-----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, OHpPr4ssE8VbKZzimTeeKk+JXGTINL+K+UGeExYODbcqGXmpEuZ+h+HwPtF/0Y0N Q0dY08hPwBqRJ5ZikzxdYQ== 0001275287-06-002707.txt : 20060511 0001275287-06-002707.hdr.sgml : 20060511 20060511111624 ACCESSION NUMBER: 0001275287-06-002707 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060510 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060511 DATE AS OF CHANGE: 20060511 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: 06828690 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 ic5817.txt FORM 8-K ================================================================================ 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) May 10, 2006 INNOTRAC CORPORATION ------------------------------------------------------ (Exact Name of Registrant as Specified in Its Charter) Georgia --------------------------------------------- (State or Other Jurisdictionof 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 May 10, 2006, Innotrac Corporation ("Innotrac") issued a press release to announce its financial results for the first quarter of 2006. 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 (d) Exhibits Exhibit No. Description - ----------- ------------------------------------------------------------------ 99.1 Innotrac Corporation press release dated May10, 2006, announcing Innotrac's financial results for the first quarter of 2006 (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: May 10, 2006 EX-99.1 2 ic5817ex991.txt EXHIBIT 99.1 Exhibit 99.1 INNOTRAC CORPORATION ANNOUNCES 2006 FIRST QUARTER RESULTS ATLANTA, May 10 /PRNewswire-FirstCall/ -- Innotrac Corporation (Nasdaq: INOC) announced financial results today for the first quarter ended March 31, 2006. The Company reported revenues of $17.3 million for the quarter versus $19.2 million reported in the comparable period in 2005, a decrease of 9.9%. The decrease in revenue was primarily attributed to reduced volumes from both our direct marketing and telecommunications clients, partially offset by an increase in volumes from our DSL business. The Company reported a net loss of $1.3 million, or $0.10 per share, for the three months ended March 31, 2006, versus a net loss of $288,000, or $0.02 per share, in the comparable period of 2005. Conference Call Innotrac Corporation will hold a conference call to discuss this release this evening, May 10, 2006 at 5:00 PM Eastern Daylight Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 8835319) or by logging on to 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, a 48-hour audio playback will be available at 1-800-642-1687 (Conference ID: 8835319). 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, 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 2005 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 March 31, --------------------------- 2006 2005 ------------ ------------ (Unaudited) Revenues $ 17,328 $ 19,239 Cost of revenues 8,897 9,953 Selling, general and administrative expenses 8,821 8,255 Depreciation and amortization 821 1,252 Total operating expenses 18,539 19,460 Operating (loss) (1,211) (221) Interest expense 67 67 Total other expense 67 67 (Loss) before income taxes (1,278) (288) Income tax (benefit) - - Net (loss) $ (1,278) $ (288) Earnings per share: Basic $ (0.10) $ (0.02) Diluted $ (0.10) $ (0.02) Weighted average shares outstanding: Basic 12,281 12,000 Diluted 12,281 12,000 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, 2006. INNOTRAC CORPORATION Condensed Consolidated Balance Sheets (in thousands) March 31, December 31, 2006 2005 ------------ ------------ (Unaudited) (Audited) ASSETS Current Assets: Cash $ 1,171 $ 2,068 Accounts receivable (net of allowance for doubtful accounts of $2,776 at March 31, 2006 and $2,791 at December 31, 2005) 13,663 12,745 Inventory 4,121 4,676 Prepaid expenses and other 1,466 1,383 Total current assets 20,421 20,872 Property and equipment, net 12,849 10,754 Goodwill 25,169 25,169 Other assets, net 1,216 1,177 Total assets $ 59,655 $ 57,972 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 4,178 $ 6,707 Accrued expenses and other 4,399 3,036 Line of credit 4,071 - Total current liabilities 12,648 9,743 Noncurrent Liabilities: Note: Other non-current liabilities 1,053 1,038 Total noncurrent liabilities 1,053 1,038 Total shareholders' equity 45,954 47,191 Total liabilities and shareholders' equity $ 59,655 $ 57,972 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, 2006. INNOTRAC CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands) Three Months Ended March 31, --------------------------- 2006 2005 ------------ ------------ (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (1,278) $ (288) Adjustments to net loss: Depreciation and amortization 821 1,252 Provision for bad debts (1) (522) Amortization of deferred compensation 41 - Changes in working capital: Accounts receivable, gross (916) 1,344 Inventory 556 (766) Prepaid assets and other (122) 316 Accounts payable, accrued expenses and other (1,153) 416 Cash (used in) provided by operating activities (2,052) 1,752 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (2,916) (290) Cash used in investing activities (2,916) (290) CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments) under line of credit 4,071 (869) Payment of capital lease obligation - (18) Exercise of employee stock options - 258 Cash provided by (used in) financing activities 4,071 (629) 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, 2006. (897) 833 Cash, beginning of period 2,068 1,377 Cash, end of period $ 1,171 $ 2,210 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, 2006. SOURCE Innotrac Corporation -0- 05/10/2006 /CONTACT: Christine Herren, Senior Director and Controller of Innotrac Corporation, +1-678-584-4115, or cherren@innotrac.com / /Web site: http://www.innotrac.com / (INOC) -----END PRIVACY-ENHANCED MESSAGE-----