ATLANTA, Nov. 16 /PRNewswire-FirstCall/ -- Innotrac Corporation
(NASDAQ: INOC) announced financial results today for the third
quarter and nine months ended September 30, 2009. The Company
reported revenues of $22.3 million for the quarter versus $32.0
million reported in the comparable period in 2008, a decrease of
30.4%. The decrease in revenue for the three months ended September
30, 2009 as compared to the same period in 2008 was due to a $5.7
million decrease in service revenue and a $4.0 million decrease in
freight revenue, which has no material impact on our operating
profitability due to pricing practices for direct freight costs.
The decrease in service revenue for the quarter resulted from a
$3.7 million decrease in service revenue from our DSL vertical
mainly due to the completed transition of a portion of the AT&T
fulfillment business to AT&T's in-house fulfillment in mid June
2009 and a $2.0 million net decrease in service revenues for our
other customer verticals. For the nine months ended September 30,
2009, the Company reported revenues of $78.6 million compared to
$94.2 million for the same period in 2008, a decrease of 16.6%. The
decrease in revenue for the nine months ended September 30, 2009 as
compared to the same period in 2008 was due to a $5.9 million
decrease in service revenue and a $9.7 million decrease in freight
revenue, which has no material impact on our operating
profitability due to pricing practices for direct freight costs.
The decrease in service revenue for the nine months resulted from a
$3.5 million decrease in revenue from our DSL vertical mainly due
to the completed transition of a portion of the AT&T
fulfillment business to AT&T's in-house fulfillment in mid June
2009 and a $2.4 million net decrease in service revenues for our
other customer verticals. The Company reported a loss of $78,000,
or ($0.01) per share, fully diluted, for the three months ended
September 30, 2009, compared to net income of $829,000 or $0.07 per
share in the comparable period of 2008. For the nine months ended
September 30, 2009, the Company reported net income of $3.7
million, or $0.29 per share, fully diluted, compared to net income
of $2.7 million, or $0.21 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 six 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,
Innotrac's success in growing its existing client base, developing
new business, reducing operating costs in response to reduced
service revenues, 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 Nine Months Ended Ended September 30, September 30,
(Unaudited) (Unaudited) 2009 2008 2009 2008 Service revenue $19,402
$25,138 $68,109 $74,028 Freight revenue 2,856 6,863 10,515 20,213
----- ----- ------ ------ Total revenue 22,258 32,001 78,624 94,241
Cost of service revenues 8,625 11,532 29,612 34,190 Freight expense
2,856 6,757 10,401 20,022 Selling, general and administrative
expenses 9,564 11,419 31,142 33,081 Depreciation and amortization
1,082 1,106 3,398 3,178 ----- ----- ----- ----- Total operating
expenses 22,127 30,814 74,553 90,471 ------ ------ ------ ------
Operating income 131 1,187 4,071 3,770 Interest expense 42 358 207
1,084 -- --- --- ----- Total other expense 42 358 207 1,084 -- ---
--- ----- Income before income taxes 89 829 3,864 2,686 Income tax
167 - 167 - --- -- --- - Net income $(78) $829 $3,697 $2,686 ====
==== ====== ====== (Loss) earnings per share: Basic $(0.01) $0.07
$0.29 $0.21 ====== ===== ===== ===== Diluted $(0.01) $0.07 $0.29
$0.21 ====== ===== ===== ===== Weighted average shares outstanding:
Basic 12,601 12,598 12,601 12,590 Diluted 12,601 12,620 12,601
12,612 INNOTRAC CORPORATION Condensed Balance Sheets (in thousands)
September 30, December 31, 2009 2008 ------------ -----------
ASSETS (Unaudited) Current Assets: Cash $965 $1,056 Accounts
receivable (net of allowance for doubtful accounts of $234 at
September 30, 2009 and $271 at December 31, 2008) 15,038 25,793
Inventory 2,545 1,855 Prepaid expenses and other 1,228 1,262 -----
----- Total current assets 19,776 29,966 Property and equipment,
net 13,891 15,842 Goodwill 25,169 25,169 Other assets, net 1,053
822 ----- --- Total assets $59,889 $71,799 ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts
payable $4,564 $9,259 Line of credit - 10,055 Accrued expenses and
other 3,602 5,253 ----- ----- Total current liabilities 8,166
24,567 Noncurrent Liabilities: Equipment lease payable 434 - Other
noncurrent liabilities 880 753 Deferred income taxes-non current
167 - --- - Total noncurrent liabilities 1,481 753 Total
shareholders' equity 50,242 46,479 ------ ------ Total liabilities
and shareholders' equity $59,889 $71,799 ======= ======= INNOTRAC
CORPORATION Condensed Statements of Cash Flows (in thousands) Nine
Months Ended September 30, (Unaudited) ----------------- 2009 2008
---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $3,697
$2,686 Adjustments to net income: Depreciation and amortization
3,398 3,178 Loss on disposal of fixed assets 9 - Provision for bad
debts 41 - Stock compensation expense-stock options 10 59 Stock
compensation expense-restricted stock 56 56 Deferred income taxes
167 - Changes in working capital: Accounts receivable, gross 10,714
3,246 Inventory (690) (610) Prepaid assets and other 69 (101)
Accounts payable, accrued expenses and other (6,585) (4,631) ------
------ Net cash provided by operating activities 10,886 3,883
------ ----- CASH FLOWS FROM INVESTING ACTIVITIES: Capital
expenditures (845) (2,381) Net change in noncurrent assets and
liabilities 12 51 -- -- Cash used in investing activities (833)
(2,330) ---- ------ CASH FLOWS FROM FINANCING ACTIVITIES: Net
(repayments) borrowings under line of credit (10,055) 2,946
Repayment of term loan - (5,000) Issuance of stock, net - 42
Proceeds from financing lease 62 - Loan commitment fees (151) -
---- --- Cash used in financing activities (10,144) (2,012) -------
------ Net decrease in cash (91) (459) Cash, beginning of period
1,056 1,079 ----- ----- Cash, end of period $965 $620 ==== ====
DATASOURCE: Innotrac Corporation CONTACT: George Hare, Chief
Financial Officer, +1-678-584-4020, Web Site:
http://www.innotrac.com/
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