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| 8-K - FORM 8-K - INNOTRAC CORP | t76504_8k.htm |
Exhibit 99.1
Innotrac Corporation Announces 2013 First Quarter Results
ATLANTA, GA (May 13, 2013) – 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)
|
March 31, 2013
|
December 31, 2012
|
|||||||
|
(unaudited)
|
||||||||
|
ASSETS
|
||||||||
|
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 | |||||||
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Less accumulated depreciation and amortization
|
(40,039 | ) | (39,089 | ) | ||||
| 13,910 | 13,843 | |||||||
|
Other assets, net
|
1,347 | 1,281 | ||||||
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Total assets
|
$ | 41,455 | $ | 44,192 | ||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
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Current liabilities:
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||||||||
|
Accounts payable
|
$ | 7,469 | $ | 10,409 | ||||
|
Line of credit
|
- | - | ||||||
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Accrued salaries
|
1,862 | 2,854 | ||||||
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Equipment lease payable
|
443 | 421 | ||||||
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Accrued expenses and other
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3,365 | 3,088 | ||||||
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Equipment loan
|
1,530 | 1,620 | ||||||
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Total current liabilities
|
14,669 | 18,392 | ||||||
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Noncurrent liabilities:
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||||||||
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Deferred compensation
|
894 | 837 | ||||||
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Equipment lease payable, net
|
508 | 544 | ||||||
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Other noncurrent liabilities
|
868 | 963 | ||||||
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Total noncurrent liabilities
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2,270 | 2,344 | ||||||
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Shareholders’ equity:
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||||||||
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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 | ||||||
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Additional paid-in capital
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66,822 | 66,784 | ||||||
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Accumulated other comprehensive loss
|
(3 | ) | (2 | ) | ||||
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Accumulated deficit
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(43,642 | ) | (44,656 | ) | ||||
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Total Innotrac shareholders’ equity
|
24,502 | 23,442 | ||||||
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Noncontrolling interest
|
14 | 14 | ||||||
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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
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|||||||
|
(unaudited)
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(unaudited)
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|||||||
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Service revenues
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$ | 25,468 | $ | 21,320 | ||||
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Freight revenues
|
3,851 | 2,850 | ||||||
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Total revenues
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29,319 | 24,170 | ||||||
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Cost of service revenues
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12,617 | 10,334 | ||||||
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Freight expense
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3,696 | 2,765 | ||||||
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Selling, general and administrative expenses
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10,963 | 9,749 | ||||||
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Depreciation and amortization
|
950 | 825 | ||||||
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Total operating expenses
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28,226 | 23,673 | ||||||
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Operating income
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1,093 | 497 | ||||||
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Other expense (income):
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||||||||
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Interest expense
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78 | 53 | ||||||
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Other (income) expense
|
1 | (1 | ) | |||||
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Total other expense
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79 | 52 | ||||||
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Income before income taxes
|
1,014 | 445 | ||||||
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Income taxes
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- | - | ||||||
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Net income
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1,014 | 445 | ||||||
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Net income (loss) attributable to noncontrolling interest
|
- | - | ||||||
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Net income attributable to Innotrac
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$ | 1,014 | $ | 445 | ||||
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Earnings per share:
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||||||||
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Basic
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$ | 0.08 | $ | 0.03 | ||||
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Diluted
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$ | 0.08 | $ | 0.03 | ||||
|
Weighted average shares outstanding:
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||||||||
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Basic
|
13,104 | 13,029 | ||||||
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Diluted
|
13,111 | 13,029 | ||||||
INNOTRAC CORPORATION and SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
|
Three Months Ended March 31,
|
||||||||
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2013
|
2012
|
|||||||
|
(unaudited)
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(unaudited)
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|||||||
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Cash flows from operating activities:
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||||||||
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Net income
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$ | 1,014 | $ | 445 | ||||
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Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
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Depreciation and amortization
|
950 | 825 | ||||||
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Provision for bad debts
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(29 | ) | 3 | |||||
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Stock compensation expense-restricted stock
|
47 | 31 | ||||||
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Changes in operating assets and liabilities:
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||||||||
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Accounts receivable, gross
|
3,244 | 837 | ||||||
|
Inventory
|
(121 | ) | 54 | |||||
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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
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$ | 4,197 | $ | 1,102 | ||||
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Supplemental cash flow disclosures:
|
||||||||
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Cash paid for interest
|
$ | 57 | $ | 37 | ||||
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Non-cash investing and financing activities:
|
||||||||
|
Capital lease for equipment
|
$ | 89 | $ | 369 | ||||
|
Capital expenditures in accounts payable
|
$ | 586 | $ | 847 | ||||