ATLANTA, Nov. 14, 2013 /PRNewswire/ -- Innotrac
Corporation (NASDAQ: INOC) announced financial results today for
the third quarter ended September 30,
2013. Total revenues for the quarter increased $4.1 million (15.8%) to $29.8 million from $25.7
million for the three months ended September 30, 2012. Total revenue for the
nine month period ended September 30,
2013, increased $15.5 million
(21.3%) to $88.3 million from
$72.8 million for the nine months
ended September 30, 2012.
Revenue from new clients and growth of existing clients were the
key drivers of this revenue growth.
The Company reported net income of $18.5
million, or $1.39 per share,
fully diluted, for the third quarter ended September 30, 2013, as compared to $1.1 million, or $0.08 per share for the quarter ended
September 30, 2012. Net
income for the nine months ended September
30, 2013 was $20.4 million, or
$1.55 per share, as compared to
$2.0 million, or $0.15 per share, for the nine months ended
September 30, 2012.
In the third quarter ended September 30,
2013, Innotrac released a valuation allowance of
$17.2 million that was previously
recorded against deferred tax assets primarily related to net
operating loss carryforwards. The Company did not generate
any cash flow from the income tax benefit recorded in the
consolidated statements of operations for the period ended
September 30, 2013. This income
tax benefit did not have any impact on business operations during
the quarter. This $17.2 million
income tax benefit recorded in the quarter ended September 30, 2013 accounted for $1.30 of the total $1.39 fully diluted earnings per share for the
quarter ended September 30, 2013 and
$1.30 of the total $1.55 earnings per share for the nine months
ended September 30, 2013.
About Innotrac
Innotrac Corporation, founded in 1984 and based near Atlanta, Georgia, is a best-in-class commerce
provider integrating digital technology, fulfillment, contact
center and business intelligence solutions to support global
brands. Innotrac's fulfillment, order management and contact
center solutions are integrated with all major web platforms, and
seamlessly integrate with any required partner technologies.
The Company employs sophisticated order processing and warehouse
management technology and operates eight fulfillment centers and
one call center spanning all time zones across the continental
United States. Innotrac Europe GmbH has a network of
fulfillment centers, call centers, and returns processing
facilities with operations in the UK, Germany, France, Denmark, Sweden, Poland, Austria, Italy, Switzerland, Ireland, Spain and the
Netherlands. Connect with Innotrac at www.innotrac.com or
http://www.linkedin.com/company/innotrac.
Information contained in this press release, other than
historical information, may be considered forward-looking in
nature. Forward-looking statements in this release include
statements relating to future events and developments, as well as
management's expectations, beliefs, plans, estimates and
projections relating to the future. Forward-looking statements are
subject to various risks, uncertainties and assumptions.
Please refer to the Risk Factors discussed in Innotrac's 2012
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
Steve Keaveney
Chief Financial Officer
678-584-4020
skeaveney@innotrac.com
|
INNOTRAC
CORPORATION and SUBSIDIARY
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
September 30,
2013
|
December 31,
2012
|
|
|
(unaudited)
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
3,450
|
$
4,005
|
|
Accounts receivable
(net of allowance for doubtful accounts of $134 at
|
|
|
|
September 30, 2013 and $136 at December 31, 2012)
|
20,084
|
23,216
|
|
Inventories,
net
|
704
|
740
|
|
Deferred income taxes
|
639
|
-
|
|
Prepaid expenses and
other
|
1,277
|
1,107
|
|
Total current assets
|
26,154
|
29,068
|
|
|
|
|
|
Property and
equipment:
|
|
|
|
Computers, machinery
and equipment
|
48,495
|
42,877
|
|
Furniture, fixtures
and leasehold improvements
|
10,405
|
10,055
|
|
|
58,900
|
52,932
|
|
Less accumulated
depreciation and amortization
|
(41,990)
|
(39,089)
|
|
|
16,910
|
13,843
|
|
|
|
|
|
Deferred income
taxes
|
16,569
|
-
|
|
Other assets,
net
|
1,459
|
1,281
|
|
|
|
|
|
Total assets
|
$
61,092
|
$
44,192
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
7,957
|
$
10,409
|
|
Line of
credit
|
-
|
-
|
|
Accrued
salaries
|
1,828
|
2,854
|
|
Equipment lease
payable
|
652
|
421
|
|
Accrued expenses and
other
|
3,742
|
3,088
|
|
Equipment
loan
|
-
|
1,620
|
|
Total current liabilities
|
14,179
|
18,392
|
|
|
|
|
|
Noncurrent
liabilities:
|
|
|
|
Deferred
compensation
|
969
|
837
|
|
Equipment lease
payable
|
1,188
|
544
|
|
Other noncurrent liabilities
|
697
|
963
|
|
Total
noncurrent liabilities
|
2,854
|
2,344
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Preferred
stock: 10,000,000 shares authorized, $0.10 par
value,
|
|
|
|
no shares issued or
outstanding
|
-
|
-
|
|
Common stock:
50,000,000 shares authorized, $0.10 par value,
13,245,440
|
|
|
|
shares issued and
outstanding at September 30, 2013
|
|
|
|
13,155,440 shares
