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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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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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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(d)
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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 August 14, 2012, announcing Innotrac’s financial results for the second quarter ended June 30, 2012 (furnished pursuant to Item 2.02 of this Form 8-K).
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INNOTRAC CORPORATION
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/s/ Scott D. Dorfman
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Date: August 14, 2012
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Scott D. Dorfman
President, Chairman and Chief Executive Officer
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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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Six Months Ended
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June 30,
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June 30,
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(Unaudited)
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(Unaudited)
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2012
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2011
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2012
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2011
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Service revenue
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$ | 20,449 | $ | 16,589 | $ | 41,769 | $ | 33,876 | ||||||||
Freight revenue
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2,497 | 2,025 | 5,347 | 5,707 | ||||||||||||
Total revenue
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22,946 | 18,614 | 47,116 | 39,583 | ||||||||||||
Cost of service revenues
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9,624 | 7,684 | 19,958 | 15,436 | ||||||||||||
Freight expense
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2,411 | 2,064 | 5,176 | 5,702 | ||||||||||||
Selling, general and
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administrative expenses
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9,508 | 8,794 | 19,257 | 18,002 | ||||||||||||
Depreciation and amortization
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891 | 840 | 1,716 | 1,691 | ||||||||||||
Total operating expenses
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22,434 | 19,382 | 46,107 | 40,831 | ||||||||||||
Operating income (loss)
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512 | (768 | ) | 1,009 | (1,248 | ) | ||||||||||
Interest expense
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69 | 48 | 122 | 94 | ||||||||||||
Other expense
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3 | - | 2 | - | ||||||||||||
Total other expense
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72 | 48 | 124 | 94 | ||||||||||||
Income (loss) before income taxes and
noncontrolling interest in net loss
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440 | (816 | ) | 885 | (1,342 | ) | ||||||||||
Income tax
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- | - | - | - | ||||||||||||
Noncontrolling interest in net loss
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1 | - | 1 | - | ||||||||||||
Net income (loss)
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$ | 441 | $ | (816 | ) | $ | 886 | $ | (1,342 | ) | ||||||
Earnings per share:
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Basic
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$ | 0.03 | $ | (0.06 | ) | $ | 0.07 | $ | (0.10 | ) | ||||||
Diluted
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$ | 0.03 | $ | (0.06 | ) | $ | 0.07 | $ | (0.10 | ) | ||||||
Weighted average shares
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outstanding:
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Basic
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13,010 | 12,815 | 13,020 | 12,838 | ||||||||||||
Diluted
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13,010 | 12,815 | 13,020 | 12,838 |
INNOTRAC CORPORATION
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Condensed Consolidated Balance Sheets
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(in thousands)
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June 30, 2012
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December 31, 2011
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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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$ | 2,323 | $ | 3,283 | ||||
Accounts receivable (net of allowance for doubtful accounts of $100 at June 30, 2012 and $97 at December 31, 2011)
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15,729 | 16,977 | ||||||
Inventory
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605 | 743 | ||||||
Prepaid expenses and other
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1,394 | 1,066 | ||||||
Total current assets
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20,051 | 22,069 | ||||||
Property and equipment, net
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14,288 | 11,173 | ||||||
Other assets, net
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1,216 | 1,100 | ||||||
Total assets
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$ | 35,555 | $ | 34,342 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current Liabilities:
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Accounts payable
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$ | 5,631 | $ | 7,914 | ||||
Line of credit
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- | - | ||||||
Equipment loan
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1,800 | - | ||||||
Accrued expenses and other
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4,780 | 4,484 | ||||||
Total current liabilities
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12,211 | 12,398 | ||||||
Noncurrent Liabilities:
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Other non-current liabilities
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2,574 | 2,128 | ||||||
Total noncurrent liabilities
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2,574 | 2,128 | ||||||
Total shareholders' equity
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20,770 | 19,816 | ||||||
Total liabilities and shareholders' equity
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$ | 35,555 | $ | 34,342 | ||||
INNOTRAC CORPORATION
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Condensed Consolidated Statements of Cash Flows
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(in thousands)
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Six Months Ended
June 30,
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(Unaudited)
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2012
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2011
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income (loss)
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$ | 885 | $ | (1,342 | ) | |||
Adjustments to net loss:
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Depreciation and amortization
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1,716 | 1,691 | ||||||
Provision for bad debts
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5 | 35 | ||||||
Gain on disposal of fixed assets
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- | (16 | ) | |||||
Stock compensation expense (income)-stock options
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- | 2 | ||||||
Stock compensation expense-restricted stock
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68 | (25 | ) | |||||
Changes in operating assets and liabilities:
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Accounts receivable, gross
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1,243 | 4,520 | ||||||
Inventory
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138 | 2,838 | ||||||
Prepaid assets and other
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(294 | ) | (155 | ) | ||||
Other long-term assets
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(68 | ) | 38 | |||||
Accounts payable, accrued expenses and other
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(2,342 | ) | (3,379 | ) | ||||
Other long-term liabilities
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(105 | ) | 19 | |||||
Net cash provided by operating activities
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1,246 | 4,226 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Capital expenditures
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(3,753 | ) | (748 | ) | ||||
Proceeds from disposition of assets
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- | 17 | ||||||
Net change in noncurrent assets and liabilities
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- | (7 | ) | |||||
Cash used in investing activities
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(3,753 | ) | (738 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Net borrowings under line of credit
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- | - | ||||||
Borrowings on equipment loan
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1,800 | - | ||||||
Capital lease payments
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(216 | ) | (142 | ) | ||||
Contribution from noncontrolling interest
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- | 17 | ||||||
Loan fees paid
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(37 | ) | (34 | ) | ||||
Cash provided by (used in) financing activities
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1,547 | (159 | ) | |||||
Net (decrease) increase in cash
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(960 | ) | 3,329 | |||||
Cash, beginning of period
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3,283 | 238 | ||||||
Cash, end of period
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$ | 2,323 | $ | 3,567 | ||||