INNOTRAC CORPORATION
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(Exact Name of Registrant as Specified in Charter)
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Georgia
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(State or Other Jurisdiction of Incorporation)
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000-23741
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58-1592285
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(Commission File Number)
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(IRS Employer Identification No.)
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6465 East Johns Crossing
Johns Creek, GA
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30097
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(Address of Principal Executive Offices)
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(Zip Code)
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(678) 584-4000
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(Registrant’s Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02
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RESULTS OF OPERATIONS AND FINANCIAL CONDITION
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ITEM 9.01
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FINANCIAL STATEMENTS AND EXHIBITS
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Exhibit No.
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Description
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99.1
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Innotrac Corporation press release dated November 14, 2011, announcing Innotrac’s financial results for the third quarter ended September 30, 2011 (furnished pursuant to Item 2.02 of this Form 8-K). |
INNOTRAC CORPORATION
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/s/ Scott D. Dorfman
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Date: November 14, 2011
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Scott D. Dorfman
President, Chairman and Chief Executive Officer
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Contact
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George Hare
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Chief Financial Officer
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678-584-4020
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ghare@innotrac.com
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INNOTRAC CORPORATION
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Condensed Consolidated Statements of Operations
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(in thousands, except per share amounts)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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(Unaudited)
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(Unaudited)
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2011
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2010
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2011
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2010
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Service revenue
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$ | 17,623 | $ | 15,849 | $ | 51,499 | $ | 47,216 | ||||||||
Freight revenue
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1,894 | 2,721 | 7,601 | 9,162 | ||||||||||||
Total revenue
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19,517 | 18,570 | 59,100 | 56,378 | ||||||||||||
Cost of service revenues
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8,072 | 7,040 | 23,508 | 21,213 | ||||||||||||
Freight expense
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1,855 | 2,657 | 7,557 | 9,017 | ||||||||||||
Selling, general and
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administrative expenses
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9,189 | 8,761 | 27,191 | 26,308 | ||||||||||||
Depreciation and amortization
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847 | 882 | 2,538 | 2,614 | ||||||||||||
Total operating expenses
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19,963 | 19,340 | 60,794 | 59,152 | ||||||||||||
Operating loss
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(446 | ) | (770 | ) | (1,694 | ) | (2,774 | ) | ||||||||
Interest expense
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44 | 51 | 138 | 131 | ||||||||||||
Other expense
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2 | - | 2 | - | ||||||||||||
Total other expense
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46 | 51 | 140 | 131 | ||||||||||||
Loss before income
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(492 | ) | (821 | ) | (1,834 | ) | (2,905 | ) | ||||||||
Income tax
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- | - | - | - | ||||||||||||
Net loss
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(492 | ) | (821 | ) | (1,834 | ) | (2,905 | ) | ||||||||
Net loss attributable to noncontrolling
interest
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(2 | ) | - | (2 | ) | - | ||||||||||
Net loss attributable to Innotrac
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$ | (490 | ) | $ | (821 | ) | $ | (1,832 | ) | $ | (2,905 | ) | ||||
Loss per share:
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Basic
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$ | (0.04 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.23 | ) | ||||
Diluted
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$ | (0.04 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.23 | ) | ||||
Weighted average shares
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outstanding:
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Basic
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13,045 | 12,861 | 12,908 | 12,777 | ||||||||||||
Diluted
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13,045 | 12,861 | 12,908 | 12,777 |
INNOTRAC CORPORATION
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Condensed Consolidated Balance Sheets
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(in thousands)
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September 30, 2011
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December 31, 2010
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ASSETS
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(Unaudited)
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Current Assets:
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Cash
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$ | 3,272 | $ | 238 | ||||
Accounts receivable (net of allowance for doubtful
accounts of $90 at September 30, 2011 and $242 at
December 31, 2010)
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11,662 | 15,279 | ||||||
Inventory
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907 | 3,626 | ||||||
Prepaid expenses and other
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1,189 | 1,149 | ||||||
Total current assets
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17,030 | 20,292 | ||||||
Property and equipment, net
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10,788 | 11,380 | ||||||
Other assets, net
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1,015 | 1,122 | ||||||
Total assets
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$ | 28,833 | $ | 32,794 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current Liabilities:
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Accounts payable
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$ | 4,156 | $ | 5,920 | ||||
Line of credit
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- | - | ||||||
Accrued expenses and other
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3,253 | 4,076 | ||||||
Total current liabilities
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7,409 | 9,996 | ||||||
Noncurrent Liabilities:
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Other non-current liabilities
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1,936 | 1,499 | ||||||
Total noncurrent liabilities
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1,936 | 1,499 | ||||||
Total shareholders' equity
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19,488 | 21,299 | ||||||
Total liabilities and shareholders' equity
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$ | 28,833 | $ | 32,794 | ||||
INNOTRAC CORPORATION
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Condensed Consolidated Statements of Cash Flows
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(in thousands)
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Nine Months Ended
September 30,
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(Unaudited)
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2011
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2010
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net loss
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$ | (1,834 | ) | $ | (2,905 | ) | ||
Adjustments to net loss:
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Depreciation and amortization
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2,538 | 2,614 | ||||||
Provision for bad debts
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37 | 87 | ||||||
(Gain) loss on disposal of fixed assets
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(16 | ) | 9 | |||||
Stock compensation expense (income)-stock options
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2 | (2 | ) | |||||
Stock compensation expense-restricted stock
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4 | 78 | ||||||
Changes in operating assets and liabilities:
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Accounts receivable, gross
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3,580 | 2,850 | ||||||
Inventory
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2,719 | (570 | ) | |||||
Prepaid assets and other
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(6 | ) | 451 | |||||
Other long-term assets
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38 | 46 | ||||||
Accounts payable, accrued expenses and other
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(2,948 | ) | (2,356 | ) | ||||
Other long-term liabilities
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607 | 196 | ||||||
Net cash provided by operating activities
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4,721 | 498 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Capital expenditures
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(1,467 | ) | (815 | ) | ||||
Proceeds from disposition of assets
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17 | - | ||||||
Net change in noncurrent assets and liabilities
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(8 | ) | (9 | ) | ||||
Cash used in investing activities
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(1,458 | ) | (824 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Net borrowings under line of credit
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- | - | ||||||
Capital lease payments
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(212 | ) | (179 | ) | ||||
Contribution from noncontrolling interest
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17 | - | ||||||
Loan fees paid
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(34 | ) | (62 | ) | ||||
Cash used in financing activities
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(229 | ) | (241 | ) | ||||
Net increase (decrease) in cash
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3,034 | (567 | ) | |||||
Cash, beginning of period
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238 | 1,118 | ||||||
Cash, end of period
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$ | 3,272 | $ | 551 | ||||