ATLANTA, Aug. 16 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq-GM: INOC) announced financial results today for the second quarter and six months ended June 30, 2010. The Company reported revenues of $18.5 million for the quarter versus $27.6 million reported in the comparable period in 2009. For the six months ended June 30, 2010, the Company reported revenues of $37.8 million versus $56.4 million in the comparable period in 2009. The decrease in revenue for both the three and six months ended June 30, 2010 was primarily due to the loss of two large fulfillment service contracts, combined with lower volumes from our existing customers due to general economic conditions.
The Company reported a net loss of $1.1 million, or ($0.09) per share, fully diluted, for the three months ended June 30, 2010, versus net income of $1.8 million or $0.15 per share in the comparable period of 2009. For the six months ended June 30, 2010, the Company reported a net loss of $2.1 million, or ($0.16) per share, fully diluted, versus net income of $3.8 million or $0.30 per share in the comparable period of 2009.
Innotrac
Innotrac Corporation, founded in 1984 and based near Atlanta, Georgia, is a technology-based integrated fulfillment and Customer Care solutions provider serving enterprise clients and world-class brands. The Company employs sophisticated order processing and warehouse management technology and operates seven fulfillment centers and one call center 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 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 2009 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 ghare@innotrac.com INNOTRAC CORPORATION Condensed Statements of Operations (in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, (Unaudited) (Unaudited) ----------- ----------- 2010 2009 2010 2009 ---- ---- ---- ---- Service revenue $15,339 $24,052 $31,367 $48,708 Freight revenue 3,116 3,540 6,441 7,659 ----- ----- ----- ----- Total revenue 18,455 27,592 37,808 56,367 Cost of service revenues 6,827 10,327 14,173 20,987 Freight expense 3,069 3,488 6,360 7,545 Selling, general and administrative expenses 8,745 10,768 17,547 21,578 Depreciation and amortization 884 1,108 1,732 2,317 Total operating expenses 19,525 25,691 39,812 52,427 ------ ------ ------ ------ Operating (loss) income (1,070) 1,901 (2,004) 3,940 Interest expense 41 59 80 165 --- --- --- --- Total other expense 41 59 80 165 --- --- --- --- (Loss) income before income taxes (1,111) 1,842 (2,084) 3,775 Income tax - - - - --- --- --- --- Net (loss) income $(1,111) $1,842 $(2,084) $3,775 ======= ====== ======= ====== (Loss) income per share: Basic $(0.09) $0.15 $(0.16) $0.30 ====== ===== ====== ===== Diluted $(0.09) $0.15 $(0.16) $0.30 ====== ===== ====== ===== Weighted average shares outstanding: Basic 12,861 12,601 12,734 12,601 Diluted 12,861 12,601 12,734 12,601 INNOTRAC CORPORATION Condensed Balance Sheets (in thousands) June 30, December 31, 2010 2009 --------- ------------- ASSETS (Unaudited) (Audited) Current Assets: Cash $976 $1,118 Accounts receivable (net of allowance for doubtful 12,312 14,521 accounts of $146 at June 30, 2010 and $172 at December 31, 2009) Inventory 3,835 3,093 Prepaid expenses and other 1,245 1,693 ----- ----- Total current assets 18,368 20,425 Property and equipment, net 12,477 13,717 Other assets, net 1,041 1,061 ----- ----- Total assets $31,886 $35,203 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $3,726 $5,309 Line of credit 895 - Accrued expenses and other 3,973 4,524 ----- ----- Total current liabilities 8,594 9,833 Noncurrent Liabilities: Other non-current liabilities 1,452 1,491 ----- ----- Total noncurrent liabilities 1,452 1,491 Total shareholders' equity 21,840 23,879 ------ ------ Total liabilities and shareholders' equity $31,886 $35,203 ======= ======= INNOTRAC CORPORATION Condensed Statements of Cash Flows (in thousands) Six Months Ended June 30, (Unaudited) ----------- 2010 2009 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $(2,084) $3,775 Adjustments to net (loss) income: Depreciation and amortization 1,732 2,317 Provision for bad debts (24) 39 Loss on disposal of fixed assets 9 - Stock compensation expense-stock options (3) 6 Stock compensation expense-restricted stock 48 37 Decrease in other long-term assets 27 12 Increase in other long-term liabilities 114 21 Changes in working capital: Accounts receivable, gross 2,233 8,930 Inventory (742) 741 Prepaid assets and other 477 (59) Accounts payable, accrued expenses and other (2,129) (4,404) ------ ------ Net cash (used in) provided by operating activities (342) 11,415 ---- ------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (506) (674) Net change in noncurrent assets and liabilities (8) (31) Cash used in investing activities (514) (705) ---- ---- CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments) under line of credit 895 (10,055) Capital lease (payments) funding (119) 130 Loan fees paid (62) (151) Cash provided by (used in) financing activities 714 (10,076) --- ------- Net (decrease) increase in cash (142) 634 Cash, beginning of period 1,118 1,056 Cash, end of period $976 $1,690 ==== ======
Innotrac Corporation
CONTACT: George Hare, Chief Financial Officer, +1-678-584-4020,
ghare@innotrac.com
Web Site: http://www.innotrac.com/
