Innotrac Corporation Announces 2007 First Quarter Results
ATLANTA, May 15 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq:
INOC) announced financial results today for the first quarter ended March 31,
2007. The Company reported revenues of $27.8 million for the quarter versus
$17.3 million reported in the comparable period in 2006, an increase of 60.3%.
The increase in revenue was primarily attributed to the addition of several new
retail/catalog clients and additional revenue resulting from clients acquired in
the ClientLogic acquisition in October, 2006. The Company reported a net loss of
$793,000, or $0.06 per share, for the three months ended March 31, 2007, versus
a net loss of $1.3 million, or $0.10 per share, in the comparable period of
2006.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this morning, May 15, 2007 at 9:00 AM Eastern Daylight Time. Investors can
listen to the conference call live by dialing 1-877-569-0972 (Conference ID:
6128450) or by logging on to www.innotrac.com and clicking on "Webcasts and
Presentations" in the "Investor Relations" 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 (Conference ID: 6128450).
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 ten fulfillment centers and two
call centers in seven 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. Forward-looking
statements in this press release include our expectations for future progress in
our business and future generation of cash flows. Forward-looking statements are
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 current clients
and attract new clients, realization of expected revenues from new clients, the
state of the telecommunications and direct response industries in general,
changing technologies, Innotrac's ability to maintain profit margins in the face
of pricing pressures and numerous other factors discussed in Innotrac's 2006
Annual Report on Form 10-K and other filings on file with the Securities and
Exchange Commission. Innotrac disclaims any intention or obligation to update or
revise any forward-looking statement whether as a result of new information,
future events or otherwise.
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INNOTRAC CORPORATION
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
(Unaudited)
2007 2006
Revenues $ 27,775 $ 17,328
Cost of revenues 15,952 8,897
Selling, general and
administrative expenses 11,164 8,821
Depreciation and amortization 1,285 821
Total operating expenses 28,401 18,539
Operating (loss) (626) (1,211)
Interest expense 167 67
Total other expense 167 67
(Loss) before income taxes (793) (1,278)
Income tax (benefit) -- --
Net (loss) $ (793) $ (1,278)
Earnings per share:
Basic $ (0.06) $ (0.10)
Diluted $ (0.06) $ (0.10)
Weighted average shares
outstanding:
Basic 12,281 12,281
Diluted 12,281 12,281
Note: These statements should be read in conjunction with the Company's Form
10-K filed with the Securities and Exchange Commission on April 17,
2007.
INNOTRAC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2007 2006
ASSETS (Unaudited) (Audited)
Current Assets:
Cash $ 65 $ 1,014
Accounts receivable
(net of allowance for doubtful
accounts of $209 at March 31, 2007
and $257 at December 31, 2006) 18,547 22,939
Inventory 1,585 1,729
Prepaid expenses and other 1,571 1,088
Total current assets 21,768 26,770
Property and equipment, net 17,268 17,836
Goodwill 25,169 25,169
Other assets, net 1,694 1,765
Total assets $65,899 $71,540
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 9,965 $14,363
Line of credit 8,446 8,586
Accrued expenses and other 5,046 4,981
Total current liabilities 23,457 27,930
Noncurrent Liabilities:
Other non-current liabilities 1,181 1,576
Total noncurrent liabilities 1,181 1,576
Total shareholders' equity 41,261 42,034
Total liabilities and
shareholders' equity $65,899 $71,540
Note: These statements should be read in conjunction with the Company's Form
10-K filed with the Securities and Exchange Commission on April 17,
2007.
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INNOTRAC CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended
March 31,
(Unaudited)
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (793) $(1,278)
Adjustments to net loss:
Depreciation and amortization 1,285 821
Provision for bad debts (46) (1)
Stock option expense 19 41
Changes in working capital:
Accounts receivable, gross 4,440 (917)
Inventory 144 555
Prepaid assets and other (440) (122)
Accounts payable, accrued
expenses and other (4,727) (1,151)
Cash used in operating activities (118) (2,052)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (691) (2,916)
Cash used in investing activities (691) (2,916)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under
line of credit (140) 4,071
Cash (used in) provided by
financing activities (140) 4,071
Net decrease in cash (949) (897)
Cash, beginning of period 1,014 2,068
Cash, end of period $ 65 $ 1,171
Note: These statements should be read in conjunction with the Company's Form
10-K filed with the Securities and Exchange Commission on April 17,
2007.
SOURCE Innotrac Corporation
-0- 05/15/2007
/CONTACT: Christine Herren, Senior Director and Controller for Innotrac
Corporation, +1-678-584-4115, cherren@innotrac.com /
/FCMN Contact: cherren@innotrac.com /
/Web site: http://www.innotrac.com /
(INOC)
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