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

Exhibit 99.1
 
 
Innotrac Corporation Announces 2009 First Quarter Results

ATLANTA, GA (May 15, 2009) – Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the first quarter ended March 31, 2009.  The Company reported revenues of $28.8 million for the quarter versus $32.7 million reported in the comparable period in 2008, a decrease of 12.0%.  The decrease in revenue for the three months ended March 31, 2009 was primarily due to a $3.1 million decrease in freight revenue resulting from the transition of Company owned freight accounts to client owned freight accounts, which has no material impact on our operating profitability due to pricing practices for direct freight costs, and a $815,000 decrease in service revenue resulting from decreases in volumes from existing clients in our B2B, eCommerce, and direct marketing verticals.

The Company reported net income of $1.9 million, or $0.15 per share, fully diluted, for the three months ended March 31, 2009, versus net income of $862,000 or $0.07 per share in the comparable period of 2008.

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 one call center 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 2008 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)
 
   
2009
   
2008
 
Service revenue
  $ 24,656     $ 25,471  
Freight revenue
    4,119       7,242  
Total revenue
    28,775       32,713  
                 
Cost of service revenues
    10,660       12,099  
Cost of freight revenues
    4,058       7,249  
Selling, general and
               
administrative expenses
    10,810       11,079  
Depreciation and amortization
    1,208       1,051  
Total operating expenses
    26,736       31,478  
Operating income
    2,039       1,235  
Interest expense
    106       373  
Total other expense
    106       373  
Income before income taxes
    1,933       862  
Income tax
    -       -  
Net income
  $ 1,933     $ 862  
                 
Earnings per share:
               
Basic
  $ 0.15     $ 0.07  
Diluted
  $ 0.15     $ 0.07  
                 
Weighted average shares:
               
outstanding:
               
Basic
    12,601       12,586  
Diluted
    12,601       12,605  

 
 

 
 
INNOTRAC CORPORATION
 
Condensed Balance Sheets
 
(in thousands)
 
   
             
   
March 31,
   
December 31,
 
   
2009
   
2008
 
ASSETS
 
(Unaudited)
       
Current Assets:
           
Cash
  $ 1,101     $ 1,056  
Accounts receivable (net of allowance for doubtful accounts of  $224 at March 31, 2009 and $271 at December 31, 2008)
    21,271       25,793  
Inventory
    1,215       1,855  
Prepaid expenses and other
    1,448       1,262  
Total current assets
    25,035       29,966  
                 
Property and equipment, net
    14,901       15,842  
Goodwill
    25,169       25,169  
Other assets, net
    863       822  
Total assets
  $ 65,968     $ 71,799  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
Current Liabilities:
               
Accounts payable
  $ 5,590     $ 9,259  
Line of credit
    5,143       10,055  
Accrued expenses and other
    6,092       5,253  
Total current liabilities
    16,825       24,567  
                 
Noncurrent Liabilities:
               
Other noncurrent liabilities
    702       753  
Total noncurrent liabilities
    702       753  
                 
Total shareholders' equity
    48,441       46,479  
Total liabilities and shareholders' equity
  $ 65,968     $ 71,799  

 
 

 

INNOTRAC CORPORATION
 
Condensed Statements of Cash Flows
 
(in thousands)
 
       
   
Three Months Ended
 
   
March 31,
(Unaudited)
 
       
   
2009
   
2008
 
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net income
  $ 1,933     $ 862  
Adjustments to net income:
               
Depreciation and amortization
    1,208       1,051  
Provision for bad debts
    (41 )     22  
Stock compensation expense-stock options
    11       21  
Stock compensation expense-restricted stock
    19       19  
Changes in working capital:
               
Accounts receivable, gross
    4,563       3,257  
Inventory
    640       (474 )
Prepaid assets and other
    (160 )     (493 )
Accounts payable, accrued expenses and other
    (2,830 )     (4,069 )
Net cash provided by operating activities
    5,343       196  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Capital expenditures
    (268 )     (120 )
Net change in noncurrent assets and liabilities
    (3 )     28  
Cash used in investing activities
    (271 )     (92 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Net repayments under line of credit
    (4,912 )     (1,132 )
Loan commitment fees
    (115 )     -  
Cash used in financing activities
    (5,027 )     (1,132 )
                 
Net increase (decrease) in cash
    45       (1,028 )
Cash, beginning of period
    1,056       1,079  
Cash, end of period
  $ 1,101     $ 51