Exhibit 99.1
INNOTRAC CORPORATION ANNOUNCES 2006 THIRD QUARTER RESULTS
ATLANTA, Nov. 6 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq:
INOC) announced financial results today for the third quarter and nine months
ended September 30, 2006. The Company reported revenues of $19.1 million for the
quarter versus $17.5 million reported in the comparable period in 2005, an
increase of 8.8% primarily attributed to the addition of several new
retail/catalog clients. For the nine months ended September 30, 2006, the
Company reported revenues of $53.0 million compared to $55.7 million for the
same period in 2005, a decrease of 4.9%. The decrease for the nine-month period
resulted from 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 retail/catalog clients due to the addition of new clients and increased
revenue from our DSL clients due to increased volumes.
The Company reported a net loss of $488,000, or $0.04 per share, for the
three months ended September 30, 2006, versus a net loss of $796,000, or $0.06
per share, in the comparable period of 2005. For the nine months ended September
30, 2006, the Company reported a net loss of $2.6 million, or $0.21 per share,
compared to a net loss of $1.7 million, or $0.14 per share, in the same period
in 2005.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release
this evening, November 6, 2006 at 5:00 PM Eastern Standard Time. Investors can
listen to the conference call live by dialing 1-877-569-0972 (Conference ID:
1151833) or by logging on to http://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: 1151833).
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 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 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 disclaims any intention or obligation to update or
revise any forward-looking statement whether as a result of new information,
future events or otherwise.
INNOTRAC CORPORATION
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2006 2005 2006 2005
--------- --------- --------- ---------
(Unaudited) (Unaudited)
Revenues $ 19,091 $ 17,543 $ 52,996 $ 55,724
Cost of revenues 9,589 8,695 26,467 28,328
Selling, general and
administrative expenses 8,914 8,535 26,212 25,421
Depreciation and amortization 956 1,091 2,639 3,551
Total operating expenses 19,459 18,321 55,318 57,300
Operating (loss) (368) (778) (2,322) (1,576)
Interest expense 120 18 278 127
Total other expense 120 18 278 127
(Loss) before income taxes (488) (796) (2,600) (1,703)
Income tax (benefit) - - - -
Net (loss) $ (488) $ (796) $ (2,600) $ (1,703)
Earnings per share:
Basic $ (0.04) $ (0.06) $ (0.21) $ (0.14)
Diluted $ (0.04) $ (0.06) $ (0.21) $ (0.14)
Weighted average shares
outstanding:
Basic 12,281 12,277 12,281 12,167
Diluted 12,281 12,277 12,281 12,167
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)
September 30, December 31,
2006 2005
------------- -------------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash $ 1,122 $ 2,068
Accounts receivable (net of
allowance for doubtful accounts
of $280 at September 30, 2006
and $2,791 at December 31, 2005) 14,821 12,745
Inventory 2,077 4,676
Prepaid expenses and other 1,529 1,383
Total current assets 19,549 20,872
Property and equipment, net 15,145 10,754
Goodwill 25,169 25,169
Other assets, net 1,355 1,177
Total assets $ 61,218 $ 57,972
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 5,185 $ 6,707
Accrued expenses and other 4,386 3,036
Line of credit 5,892 -
Total current liabilities 15,463 9,743
Noncurrent Liabilities:
Other non-current liabilities 1,080 1,038
Total noncurrent liabilities 1,080 1,038
Total shareholders' equity 44,675 47,191
Total liabilities and
shareholders' equity $ 61,218 $ 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 Nine Months
Ended Ended
September 30, September 30,
--------------------- ---------------------
2006 2005 2006 2005
--------- --------- --------- ---------
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (488) $ (796) $ (2,600) $ (1,703)
Adjustments to net loss:
Depreciation and amortization 956 1,091 2,639 3,551
Loss on disposal of fixed assets 8 12 8 12
Provision for bad debts (1) (73) 73 (508)
Amortization of deferred
compensation 22 - 84 -
Changes in working capital:
Accounts receivable, gross (163) 5,104 (2,149) 6,066
Inventory 856 (1,377) 2,599 (1,469)
Prepaid assets and other (107) 317 (307) 348
Accounts payable, accrued
expenses and other 2,154 (1,584) (131) (1,239)
Cash provided by operating
activities 3,237 2,694 216 5,058
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (1,616) (217) (7,034) (800)
Cash used in investing activities (1,616) (217) (7,034) (800)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) under
line of credit (1,506) - 5,892 (3,063)
Loan commitment fees - - (20) -
Payment of capital lease obligation - (18) - (54)
Exercise of employee stock options - 21 - 1,285
Cash provided by (used in)
financing activities (1,506) 3 5,872 (1,832)
Net increase (decrease) in cash 115 2,480 (946) 2,426
Cash, beginning of period 1,007 1,323 2,068 1,377
Cash, end of period $ 1,122 $ 3,803 $ 1,122 $ 3,803
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- 11/06/2006
/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)