Exhibit 99.1
INNOTRAC CORPORATION ANNOUNCES 2005 FIRST QUARTER RESULTS
ATLANTA, May 6 /PRNewswire-FirstCall/ -- Innotrac Corporation
(Nasdaq: INOC) announced financial results today for the first quarter ended
March 31, 2005. The Company reported revenues of $19.2 million for the
quarter versus $20.0 million reported in the comparable period in 2004, a
decrease of 3.8%. This decrease was primarily attributable to the conclusion
of two programs for a major client and the termination of services for Tactica
International, Inc. and Martha Stewart Living Omnimedia, offset by revenues
from several new clients. The Company reported a net loss of $288,000, or
$0.02 per share for the first quarter ended March 31, 2005, versus net income
of $227,000, or $0.02 per share in the comparable period of 2004. The Company
generated $1.8 million in cash flows from operations for the quarter.
"Although we had a loss for the quarter, due mainly to lower margins on
new accounts that replaced the Martha Stewart and Tactica business, we feel
that we continue to make progress and expect to continue to generate solid
cash flows," stated Scott D. Dorfman, President and Chief Executive Officer.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this morning, May 6, 2005 at 9:00 AM Eastern Time. Investors can listen to
the conference call live by dialing 1-877-569-0972 (Conference ID: 5737269) 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: 5737269).
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. 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 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 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
March 31,
(Unaudited)
---------------------------
2005 2004
------------ ------------
Revenues $ 19,239 $ 19,994
Cost of revenues 9,953 8,938
Gross profit 9,286 11,056
Operating expenses:
Selling, general and
administrative expenses 8,255 9,484
Depreciation and amortization 1,252 1,252
Total operating expenses 9,507 10,736
Operating income (loss) (221) 320
Interest expense 67 93
Other - -
Total other expense 67 93
Income (loss) before income taxes (288) 227
Income tax (benefit) - -
Net income (loss) $ (288) $ 227
Earnings per share:
Basic $ (0.02) $ 0.02
Diluted $ (0.02) $ 0.02
Weighted average shares
outstanding:
Basic 12,000 11,634
Diluted 12,000 12,534
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)
March 31, December 31,
2005 2004
------------ -------------
(Audited) (Audited)
ASSETS
Current Assets:
Cash $ 2,210 $ 1,377
Accounts receivable (net of
allowance for doubtful accounts
of $1,102 at March 31, 2005
and $1,624 at December 31, 2004) 17,583 18,405
Inventory 3,428 2,662
Prepaid expenses and other 1,716 1,986
Total current assets 24,937 24,430
Property and equipment, net 11,597 12,499
Goodwill 25,169 25,169
Other assets, net 1,169 1,275
Total assets $ 62,872 $ 63,373
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 5,560 $ 6,023
Accrued expenses and other 3,558 2,630
Line of credit 2,194 3,063
Total current liabilities 11,312 11,716
Noncurrent Liabilities:
Other non-current liabilities 1,032 1,098
Total noncurrent liabilities 1,032 1,098
Total shareholders' equity 50,528 50,559
Total liabilities and
shareholders' equity $ 62,872 $ 63,373
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
March 31,
(Unaudited)
---------------------------
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (288) $ 227
Adjustments to net loss:
Depreciation and amortization 1,252 1,252
Amortization of deferred
compensation - 33
Changes in working capital:
Accounts receivable, net 821 (674)
Inventory (766) 4,603
Prepaid assets and other 316 (433)
Accounts payable, accrued
expenses and other 417 304
Cash provided by operating
activities 1,752 5,312
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (290) (588)
Cash (used in) investing activities (290) (588)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) under line of credit (869) (5,687)
(Payment) of capital lease obligation (18) (19)
Exercise of employee stock options 258 408
Stock reacquired to settle employee
stock bonus withholding
tax obligation - (286)
Cash (used in) provided by
financing activities (629) (5,584)
Net increase (decrease) in cash 833 (860)
Cash, beginning of period 1,377 2,228
Cash, end of period $ 2,210 $ 1,368
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- 05/06/2005
/CONTACT: Christine Herren, Senior Director and Controller of Innotrac
Corporation, +1-678-584-4115, or cherren@innotrac.com /
/Web site: http://www.innotrac.com /