EX-99.1 2 v075316_ex99-1.txt Innotrac Corporation Announces 2007 First Quarter Results ATLANTA, May 15 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq: INOC) announced financial results today for the first quarter ended March 31, 2007. The Company reported revenues of $27.8 million for the quarter versus $17.3 million reported in the comparable period in 2006, an increase of 60.3%. The increase in revenue 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 a net loss of $793,000, or $0.06 per share, for the three months ended March 31, 2007, versus a net loss of $1.3 million, or $0.10 per share, in the comparable period of 2006. Conference Call Innotrac Corporation will hold a conference call to discuss this release this morning, May 15, 2007 at 9:00 AM Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 6128450) or by logging on to 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: 6128450). 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 ten fulfillment centers and two call centers in seven 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. 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. Page 1 INNOTRAC CORPORATION Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended March 31, (Unaudited) 2007 2006 Revenues $ 27,775 $ 17,328 Cost of revenues 15,952 8,897 Selling, general and administrative expenses 11,164 8,821 Depreciation and amortization 1,285 821 Total operating expenses 28,401 18,539 Operating (loss) (626) (1,211) Interest expense 167 67 Total other expense 167 67 (Loss) before income taxes (793) (1,278) Income tax (benefit) -- -- Net (loss) $ (793) $ (1,278) Earnings per share: Basic $ (0.06) $ (0.10) Diluted $ (0.06) $ (0.10) Weighted average shares outstanding: Basic 12,281 12,281 Diluted 12,281 12,281 Note: These statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on April 17, 2007. INNOTRAC CORPORATION Condensed Consolidated Balance Sheets (in thousands) March 31, December 31, 2007 2006 ASSETS (Unaudited) (Audited) Current Assets: Cash $ 65 $ 1,014 Accounts receivable (net of allowance for doubtful accounts of $209 at March 31, 2007 and $257 at December 31, 2006) 18,547 22,939 Inventory 1,585 1,729 Prepaid expenses and other 1,571 1,088 Total current assets 21,768 26,770 Property and equipment, net 17,268 17,836 Goodwill 25,169 25,169 Other assets, net 1,694 1,765 Total assets $65,899 $71,540 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 9,965 $14,363 Line of credit 8,446 8,586 Accrued expenses and other 5,046 4,981 Total current liabilities 23,457 27,930 Noncurrent Liabilities: Other non-current liabilities 1,181 1,576 Total noncurrent liabilities 1,181 1,576 Total shareholders' equity 41,261 42,034 Total liabilities and shareholders' equity $65,899 $71,540 Note: These statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on April 17, 2007. Page 2 INNOTRAC CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands) Three Months Ended March 31, (Unaudited) 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (793) $(1,278) Adjustments to net loss: Depreciation and amortization 1,285 821 Provision for bad debts (46) (1) Stock option expense 19 41 Changes in working capital: Accounts receivable, gross 4,440 (917) Inventory 144 555 Prepaid assets and other (440) (122) Accounts payable, accrued expenses and other (4,727) (1,151) Cash used in operating activities (118) (2,052) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (691) (2,916) Cash used in investing activities (691) (2,916) CASH FLOWS FROM FINANCING ACTIVITIES: Net (repayments) borrowings under line of credit (140) 4,071 Cash (used in) provided by financing activities (140) 4,071 Net decrease in cash (949) (897) Cash, beginning of period 1,014 2,068 Cash, end of period $ 65 $ 1,171 Note: These statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on April 17, 2007. SOURCE Innotrac Corporation -0- 05/15/2007 /CONTACT: Christine Herren, Senior Director and Controller for Innotrac Corporation, +1-678-584-4115, cherren@innotrac.com / /FCMN Contact: cherren@innotrac.com / /Web site: http://www.innotrac.com / (INOC) Page 3