Attached files
| file | filename |
|---|---|
| 8-K - INNERWORKINGS INC | v211606_8k.htm |
InnerWorkings
Announces Record Fourth Quarter and Full Year 2010 Results
Record
Quarterly and Annual Revenue; Expanding Geographic Footprint to Meet Needs
of
Global
Clients
CHICAGO,
IL February 15, 2011 — InnerWorkings, Inc.
(NASDAQ: INWK), a leading global provider of managed print and promotional
solutions, today reported results for the fourth quarter and fiscal year ended
December 31, 2010.
Quarterly
Highlights:
|
·
|
Record
revenue for the fourth quarter of $130.4 million, an increase of 20.9%
compared to revenue of $107.9 million in the fourth quarter of
2009.
|
|
·
|
Net
income was $3.5 million, an increase of 61.9% compared to $2.2 million in
the year-earlier period. Earnings were $0.07 per diluted share compared to
$0.05 per diluted share in the fourth quarter of
2009.
|
|
·
|
Adjusted
EBITDA was $7.9 million, an increase of 30.2% compared to $6.1 million in
the year-earlier period. Please refer to the non-GAAP reconciliation table
below for more information.
|
|
·
|
Revenue
from new accounts was $12.8
million.
|
|
·
|
Cash
flow generated from operations was $6.2 million compared to $4.1 million
in the fourth quarter of
2009.
|
Fiscal
Year Highlights:
|
·
|
Record
revenue for fiscal year 2010 of $482.2 million, an increase of 20.4%
compared to revenue of $400.4 million in fiscal year
2009.
|
|
·
|
Net
income was $11.2 million and diluted earnings per share were $0.24,
compared to net income of $6.3 million and diluted earnings per share of
$0.13 in fiscal year 2009, an increase of 77.7% and 84.6%,
respectively.
|
|
·
|
Adjusted
EBITDA was $27.4 million, an increase of 37.0% compared to $20.0 million
in fiscal year 2009. Please refer to the non-GAAP reconciliation table
below for more information.
|
|
·
|
Revenue
from new accounts was $59.7
million.
|
|
·
|
Cash
flow generated from operations was $8.3 million compared to $14.2 million
in fiscal year 2009.
|
"Fiscal
year 2010 was a record year for growth and development at InnerWorkings. The
Company’s strong results were driven by execution against our long-term growth
strategy, particularly the establishment of profitable new enterprise
relationships,” said Eric D. Belcher, Chief Executive Officer of InnerWorkings,
"Moreover, we have taken important steps to fulfill our vision for global
leadership in print management, including the recent acquisition of CPRO, the
leading multi-national print management firm in Latin America. InnerWorkings
will continue to grow its geographic footprint to meet the needs of our global
clients.”
Additional fourth
quarter 2010 financial and operational highlights include the
following:
|
·
|
For
the fourth quarter of 2010, 70 percent of the Company's revenue was
generated from sales to enterprise clients, with the remaining 30 percent
derived from transactional clients.
|
|
·
|
The
Company conducted business with all 25 of its top 25 customers from the
year-earlier period.
|
|
·
|
As
of December 31, 2010, the Company had an outstanding balance of $47.4
million on its $100 million bank credit facility and retained cash and
short-term investments of $9.5
million.
|
"The
Company’s strengthening financial position is reflected in our improving
operating profit and return on invested capital," said Joseph M. Busky, Chief
Financial Officer of InnerWorkings. "Given our current stage of development, we
will continue to invest in the necessary people, processes and technology to
support our growth initiatives as we pursue our goal of becoming a global
multi-billion dollar business."
Conference
Call
A
conference call will be broadcast live on Tuesday, February 15, 2011, at 4:30
p.m. Central Time (5:30 p.m. Eastern Time). The live webcast discussion, which
will include a Q&A session, will be hosted by Eric D. Belcher, Chief
Executive Officer, and Joseph M. Busky, Chief Financial Officer.
To access
the conference call by telephone, interested parties may dial (877) 771-7024.
Interested parties are also invited to listen to the live webcast by visiting
the Investor "Events & Presentations" section of InnerWorkings' website at
investor.inwk.com/events.cfm.
A replay of the
webcast will be available later that day in the same section of the
website.
About
InnerWorkings
InnerWorkings, Inc.
(Nasdaq: INWK) is a leading global provider of managed print and promotional
solutions to corporate clients across a wide range of industries. With
proprietary technology, an extensive supplier network and deep domain expertise,
the Company procures, manages and delivers printed materials and promotional
products as part of a comprehensive outsourced enterprise solution. The Company
also owns and operates the online business printing site, Inkchaser.com.
InnerWorkings is based in Chicago, IL, with 35 offices in North America, South
America and Europe.
For more
information visit: www.inwk.com.
Non-GAAP
Financial Measures
This
press release includes the following financial measure defined as a "non-GAAP
financial measure" by the Securities and Exchange Commission: adjusted EBITDA.
This measure may be different from non-GAAP financial measures used by other
companies. The presentation of this financial information, which is not prepared
under any comprehensive set of accounting rules or principles, is not intended
to be considered in isolation or as a substitute for the financial information
prepared and presented in accordance with generally accepted accounting
principles. For a reconciliation of this non-GAAP financial measure to the
nearest comparable GAAP measure, see "Reconciliation of Adjusted EBITDA"
included in this press release.
Forward-Looking
Statements
This
release contains statements relating to future results. These statements are
forward-looking statements under the federal securities laws. We can give no
assurance that any future results discussed in these statements will be
achieved. Any forward-looking statements represent our views only as of today
and should not be relied upon as representing our views as of any subsequent
date. These statements are subject to a variety of risks and uncertainties that
could cause our actual results to differ materially from the statements
contained in this release. For a discussion of important factors that could
affect our actual results, please refer to our SEC filings, including the "Risk
Factors" section of our most recently filed Form 10-K.
