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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