EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

Exhibit 99.1
 
 
Innotrac Corporation Announces 2008 First Quarter Results

ATLANTA, GA (May 13, 2008) – Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the first quarter ended March 31, 2008.  The Company reported revenues of $32.5 million for the quarter versus $27.8 million reported in the comparable period in 2007, an increase of 17.2%.  The increase in revenue for the three months ended March 31, 2008 was primarily due to the addition of several new direct marketing clients and increased revenue from existing clients in our retail/catalog, DSL and direct marketing verticals.  These increases were offset by a decrease in revenues from our B2B vertical.

The Company reported net income of $691,000, or $0.05 per share, fully diluted, for the three months ended March 31, 2008, versus a net loss of ($793,000), or ($0.06) per share, fully diluted, in the comparable period of 2007.

Conference Call

Innotrac Corporation will hold a conference call to discuss this release this afternoon, May 13, 2008 at 5:00 PM Eastern Daylight Time.  Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 46913305) 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, an audio playback will be available for 48-hours at 1-800-642-1687 (Conference ID: 46913305).

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 seven cities spanning all time zones across the continental United States.  For more information about Innotrac, visit the Innotrac Website, 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 2007 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

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INNOTRAC CORPORATION
 
Condensed Statements of Operations
 
(in thousands, except per share amounts)
 
   
   
Three Months Ended
 
   
March 31,
 
   
(Unaudited)
 
   
2008
   
2007
 
Service revenue
  $ 25,300     $ 22,115  
Freight revenue
    7,242       5,660  
     Total revenue
    32,542       27,775  
                 
Cost of service revenues
    12,099       10,390  
Freight expense
    7,249       5,562  
Selling, general and
               
    administrative expenses
    11,079       11,164  
Depreciation and amortization
    1,155       1,285  
    Total operating expenses
    31,582       28,401  
Operating income (loss)
    960       (626 )
    Interest expense
    269       167  
        Total other expense
    269       167  
Income (loss) before income taxes
    691       (793 )
    Income tax
    -       -  
Net income (loss)
  $ 691     $ (793 )
                 
Earnings per share:
               
    Basic
  $ 0.06     $ (0.06 )
    Diluted
  $ 0.05     $ (0.06 )
                 
Weighted average shares
               
    outstanding:
               
    Basic
    12,320       12,281  
    Diluted
    12,605       12,281  
                 
 

 
INNOTRAC CORPORATION
 
Condensed Balance Sheets
 
(in thousands)
 
   
             
   
March 31,
   
December 31,
 
   
2008
   
2007
 
ASSETS
 
(Unaudited)
   
(Audited)
 
Current Assets:
           
 Cash
  $ 51     $ 1,079  
 Accounts receivable (net of allowance for doubtful accounts of  $303 at March 31, 2008 and $288 at December 31, 2007)
    24,640       28,090  
 Inventory
    1,073       599  
 Prepaid expenses and other
    1,592       1,100  
       Total current assets
    27,356       30,868  
                 
                 
 Property and equipment, net
    16,773       17,702  
 Goodwill
    25,169       25,169  
 Other assets, net
    1,112       1,192  
                 
        Total assets
  $ 70,410     $ 74,931  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
Current Liabilities:
               
 Accounts payable
  $ 10,688     $ 14,050  
 Line of credit
    5,036       6,168  
 Term loan
    5,000       5,000  
 Accrued expenses and other
    5,003       5,708  
       Total current liabilities
    25,727       30,926  
                 
Noncurrent Liabilities:
               
 Other non-current liabilities
    940       993  
       Total noncurrent liabilities
    940       993  
                 
       Total shareholders' equity
    43,743       43,012  
                 
       Total liabilities and shareholders' equity
  $ 70,410     $ 74,931  
                 
 

 
INNOTRAC CORPORATION
 
Condensed Statements of Cash Flows
 
(in thousands)
 
             
   
Three Months Ended
 
   
March 31,
 
   
(Unaudited)
 
   
2008
   
2007
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net income (loss)
  $ 691     $ (793 )
Adjustments to net income (loss):
               
Depreciation and amortization
    1,155       1,285  
Provision for bad debts
    22       (46 )
Amortization of deferred compensation-stock options
    21       19  
Amortization of deferred compensation-restricted stock
    19       -  
Changes in working capital:
               
Accounts receivable, gross
    3,428       4,440  
Inventory
    (474 )     144  
Prepaid assets and other
    (516 )     (440 )
Accounts payable, accrued expenses and other
    (4,122 )     (4,727 )
Net cash provided by (used in) operating activities
    224       (118 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Capital expenditures
    (120 )     (691 )
Cash used in investing activities
    (120 )     (691 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Net repayments under line of credit
    (1,132 )     (140 )
Cash used in financing activities
    (1,132 )     (140 )
                 
Net decrease in cash
    (1,028 )     (949 )
Cash, beginning of period
    1,079       1,014  
Cash, end of period
  $ 51     $ 65