-----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, NU5VpTGJZkS+Gpgdh9Ce0Yq2JLg2OJMpccV2P+i7jHZ1INcXYQ8/fpL6yhr1vVRg 9ujf2dWo+EtrZvX3ys+EWg== 0000950144-03-005744.txt : 20030429 0000950144-03-005744.hdr.sgml : 20030429 20030429164106 ACCESSION NUMBER: 0000950144-03-005744 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030429 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030429 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: 03669959 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 g82447e8vk.txt INNOTRAC CORPORATION 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): April 29, 2003 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 (a) Financial Statements of Businesses Acquired: None. (b) Pro Forma Financial Information: None. (c) Exhibits:
EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Innotrac Corporation press release dated April 29, 2003, announcing Innotrac's financial results for the first quarter of 2003 (furnished pursuant to Items 9 and 12 of Form 8-K).
ITEM 9. REGULATION FD DISCLOSURE Pursuant to Exchange Act Release 47583, Innotrac Corporation ("Innotrac") is furnishing the following information and Exhibit pursuant to Items 9 and 12 of Form 8-K. On April 29, 2003, Innotrac issued a press release to announce its financial results for the first quarter of 2003. A copy of the press release is attached as Exhibit 99.1. The press release presents Innotrac's earnings before interest, taxes, depreciation and amortization ("EBITDA") for the first quarter of 2003, along with the most directly comparable financial measure calculated and presented in accordance with GAAP, which Innotrac determined to be operating loss ("EBIT"), and a reconciliation of EBITDA to EBIT. The only difference is depreciation and amortization charges. Management believes that presentation of non-GAAP financial measures such as EBITDA is useful because it allows investors and management to evaluate and compare Innotrac's core cash-based operating results from ongoing operations from period to period in a more meaningful and consistent manner than relying exclusively on GAAP financial measures. Non-GAAP financial measures however should not be considered in isolation or as an alternative to financial measures calculated and presented in accordance with GAAP. Because EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, EBITDA as used in the press release may not be comparable to other similarly titled measures used by other companies. As used herein, "GAAP" refers to accounting principles generally accepted in the United States. The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Items 9 and 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: April 29, 2003 Secretary EX-99.1 3 g82447exv99w1.txt EX-99.1 INNOTRAC CORPORATION PRESS RELEASE EXHIBIT 99.1 INNOTRAC CORPORATION ANNOUNCES 2003 FIRST QUARTER RESULTS ATLANTA, GA (April 29, 2003) - Innotrac Corporation (NASDAQ: INOC), a full-service provider of order processing, order fulfillment and call center services, today announced financial results for the first quarter ended March 31, 2003. The Company reported revenues of $18.3 million and a net loss of $892,000 or an $0.08 loss per share for the first quarter. "Our results were commensurate, and in several areas slightly better, than what we budgeted for the quarter and we are still comfortable with the goals we previously articulated for the full year. Fee revenues as compared to the same quarter last year were steady. We are pleased with our gross margins as they strengthened to 53% for the quarter. Furthermore, we generated $304,000 in EBITDA, which also exceeded our first quarter plan. The only difference between EBITDA and GAAP operating loss, or EBIT, are non-cash depreciation and amortization charges of approximately $1.5 million. Capital investment in the first quarter was minimal and will remain at modest levels throughout the year. With new business starting up in the second quarter and increased operating efficiencies, we remain confident about our abilities to propel the Company to sustainable profitability during the second half of this year," stated Scott D. Dorfman, President and Chief Executive Officer. Innotrac Corporation will hold a conference call to discuss this release this evening, April 29, at 5:00 p.m. Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-800-291-3901 or 706-634-6500 (Conference ID: 9797783) 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 for 48 hours at the same Web address. Additionally, a 48-hour audio playback will be available at 1-800-642-1687 or 706-645-9291 (Conference ID Number: 9797783). ABOUT INNOTRAC Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service provider of order processing, order fulfillment and call center services. The Company operates fulfillment and call centers in various cities spanning all four 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 2002 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission. CONTACT Jennifer Sekel Church Investor Relations 678-584-4055 jsekelchurch@innotrac.com ### INNOTRAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED MARCH 31, (UNAUDITED) ------------------------- 2003 2002 -------- -------- Revenues $ 15,998 $ 16,330 Reimbursable costs 2,336 4,718 -------- -------- Total revenue 18,334 21,048 Cost of revenues: Cost of revenues 6,323 6,989 Reimbursable costs 2,336 4,718 Special (credit) charges -- (293) -------- -------- Total cost of revenues 8,659 11,414 -------- -------- Gross profit 9,675 9,634 Selling, general and administrative expenses 9,371 7,794 Special (credit) charges -- (962) -------- -------- EBITDA 304 2,802 Depreciation and amortization 1,469 1,218 -------- -------- Total operating expenses 10,840 8,050 -------- -------- Operating (loss) income (1,165) 1,584 Other expense (income), net 240 (4) -------- -------- (Loss) income before income taxes (1,405) 1,588 Income tax benefit (provision) 513 (622) -------- -------- Net (loss) income $ (892) $ 966 ======== ======== Earnings per share: Basic $ (0.08) $ 0.08 ======== ======== Diluted $ (0.08) $ 0.08 ======== ======== Weighted average shares outstanding: Basic 11,422 11,516 Diluted 11,422 11,790
Note: these statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 31, 2003 INNOTRAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, (UNAUDITED) ------------------------ 2003 2002 ------- -------- CASH FLOW FROM OPERATING ACTIVITIES: Net (loss) income $ (892) $ 966 Adjustments to net income: Depreciation and amortization 1,469 1,218 Loss on impairment and disposal of fixed assets -- 501 Deferred income taxes (513) 1,324 Amortization of deferred compensation 18 18 Realized gain on sale of marketable securities -- (76) Changes in working capital: Accounts receivable, net (2,035) (8,017) Inventories 3,229 6,418 Prepaid assets and other (10) (920) Accounts payable, accrued expenses and other (7,182) 3,002 ------- -------- Cash (used in) provided by operating activities (5,916) 4,434 ------- -------- CASH FLOW FROM INVESTING ACTIVITIES: Capital expenditures (397) (2,821) Payment for business acquired -- (13,727) Sale of marketable securities -- 511 ------- -------- Cash used in investing activities (397) (16,037) ------- -------- CASH FLOW FROM FINANCING ACTIVITIES: Net borrowings under line of credit 5,688 2,334 Repayment of long term debt (36) (71) Loan fees paid -- -- Sale of treasury stock shares 47 -- ------- -------- Cash used in financing activities 5,699 2,263 ------- -------- Net decrease in cash (614) (9,340) Cash, beginning of period 961 9,413 ------- -------- Cash, end of period $ 347 $ 73 ======= ========
Note: these statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 31, 2003 INNOTRAC CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
MARCH 31, December 31, 2003 2002 ----------- ------------ (Unaudited) (Audited) ASSETS Current Assets: Cash $ 347 $ 961 Accounts receivable, net 16,238 14,203 Inventories, net 20,869 24,098 Prepaid expenses and other 3,009 2,909 ------- ------- Total current assets 40,463 42,171 Property and equipment, net 17,914 18,915 Goodwill 24,988 24,988 Other assets, net 9,777 9,425 ------- ------- Total Assets $93,142 $95,499 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 7,557 $13,517 Accrued expenses and other 5,106 6,626 Line of credit 20,060 -- ------- ------- Total current liabilities 32,723 20,143 Noncurrent Liabilities: Line of credit -- 14,372 Other non-current liabilities 1,128 1,125 ------- ------- Total noncurrent liabilities 1,128 15,497 Total shareholders' equity 59,291 59,859 ------- ------- Total Liabilities and Shareholders' Equity $93,142 $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 31, 2003 -----END PRIVACY-ENHANCED MESSAGE-----