-----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, FdCM/XW29ozEyBV8TgEDa2DYgDsRMfO5mOD3VRrfSNwswoh8eOz9Nk02lSK/JWzS 7IFvRuwa8UtyVW7fK8ebeg== 0001104659-08-012120.txt : 20080221 0001104659-08-012120.hdr.sgml : 20080221 20080221172255 ACCESSION NUMBER: 0001104659-08-012120 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080221 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080221 DATE AS OF CHANGE: 20080221 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INNERWORKINGS INC CENTRAL INDEX KEY: 0001350381 STANDARD INDUSTRIAL CLASSIFICATION: SERVICE INDUSTRIES FOR THE PRINTING TRADE [2790] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-52170 FILM NUMBER: 08633790 BUSINESS ADDRESS: STREET 1: 600 WEST CHICAGO STREET 2: SUITE 750 CITY: CHICAGO STATE: IL ZIP: 60610 MAIL ADDRESS: STREET 1: 600 WEST CHICAGO STREET 2: SUITE 750 CITY: CHICAGO STATE: IL ZIP: 60610 8-K 1 a08-5697_28k.htm 8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  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):  February 21, 2008

 

INNERWORKINGS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other jurisdiction

of incorporation)

 

000-52170

(Commission

File Number)

 

20-5997364

(I.R.S. Employer

Identification No.)

 

 

 

 

 

 

 

600 West Chicago Avenue

Suite 850

Chicago, Illinois

(Address of principal executive offices)

 



60610

(Zip Code)

 

(312) 642-3700

(Registrant’s telephone number, including area code)

 

N/A

(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:

 

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

 

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

 

 

o

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 February 21, 2008, InnerWorkings, Inc. issued a press release announcing financial results for its fiscal quarter and year ended December 31, 2007.  A copy of the press release is attached hereto as Exhibit 99.1.

 

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits:

 

 

Exhibit No.

 

Description

 

 

 

 

 

99.1*

 

Press Release dated February 21, 2008.

 


*The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

2



 

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.

 

 

INNERWORKINGS, INC.

 

 

 

 

 

 

Dated: February 21, 2008

By:

/s/

Nicholas J. Galassi

 

Name:

Nicholas J. Galassi

 

Title:

Chief Financial Officer

 

3



 

Exhibit Index

 

Exhibit No.

 

Description

 

 

 

99.1*

 

Press Release dated February 21, 2008.

 


*The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

4


EX-99.1 2 a08-5697_2ex99d1.htm EX-99.1

Exhibit 99.1

 

 

InnerWorkings, Inc. Announces Record Fourth Quarter and
Fiscal 2007 Results

 

Year-over-year annual revenue and operating income up 80 percent
 

Chicago, IL, February 21, 2008 – InnerWorkings, Inc. (NASDAQ: INWK), a leading provider of managed print and promotional solutions to corporate clients in the United States, today reported record fourth quarter and fiscal year results for the period ended December 31, 2007.

 

Quarterly Highlights:

 

·                  Revenue increased 47 percent versus the fourth quarter of 2006 to a record $90.0 million.

 

·                  Operating leverage continued to improve as operating income rose 58 percent to $8.0 million.

 

·                  Net income was $12.0 million, or $0.24 per diluted share.

 

·                  Net income, excluding the one-time benefit for the reduction in a tax valuation allowance, was $5.4 million, or $0.11 per diluted share, increased 60 percent compared with the same time period last year.

 

Fiscal Year Highlights:

 

·                  Revenue increased 80 percent over fiscal 2006 to $288.4 million.

 

·                  Operating income increased over 80 percent from the prior year to $23.2 million.

 

·                  Net income was $22.5 million, or $0.45 per diluted share.

 

·                  Net income, excluding the one-time benefit for the reduction in a tax valuation allowance, totaled $15.9 million, or $0.32 per diluted share, increased 92 percent compared to 2006.

 

·                  The number of enterprise clients rose from 92 to 116 during the year.

 

·                  The number of account executives increased from 153 to 221 during the year.

