Exhibit 99.1
INNOTRAC CORPORATION ANNOUNCES 2006 SECOND QUARTER RESULTS
ATLANTA, Aug. 14 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq:
INOC) announced financial results today for the second quarter and six months
ended June 30, 2006. The Company reported revenues of $16.6 million for the
quarter versus $18.9 million reported in the comparable period in 2005, a
decrease of 12.5%. For the six months ended June 30, 2006, the Company reported
revenues of $33.9 million compared to $38.2 million for the same period in 2005,
a decrease of 11.2%. The decrease for both the three and six month periods was
primarily attributed to reduced revenue from our telecommunications clients due
to the maturity of the telephone and Caller ID equipment business and reduced
volumes from our direct marketing clients, partially offset by an increase in
revenue from our DSL clients due to increased volumes.
The Company reported a net loss of $834,000, or $0.07 per share, for the
three months ended June 30, 2006, versus a net loss of $619,000, or $0.05 per
share, in the comparable period of 2005. For the six months ended June 30, 2006,
the Company reported a net loss of $2.1 million, or $0.17 per share compared to
a net loss of $907,000, or $0.07 per share, in the same period in 2005.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this evening, August 14, 2006 at 5:00 PM Eastern Daylight Time. Investors can
listen to the conference call live by dialing 1-877-569-0972 (Conference ID:
3702855) 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: 3702855).
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 nine 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 Six Months Ended
June 30, June 30,
------------------------ ------------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Revenues $ 16,577 $ 18,943 $ 33,906 $ 38,181
Cost of revenues 7,980 9,680 16,878 19,633
Selling, general and
administrative expenses 8,478 8,632 17,299 16,886
Depreciation and amortization 862 1,208 1,683 2,460
Total operating expenses 17,320 19,520 35,860 38,979
Operating (loss) (743) (577) (1,954) (798)
Interest expense 91 42 158 109
Total other expense 91 42 158 109
(Loss) before income taxes (834) (619) (2,112) (907)
Income tax (benefit) - - - -
Net (loss) $ (834) $ (619) $ (2,112) $ (907)
Earnings per share:
Basic $ (0.07) $ (0.05) $ (0.17) $ (0.07)
Diluted $ (0.07) $ (0.05) $ (0.17) $ (0.07)
Weighted average shares outstanding:
Basic 12,281 12,222 12,281 12,111
Diluted 12,281 12,222 12,281 12,111
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)
June 30, December 31,
2006 2005
------------ ------------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash $ 1,007 $ 2,068
Accounts receivable (net of
allowance for doubtful accounts
of $309 at June 30, 2006 and
$2,791 at December 31, 2005) 14,658 12,745
Inventory 2,934 4,676
Prepaid expenses and other 1,552 1,383
Total current assets 20,151 20,872
Property and equipment, net 14,492 10,754
Goodwill 25,169 25,169
Other assets, net 1,225 1,177
Total assets $ 61,037 $ 57,972
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 3,818 $ 6,707
Accrued expenses and other 3,656 3,036
Line of credit 7,398 -
Total current liabilities 14,872 9,743
Noncurrent Liabilities:
Note: Other non-current liabilities 1,023 1,038
Total noncurrent liabilities 1,023 1,038
Total shareholders' equity 45,142 47,191
Total liabilities and
shareholders' equity $ 61,037 $ 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 Six Months Ended
June 30, June 30,
------------------------ ------------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (834) $ (619) $ (2,112) $ (907)
Adjustments to net loss:
Depreciation and amortization 862 1,208 1,683 2,460
Provision for bad debts 75 43 74 (435)
Amortization of deferred
compensation 22 - 63 -
Changes in working capital:
Accounts receivable, gross (1,070) (337) (1,987) 962
Inventory 1,187 674 1,742 (91)
Prepaid assets and other (78) (284) (200) 31
Accounts payable, accrued
expenses and other (1,131) (72) (2,284) 344
Cash (used in) provided by
operating activities (967) 613 (3,021) 2,364
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (2,503) (294) (5,418) (583)
Cash used in investing activities (2,503) (294) (5,418) (583)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) under
line of credit 3,326 (2,194) 7,398 (3,063)
Loan commitment fees (20) - (20) -
Payment of capital lease obligation - (18) - (36)
Exercise of employee stock options - 1,006 - 1,264
Cash provided by (used in)
financing activities 3,306 (1,206) 7,378 (1,835)
Net decrease in cash (164) (887) (1,061) (54)
Cash, beginning of period 1,171 2,210 2,068 1,377
Cash, end of period $ 1,007 $ 1,323 $ 1,007 $ 1,323
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- 08/14/2006
/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)