Exhibit 99.1
INNOTRAC CORPORATION ANNOUNCES 2006 FIRST QUARTER RESULTS
ATLANTA, May 10 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq:
INOC) announced financial results today for the first quarter ended March 31,
2006. The Company reported revenues of $17.3 million for the quarter versus
$19.2 million reported in the comparable period in 2005, a decrease of 9.9%. The
decrease in revenue was primarily attributed to reduced volumes from both our
direct marketing and telecommunications clients, partially offset by an increase
in volumes from our DSL business. The Company reported a net loss of $1.3
million, or $0.10 per share, for the three months ended March 31, 2006, versus a
net loss of $288,000, or $0.02 per share, in the comparable period of 2005.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this evening, May 10, 2006 at 5:00 PM Eastern Daylight Time. Investors can
listen to the conference call live by dialing 1-877-569-0972 (Conference ID:
8835319) 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 at the same Web address. Additionally, a 48-hour audio playback will
be available at 1-800-642-1687 (Conference ID: 8835319).
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,
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 2005
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,
---------------------------
2006 2005
------------ ------------
(Unaudited)
Revenues $ 17,328 $ 19,239
Cost of revenues 8,897 9,953
Selling, general and
administrative expenses 8,821 8,255
Depreciation and amortization 821 1,252
Total operating expenses 18,539 19,460
Operating (loss) (1,211) (221)
Interest expense 67 67
Total other expense 67 67
(Loss) before income taxes (1,278) (288)
Income tax (benefit) - -
Net (loss) $ (1,278) $ (288)
Earnings per share:
Basic $ (0.10) $ (0.02)
Diluted $ (0.10) $ (0.02)
Weighted average shares
outstanding:
Basic 12,281 12,000
Diluted 12,281 12,000
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, 2006.
INNOTRAC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2006 2005
------------ ------------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash $ 1,171 $ 2,068
Accounts receivable (net of
allowance for doubtful accounts
of $2,776 at March 31, 2006
and $2,791 at December 31, 2005) 13,663 12,745
Inventory 4,121 4,676
Prepaid expenses and other 1,466 1,383
Total current assets 20,421 20,872
Property and equipment, net 12,849 10,754
Goodwill 25,169 25,169
Other assets, net 1,216 1,177
Total assets $ 59,655 $ 57,972
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 4,178 $ 6,707
Accrued expenses and other 4,399 3,036
Line of credit 4,071 -
Total current liabilities 12,648 9,743
Noncurrent Liabilities:
Note: Other non-current liabilities 1,053 1,038
Total noncurrent liabilities 1,053 1,038
Total shareholders' equity 45,954 47,191
Total liabilities and
shareholders' equity $ 59,655 $ 57,972
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, 2006.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended
March 31,
---------------------------
2006 2005
------------ ------------
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,278) $ (288)
Adjustments to net loss:
Depreciation and amortization 821 1,252
Provision for bad debts (1) (522)
Amortization of deferred
compensation 41 -
Changes in working capital:
Accounts receivable, gross (916) 1,344
Inventory 556 (766)
Prepaid assets and other (122) 316
Accounts payable, accrued
expenses and other (1,153) 416
Cash (used in) provided by
operating activities (2,052) 1,752
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (2,916) (290)
Cash used in investing
activities (2,916) (290)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) under
line of credit 4,071 (869)
Payment of capital lease obligation - (18)
Exercise of employee stock options - 258
Cash provided by (used in)
financing activities 4,071 (629)
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, 2006. (897) 833
Cash, beginning of period 2,068 1,377
Cash, end of period $ 1,171 $ 2,210
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, 2006.
SOURCE Innotrac Corporation
-0- 05/10/2006
/CONTACT: Christine Herren, Senior Director and Controller of Innotrac
Corporation, +1-678-584-4115, or cherren@innotrac.com /
/Web site: http://www.innotrac.com /
(INOC)