Freight revenues |
3,275 |
2,497 |
|
| Total revenues |
29,272 |
22,946 |
|
| Cost of service revenues |
12,831 |
9,624 |
|
| Freight expense |
3,193 |
2,411 |
|
| Selling, general and administrative expenses |
11,209 |
9,508 |
|
| Depreciation and amortization |
955 |
891 |
|
| Total operating expenses |
28,188 |
22,434 |
|
| Operating income |
1,084 |
512 |
|
| Other expense (income): |
|||
| Interest expense |
77 |
69 |
|
| Other (income) expense |
(1) |
3 |
|
| Total other expense |
76 |
72 |
|
| Income before income taxes |
1,008 |
440 |
|
| Income taxes |
30 |
- |
|
| Net income |
978 |
440 |
|
| Net loss attributable to noncontrolling interest |
- |
1 |
|
| Net income attributable to Innotrac |
$ 978 |
$ 441 |
|
| Earnings per share: |
|||
| Basic |
$ 0.07 |
$ 0.03 |
|
| Diluted |
$ 0.07 |
$ 0.03 |
|
| Weighted average shares outstanding: |
|||
| Basic |
13,245 |
13,010 |
|
| Diluted |
13,263 |
13,010 |
|
| INNOTRAC CORPORATION and SUBSIDIARY |
|||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
| For the Six Months Ended June 30, 2013 and 2012 |
|||
| (in thousands, except per share amounts) |
|||
| Six Months Ended June 30, |
|||
| 2013 |
2012 |
||
| (unaudited) |
(unaudited) |
||
| Service revenues |
$ 51,465 |
$ 41,769 |
|
| Freight revenues |
7,126 |
5,347 |
|
| Total revenues |
58,591 |
47,116 |
|
| Cost of service revenues |
25,448 |
19,958 |
|
| Freight expense |
6,889 |
5,176 |
|
| Selling, general and administrative expenses |
22,172 |
19,257 |
|
| Depreciation and amortization |
1,905 |
1,716 |
|
| Total operating expenses |
56,414 |
46,107 |
|
| Operating income |
2,177 |
1,009 |
|
| Other expense: |
|||
| Interest expense |
155 |
122 |
|
| Other expense |
- |
2 |
|
| Total other expense |
155 |
124 |
|
| Income before income taxes |
2,022 |
885 |
|
| Income taxes |
30 |
- |
|
| Net income |
1,992 |
885 |
|
| Net loss attributable to noncontrolling interest |
- |
1 |
|
| Net income attributable to Innotrac |
$ 1,992 |
$ 886 |
|
| Earnings per share: |
|||
| Basic |
$ 0.15 |
$ 0.07 |
|
| Diluted |
$ 0.15 |
$ 0.07 |
|
| Weighted average shares outstanding: |
|||
| Basic |
13,175 |
13,020 |
|
| Diluted |
13,188 |
13,020 |
|
| INNOTRAC CORPORATION and SUBSIDIARY |
|||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
| For the Six Months Ended June 30, 2013 and 2012 |
|||
| (in thousands) |
|||
| Six Months Ended June 30, |
|||
| 2013 |
2012 |
||
| (unaudited) |
(unaudited) |
||
| Cash flows from operating activities: |
|||
| Net Income |
$ 1,992 |
$ 885 |
|
| Adjustments to reconcile net income to net cash provided by |
|||
| Depreciation and amortization |
1,905 |
1,716 |
|
| Provision for bad debts |
(1) |
5 |
|
| Stock compensation expense-restricted stock |
102 |
68 |
|
| Changes in operating assets and liabilities: |
|||
| Accounts receivable, gross |
2,133 |
1,243 |
|
| Inventory |
(80) |
138 |
|
| Prepaid expenses and other |
(342) |
(294) |
|
| Long-term assets |
41 |
(68) |
|
| Accounts payable |
(1,503) |
(2,499) |
|
| Accrued expenses, accrued salaries and other |
183 |
157 |
|
| Long-term liabilities |
(178) |
(105) |
|
| Net cash provided by operating activities |
4,252 |
1,246 |
|
| Cash flows from investing activities: |
|||
| Capital expenditures |
(1,896) |
(3,753) |
|
| Net change in noncurrent assets and liabilities |
(9) |
- |
|
| Net cash used in investing activities |
(1,905) |
(3,753) |
|
| Cash flows from financing activities: |
|||
| Borrowings on equipment loan |
- |
1,800 |
|
| Payments on equipment loan |
(1,620) |
- |
|
| Capital lease payments |
(219) |
(216) |
|
| Loan commitment fees |
(131) |
(37) |
|
| Net cash (used in) provided by financing activities |
(1,970) |
1,547 |
|
| Net increase (decrease) in cash and cash equivalents |
377 |
(960) |
|
| Cash and cash equivalents, beginning of period |
4,005 |
3,283 |
|
| Cash and cash equivalents, end of period |
$ 4,382 |
$ 2,323 |
|
| Supplemental cash flow disclosures: |
|||
| Cash paid for interest |
$ 123 |
$ 83 |
|
| Non-cash investing and financing activities: |
|||
| Capital lease for warehouse and computer equipment |
$ 89 |
$ 862 |
|
| Capital expenditures in accounts payable |
$ 1,355 |
$ 216 |
|
SOURCE Innotrac Corporation
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