Exhibit 99.1
Innotrac Corporation Announces 2004 Second Quarter Results
ATLANTA, Aug. 9 /PRNewswire-FirstCall/ -- Innotrac Corporation
(Nasdaq: INOC) announced financial results today for the second quarter and
six months ended June 30, 2004. For the three months ended June 30, 2004, the
Company earned $0.02 per share on revenues of $19.8 million and generated
$2.6 million in positive cash flow from operations. Revenues were up 12.3% on
a year-over-year basis and the Company improved earnings per share by $0.05
versus the second quarter of 2003. Gross margins were 54.7%, up from 51.9% in
the same period in 2003.
For the six months ended June 30, 2004, the Company earned $0.04 per share
on revenues of $39.8 million and delivered gross margins of 55.0%. This
represents 10.7% revenue growth and 2.7% margin expansion from the year ago
period. Cash flow from operations for the first six months of 2004 was
$7.9 million.
"In the second quarter, we continued our pace of year-over-year revenue,
earnings and cash flow growth. Additionally, we reduced inventory levels and
outstanding borrowings on our line of credit to $5.0 million and $4.1 million,
respectively, down from $10.9 million and $11.8 million at December 31, 2003,"
stated David L. Gamsey, Chief Financial Officer.
"Our focus on driving operational excellence and back-office efficiency
has returned the Company to profitability. We are very pleased that our
clients continue to present us with new business opportunities, and we have
built an excellent backlog of new prospects that we believe will enable us to
continue growing revenue, earnings and cash flow," stated Scott D. Dorfman,
President and Chief Executive Officer.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this evening, August 9th, at 5:00 p.m. Eastern Daylight Time. Investors can
listen to the conference call live by dialing 1-877-569-0972 (Conference ID:
8513271) or by logging on to http://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: 8513271).
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, http://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 2003 Annual Report on Form 10-K and other
filings on file with the Securities and Exchange Commission.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Revenues $19,807 $17,631 $39,802 $35,965
Cost of revenues 8,977 8,488 17,915 17,158
Gross profit 10,830 9,143 21,887 18,807
Operating expenses:
Selling, general and
administrative expenses 9,158 8,183 18,642 17,543
Special charges - (30) - (30)
Depreciation and amortization 1,370 1,462 2,622 2,931
Total operating expenses 10,528 9,615 21,264 20,444
Operating income (loss) 302 (472) 623 (1,637)
Interest expense 77 155 171 402
Other - - - (7)
Total other expense 77 155 171 395
Income (loss) before income taxes 225 (627) 452 (2,032)
Income tax (benefit) - (234) - (747)
Net income (loss) $225 $(393) $452 $(1,285)
Earnings per share:
Basic $0.02 $(0.03) $0.04 $(0.11)
Diluted $0.02 $(0.03) $0.04 $(0.11)
Weighted average shares
outstanding:
Basic 11,731 11,487 11,748 11,455
Diluted 12,316 11,487 12,501 11,455
Note: These statements should be read in conjunction with the Company's
Form 10-K filed with the Securities and Exchange Commission
on March 30, 2004.
INNOTRAC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2004 2003
ASSETS (Unaudited) (Audited)
Current Assets:
Cash $1,362 $2,228
Accounts receivable (net of
allowance for doubtful
accounts of $2,537 at June
30, 2004 and $1,696 at
December 31, 2003) 16,880 15,682
Inventory 4,996 10,896
Prepaid expenses and other 1,766 915
Total current assets 25,004 29,721
13,521 14,750
Property and equipment, net
Goodwill 25,169 25,169
Other assets, net 1,237 1,322
Total assets $64,931 $70,962
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $6,365 $5,738
Accrued expenses and other 2,805 2,577
Line of credit 4,085 11,802
Total current liabilities 13,255 20,117
Noncurrent Liabilities:
Other non-current liabilities 1,055 1,083
Total noncurrent liabilities 1,055 1,083
Total shareholders' equity 50,621 49,762
Total liabilities and
shareholders' equity $64,931 $70,962
Note: These statements should be read in conjunction with the
Company's Form 10-K filed with the Securities and Exchange
Commission on March 30, 2004.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $225 $(393) $452 $(1,285)
Adjustments to net loss:
Depreciation and amortization 1,370 1,462 2,622 2,931
Loss on impairment or disposal of
fixed assets 100 - 100 -
Deferred income taxes - (234) - (746)
Amortization of deferred
compensation 18 18 51 36
Changes in working capital:
Accounts receivable, net (524) (439) (1,198) (2,475)
Inventory 1,296 3,813 5,899 7,042
Prepaid assets and other (494) 863 (927) 853
Accounts payable, accrued
expenses and other 563 (3,693) 866 (10,875)
Cash provided by (used in)
operating activities 2,554 1,397 7,865 (4,519)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (729) (258) (1,317) (655)
Acquisition of business, net of cash
acquired - (176) - (176)
Cash (used in) investing
activities (729) (434) (1,317) (831)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under
line of credit (2,031) (1,053) (7,717) 4,635
(Payment) of capital lease obligation (20) (36) (39) (72)
Loan commitment fees (15) (31) (15) (31)
Exercise of employee stock options 235 - 643 -
Stock reacquired to settle employee
stock bonus withholding tax obligation - - (286) -
Issuance of treasury stock - 425 - 472
Cash (used in) provided by
financing activities (1,831) (695) (7,414) 5,004
Net (decrease) increase in cash (6) 268 (866) (346)
Cash, beginning of period 1,368 347 2,228 961
Cash, end of period $1,362 $615 $1,362 $615
Note: These statements should be read in conjunction with the Company's
Form 10-K filed with the Securities and Exchange Commission on March 30,
2004.
SOURCE Innotrac Corporation
-0- 08/09/2004
/CONTACT: David L. Gamsey, Chief Financial Officer of Innotrac
Corporation, +1-678-584-4020, or dgamsey@innotrac.com /
/Web site: http://www.innotrac.com/
(INOC)
CO: Innotrac Corporation
ST: Georgia
IN: TRN CPR
SU: ERN CCA MAV