-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GlEeSi7OwHF2+Qb9qWue6+/3l3G34jOJmswqb98LdLwKmMvRme0J6FOdruWwTD15 RixkFBW0YAjidY/YRqByNA== 0000891092-04-001474.txt : 20040330 0000891092-04-001474.hdr.sgml : 20040330 20040330160453 ACCESSION NUMBER: 0000891092-04-001474 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040330 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040330 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INNOTRAC CORP CENTRAL INDEX KEY: 0001051114 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 581592285 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23741 FILM NUMBER: 04701136 BUSINESS ADDRESS: STREET 1: 6655 SUGARLOAF PARKWAY CITY: DULUTH STATE: GA ZIP: 30097 BUSINESS PHONE: 678-584-4000 MAIL ADDRESS: STREET 1: 1828 MECA WAY CITY: NORCROSS STATE: GA ZIP: 30093 8-K 1 e17356_8k.txt FSORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K ---------- CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): March 30, 2004 ---------- INNOTRAC CORPORATION ------------------------------------------------------ (Exact name of Registrant as Specified in its Charter) Georgia 000-23741 58-1592285 - ------------------------------- ---------------- ------------------- (State or other Jurisdiction of (Commission File (IRS Employer Incorporation or Organization) Number) Identification No.) 6655 Sugarloaf Parkway Duluth, Georgia 30097 ---------------------------------------- ---------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (678) 584-4000 Not Applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS (c) Exhibits: Exhibit No. Description - ----------- ----------- 99.1 Innotrac Corporation press release dated March 30, 2004, announcing Innotrac's financial results for the fourth quarter of 2003 (furnished pursuant to Item 12 of Form 8-K). ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION On March 30, 2004, Innotrac Corporation ("Innotrac") issued a press release to announce its financial results for the fourth quarter of 2003. A copy of the press release is attached as Exhibit 99.1. The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Item 12 of this Form 8-K. Consequently, it is not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. INNOTRAC CORPORATION By: /s/ David L. Gamsey --------------------------- David L. Gamsey Senior Vice President, Chief Financial Officer and Date: March 30, 2004 Secretary EX-99.1 3 e17356ex99_1.txt PRESS RELEASE Exhibit 99.1 Innotrac Corporation Announces 2003 Fourth Quarter and Yearend Results ATLANTA, March 30 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq: INOC) announced financial results today for the fourth quarter and year ended December 31, 2003. For the three months ended December 31, 2003, the Company generated $5.9 million in positive cash flow from operations on revenues of $20.2 million. Revenues were up approximately 9.1% on a quarter- over-quarter basis. Gross margins were 53.3%. For the year ended December 31, 2003, the Company generated $3.8 million in positive cash flow from operations on revenues of $74.7 million. In the fourth quarter, the Company recorded valuation allowances totaling approximately $10.6 million on an after-tax basis against the Company's deferred tax asset and a certain aged account receivable. The receivable allowance relates to past due amounts owed by a long-term client with whom the Company has an ongoing relationship. In February 2004, the Company entered into an arrangement with this client to reduce the aged balance over the next several months and has received significant payments from this client in February and March. In regards to the second valuation allowance, the Company determined the need to record the deferred tax asset allowance once the recording of the receivable allowance generated an operating loss for the quarter and the full year. Accordingly, the Company reported net losses of $10.4 million or $.89 per share, and $12.0 million or $1.04 per share, for the fourth quarter and year ended December 31, 2003, respectively. "In the fourth quarter, we continued our pace of revenue and cash flow growth. The valuation allowances we recorded had no effect on the Company's cash flow, as they were both non-cash charges. Additionally, income taxes associated with future earnings will be offset by a reduction in the valuation allowance which will benefit our earnings per share for the foreseeable future," stated David L. Gamsey, Chief Financial Officer. Conference Call Innotrac Corporation will hold a conference call to discuss this release this evening, March 30th, at 5:00 p.m. Eastern Standard Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 5964942) or by logging on to www.innotrac.com and clicking on "Webcasts and Presentations" in the "Company" section. The Webcast will be archived