InnerWorkings Announces First Quarter 2014 Results
Announces 18% revenue growth and reaffirms annual guidance
Highlights
-
Revenue of
$241.5 million was up 18%, compared to$204.6 million in the first quarter of 2013. -
Non-GAAP Adjusted EBITDA of
$8.5 million was up 26%, compared to Non-GAAP Adjusted EBITDA of$6.8 million in the first quarter of 2013. Please refer to the non-GAAP reconciliation table below for more information. -
GAAP diluted earnings per share were
$0.01 , compared to a GAAP diluted loss per share of ($0.06 ) in the first quarter of 2013. Non-GAAP diluted earnings per share were$0.02 , compared to Non-GAAP diluted earnings per share of$0.04 in the first quarter of 2013. Please refer to the non-GAAP reconciliation table below for more information. -
Non-GAAP Adjusted Operating Cash Flow of
($8.4) million , compared to Non-GAAP Adjusted Operating Cash Flow of$0.1 million in the first quarter of 2013. Please refer to the non-GAAP reconciliation table below for more information. -
The Company recently announced new significant client agreements with
Callaway, Novartis and
Pizza Hut .
"We executed against our plan in the first quarter and generated 12
percent organic enterprise revenue growth," said
Additional financial and operational highlights include the following:
-
Organic enterprise account growth was
$24 million in the first quarter, up 12% over the prior-year period. -
The
North America segment accounted for 69% of revenue and international segments accounted for 31%, compared to an 80% / 20% mix in the first quarter of 2013. - The Company has deployed its new technology into over 300 retail locations of a Fortune 500 partner serving small and mid-sized businesses. The progress represents nearly 20% of the full rollout plan, which is on track to be completed by the third quarter.
"Our new enterprise accounts are ramping up well," said
Revenue Growth - Comparing 2014 to 2013 | |||||
Q1 $(MM) Change |
Q1 % Change |
||||
Organic Enterprise Account Growth |
|
12 | % | ||
Loss of Spend from Large Customer 1 |
( |
) | (4 | )% | |
Acquisitive Growth |
|
11 | % | ||
Total Revenue Growth |
|
18 | % |
1 Includes loss of spending from large retail
customer announced in |
Outlook
The Company reaffirms its 2014 revenue guidance of
Conference Call
The management team will host a conference call to discuss the Company's
first quarter 2014 results, which will be broadcast live on
To access the conference call by telephone, interested parties may dial
(877) 771-7024. Interested parties are also invited to listen to the
live webcast by visiting the Investor "Events & Presentations" section
of
Non-GAAP Financial Measures
This press release includes the following financial measures defined as
"non-GAAP financial measures" by the
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 our
About
Condensed Consolidated Statements of Income (Unaudited) | |||||||||
Three Months Ended |
|||||||||
2013 | 2014 | ||||||||
Revenue | $ | 204,577,416 | $ | 241,489,664 | |||||
Cost of goods sold | 158,227,615 | 186,905,270 | |||||||
Gross profit | 46,349,801 | 54,584,394 | |||||||
Operating expenses: | |||||||||
Selling, general and administrative expenses | 47,111,617 | 49,571,481 | |||||||
Depreciation and amortization | 2,465,667 | 4,170,716 | |||||||
Change in fair value of contingent consideration | 608,832 | (695,177 | ) | ||||||
Income (loss) from operations | (3,836,315 | ) | 1,537,374 | ||||||
Total other expense | (923,936 | ) | (1,115,673 | ) | |||||
Income (loss) before income taxes | (4,760,251 | ) | 421,701 | ||||||
Income tax expense | (1,958,977 | ) | 132,294 | ||||||
Net income (loss) | $ | (2,801,274 | ) | $ | 289,407 | ||||
Basic earnings (loss) per share | $ | (0.06 | ) | $ | 0.01 | ||||
