-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SsNFxGfbvW3dhu7lrQNFVZP8Vl7QIfzF9jql90SlufaZ5OyiclAXNxuNlrwz4rtg bmKnuP+wovQCMZuuwS4w6w== 0001275287-05-001113.txt : 20050330 0001275287-05-001113.hdr.sgml : 20050330 20050330171056 ACCESSION NUMBER: 0001275287-05-001113 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050330 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050330 DATE AS OF CHANGE: 20050330 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INNOTRAC CORP CENTRAL INDEX KEY: 0001051114 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 581592285 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23741 FILM NUMBER: 05715133 BUSINESS ADDRESS: STREET 1: 6655 SUGARLOAF PARKWAY CITY: DULUTH STATE: GA ZIP: 30097 BUSINESS PHONE: 678-584-4000 MAIL ADDRESS: STREET 1: 1828 MECA WAY CITY: NORCROSS STATE: GA ZIP: 30093 8-K 1 ic2343.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) March 30, 2005 INNOTRAC CORPORATION ------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Georgia ---------------------------------------------- (State or Other Jurisdiction of Incorporation) 000-23741 58-1592285 ------------------------ ------------------------------- (Commission File Number) (IRS Employer Identification No.) 6655 Sugarloaf Parkway Duluth, Georgia 30097 ---------------------------------------- --------- (Address of Principal Executive Offices) (Zip Code) (678) 584-4000 ---------------------------------------------------- (Registrant's Telephone Number, Including Area Code) Not Applicable ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) 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): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On March 30, 2005, Innotrac Corporation ("Innotrac") issued a press release to announce its financial results for the fourth quarter and year ended December 31, 2004. A copy of the press release is attached as Exhibit 99.1. The information in this Report, including the Exhibit attached hereto, is furnished solely pursuant to Item 2.02 of this Form 8-K. Consequently, it is not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits Exhibit No. Description ----------- --------------------------------------------------------- 99.1 Innotrac Corporation press release dated March 30, 2005, announcing Innotrac's financial results for the fourth quarter and year ended December 31, 2004 (furnished pursuant to Item 2.02 of this Form 8-K). SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. INNOTRAC CORPORATION By: /s/ Scott D. Dorfman --------------------------- Scott D. Dorfman Chairman, President and Chief Executive Officer Date: March 30, 2005 EX-99.1 2 ic2343ex991.txt Exhibit 99.1 INNOTRAC CORPORATION ANNOUNCES 2004 FOURTH QUARTER AND YEAR END RESULTS ATLANTA, March 30 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq: INOC) announced financial results today for the fourth quarter and fiscal year ended December 31, 2004. For the three months ended December 31, 2004, the Company reported revenues of $20.9 million versus $20.2 million reported in the comparable period in 2003, an increase of 3.3%. The Company generated $1.7 million in cash flows from operations for the quarter. Earnings per share for the three months ended December 31, 2004 was breakeven versus a loss of $0.89 in the comparable period of 2003. For the year ended December 31, 2004, the Company recorded revenues of $78.3 million, an increase of 4.8% over the $74.7 million reported in the year ended December 31, 2003. Innotrac produced $9.9 million in cash flows from operations for 2004 compared to $3.8 million produced in 2003. Net income for 2004 was $110,000 or $.01 per share, compared to a net loss of $12.0 million or $1.04 per share in 2003. "Innotrac's 2004 financial results reflect the Company's progress towards achieving management's strategic objectives. On a year-over-year basis, we grew revenue, maintained gross margins above fifty percent, reduced SG&A expenses on both a dollar and percentage basis and drove strong cash flows from operations," stated Scott D. Dorfman, President and Chief Executive Officer. Conference Call Innotrac Corporation will hold a conference call to discuss this release this evening, March 30, 2005 at 5:00 PM Eastern Standard Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 4654084) or by logging on to http://www.innotrac.com and clicking on "Webcasts and Presentations" in the "Company" section. The Webcast will be archived and available at the same Web address. Additionally, audio playback will be available at 1-800-642-1687 (Conference ID: 4654084). About 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 six cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, http://www.innotrac.com . Information contained in this press release, other than historical information, may be considered forward-looking in nature and is 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 clients, the state of the telecommunications industry in general, Innotrac's ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2004 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission. INNOTRAC CORPORATION Condensed Consolidated Statements of Operations (in thousands, except per share amounts)
