EXHIBIT 99.1
INNOTRAC CORPORATION ANNOUNCES 2003 FIRST QUARTER RESULTS
ATLANTA, GA (April 29, 2003) - Innotrac Corporation (NASDAQ: INOC), a
full-service provider of order processing, order fulfillment and call center
services, today announced financial results for the first quarter ended March
31, 2003. The Company reported revenues of $18.3 million and a net loss of
$892,000 or an $0.08 loss per share for the first quarter.
"Our results were commensurate, and in several areas slightly better, than what
we budgeted for the quarter and we are still comfortable with the goals we
previously articulated for the full year. Fee revenues as compared to the same
quarter last year were steady. We are pleased with our gross margins as they
strengthened to 53% for the quarter. Furthermore, we generated $304,000 in
EBITDA, which also exceeded our first quarter plan. The only difference between
EBITDA and GAAP operating loss, or EBIT, are non-cash depreciation and
amortization charges of approximately $1.5 million. Capital investment in the
first quarter was minimal and will remain at modest levels throughout the year.
With new business starting up in the second quarter and increased operating
efficiencies, we remain confident about our abilities to propel the Company to
sustainable profitability during the second half of this year," stated Scott D.
Dorfman, President and Chief Executive Officer.
Innotrac Corporation will hold a conference call to discuss this release this
evening, April 29, 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: 9797783) 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 for 48 hours 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: 9797783).
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 four 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.
CONTACT
Jennifer Sekel Church
Investor Relations
678-584-4055
jsekelchurch@innotrac.com
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INNOTRAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
MARCH 31,
(UNAUDITED)
-------------------------
2003 2002
-------- --------
Revenues $ 15,998 $ 16,330
Reimbursable costs 2,336 4,718
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Total revenue 18,334 21,048
Cost of revenues:
Cost of revenues 6,323 6,989
Reimbursable costs 2,336 4,718
Special (credit) charges -- (293)
-------- --------
Total cost of revenues 8,659 11,414
-------- --------
Gross profit 9,675 9,634
Selling, general and
administrative expenses 9,371 7,794
Special (credit) charges -- (962)
-------- --------
EBITDA 304 2,802
Depreciation and amortization 1,469 1,218
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Total operating expenses 10,840 8,050
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Operating (loss) income (1,165) 1,584
Other expense (income), net 240 (4)
-------- --------
(Loss) income before income taxes (1,405) 1,588
Income tax benefit (provision) 513 (622)
-------- --------
Net (loss) income $ (892) $ 966
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Earnings per share:
Basic $ (0.08) $ 0.08
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Diluted $ (0.08) $ 0.08
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Weighted average shares
outstanding:
Basic 11,422 11,516
Diluted 11,422 11,790
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
MARCH 31,
(UNAUDITED)
------------------------
2003 2002
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CASH FLOW FROM OPERATING ACTIVITIES:
Net (loss) income $ (892) $ 966
Adjustments to net income:
Depreciation and amortization 1,469 1,218
Loss on impairment and disposal of fixed assets -- 501
Deferred income taxes (513) 1,324
Amortization of deferred compensation 18 18
Realized gain on sale of marketable securities -- (76)
Changes in working capital:
Accounts receivable, net (2,035) (8,017)
Inventories 3,229 6,418
Prepaid assets and other (10) (920)
Accounts payable, accrued expenses and other (7,182) 3,002
------- --------
Cash (used in) provided by operating activities (5,916) 4,434
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CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures (397) (2,821)
Payment for business acquired -- (13,727)
Sale of marketable securities -- 511
------- --------
Cash used in investing activities (397) (16,037)
------- --------
CASH FLOW FROM FINANCING ACTIVITIES:
Net borrowings under line of credit 5,688 2,334
Repayment of long term debt (36) (71)
Loan fees paid -- --
Sale of treasury stock shares 47 --
------- --------
Cash used in financing activities 5,699 2,263
------- --------
Net decrease in cash (614) (9,340)
Cash, beginning of period 961 9,413
------- --------
Cash, end of period $ 347 $ 73
======= ========
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)
MARCH 31, December 31,
2003 2002
----------- ------------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash $ 347 $ 961
Accounts receivable, net 16,238 14,203
Inventories, net 20,869 24,098
Prepaid expenses and other 3,009 2,909
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Total current assets 40,463 42,171
Property and equipment, net 17,914 18,915
Goodwill 24,988 24,988
Other assets, net 9,777 9,425
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Total Assets $93,142 $95,499
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 7,557 $13,517
Accrued expenses and other 5,106 6,626
Line of credit 20,060 --
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Total current liabilities 32,723 20,143
Noncurrent Liabilities:
Line of credit -- 14,372
Other non-current liabilities 1,128 1,125
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Total noncurrent liabilities 1,128 15,497
Total shareholders' equity 59,291 59,859
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Total Liabilities and Shareholders' Equity $93,142 $95,499
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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