Diluted earnings (loss) per share | $ | (0.06 | ) | $ | 0.01 | ||||
Weighted average shares outstanding, basic | 50,338,994 | 51,312,649 | |||||||
Weighted average shares outstanding, diluted | 50,338,994 | 52,189,091 | |||||||
Condensed Consolidated Balance Sheets | ||||||
|
|
|||||
2013 | 2014 | |||||
(unaudited) | ||||||
Cash and cash equivalents | $ | 18,606,030 | $ | 21,123,319 | ||
Accounts receivable, net of allowance for doubtful accounts | 171,832,907 | 183,653,588 | ||||
Unbilled revenue | 27,483,544 | 28,721,863 | ||||
Inventories | 26,473,732 | 25,405,960 | ||||
Prepaid expenses | 11,746,965 | 11,369,450 | ||||
Other current assets | 23,528,025 | 29,802,949 | ||||
Total long-term assets | 334,995,575 | 337,646,241 | ||||
Total assets | $ | 614,666,778 | $ | 637,723,370 | ||
Accounts payable-trade | $ | 169,243,349 | $ | 170,098,143 | ||
Other current liabilities | 49,655,185 | 66,341,248 | ||||
Revolving credit facility | 69,000,000 | 85,000,000 | ||||
Other long-term liabilities | 81,326,670 | 69,070,730 | ||||
Total stockholders' equity | 245,441,574 | 247,213,249 | ||||
Total liabilities and stockholders' equity | $ | 614,666,778 | $ | 637,723,370 | ||
|
||||||||
Three Months Ended |
||||||||
2013 | 2014 | |||||||
Net cash used in operating activities |
$ | (842,639 | ) | $ | (8,408,343 | ) | ||
Net cash used in investing activities | (9,148,187 | ) | (4,483,271 | ) | ||||
Net cash provided by financing activities |
3,540,144 | 15,431,352 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (159,046 | ) | (22,449 | ) | ||||
Increase (decrease) in cash and cash equivalents |
(6,609,728 | ) | 2,517,289 | |||||
Cash and cash equivalents, beginning of period | 17,218,899 | 18,606,030 | ||||||
Cash and cash equivalents, end of period | $ | 10,609,171 | $ | 21,123,319 | ||||
Reconciliation of Non-GAAP Adjusted EBITDA, Adjusted Operating Cash Flows and Non-GAAP Diluted EPS |
||||||||
Three Months Ended |
||||||||
2013 | 2014 | |||||||
Operating income (loss) | $ | (3,836,315 | ) | $ | 1,537,374 | |||
Depreciation and amortization | 2,465,667 | 4,170,716 | ||||||
Stock-based compensation expense | 973,193 | 1,396,274 | ||||||
Change in fair value of contingent consideration | 608,832 | (695,177 | ) | |||||
Payments to former owner of Productions Graphics, net of cash recovered | 6,308,660 | - | ||||||
Legal fees in connection with patent infringement defense | 245,340 | - | ||||||
Restatement-related professional fees | - | 2,093,104 | ||||||
Non-GAAP Adjusted EBITDA |
$ | 6,765,377 | $ | 8,502,291 | ||||
Three Months Ended |
||||||||
2013 | 2014 | |||||||
Net cash used in operating activities | $ | (842,639 | ) | $ | (8,408,343 | ) | ||
Excess tax benefit from exercise of stock awards * |
951,066 |
|
- | |||||
Adjusted net cash provided by (used in) operating activities |
$ |
108,427 |
|
$ | (8,408,343 | ) | ||
* Represents a U.S. tax deduction in an amount equal to the excess of the market price of the stock on the date of exercise over exercise price. |
||||||||
Three Months Ended |
||||||||
2013 | 2014 | |||||||
Net income (loss) | $ | (2,801,274 | ) | $ | 289,407 | |||
Change in fair value of contingent consideration, net of tax | 645,020 | (536,797 | ) | |||||
Payments to former owner of Productions Graphics, net of cash recovered, net of tax | 4,169,056 | - | ||||||
Legal fees in connection with patent infringement defense, net of tax | 159,520 | - | ||||||
Restatement-related professional fees, net of tax | - | 1,266,328 | ||||||
Adjusted net income |
$ | 2,172,322 | $ | 1,018,938 | ||||
Weighted average shares outstanding, diluted | 50,338,994 | 52,189,091 | ||||||
Non-GAAP Diluted EPS |
$ | 0.04 | $ | 0.02 | ||||
(312) 277-1510
bmoore@inwk.com
Source:
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