issued and outstanding at December 31, 2012
|
1,325
|
1,316
|
|
Additional paid-in
capital
|
66,930
|
66,784
|
|
Accumulated other
comprehensive loss
|
(2)
|
(2)
|
|
Accumulated
deficit
|
(24,207)
|
(44,656)
|
|
Total Innotrac shareholders' equity
|
44,046
|
23,442
|
|
Noncontrolling interest
|
13
|
14
|
|
|
|
|
|
Total shareholders' equity
|
44,059
|
23,456
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
61,092
|
$
44,192
|
|
INNOTRAC
CORPORATION and SUBSIDIARY
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
For the Three
Months Ended September 30, 2013 and 2012
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September
30,
|
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
|
|
|
|
Service
revenues
|
$
26,410
|
$
22,088
|
|
Freight
revenues
|
3,345
|
3,606
|
|
Total
revenues
|
29,755
|
25,694
|
|
|
|
|
|
|
|
Cost of service
revenues
|
13,391
|
10,368
|
|
Freight
expense
|
3,240
|
3,463
|
|
Selling, general and
administrative expenses
|
10,816
|
9,674
|
|
Depreciation and
amortization
|
996
|
995
|
|
Total operating
expenses
|
28,443
|
24,500
|
|
Operating income
|
1,312
|
1,194
|
|
|
|
|
Other expense
(income):
|
|
|
|
Interest
expense
|
41
|
90
|
|
Other (income)
expense
|
(1)
|
(2)
|
|
Total other
expense
|
40
|
88
|
|
|
|
|
Income before income
taxes
|
1,272
|
1,106
|
|
Income tax
benefit
|
(17,184)
|
-
|
|
Net income
|
18,456
|
1,106
|
|
Net loss attributable
to noncontrolling interest
|
1
|
(1)
|
|
Net income
attributable to Innotrac
|
$
18,457
|
$
1,105
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
$
1.39
|
$
0.08
|
|
|
|
|
Diluted
|
$
1.39
|
$
0.08
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
Basic
|
13,245
|
13,058
|
|
|
|
|
Diluted
|
13,267
|
13,058
|
|
INNOTRAC
CORPORATION and SUBSIDIARY
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
For the Nine
Months Ended September 30, 2013 and 2012
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended September
30,
|
|
2013
|
2012
|
|
(unaudited)
|
(unaudited)
|
|
|
|
|
Service
revenues
|
$
77,875
|
$
63,857
|
|
Freight
revenues
|
10,471
|
8,953
|
|
Total
revenues
|
88,346
|
72,810
|
|
|
|
|
|
|
|
Cost of service
revenues
|
38,839
|
30,326
|
|
Freight
expense
|
10,129
|
8,639
|
|
Selling, general and
administrative expenses
|
32,988
|
28,931
|
|
Depreciation and
amortization
|
2,901
|
2,711
|
|
Total operating expenses
|
84,857
|
70,607
|
|
Operating income
|
3,489
|
2,203
|
|
|
|
|
Other
expense:
|
|
|
|
Interest
expense
|
196
|
212
|
|
Other
expense
|
(1)
|
-
|
|
Total other expense
|
195
|
212
|
|
|
|
|
Income before income
taxes
|
3,294
|
1,991
|
|
Income tax
benefit
|
(17,154)
|
-
|
|
Net income
|
20,448
|
1,991
|
|
Net loss attributable
to noncontrolling interest
|
1
|
-
|
|
Net income
attributable to Innotrac
|
$
20,449
|
$
1,991
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
$
1.55
|
$
0.15
|
|
|
|
|
Diluted
|
$
1.55
|
$
0.15
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
Basic
|
13,199
|
13,033
|
|
|
|
|
Diluted
|
13,215
|
13,033
|
|
INNOTRAC
CORPORATION and SUBSIDIARY
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
For the Nine
Months Ended September 30, 2013 and 2012
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2013
|
2012
|
|
|
|
(unaudited)
|
(unaudited)
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net Income
|
$
20,448
|
$
1,991
|
|
|
Adjustments to
reconcile net income to net cash provided by
|
|
|
|
|
operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
2,901
|
2,711
|
|
|
Provision for bad
debts
|
3
|
18
|
|
|
Deferred income
taxes
|
(17,208)
|
-
|
|
|
Stock compensation
expense-restricted stock
|
155
|
124
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
gross
|
3,129
|
(1,611)
|
|
|
Inventory
|
36
|
160
|
|
|
Prepaid expenses and
other
|
(126)
|
(230)
|
|
|
Long-term assets
|
52
|
(69)
|
|
|
Accounts
payable
|
(3,929)
|
(1,661)
|
|
|
Accrued expenses,
accrued salaries and other
|
(372)
|
396
|
|
|
Long-term
liabilities
|
(266)
|
(91)
|
|
|
Net
cash provided by operating activities
|
4,823
|
1,738
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(3,291)
|
(4,703)
|
|
|
Proceeds from
disposition of assets
|
-
|
1
|
|
|
Net change in
noncurrent assets and liabilities
|
(10)
|
(9)
|
|
|
Net
cash used in investing activities
|
(3,301)
|
(4,711)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Borrowings on
equipment loan
|
-
|
1,800
|
|
|
Payments on equipment
loan
|
(1,620)
|
(90)
|
|
|
Capital lease
payments
|
(326)
|
(321)
|
|
|
Loan commitment
fees
|
(131)
|
(37)
|
|
|
Net
cash (used in) provided by financing activities
|
(2,077)
|
1,352
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(555)
|
(1,621)
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
4,005
|
3,283
|
|
|
Cash and cash
equivalents, end of period
|
$
3,450
|
$
1,662
|
|
|
|
|
|
|
|
Supplemental cash
flow disclosures:
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
$
151
|
$
148
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
Capital lease for
warehouse and computer equipment
|
$
1,201
|
$
862
|
|
|
Capital
expenditures in accounts payable
|
$
1,477
|
$
287
|
|
SOURCE Innotrac Corporation