 

Revenue for the Company’s fourth quarter was $90.0 million, an increase of 47 percent compared to $61.2 million in the fourth quarter of 2006. Operating income was $8.0 million, an increase of 58 percent from $5.1 million during the

 

1



 

same quarter of 2006. GAAP net income for the quarter was $12.0 million, or $0.24 per diluted share.

 

Fourth quarter results include the reduction of a $6.6 million valuation allowance which was related to the deferred tax asset of $12 million created as part of our January 2006 share repurchase. Net income excluding this reduction in the allowance was $5.4 million during the period and diluted earnings per share was $0.11.  This compares favorably to the fourth quarter of 2006, in which net income was $3.4 million and diluted earnings per share were $0.07.

 

In fiscal 2007, the Company achieved revenue of $288.4 million, an increase of 80 percent compared to revenue of $160.5 million in 2006. Operating income for the full year 2007 was $23.2 million, an increase of over 80 percent from $12.8 million during the full year 2006.

 

Full year GAAP net income was $22.5 million, or $0.45 per diluted share. Excluding the reduction in the tax valuation allowance recorded in the fourth quarter, full year 2007 results included net income of $15.9 million and diluted earnings per share was $0.32 in 2007. This again compares favorably to 2006’s net income of $8.3 million and diluted earnings per share of $0.21.

 

“Fiscal 2007 was a year of exceptional performance for InnerWorkings and I couldn’t be more pleased with the contributions made by all of our employees,” stated Steve Zuccarini, Chief Executive Officer of InnerWorkings. “Our emphasis on expanding enterprise relationships continues to position InnerWorkings as a key partner with our clients and provides consistent and recurring financial results for our shareholders.  We expect to build on our aggressive growth strategy and steady financial performance in 2008.”

 

Additional fourth quarter 2007 financial and operational highlights include the following:

 

·                  During the fourth quarter, InnerWorkings made three acquisitions. The largest of these was Corporate Edge, Inc., which reinforces the Company’s deepening domain expertise in premium products and advertising specialties and provides access to more than 20 Fortune 500 clients.

 

·                  For the fourth quarter of 2007, 61 percent of the Company’s revenue was generated from sales to enterprise clients, with the remaining 39 percent derived from transactional clients.

 

·                  During the quarter the Company generated cash flow from operations of $1.2 million.

 

·                  The Company’s balance sheet contained no debt as of December 31, 2007.

 

2



 

“We were very active in fiscal 2007 in the deployment of capital across multiple growth fronts with our goal of enhancing shareholder value,” stated Nick Galassi, Chief Financial Officer of InnerWorkings. “Given the significant size of our market opportunity and our low market penetration, we will continue to make the investments necessary to support our aggressive growth expectations.  However, we will continue to do so prudently and remain committed to increasing our operating leverage and thus expect to grow our operating earnings at rates that exceed our top-line growth in 2008.”

 

Outlook

 

Zuccarini concluded, “We expect demand for InnerWorkings’ services to remain robust because we help corporations save money in a significant category of indirect spend.  Our pipeline has never been stronger and our high-service, low-cost business model continues to resonate extremely well in this uncertain economic climate.  We remain firmly committed to executing our business strategies and accomplishing our goals, which include 2008 revenue guidance in a range of $450 million to $490 million and 2008 diluted earnings per share guidance in a range of $0.50 to $0.54.”

 

Conference Call

 

A conference call will be broadcast live on Thursday, February 21, 2008, at 4:30 p.m. Central Time (5:30 p.m. Eastern Time). The live webcast discussion, which will include a Q&A session, will be hosted by Steven E. Zuccarini, Chief Executive Officer; Nicholas J. Galassi, Chief Financial Officer; and Eric D. Belcher, Chief Operating Officer. Interested parties are invited to listen to the live webcast by visiting the Investor “Events & Presentations” section of InnerWorkings’ website at www.iwprint.com. A replay of the webcast will be available later that day in the same section of the website.

 

About InnerWorkings, Inc.

