ATLANTA, Aug. 14 /PRNewswire-FirstCall/ -- Innotrac Corporation
(NASDAQ: INOC) announced financial results today for the second
quarter and six months ended June 30, 2009. The Company reported
revenues of $27.6 million for the quarter versus $29.5 million
reported in the comparable period in 2008, a decrease of 6.6%. The
decrease in revenue for the three months ended June 30, 2009 was
primarily due to a $2.6 million decrease in freight revenue, which
has no material impact on our operating profitability due to
pricing practices for direct freight costs, offset by a $634,000
increase in service revenue for the quarter as compared to the same
period in 2008. The increase in service revenue for the quarter
resulted from a $1.4 million increase in service revenue from
existing clients in our eCommerce and Telecom verticals offset by a
$559,000 decrease in service revenue from our direct marketing
vertical due to decreased volumes and a $177,000 decrease in
service revenue from our DSL vertical resulting from the completed
transition of a portion of the AT&T fulfillment business to
AT&T's in-house fulfillment in mid June 2009. For the six
months ended June 30, 2009, the Company reported revenues of $56.4
million compared to $62.2 million for the same period in 2008, a
decrease of 9.4%. The decrease in revenue for the six months ended
June 30, 2009 was primarily due to a $5.7 million decrease in
freight revenue resulting from the transition of Company owned
freight accounts to client owned freight accounts and an $180,000
decrease in service revenue. The slight decrease in service revenue
resulted from a $1.4 million decrease in direct marketing and B2B
service revenue due to reduced volumes partially offset by a $1.2
million increase in service revenue resulting from increases in
volumes from existing clients in our eCommerce, DSL and Telecom
verticals. The Company reported net income of $1.8 million, or
$0.15 per share, fully diluted, for the three months ended June 30,
2009, versus net income of $995,000 or $0.08 per share in the
comparable period of 2008. For the six months ended June 30, 2009,
the Company reported net income of $3.8 million, or $0.30 per
share, fully diluted, compared to net income of $1.9 million, or
$0.15 per share, in the same period in 2008. 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 one call center 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
general state of the industries that the Company serves, 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 Six Months Ended June 30, June 30, (Unaudited) (Unaudited)
---------- ---------- 2009 2008 2009 2008 ---- ---- ---- ----
Service revenue $24,052 $23,418 $48,708 $48,888 Freight revenue
3,540 6,109 7,659 13,351 ----- ----- ----- ------ Total revenue
27,592 29,527 56,367 62,239 Cost of service revenues 10,327 10,559
20,987 22,657 Freight expense 3,488 6,016 7,545 13,265 Selling,
general and administrative expenses 10,768 10,583 21,578 21,662
Depreciation and amortization 1,108 1,021 2,317 2,072 ----- -----
----- ----- Total operating expenses 25,691 28,179 52,427 59,656
------ ------ ------ ------ Operating income 1,901 1,348 3,940
2,583 Interest expense 59 353 165 726 --- --- --- --- Total other
expense 59 353 165 726 --- --- --- --- Income before income taxes
1,842 995 3,775 1,857 Income tax - - - - --- --- --- --- Net income
$1,842 $995 $3,775 $1,857 ====== ==== ====== ====== Earnings per
share: Basic $0.15 $0.08 $0.30 $0.15 ===== ===== ===== =====
Diluted $0.15 $0.08 $0.30 $0.15 ===== ===== ===== ===== Weighted
average shares outstanding: Basic 12,601 12,586 12,601 12,586
Diluted 12,601 12,602 12,601 12,594 INNOTRAC CORPORATION Condensed
Balance Sheets (in thousands) June 30, December 31, 2009 2008 ----
---- ASSETS (Unaudited) Current Assets: Cash $1,690 $1,056 Accounts
receivable (net of allowance for doubtful accounts of $248 at June
30, 2009 and $271 at December 31, 2008) 16,824 25,793 Inventory
1,114 1,855 Prepaid expenses and other 1,356 1,262 ----- -----
Total current assets 20,984 29,966 Property and equipment, net
14,810 15,842 Goodwill 25,169 25,169 Other assets, net 981 822 ---
--- Total assets $61,944 $71,799 ======= ======= LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $5,203
$9,259 Line of credit - 10,055 Accrued expenses and other 5,143
5,253 ----- ----- Total current liabilities 10,346 24,567
Noncurrent Liabilities: Equipment lease payable 503 - Other
noncurrent liabilities 798 753 --- --- Total noncurrent liabilities
1,301 753 Total shareholders' equity 50,297 46,479 ------ ------
Total liabilities and shareholders' equity $61,944 $71,799 =======
======= INNOTRAC CORPORATION Condensed Statements of Cash Flows (in
thousands) Six Months Ended June 30, (Unaudited) ---------- 2009
2008 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income
$3,775 $1,857 Adjustments to net income: Depreciation and
amortization 2,317 2,072 Provision for bad debts 39 (50) Stock
compensation expense-stock options 6 46 Stock compensation
expense-restricted stock 37 37 Changes in working capital: Accounts
receivable, gross 8,930 6,798 Inventory 741 (223) Prepaid assets
and other (59) (504) Accounts payable, accrued expenses and other
(4,404) (8,466) ------ ------ Net cash provided by operating
activities 11,382 1,567 ------ ----- CASH FLOWS FROM INVESTING
ACTIVITIES: Capital expenditures (674) (1,412) Net change in
noncurrent assets and liabilities 2 57 - -- Cash used in investing
activities (672) (1,355) ---- ------ CASH FLOWS FROM FINANCING
ACTIVITIES: Net repayments under line of credit (10,055) (948)
Proceeds from financing lease 130 - Loan commitment fees (151) -
---- - Cash used in financing activities (10,076) (948) -------
---- Net increase (decrease) in cash 634 (736) Cash, beginning of
period 1,056 1,079 ----- ----- Cash, end of period $1,690 $343
====== ==== DATASOURCE: Innotrac Corporation CONTACT: George Hare,
Chief Financial Officer of Innotrac Corporation, +1-678-584-4020,
Web Site: http://www.innotrac.com/
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