Exhibit 99.1
Innotrac Corporation Announces 2003 Second Quarter Results
ATLANTA, July 28 /PRNewswire-FirstCall/ -- Innotrac Corporation
(Nasdaq: INOC), a full-service provider of order processing, order fulfillment
and call center services, today announced financial results for the second
quarter ended June 30, 2003. The Company reported revenues of $17.6 million
and a net loss of $393,000 or a $0.03 loss per diluted share for the quarter.
Gross margins were 51.9%. The Company generated $1.4 million in positive cash
flow from operations and $1 million in EBITDA. Reconciliations of EBITDA to
net (loss) income for the periods presented appear in the schedule following
the statement of operations information below.
For the six months ended June 30, 2003, revenues totaled $36.0 million and
gross margins were 52.3%. The Company reported a net loss for the six months
ended June 30, 2003 of $1.3 million or a $0.11 loss per diluted share.
However, for the six months ended June 30, 2003 the Company generated EBITDA
of $1.3 million.
"We are pleased with our ability to generate increasing operating cash
flows and EBITDA this quarter. This is what we set out to do, and we
accomplished our objectives. We continue to monitor our spending and our
capital investment in the first half of the year was minimal. We anticipate
no major capital expenditures for the remainder of the year. Our gross
margins also maintained their strength and should stay above 50% throughout
2003. We are administering our strategic plan, keeping operating costs down
and we remain steadfast in our efforts to drive the Company to sustainable
profitability," stated Scott D. Dorfman, President and Chief Executive
Officer.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this evening, July 28, at 5:00 p.m. Eastern Daylight Time. Investors can
listen to the conference call live by dialing 1-800-291-3901 or 706-634-6500
(Conference ID: 1586445) or by logging on to www.innotrac.com and clicking on
"Webcasts and Presentations" in the "Company" section. The Webcast will be
archived and available at the same Web address. Additionally, a 48-hour audio
playback will be available at 1-800-642-1687 or 706-645-9291 (Conference ID
Number: 1586445).
About Innotrac
Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a
full-service provider of order processing, order fulfillment and call center
services. The Company operates fulfillment and call centers in various cities
spanning all time zones across the continental United States. For more
information about Innotrac, visit the Innotrac Web site, www.innotrac.com .
Information contained in this press release, other than historical
information, may be considered forward-looking in nature and is 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 clients, the
state of the telecommunications industry in general, Innotrac's ability to
maintain profit margins in the face of pricing pressures and
numerous other factors discussed in Innotrac's 2002 Annual Report on Form 10-K
and other filings on file with the Securities and Exchange Commission.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
2003 2002 2003 2002
Revenues $17,631 $19,351 $35,965 $40,399
Cost of revenues:
Cost of revenues 8,488 10,308 17,158 22,015
Special credit --- --- --- (293)
Total cost of revenues 8,488 10,308 17,158 21,722
Gross profit 9,143 9,043 18,807 18,677
Selling, general and
administrative expenses 8,183 7,543 17,543 15,338
Special credit (30) (359) (30) (1,321)
Depreciation and amortization 1,462 1,271 2,931 2,489
Total operating expenses 9,615 8,455 20,444 16,506
Operating (loss) income (472) 588 (1,637) 2,171
Interest expense 155 48 402 132
Other --- --- (7) (89)
Other expense, net 155 48 395 43
(Loss) income before income taxes (627) 540 (2,032) 2,128
Income tax benefit (provision) 234 (227) 747 (849)
Net (loss) income $(393) $313 $(1,285) $1,279
Earnings per share:
Basic $(0.03) $0.03 $(0.11) $0.11
Diluted $(0.03) $0.03 $(0.11) $0.11
Weighted average shares outstanding:
Basic 11,487 11,623 11,455 11,570
Diluted 11,487 12,017 11,455 11,902
Reconciliation of EBITDA and Net
(Loss) Income
EBITDA is derived from net (loss)
income as follows:
Net (loss) income $(393) $313 $(1,285) $1,279
Income tax (benefit) provision (234) 227 (747) 849
Interest expense 155 48 402 132
Depreciation and amortization 1,462 1,271 2,931 2,489
EBITDA $990 $1,859 $1,301 $4,749
Note: These statements should be read in conjunction with the Company's
Form 10-K filed with the Securities and Exchange Commission on March 31,
2003.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months
Ended Six Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
2003 2002 2003 2002
CASH FLOW FROM OPERATING ACTIVITIES:
Net (loss) income $(393) $313 $(1,285) $1,279
Adjustments to net income:
Depreciation and amortization 1,462 1,271 2,931 2,489
Impairment and disposal of fixed
assets --- --- --- 501
Deferred income taxes (234) (3,501) (747) (2,177)
Amortization of deferred
compensation 18 18 36 36
Changes in working capital:
Accounts receivable, net (439) 10,161 (2,475) 2,144
Inventories 3,813 2,702 7,042 9,120
Prepaid assets and other 863 3,100 853 2,180
Accounts payable, accrued
expenses and other (3,693) (4,131) (10,874) (1,130)
Cash provided by (used in)
operating activities 1,397 9,933 (4,519) 14,442
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures (258) (5,219) (655) (8,039)
Payment for business acquired (176) --- (176) (13,727)
Sale of marketable securities --- --- --- 435
Cash (used in) investing activities (434) (5,219) (831) (21,331)
CASH FLOW FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under
line of credit (1,053) (2,334) 4,635 ---
Repayment of capital lease and other
obligations (36) (74) (72) (145)
Loan fees paid (31) (50) (31) (50)
Exercise of employee stock options 425 --- 472 ---
Cash (used in) provided by
financing activities (695) (2,458) 5,004 (195)
Net increase (decrease) in cash 268 2,256 (346) (7,084)
Cash, beginning of period 347 73 961 9,413
Cash, end of period $615 $2,329 $615 $2,329
Supplemental cash flow disclosures:
Cash paid for interest 191 69 425 154
Cash refunds received for taxes (954) --- (1,486) (18)
Noncash transaction:
Stock issued for business acquired --- --- --- 1,550
Note: These statements should be read in conjunction with the Company's
Form 10-K filed with the Securities and Exchange Commission on March
31, 2003.
INNOTRAC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2003 2002
ASSETS (Unaudited) (Audited)
Current Assets:
Cash $615 $961
Accounts receivable, net 16,678 14,203
Inventories, net 17,056 24,098
Prepaid expenses and other 2,261 2,909
Total current assets 36,610 42,171
Property and equipment, net 16,786 18,915
Goodwill 25,164 24,988
Other assets, net 9,851 9,425
Total Assets $88,411 $95,499
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $4,805 $13,517
Accrued expenses and other 4,208 6,626
Line of credit 19,007 ---
Total current liabilities 28,020 20,143
Noncurrent Liabilities:
Line of credit --- 14,372
Other non-current liabilities 1,049 1,125
Total noncurrent liabilities 1,049 15,497
Total shareholders' equity 59,342 59,859
Total Liabilities and Shareholders' Equity $88,411 $95,499
Note: These statements should be read in conjunction with the Company's
Form 10-K filed with the Securities and Exchange Commission
on March 31, 2003.
SOURCE Innotrac Corporation
-0- 07/28/2003
/CONTACT: Jennifer Sekel Church, Investor Relations of Innotrac
Corporation, +1-678-584-4055, or jsekelchurch@innotrac.com/
/Web site: http://www.innotrac.com/
(INOC)
CO: Innotrac Corporation
ST: Georgia
IN: TLS CPR
SU: ERN CCA