| InnerWorkings, Inc. and Productions Graphics Group |
| Unaudited Pro Forma Combined Income Statement |
| Year Ended December 31, 2010 | Nine Months Ended September 30, 2011 | |||||||||||||||||||||||
| InnerWorkings | Productions Graphics | Pro Form Combined | InnerWorkings | Productions Graphics | Total | |||||||||||||||||||
| Revenue | $ | 482,212,101 | $ | 22,374,947 | $ | 504,587,048 | $ | 458,611,577 | $ | 18,689,158 | $ | 477,300,734 | ||||||||||||
| Cost of goods sold | 366,199,728 | 16,274,620 | 382,474,348 | 351,848,878 | 12,685,598 | 364,534,476 | ||||||||||||||||||
| Gross profit | 116,012,373 | 6,100,327 | 122,112,700 | 106,762,699 | 6,003,560 | 112,766,259 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Selling, general, and administrative expenses | 91,796,566 | 4,991,539 | 96,788,105 | 83,365,659 | 5,631,715 | 88,997,374 | ||||||||||||||||||
| Depreciation and amortization | 9,008,514 | 432,892 | 9,441,406 | 7,389,824 | 344,131 | 7,733,956 | ||||||||||||||||||
| Preference claim liability | - | - | - | 950,000 | - | 950,000 | ||||||||||||||||||
| Income from operations | 15,207,293 | 675,896 | 15,883,189 | 15,057,216 | 27,713 | 15,084,929 | ||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||
| Gain on sale of investment | 3,578,431 | - | 3,578,431 | 2,960,027 | - | 2,960,027 | ||||||||||||||||||
| Interest income | 150,506 | 9,295 | 159,802 | 102,277 | 142,986 | 245,262 | ||||||||||||||||||
| Interest expense | (1,668,404 | ) | - | (1,668,404 | ) | (1,554,805 | ) | (59,980 | ) | (1,614,785 | ) | |||||||||||||
| Other, net | (308,531 | ) | 147,396 | (161,136 | ) | (211,155 | ) | (6,168 | ) | (217,323 | ) | |||||||||||||
| Total other income (expense) | 1,752,002 | 156,691 | 1,908,693 | 1,296,344 | 76,838 | 1,373,182 | ||||||||||||||||||
| Income before taxes | 16,959,295 | 832,587 | 17,791,882 | 16,353,559 | 104,551 | 16,458,111 | ||||||||||||||||||
| Income tax expense | 5,748,806 | 156,691 | 5,905,497 | 5,725,157 | 31,607 | 5,756,764 | ||||||||||||||||||
| Net income | $ | 11,210,489 | $ | 675,896 | $ | 11,886,385 | $ | 10,628,402 | $ | 72,945 | $ | 10,701,347 | ||||||||||||
| InnerWorkings, Inc. and Productions Graphics Group |
| Unaudited Pro Forma Combined Balance Sheet |
| (unaudited) | As of September 30, 2011 | |||||||||||
| INWK | PG | Total | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 9,577,286 | $ | 654,959 | $ | 10,232,244 | ||||||
| Short-term investments | 1,750,147 | - | 1,750,147 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts of $3,610,977 and $3,239,005, respectively | 104,954,916 | 9,162,618 | 114,117,534 | |||||||||
| Unbilled revenue | 30,965,531 | - | 30,965,531 | |||||||||
| Inventories | 20,050,654 | 28,820 | 20,079,474 | |||||||||
| Prepaid expenses | 10,727,255 | - | 10,727,255 | |||||||||
| Advances to related parties | 148,416 | - | 148,416 | |||||||||
| Deferred income taxes | 1,653,261 | - | 1,653,261 | |||||||||
| Other current assets | 20,527,897 | 3,123,410 | 23,651,307 | |||||||||
| Total current assets | 200,355,361 | 12,969,806 | 213,325,168 | |||||||||
| Property and equipment, net | 10,501,437 | 847,408 | 11,348,845 | |||||||||
| Intangibles and other assets: | ||||||||||||
| Goodwill | 131,293,751 | (122,731 | ) | 131,171,020 | ||||||||
| Intangible assets, net of accumulated amortization of $9,789,144 and $12,359,286, respectively | 27,206,425 | - | 27,206,425 | |||||||||
| Deposits | 405,658 | - | 405,658 | |||||||||
| Deferred income taxes | 6,236,530 | - | 6,236,530 | |||||||||
| Other assets | 468,664 | 190,727 | 659,391 | |||||||||
| 165,611,030 | 67,995 | 165,679,025 | ||||||||||
| Total assets | $ | 376,467,828 | $ | 13,885,210 | $ | 390,353,038 | ||||||
| Liabilities and stockholders' equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable-trade | $ | 96,358,716 | $ | 6,657,865 | $ | 103,016,581 | ||||||
| Advances from related parties | 2,008 | - | 2,008 | |||||||||
| Current maturities of capital lease obligations | 2,002 | 4,079,400 | 4,081,402 | |||||||||
| Due to seller | 10,077,567 | - | 10,077,567 | |||||||||
| Customer deposits | 451,478 | - | 451,478 | |||||||||
| Other liabilities | 5,000,948 | 1,985,509 | 6,986,458 | |||||||||
| Accrued expenses | 21,702,132 | - | 21,702,132 | |||||||||
| Total current liabilities | 133,594,853 | 12,722,774 | 146,317,627 | |||||||||
| Revolving credit facility | 53,200,000 | 1,021,797 | 54,221,797 | |||||||||
| Capital lease obligations, less current maturities | - | - | - | |||||||||
| Other long-term liabilities | 16,834,269 | 70,166 | 16,904,435 | |||||||||
| Total liabilities | 203,629,122 | 13,814,737 | 217,443,859 | |||||||||
| Stockholders' equity: | ||||||||||||
Common stock, par value $0.0001 per share, 46,092,291 and 46,539,158, shares were issued and outstanding as of December 31, 2010 and September 30, 2011, respectively | 466 | - | 466 | |||||||||
| Additional paid-in capital | 178,334,260 | - | 178,334,260 | |||||||||
| Treasury stock at cost | (74,307,200 | ) | - | (74,307,200 | ) | |||||||
| Accumulated other comprehensive income | 1,163,844 | (2,472 | ) | 1,161,372 | ||||||||
| Retained earnings | 67,647,335 | 72,945 | 67,720,280 | |||||||||
| Total stockholders' equity | 172,838,706 | 70,473 | 172,909,179 | |||||||||
| Total liabilities and stockholders' equity | $ | 376,467,828 | $ | 13,885,210 | $ | 390,353,038 | ||||||