and available at the same Web address. Additionally, audio playback will be available at 1-800-642-1687 (Conference ID: 5964942). About 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 seven fulfillment centers and two call centers in five cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, www.innotrac.com . Information contained in this press release, other than historical information, may be considered forward-looking in nature and is 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 clients, the state of the telecommunications industry in general, Innotrac's ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2003 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission. INNOTRAC CORPORATION Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, (Unaudited) (Audited) 2003 2002 2003 2002 Revenues $20,230 $21,956 $74,740 $82,420 Cost of revenues: Cost of revenues 9,451 12,800 35,157 46,444 Special credit - - - (293) Total cost of revenues 9,451 12,800 35,157 46,151 Gross margin 10,779 9,156 39,583 36,269 Operating expenses: Selling, general and administrative expenses 10,082 9,573 36,444 37,332 Special charges, net - (1,398) (30) 404 Depreciation and amortization 1,333 1,494 5,622 5,336 Total operating expenses 11,415 9,669 42,036 43,072 Operating income (loss) (636) (513) (2,453) (6,803) Interest expense 160 86 741 318 Other 19 (2) 15 (124) Total other expense 179 84 756 194 (Loss) before income taxes (815) (597) (3,209) (6,997) Income tax provision (benefit) 9,632 (207) 8,772 (2,578) Net (loss) $(10,447) $(390) $(11,981) $(4,419) Earnings per share: Basic $(0.89) $(0.03) $(1.04) $(0.38) Diluted $(0.89) $(0.03) $(1.04) $(0.38) Weighted average shares outstanding: Basic 11,678 11,418 11,542 11,516 Diluted 11,678 11,418 11,542 11,516 Note: these statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 30, 2004. INNOTRAC CORPORATION Condensed Consolidated Balance Sheets (in thousands) December 31, December 31, 2003 2002 ASSETS (Audited) (Audited) Current Assets: Cash $2,228 $961 Accounts receivable, net 15,682 14,203 Inventories, net 10,896 24,098 Deferred income taxes, net - 552 Prepaid expenses and other 915 2,357 Total current assets 29,721 42,171 Property and equipment, net 14,750 18,915 Goodwill 25,169 24,988 Deferred income taxes, net - 7,940 Other assets, net 1,322 1,485 Total Assets $70,962 $95,499 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $5,738 $13,517 Accrued expenses and other 2,577 6,626 Line of credit 11,802 - Total current liabilities 20,117 20,143 Noncurrent Liabilities: Line of credit - 14,372 Other non-current liabilities 1,083 1,125 Total noncurrent liabilities 1,083 15,497 Total shareholders' equity 49,762 59,859 Total Liabilities and Shareholders' Equity $70,962 $95,499 Note: these statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 30, 2004. INNOTRAC CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands) Three Months Ended Twelve Months Ended December 31, December 31, 2003 2002 2003 2002 (Unaudited) (Unaudited) (Audited) (Audited) CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) $(10,447) $(390) $(11,981) $(4,419) Adjustments to net loss: Depreciation and amortization 1,333 1,494 5,622 5,336 Loss on impairment or disposal of fixed assets 21 - 22 3,638 Deferred income taxes 9,541 (207) 8,492 (5,317) Amortization of deferred compensation 18 18 72 72 Changes in working capital: Accounts receivable, net (683) 2,474 (1,479) (541) Inventory 4,743 (4,108) 13,202 3,165 Prepaid assets and other 1,280 (564) 1,338 1,248 Accounts payable, accrued expenses and other 60 2,204 (11,494) 688 Cash provided by (used in) operating activities 5,866 921 3,794 3,870 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (163) (1,162) (1,182) (12,830) Payments for business acquired - 130 (181) (13,502) Sale of marketable securities - - - 436 Cash (used in) investing activities (163) (1,032) (1,363) (25,896) CASH FLOWS FROM FINANCING ACTIVITIES: Net (repayments) borrowings under line of credit (5,188) 965 (2,570) 14,372 Repayment of long term debt (19) (41) (119) (250) Loan fees paid - (50) (31) (100) Exercise of employee stock options 547 - 1,556 - Sale (purchase) of treasury stock shares - - - (448) Cash (used in) provided by financing activities (4,660) 874 (1,164) 13,574 Net increase (decrease) in cash 1,043 763 1,267 (8,452) Cash, beginning of period 1,185 198 961 9,413 Cash, end of period $2,228 $961 $2,228 $961 Note: these statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 30, 2004. SOURCE Innotrac Corporation -0- 03/30/2004 /CONTACT: David L. Gamsey, Chief Financial Officer of Innotrac Corporation, +1-678-584-4020, or dgamsey@innotrac.com/ /Web site: http://www.innotrac.com / (INOC) CO: Innotrac Corporation ST: Georgia IN: CPR TLS SU: ERN CCA MAV -----END PRIVACY-ENHANCED MESSAGE-----