 

Chicago-based InnerWorkings, Inc. (NASDAQ: INWK) is a leading provider of managed print and promotional solutions to corporate clients in the United States. With proprietary technology, an extensive supplier network and domain expertise, the Company procures, manages and delivers printed products as part of a comprehensive outsourced enterprise solution. Based in Chicago with numerous other offices in the United States, InnerWorkings procures printed products for clients across a wide range of industries, such as advertising, consumer products, publishing and retail. For more information on InnerWorkings, visit: www.iwprint.com.

 

3



 

Forward-Looking Statements

 

This release contains statements relating to future results.  These statements are forward-looking statements under the federal securities laws.  We can give no assurance that any future results discussed in these statements will be achieved.  Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date.  These statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release.  For a discussion of important factors that could affect our actual results, please refer to the Form 10-K, including the “Risk Factors” section, we filed with the SEC.

 

(inwk-e)

 

FOR FURTHER INFORMATION:

 

InnerWorkings, Inc.

Mark Desky, 312-604-5470

mdesky@iwprint.com

 

4



 

 

 

Consolidated Statements of Operations
(Unaudited)

 

 

 

 

 

 

Twelve Months Ended
December 31

 

Three Months Ended
December 31,

 

 

 

2006

 

2007

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

160,514,987

 

$

288,431,279

 

$

61,153,263

 

$

90,038,334

 

Cost of goods sold

 

123,968,796

 

215,043,482

 

45,740,974

 

66,625,804

 

Gross profit

 

36,546,191

 

73,387,797

 

15,412,289

 

23,412,530

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

22,675,423

 

47,981,962

 

9,904,927

 

14,779,840

 

Depreciation and amortization

 

1,029,968

 

2,215,543

 

455,952

 

635,728

 

Income from operations

 

12,840,800

 

23,190,292

 

5,051,410

 

7,996,962

 

Total other income, net

 

775,010

 

2,671,116

 

436,102

 

648,812

 

Income before taxes

 

13,615,810

 

25,861,408

 

5,487,512

 

8,645,774

 

Income tax expense

 

5,335,374

 

3,357,334

 

2,120,047

 

(3,348,063

)

Net income

 

8,280,436

 

22,504,074

 

3,367,465

 

11,993,837

 

Dividends on preferred shares

 

(1,408,740

)

 

 

 

Net income applicable to common shareholders

 

$

6,871,696

 

$

22,504,074

 

$

3,367,465

 

$

11,993,837

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.22

 

$

0.47

 

$

0.08

 

$

0.25

 

Diluted earnings per share

 

$

0.21

 

$

0.45

 

$

0.07

 

$

0.24

 

 

5



 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

December 31,

 

 

 

2006

 

2007

 

Balance Sheet Data (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

20,612,944

 

$

26,716,239

 

Marketable securities

 

9,979,755

 

17,975,000

 

Accounts receivable, net

 

45,057,338

 

77,292,885

 

Unbilled revenue

 

4,691,546

 

12,432,916

 

Inventories

 

2,080,257

 

5,455,083

 

Prepaid expenses

 

5,538,998

 

6,653,493

 

Other current assets

 

1,577,949

 

2,888,615

 

Total long-term assets

 

23,971,117

 

57,418,999

 

Total assets

 

$

113,509,904

 

$

206,833,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable-trade

 

$

24,968,853

 

$

46,121,175

 

Current liabilities

 

6,864,852

 

13,119,495

 

Total long-term liabilities

 

221,685

 

147,481

 

Stockholders’ equity

 

81,454,514

 

147,445,079

 

Total liabilities and stockholders’ equity

 

$

113,509,904

 

$

206,833,230

 

 

6



 

 

 

Years Ended December 31,

 

 

 

2006

 

2007

 

Cash Flow Data (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

(9,862,561

)

8,055,605

 

Net cash used in investing activities

 

(22,123,261

)

(44,231,436

)

Net cash provided by financing activities

 

49,636,026

 

42,279,126

 

Increase in cash and cash equivalents

 

17,650,204

 

6,103,295

 

Cash and cash equivalents, beginning of year

 

2,962,740

 

20,612,944

 

Cash and cash equivalents, end of year

 

$

20,612,944

 

$

26,716,239

 

 

7


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