ATLANTA, March 30 /PRNewswire-FirstCall/ -- Innotrac Corporation
(NASDAQ: INOC) announced financial results today for the fourth
quarter and year ended December 31, 2008. The Company reported
revenues of $37.2 million for the quarter versus $36.9 million
reported in the comparable period in 2007, a slight increase of
0.7%. For the year ended December 31, 2008, the Company reported
revenues of $131.4 million compared to $121.8 million for the same
period in 2007, an increase of 7.9%. The increase in revenue for
the twelve months ended December 31, 2008 was primarily due to
increased revenue from existing clients in our eCommerce, DSL and
direct marketing verticals. These increases were offset by a
decrease in revenues from our B2B and telecom verticals. The
Company reported net income of $592,000, or $0.05 per share, fully
diluted, for the three months ended December 31, 2008, versus net
income of $425,000 or $0.03 per share in the comparable period of
2007. For the year ended December 31, 2008, the Company reported
net income of $3.3 million, or $0.26 per share, fully diluted,
compared to net income of $712,000, or $0.06 per share in the same
period in 2007. Included in net income for the year ended December
31, 2008 was approximately $959,000 of expenses directly related to
the terminated merger transaction with GSI Commerce, which
termination was announced on January 29, 2009. On March 27, 2009,
the Company extended its existing loan agreement with Wachovia
Bank, National Association through June 30, 2012. The amended and
restated agreement has a maximum borrowing limit of $15.0 million.
The amended and restated loan agreement is filed as an exhibit to
the Company's 2008 Annual Report on Form 10-K filed with the
Securities and Exchange Commission today. 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 seven cities
spanning all time zones across the continental United States. For
more information about Innotrac, visit the Innotrac Website,
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 2008 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. Contact George Hare Chief
Financial Officer 678-584-4020 INNOTRAC CORPORATION Condensed
Statements of Operations (in thousands, except per share amounts)
Three Months Ended Twelve Months Ended December 31, December 31,
(Unaudited) 2008 2007 2008 2007 Service revenue $30,461 $29,030
$104,487 $97,215 Freight revenue 6,699 7,870 26,913 24,601 Total
revenue 37,160 36,900 131,400 121,816 Cost of service revenues
16,607 16,351 50,797 47,723 Cost of freight revenues 6,436 7,711
26,458 24,299 Selling, general and administrative expenses 12,212
10,950 45,293 43,342 Depreciation and amortization 1,166 1,066
4,343 4,846 Total operating expenses 36,421 36,078 126,891 120,210
Operating income 739 822 4,509 1,606 Interest expense 147 397 1,231
894 Total other expense 147 397 1,231 894 Income before income
taxes 592 425 3,278 712 Income tax - - - - Net income $592 $425
$3,278 $712 Earnings per share: Basic $0.05 $0.03 $0.27 $0.06
Diluted $0.05 $0.03 $0.26 $0.06 Weighted average shares
outstanding: Basic 12,335 12,586 12,327 12,301 Diluted 12,340
12,586 12,401 12,301 INNOTRAC CORPORATION Condensed Balance Sheets
(in thousands) December 31, December 31, 2008 2007 ASSETS Current
Assets: Cash $1,056 $1,079 Accounts receivable (net of allowance
for doubtful accounts of $271 at December 31, 2008 and $288 at
December 31, 2007) 25,793 28,090 Inventory 1,855 599 Prepaid
expenses and other 1,262 1,100 Total current assets 29,966 30,868
Property and equipment, net 15,842 17,702 Goodwill 25,169 25,169
Other assets, net 822 1,192 Total assets $71,799 $74,931
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts
payable $9,259 $14,050 Line of credit 10,055 6,168 Term loan -
5,000 Accrued expenses and other 5,253 5,708 Total current
liabilities 24,567 30,926 Noncurrent Liabilities: Other noncurrent
liabilities 753 993 Total noncurrent liabilities 753 993 Total
shareholders' equity 46,479 43,012 Total liabilities and
shareholders' equity $71,799 $74,931 INNOTRAC CORPORATION Condensed
Statements of Cash Flows (in thousands) Twelve Months Ended
December 31, 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net
income $3,278 $712 Adjustments to net income: Depreciation and
amortization 4,343 4,846 Provision for bad debts 8 43 Loss on
disposal of fixed assets 47 16 Stock compensation expense-stock
options 72 102 Stock compensation expense-restricted stock 75 53
Stock issued to settle employee stock bonus - 111 Changes in
working capital: Accounts receivable, gross 2,289 (5,194) Inventory
(1,256) 1,130 Prepaid assets and other (101) 294 Accounts payable,
accrued expenses and other (5,246) 1,797 Net cash provided by
operating activities 3,509 3,910 CASH FLOWS FROM INVESTING
ACTIVITIES: Capital expenditures (2,530) (4,827) Installment
payment on previous acquisition of business - (800) Net change in
noncurrent assets and liabilities 130 (476) Cash used in investing
activities (2,400) (6,103) CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) under line of credit 3,887 (2,418)
(Repayment) proceeds of term loan (5,000) 5,000 Issuance of stock,
net 42 - Loan commitment fees (61) (324) Cash (used in) provided by
financing activities (1,132) 2,258 Net (decrease) increase in cash
(23) 65 Cash, beginning of period 1,079 1,014 Cash, end of period
$1,056 $1,079 DATASOURCE: Innotrac Corporation CONTACT: George
Hare, Chief Financial Officer, +1-678-584-4020, Web Site:
http://www.innotrac.com/
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