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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o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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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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o
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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 May 13, 2013, announcing Innotrac’s financial results for the first quarter ended March 31, 2013 (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: May 13, 2013
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Scott D. Dorfman
President, Chairman and Chief Executive Officer
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March 31, 2013
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December 31, 2012
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(unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 4,197 | $ | 4,005 | ||||
Accounts receivable (net of allowance for doubtful accounts of $108 at March 31, 2013 and $136 at December 31, 2012)
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20,001 | 23,216 | ||||||
Inventories, net
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861 | 740 | ||||||
Prepaid expenses and other
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1,139 | 1,107 | ||||||
Total current assets
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26,198 | 29,068 | ||||||
Property and equipment:
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Computers, machinery and equipment
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43,812 | 42,877 | ||||||
Furniture, fixtures and leasehold improvements
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10,137 | 10,055 | ||||||
53,949 | 52,932 | |||||||
Less accumulated depreciation and amortization
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(40,039 | ) | (39,089 | ) | ||||
13,910 | 13,843 | |||||||
Other assets, net
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1,347 | 1,281 | ||||||
Total assets
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$ | 41,455 | $ | 44,192 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 7,469 | $ | 10,409 | ||||
Line of credit
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- | - | ||||||
Accrued salaries
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1,862 | 2,854 | ||||||
Equipment lease payable
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443 | 421 | ||||||
Accrued expenses and other
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3,365 | 3,088 | ||||||
Equipment loan
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1,530 | 1,620 | ||||||
Total current liabilities
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14,669 | 18,392 | ||||||
Noncurrent liabilities:
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Deferred compensation
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894 | 837 | ||||||
Equipment lease payable, net
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508 | 544 | ||||||
Other noncurrent liabilities
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868 | 963 | ||||||
Total noncurrent liabilities
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2,270 | 2,344 | ||||||
Shareholders’ equity:
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Preferred stock: 10,000,000 shares authorized, $0.10 par value, no shares issued or outstanding
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- | - | ||||||
Common stock: 50,000,000 shares authorized, $0.10 par value, 13,245,440 shares issued and outstanding at March 31, 2013 13,155,440 shares issued and outstanding at December 31, 2012
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1,325 | 1,316 | ||||||
Additional paid-in capital
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66,822 | 66,784 | ||||||
Accumulated other comprehensive loss
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(3 | ) | (2 | ) | ||||
Accumulated deficit
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(43,642 | ) | (44,656 | ) | ||||
Total Innotrac shareholders’ equity
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24,502 | 23,442 | ||||||
Noncontrolling interest
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14 | 14 | ||||||
Total equity
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24,516 | 23,456 | ||||||
Total liabilities and equity
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$ | 41,455 | $ | 44,192 |
Three Months Ended March 31, | ||||||||
2013
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2012
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(unaudited)
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(unaudited)
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Service revenues
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$ | 25,468 | $ | 21,320 | ||||
Freight revenues
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3,851 | 2,850 | ||||||
Total revenues
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29,319 | 24,170 | ||||||
Cost of service revenues
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12,617 | 10,334 | ||||||
Freight expense
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3,696 | 2,765 | ||||||
Selling, general and administrative expenses
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10,963 | 9,749 | ||||||
Depreciation and amortization
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950 | 825 | ||||||
Total operating expenses
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28,226 | 23,673 | ||||||
Operating income
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1,093 | 497 | ||||||
Other expense (income):
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Interest expense
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78 | 53 | ||||||
Other (income) expense
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1 | (1 | ) | |||||
Total other expense
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79 | 52 | ||||||
Income before income taxes
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1,014 | 445 | ||||||
Income taxes
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- | - | ||||||
Net income
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1,014 | 445 | ||||||
Net income (loss) attributable to noncontrolling interest
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- | - | ||||||
Net income attributable to Innotrac
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$ | 1,014 | $ | 445 | ||||
Earnings per share:
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Basic
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$ | 0.08 | $ | 0.03 | ||||
Diluted
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$ | 0.08 | $ | 0.03 | ||||
Weighted average shares outstanding:
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Basic
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13,104 | 13,029 | ||||||
Diluted
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13,111 | 13,029 |
Three Months Ended March 31,
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2013
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2012
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(unaudited)
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(unaudited)
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Cash flows from operating activities:
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Net income
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$ | 1,014 | $ | 445 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
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Depreciation and amortization
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950 | 825 | ||||||
Provision for bad debts
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(29 | ) | 3 | |||||
Stock compensation expense-restricted stock
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47 | 31 | ||||||
Changes in operating assets and liabilities:
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Accounts receivable, gross
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3,244 | 837 | ||||||
Inventory
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(121 | ) | 54 | |||||
Prepaid expenses and other
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(32 | ) | (77 | ) | ||||
Long-term assets
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- | (87 | ) | |||||
Accounts payable
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(3,526 | ) | (1,931 | ) | ||||
Accrued expenses, accrued salaries and other
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(716 | ) | (429 | ) | ||||
Long-term liabilities
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(95 | ) | (59 | ) | ||||
Net cash provided by (used in) operating activities
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736 | (388 | ) | |||||
Cash flows from investing activities:
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Capital expenditures
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(342 | ) | (1,664 | ) | ||||
Net change in noncurrent assets and liabilities
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(9 | ) | - | |||||
Net cash used in investing activities
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(351 | ) | (1,664 | ) | ||||
Cash flows from financing activities:
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Payments on Equipment Loan
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(90 | ) | - | |||||
Capital lease payments
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(103 | ) | (114 | ) | ||||
Loan commitment fees
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- | (15 | ) | |||||
Net cash used in financing activities
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(193 | ) | (129 | ) | ||||
Net increase (decrease) in cash and cash equivalents
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192 | (2,181 | ) | |||||
Cash and cash equivalents, beginning of period
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4,005 | 3,283 | ||||||
Cash and cash equivalents, end of period
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$ | 4,197 | $ | 1,102 | ||||
Supplemental cash flow disclosures:
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Cash paid for interest
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$ | 57 | $ | 37 | ||||
Non-cash investing and financing activities:
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Capital lease for equipment
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$ | 89 | $ | 369 | ||||
Capital expenditures in accounts payable
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$ | 586 | $ | 847 |