(inwk-e)
|
Consolidated
Statements of Income (unaudited)
|
||||||||||||||||
|
Three
months ended
December
31,
|
Twelve
months ended
December
31,
|
|||||||||||||||
|
2009
|
2010
|
2009
|
2010
|
|||||||||||||
|
Revenue
|
$ | 107,865,897 | $ | 130,397,680 | $ | 400,447,044 | $ | 482,212,101 | ||||||||
|
Cost
of goods sold
|
81,742,080 | 98,866,457 | 301,671,851 | 366,199,728 | ||||||||||||
|
Gross
profit
|
26,123,817 | 31,531,223 | 98,775,193 | 116,012,373 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Selling,
general, and administrative expenses
|
20,609,451 | 24,529,777 | 81,287,702 | 91,796,566 | ||||||||||||
|
Depreciation
and amortization
|
2,274,525 | 2,416,469 | 8,030,772 | 9,008,514 | ||||||||||||
|
Income
from operations
|
3,239,841 | 4,584,977 | 9,456,719 | 15,207,293 | ||||||||||||
|
Total
other income (expense)
|
(350,490 | ) | 526,278 | (439,204 | ) | 1,752,002 | ||||||||||
|
Income
before taxes
|
2,889,351 | 5,111,255 | 9,017,515 | 16,959,295 | ||||||||||||
|
Income
tax expense
|
705,155 | 1,576,099 | 2,708,057 | 5,748,806 | ||||||||||||
|
Net
income
|
$ | 2,184,196 | $ | 3,535,156 | $ | 6,309,458 | $ | 11,210,489 | ||||||||
|
Basic
earnings per share
|
$ | 0.05 | $ | 0.08 | $ | 0.14 | $ | 0.25 | ||||||||
|
Diluted
earnings per share
|
$ | 0.05 | $ | 0.07 | $ | 0.13 | $ | 0.24 | ||||||||
|
Weighted
average shares outstanding, basic
|
45,623,101 | 45,822,658 | 45,535,357 | 45,703,699 | ||||||||||||
|
Weighted
average shares outstanding, diluted
|
47,304,351 | 47,733,052 | 47,156,705 | 47,582,337 | ||||||||||||
|
Consolidated
Balance Sheet Data
|
||||||||
|
December
31,
|
December
31,
|
|||||||
|
2009
|
2010
|
|||||||
|
Cash
and cash equivalents
|
$ | 2,903,906 | $ | 5,259,272 | ||||
|
Short-term
investments
|
23,541,199 | 4,284,614 | ||||||
|
Accounts
receivable, net of allowance for doubtful accounts
|
72,565,814 | 85,654,403 | ||||||
|
Unbilled
revenue
|
20,189,900 | 24,626,558 | ||||||
|
Inventories
|
8,749,266 | 9,674,961 | ||||||
|
Prepaid
expenses
|
11,399,560 | 9,836,486 | ||||||
|
Other
current assets
|
7,391,905 | 7,139,680 | ||||||
|
Total
long-term assets
|
120,416,506 | 133,448,806 | ||||||
|
Total
assets
|
$ | 267,158,056 | $ | 279,924,780 | ||||
|
Accounts
payable-trade
|
$ | 53,915,750 | $ | 55,604,566 | ||||
|
Other
current liabilities
|
16,717,920 | 13,316,491 | ||||||
|
Revolving
credit facility
|
46,384,586 | 47,400,000 | ||||||
|
Other
long-term liabilities
|
3,089,784 | 3,419,624 | ||||||
|
Total
stockholders' equity
|
147,050,016 | 160,184,099 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 267,158,056 | $ | 279,924,780 | ||||
|
Cash
Flow Data (Unaudited)
|
||||||||
|
2009
|
2010
|
|||||||
|
Net
cash provided by operating activities
|
$ | 14,201,861 | $ | 8,324,293 | ||||
|
Net
cash used in investing activities
|
(18,948,010 | ) | (4,182,676 | ) | ||||
|
Net
cash provided by (used in) financing activities
|
3,770,465 | (1,780,381 | ) | |||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
(132,265 | ) | (5,870 | ) | ||||
|
Increase
(decrease) in cash and cash equivalents
|
(1,107,949 | ) | 2,355,366 | |||||
|
Cash
and cash equivalents, beginning of period
|
4,011,855 | 2,903,906 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 2,903,906 | $ | 5,259,272 | ||||
|
Reconciliation
of Adjusted EBITDA
|
||||||||||||||||
|
Three Months Ended December
31,
|
Year Ended December 31,
|
|||||||||||||||
|
2009
|
2010
|
2009
|
2010
|
|||||||||||||
|
Operating
Income
|
$ | 3,239,841 | $ | 4,584,976 | $ | 9,456,719 | $ | 15,207,293 | ||||||||
|
Depreciation
and amortization
|
2,274,525 | 2,416,469 | 8,030,772 | 9,008,514 | ||||||||||||
|
Stock
based compensation
|
540,573 | 879,079 | 2,481,159 | 3,148,619 | ||||||||||||
|
Adjusted
EBITDA
|
$ | 6,054,939 | $ | 7,880,524 | $ | 19,968,650 | $ | 27,364,426 | ||||||||
CONTACT:
Scott
Kozak
InnerWorkings,
Inc.
(312)
642-3700
skozak@inwk.com
SOURCE:
InnerWorkings, Inc.