ATLANTA, April 9 /PRNewswire-FirstCall/ -- Innotrac Corporation announced financial results today for the fourth quarter and year ended December 31, 2007. The Company reported revenues of $36.9 million for the quarter versus $29.3 million reported in the comparable period in 2006, an increase of 25.7%. For the year ended December 31, 2007, the Company reported revenues of $121.8 million compared to $82.3 million for the year ended December 31, 2006, an increase of 47.9%. The increase in revenue for the three months ended December 31, 2007 was primarily due to the addition of several new clients and increased revenue from existing clients in our retail/catalog and direct marketing verticals. The increase in revenue for the twelve months ended December 31, 2007 was primarily attributed to the addition of several new retail/catalog clients and additional revenue resulting from clients acquired in the ClientLogic acquisition in October, 2006.
The Company reported net income of $425,000, or $0.03 per share, for the three months ended December 31, 2007, versus a net loss of $2.7 million, or $0.22 per share, in the comparable period of 2006. For the year ended December 31, 2007, the Company reported net income of $712,000, or $0.06 per share, compared to a net loss of $5.3 million, or $0.43 per share, in the same period in 2006.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release this afternoon, April 9, 2008 at 5:00 PM Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 42006023) or by logging on to http://www.innotrac.com/ and clicking on "Webcasts and Presentations" in the "Investor Relations" section. The Webcast will be archived and available at the same Web address. Additionally, a 48-hour audio playback will be available at 1-800-642-1687 (Conference ID: 42006023).
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 six cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, 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 2006 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.
INNOTRAC CORPORATION Condensed Statements of Operations (in thousands, except per share amounts) Three Months Twelve Months Ended Ended December 31, December 31, (Unaudited) (Unaudited)(Audited) 2007 2006 2007 2006 Service revenue $29,030 $24,845 $97,215 $69,318 Freight revenue 7,870 4,501 24,601 13,025 Total revenue 36,900 29,346 121,816 82,343 Cost of revenues 16,351 14,902 47,723 32,980 Freight expense 7,711 4,425 24,299 12,814 Selling, general and administrative expenses 10,950 11,250 43,342 37,463 Depreciation and amortization 1,170 1,280 4,957 3,919 Total operating expenses 36,182 31,857 120,321 87,176 Operating income (loss) 718 (2,511) 1,495 (4,833) Interest expense 293 151 783 429 Total other expense 293 151 783 429 Income (loss) before income taxes 425 (2,662) 712 (5,262) Income tax (benefit) - - - - Net Income (loss) $425 $(2,662) $712 $(5,262) Earnings per share: Basic $0.03 $(0.22) $0.06 $(0.43) Diluted $0.03 $(0.22) $0.06 $(0.43) Weighted average shares outstanding: Basic 12,586 12,281 12,490 12,281 Diluted 12,586 12,281 12,490 12,281 INNOTRAC CORPORATION Condensed Balance Sheets (in thousands) December 31, December 31, 2007 2006 ASSETS (Unaudited) (Audited) Current Assets: Cash $1,079 $1,014 Accounts receivable (net of allowance for doubtful accounts of $288 at December 31, 2007 and $257 at December 31, 2006) 28,090 22,939 Inventory 599 1,729 Prepaid expenses and other 1,100 1,088 Total current assets 30,868 26,770 Property and equipment, net 17,702 17,836 Goodwill 25,169 25,169 Other assets, net 1,192 1,765 Total assets $74,931 $71,540 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $14,050 $14,363 Line of credit 6,168 8,586 Term loan 5,000 - Accrued expenses and other 5,708 4,981 Total current liabilities 30,926 27,930 Noncurrent Liabilities: Other non-current liabilities 993 1,576 Total noncurrent liabilities 993 1,576 Total shareholders' equity 43,012 42,034 Total liabilities and shareholders' equity $74,931 $71,540 INNOTRAC CORPORATION Condensed Statements of Cash Flows (in thousands) Twelve Months Ended December 31, (Unaudited) (Audited) 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $712 $(5,262) Adjustments to net income (loss): Depreciation and amortization 4,957 3,919 Loss on disposal of fixed assets 16 8 Provision for bad debts 43 54 Stock issued to settle employee stock bonus 111 - Amortization of deferred compensation-stock options 102 105 Amortization of deferred compensation-restricted stock 53 - Changes in working capital: Accounts receivable, gross (5,193) (10,248) Inventory 1,130 2,947 Prepaid assets and other 400 206 Accounts payable, accrued expenses and other 1,214 7,966 Net cash provided by operating activities 3,545 (305) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (4,827) (8,260) Acquisition of business, net of cash acquired - (1,055) Installment payment on previous acquisition of business (800) - Cash (used in) investing activities (5,627) (9,315) CASH FLOWS FROM FINANCING ACTIVITIES: Net (repayments) borrowings under line of credit (2,418) 8,586 Proceeds from term loan 5,000 - Loan commitment fees (435) (20) Cash provided by financing activities 2,147 8,566 Net increase (decrease) in cash 65 (1,054) Cash, beginning of period 1,014 2,068 Cash, end of period $1,079 $1,014