Three Months Ended Twelve Months Ended December 31, December 31, (Unaudited) (Audited) --------------------------- --------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Revenues $ 20,889 $ 20,230 $ 78,322 $ 74,740 Cost of revenues 11,254 9,451 37,925 35,157 Gross profit 9,635 10,779 40,397 39,583 Operating expenses: Selling, general and administrative expenses 8,227 10,082 34,800 36,444 Special charges - - - (30) Depreciation and amortization 1,297 1,333 5,202 5,622 Total operating expenses 9,524 11,415 40,002 42,036 Operating income (loss) 111 (636) 395 (2,453) Interest expense 51 160 285 741 Other - 19 - 15 Total other expense 51 179 285 756 Income (loss) before income taxes 60 (815) 110 (3,209) Income tax (benefit) - 9,632 - 8,772 Net income (loss) $ 60 $ (10,447) $ 110 $ (11,981) Earnings per share: Basic $ 0.01 $ (0.89) $ 0.01 $ (1.04) Diluted $ 0.00 $ (0.89) $ 0.01 $ (1.04) Weighted average shares outstanding: Basic 11,930 11,678 11,865 11,542 Diluted 12,473 11,678 12,522 11,542
Note: These statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 31, 2005. INNOTRAC CORPORATION Condensed Consolidated Balance Sheets (in thousands) December 31, December 31, 2004 2003 ------------ ------------ (Audited) (Audited) ASSETS Current Assets: Cash $ 1,377 $ 2,228 Accounts receivable (net of allowance for doubtful accounts of $1,624 at December 31, 2004 and $1,696 at December 31, 2003) 18,405 15,682 Inventory 2,662 10,896 Prepaid expenses and other 1,986 915 Total current assets 24,430 29,721 Property and equipment, net 12,499 14,750 Goodwill 25,169 25,169 Other assets, net 1,275 1,322 Total assets $ 63,373 $ 70,962 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 6,023 $ 5,738 Accrued expenses and other 2,630 2,577 Line of credit 3,063 11,802 Total current liabilities 11,716 20,117 Noncurrent Liabilities: Other non-current liabilities 1,098 1,083 Total noncurrent liabilities 1,098 1,083 Total shareholders' equity 50,559 49,762 Total liabilities and shareholders' equity $ 63,373 $ 70,962 Note: These statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 31, 2005. INNOTRAC CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands)
Three Months Ended Twelve Months Ended December 31, December 31, (Unaudited) (Audited) --------------------------- --------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 60 $ (10,447) $ 110 $ (11,981) Adjustments to net loss: Depreciation and amortization 1,297 1,333 5,202 5,622 Loss on impairment or disposal of fixed assets - 21 106 22 Deferred income taxes - 9,541 - 8,492 Amortization of deferred compensation 16 18 84 72 Changes in working capital: Accounts receivable, net (1,349) (683) (2,723) (1,479) Inventory 1,949 4,743 8,234 13,202 Prepaid assets and other 386 1,280 (1,304) 1,338 Accounts payable, accrued expenses and other (625) 60 192 (11,494) Cash provided by (used in) operating activities 1,734 5,866 9,901 3,794 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (650) (163) (2,762) (1,182) Acquisition of business, net of cash acquired - - - (181) Cash (used in) investing activities (650) (163) (2,762) (1,363) CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments) under line of credit (1,285) (5,188) (8,740) (2,570) (Payment) of capital lease obligation (18) (19) (82) (119) Loan commitment fees - - (15) (31) Exercise of employee stock options 140 547 1,133 1,556 Stock reacquired to settle employee stock bonus withholding tax obligation - - (286) - Issuance of treasury stock - - - - Cash (used in) provided by financing activities (1,163) (4,660) (7,990) (1,164) Net (decrease) increase in cash (79) 1,043 (851) 1,267 Cash, beginning of period 1,456 1,185 2,228 961 Cash, end of period $ 1,377 $ 2,228 $ 1,377 $ 2,228
Note: These statements should be read in conjunction with the Company's Form 10-K filed with the Securities and Exchange Commission on March 31, 2005. SOURCE Innotrac Corporation -0- 03/30/2005 /CONTACT: Christine Herren, Senior Director and Controller of Innotrac Corporation, +1-678-584-4115, or cherren@innotrac.com / /Web site: http://www.innotrac.com / -----END PRIVACY-ENHANCED MESSAGE-----