Exhibit 99.1
Innotrac Corporation Announces 2003 Third Quarter Results
Trends Continue to Improve
ATLANTA, November 6 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq:
INOC), a full-service fulfillment and logistics provider, today announced
financial results for the third quarter ended September 30, 2003. The Company
reported revenues of $18.5 million and gross margins were 53.9%. The Company
also reported a net loss of $249,000 or a $0.02 loss per share for the quarter
compared to a net loss of $5.3 million or $0.46 loss per share in the third
quarter of 2002. The Company generated $2.4 million in positive cash flow from
operations for the quarter. "These metrics reflect improving trends versus the
second quarter of 2003 and a significant improvement over the comparable quarter
in 2002," stated David L. Gamsey, Chief Financial Officer.
For the nine months ended September 30, 2003, revenues totaled
$54.5 million and gross margins were 52.8%. The Company reported a net loss
for the nine months ended September 30, 2003 of $1.5 million or a $0.13 loss
per share compared to a net loss for the nine months ended September 30, 2002
of $4.0 million or $0.35 loss per share.
"Innotrac delivered a very solid quarter of increased operating cash flows
and improved financial performance. These results confirm that we are on
track to improve our operating results as we continue to grow revenue, improve
productivity, and reduce fixed expenses. Our investments in facilities and
technology are generating growth opportunities and allowing us to maintain
gross margins that exceed 50%," stated Scott D. Dorfman, President and Chief
Executive Officer. "We are focused on executing our strategic plan and
monitoring fixed costs. We are poised to capitalize on new business
opportunities, and we remain steadfast in our efforts to drive the Company to
expanding cash flows and sustainable profitability."
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this evening, November 6, at 5:00 p.m. Eastern Standard 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, 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 fulfillment and logistics provider serving enterprise clients and
world-class brands. The Company employs sophisticated order processing and
warehouse management technology and operates seven fulfillment centers and two
call centers in five 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 Nine Months Ended
September 30, September 30,
(Unaudited) (Unaudited)
2003 2002 2003 2002
Revenues $18,545 $20,064 $54,510 $60,464
Cost of revenues:
Cost of revenues 8,548 11,629 25,706 33,644
Special credit - - - (293)
Total cost of revenues 8,548 11,629 25,706 33,351
Gross margin 9,997 8,435 28,804 27,113
Operating expenses:
Selling, general and
administrative expenses 8,819 12,422 26,362 27,760
Special charges, net - 3,123 (30) 1,802
Depreciation and amortization 1,358 1,352 4,289 3,841
Total operating expenses 10,177 16,897 30,621 33,403
Operating loss (180) (8,462) (1,817) (6,290)
Interest expense 180 99 581 232
Other 1 (33) (5) (122)
Total other expense 181 66 576 110
Loss before income taxes (361) (8,528) (2,393) (6,400)
Income tax benefit (112) (3,220) (859) (2,371)
Net loss $(249) $(5,308) $(1,534) $(4,029)
Earnings per share:
Basic $(0.02) $(0.46) $(0.13) $(0.35)
Diluted $(0.02) $(0.46) $(0.13) $(0.35)
Weighted average shares
outstanding:
Basic 11,584 11,506 11,498 11,548
Diluted 11,584 11,506 11,498 11,548
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 Nine Months
Ended Ended
September 30, September 30,
(Unaudited) (Unaudited)
2003 2002 2003 2002
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss $(249) $(5,308) $(1,534) $(4,029)
Adjustments to net loss:
Depreciation and amortization 1,358 1,352 4,289 3,841
Loss on impairment and disposal of
fixed assets 1 3,062 1 3,563
Deferred income taxes (302) (2,933) (1,049) (5,109)
Amortization of deferred
compensation 18 18 54 54
Changes in working capital:
Accounts receivable, net 1,679 (5,159) (796) (3,016)
Inventory 1,418 (1,847) 8,460 7,273
Prepaid assets and other (794) (367) 58 1,812
Accounts payable, accrued
expenses and other (684) 68 (11,557) (1,061)
Cash provided by (used in)
operating activities 2,445 (11,114) (2,074) 3,328
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures (363) (3,553) (1,018) (11,592)
Payment for business acquired (5) (360) (181) (14,087)
Sale of marketable securities - - - 435
Cash (used in) investing activities (368) (3,913) (1,199) (25,244)
CASH FLOW FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under line
of credit (2,016) 13,407 2,619 13,407
Repayment of long term debt (28) (63) (100) (208)
Loan fees paid - - (31) (50)
Sale (purchase) of treasury stock
shares 537 (448) 1,009 (448)
Cash (used in) provided by
financing activities (1,507) 12,896 3,497 12,701
Net increase (decrease) in cash 570 (2,131) 224 (9,215)
Cash, beginning of period 615 2,329 961 9,413
Cash, end of period $1,185 $198 $1,185 $198
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)
September 30, December 31,
2003 2002
ASSETS (Unaudited) (Audited)
Current Assets:
Cash $1,185 $961
Accounts receivable, net 14,999 14,203
Inventories, net 15,638 24,098
Deferred income taxes 634 552
Prepaid expenses and other 2,372 2,357
Total current assets 34,828 42,171
Property and equipment, net 15,866 18,915
Goodwill 25,169 24,988
Other assets, net 10,127 9,425
Total Assets $85,990 $95,499
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $4,969 $13,517
Accrued expenses and other 3,309 6,626
Line of credit 16,991 -
Total current liabilities 25,269 20,143
Noncurrent Liabilities:
Line of credit - 14,372
Other non-current liabilities 1,075 1,125
Total noncurrent liabilities 1,075 15,497
Total shareholders' equity 59,646 59,859
Total Liabilities and
Shareholders' Equity $85,990 $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- 11/06/2003
/CONTACT: David L. Gamsey, Chief Financial Officer of Innotrac
Corporation, +1-678-584-4020, or email, dgamsey@innotrac.com/
/Web site: http://www.innotrac.com/
(INOC)
CO: Innotrac Corporation
ST: Georgia
IN: TRN
SU: ERN CCA MAV