Exhibit 99.1
INNOTRAC CORPORATION ANNOUNCES 2004 FOURTH QUARTER AND YEAR END RESULTS
ATLANTA, March 30 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq:
INOC) announced financial results today for the fourth quarter and fiscal year
ended December 31, 2004. For the three months ended December 31, 2004, the
Company reported revenues of $20.9 million versus $20.2 million reported in the
comparable period in 2003, an increase of 3.3%. The Company generated $1.7
million in cash flows from operations for the quarter. Earnings per share for
the three months ended December 31, 2004 was breakeven versus a loss of $0.89 in
the comparable period of 2003.
For the year ended December 31, 2004, the Company recorded revenues of $78.3
million, an increase of 4.8% over the $74.7 million reported in the year ended
December 31, 2003. Innotrac produced $9.9 million in cash flows from operations
for 2004 compared to $3.8 million produced in 2003. Net income for 2004 was
$110,000 or $.01 per share, compared to a net loss of $12.0 million or $1.04 per
share in 2003.
"Innotrac's 2004 financial results reflect the Company's progress towards
achieving management's strategic objectives. On a year-over-year basis, we grew
revenue, maintained gross margins above fifty percent, reduced SG&A expenses on
both a dollar and percentage basis and drove strong cash flows from operations,"
stated Scott D. Dorfman, President and Chief Executive Officer.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this evening, March 30, 2005 at 5:00 PM Eastern Standard Time. Investors can
listen to the conference call live by dialing 1-877-569-0972 (Conference ID:
4654084) 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 (Conference ID: 4654084).
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 eight fulfillment centers and two
call centers in six 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 2004 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 Twelve Months Ended
December 31, December 31,
(Unaudited) (Audited)
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenues $ 20,889 $ 20,230 $ 78,322 $ 74,740
Cost of revenues 11,254 9,451 37,925 35,157
Gross profit 9,635 10,779 40,397 39,583
Operating expenses:
Selling, general and
administrative expenses 8,227 10,082 34,800 36,444
Special charges - - - (30)
Depreciation and amortization 1,297 1,333 5,202 5,622
Total operating expenses 9,524 11,415 40,002 42,036
Operating income (loss) 111 (636) 395 (2,453)
Interest expense 51 160 285 741
Other - 19 - 15
Total other expense 51 179 285 756
Income (loss) before income taxes 60 (815) 110 (3,209)
Income tax (benefit) - 9,632 - 8,772
Net income (loss) $ 60 $ (10,447) $ 110 $ (11,981)
Earnings per share:
Basic $ 0.01 $ (0.89) $ 0.01 $ (1.04)
Diluted $ 0.00 $ (0.89) $ 0.01 $ (1.04)
Weighted average shares
outstanding:
Basic 11,930 11,678 11,865 11,542
Diluted 12,473 11,678 12,522 11,542
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, 2005.
INNOTRAC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2004 2003
------------ ------------
(Audited) (Audited)
ASSETS
Current Assets:
Cash $ 1,377 $ 2,228
Accounts receivable (net of
allowance for doubtful accounts
of $1,624 at December 31,
2004 and $1,696 at December 31, 2003) 18,405 15,682
Inventory 2,662 10,896
Prepaid expenses and other 1,986 915
Total current assets 24,430 29,721
Property and equipment, net 12,499 14,750
Goodwill 25,169 25,169
Other assets, net 1,275 1,322
Total assets $ 63,373 $ 70,962
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 6,023 $ 5,738
Accrued expenses and other 2,630 2,577
Line of credit 3,063 11,802
Total current liabilities 11,716 20,117
Noncurrent Liabilities:
Other non-current liabilities 1,098 1,083
Total noncurrent liabilities 1,098 1,083
Total shareholders' equity 50,559 49,762
Total liabilities and
shareholders' equity $ 63,373 $ 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 31, 2005.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
(Unaudited) (Audited)
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 60 $ (10,447) $ 110 $ (11,981)
Adjustments to net loss:
Depreciation and amortization 1,297 1,333 5,202 5,622
Loss on impairment or disposal of
fixed assets - 21 106 22
Deferred income taxes - 9,541 - 8,492
Amortization of deferred
compensation 16 18 84 72
Changes in working capital:
Accounts receivable, net (1,349) (683) (2,723) (1,479)
Inventory 1,949 4,743 8,234 13,202
Prepaid assets and other 386 1,280 (1,304) 1,338
Accounts payable, accrued
expenses and other (625) 60 192 (11,494)
Cash provided by (used in)
operating activities 1,734 5,866 9,901 3,794
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (650) (163) (2,762) (1,182)
Acquisition of business, net of cash
acquired - - - (181)
Cash (used in) investing activities (650) (163) (2,762) (1,363)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) under line
of credit (1,285) (5,188) (8,740) (2,570)
(Payment) of capital lease obligation (18) (19) (82) (119)
Loan commitment fees - - (15) (31)
Exercise of employee stock options 140 547 1,133 1,556
Stock reacquired to settle employee
stock bonus withholding tax
obligation - - (286) -
Issuance of treasury stock - - - -
Cash (used in) provided by
financing activities (1,163) (4,660) (7,990) (1,164)
Net (decrease) increase in cash (79) 1,043 (851) 1,267
Cash, beginning of period 1,456 1,185 2,228 961
Cash, end of period $ 1,377 $ 2,228 $ 1,377 $ 2,228
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, 2005.
SOURCE Innotrac Corporation
-0- 03/30/2005
/CONTACT: Christine Herren, Senior Director and Controller of Innotrac
Corporation, +1-678-584-4115, or cherren@innotrac.com /
/Web site: http://www.innotrac.com /