Exhibit 99.1
INNOTRAC CORPORATION | |||||||||||||||||||||||
Condensed Statements of Operations | |||||||||||||||||||||||
(in thousands, except per share amounts) |
Three Months Ended March 31, (Unaudited) | ||||||||||||
2011 | 2010 | |||||||||||
Service revenue | $ | 17,287 | $ | 16,028 | ||||||||
Freight revenue | 3,682 | 3,325 | ||||||||||
Total revenue | 20,969 | 19,353 | ||||||||||
Cost of service revenues | 7,752 | 7,346 | ||||||||||
Freight expense | 3,638 | 3,291 | ||||||||||
Selling, general and | ||||||||||||
administrative expenses | 9,208 | 8,802 | ||||||||||
Depreciation and amortization | 851 | 848 | ||||||||||
Total operating expenses | 21,449 | 20,287 | ||||||||||
Operating loss | (480 | ) | (934 | ) | ||||||||
Interest expense | 46 | 39 | ||||||||||
Total other expense | 46 | 39 | ||||||||||
Loss before income taxes | (526 | ) | (973 | ) | ||||||||
Income tax | - | - | ||||||||||
Net loss | $ | (526 | ) | $ | (973 | ) | ||||||
Loss per share: | ||||||||||||
Basic | $ | (0.04 | ) | $ | (0.08 | ) | ||||||
Diluted | $ | (0.04 | ) | $ | (0.08 | ) | ||||||
Weighted average shares | ||||||||||||
outstanding: | ||||||||||||
Basic | 12,861 | 12,607 | ||||||||||
Diluted | 12,861 | 12,607 |
INNOTRAC CORPORATION | ||||
Condensed Balance Sheets | ||||
(in thousands) |
March 31, 2011 | December 31, 2010 | |||||||
ASSETS | (Unaudited) | |||||||
Current Assets: | ||||||||
Cash | $ | 729 | $ | 238 | ||||
Accounts receivable (net of allowance for doubtful accounts of $139 at March 31, 2011 and $242 at December 31, 2010) | 16,213 | 15,279 | ||||||
Inventory | 780 | 3,626 | ||||||
Prepaid expenses and other | 1,240 | 1,149 | ||||||
Total current assets | 18,962 | 20,292 | ||||||
Property and equipment, net | 11,076 | 11,380 | ||||||
Other assets, net | 1,143 | 1,122 | ||||||
Total assets | $ | 31,181 | $ | 32,794 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 5,519 | $ | 5,920 | ||||
Line of credit | - | - | ||||||
Accrued expenses and other | 3,351 | 4,076 | ||||||
Total current liabilities | 8,870 | 9,996 | ||||||
Noncurrent Liabilities: | ||||||||
Other non-current liabilities | 1,611 | 1,499 | ||||||
Total noncurrent liabilities | 1,611 | 1,499 | ||||||
Total shareholders' equity | 20,700 | 21,299 | ||||||
Total liabilities and shareholders' equity | $ | 31,181 | $ | 32,794 | ||||
INNOTRAC CORPORATION | |||||||
Condensed Statements of Cash Flows | |||||||
(in thousands) |
Three Months Ended March 31, | ||||||||
(Unaudited) | ||||||||
2011 | 2010 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (526 | ) | $ | (973 | ) | ||
Adjustments to net loss: | ||||||||
Depreciation and amortization | 851 | 848 | ||||||
Provision for bad debts | 22 | (48 | ) | |||||
(Gain) loss on disposal of fixed assets | - | 1 | ||||||
Stock compensation expense-stock options | 1 | (5 | ) | |||||
Stock compensation expense-restricted stock | (74 | ) | 19 | |||||
Decrease in other long-term assets | 19 | 12 | ||||||
Increase in other long-term liabilities | 103 | 108 | ||||||
Changes in working capital: | ||||||||
Accounts receivable, gross | (956 | ) | 1,745 | |||||
Inventory | 2,846 | (880 | ) | |||||
Prepaid assets and other | (61 | ) | 757 | |||||
Accounts payable, accrued expenses and other | (1,268 | ) | (566 | ) | ||||
Net cash provided by operating activities | 957 | 1,018 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (365 | ) | (285 | ) | ||||
Net change in noncurrent assets and liabilities | (6 | ) | (8 | ) | ||||
Cash used in investing activities | (371 | ) | (293 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net repayments under line of credit | - | - | ||||||
Capital lease payments | (65 | ) | (59 | ) | ||||
Loan fees paid | (30 | ) | - | |||||
Cash used in financing activities | (95 | ) | (59 | ) | ||||
Net increase in cash | 491 | 666 | ||||||
Cash, beginning of period | 238 | 1,118 | ||||||
Cash, end of period | $ | 729 | $ | 1,784 | ||||