InnerWorkings Announces Second Quarter 2011 Results
Record Quarterly Revenue Reflects 29% Year-Over-Year Growth; Company Raises Revenue Guidance
Quarterly Highlights:
-
Record revenue generated during the quarter was
$155.6 million , an increase of 29% compared with the second quarter of 2010. -
Net income was
$3.7 million , an increase of 18% compared to$3.1 million in the year-earlier period. Earnings were$0.08 per diluted share compared to$0.07 per diluted share in the year-earlier period. Both earnings per share figures include$0.01 per diluted share from the sale ofEcho Global Logistics stock. -
Second quarter 2011 net income was negatively impacted by a one-time
$950,000 preference claim liability accrual related to a client bankruptcy in 2008. Excluding this one-time item, second quarter 2011 non-GAAP net income was$4.3 million , an increase of 36% compared to net income of$3.1 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information. -
Adjusted EBITDA was
$9.5 million , an increase of 23% compared to$7.7 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information. -
Year-over-year enterprise revenue growth of 30% and transactional
revenue growth of 26%. Revenue from new enterprise accounts was
$15.0 million in the second quarter.
"InnerWorkings' record second quarter performance reflects strong
operational execution and increased demand for our print management
solution," said
Additional second quarter 2011 financial and operational highlights include the following:
- 74% of the Company's revenue was generated from sales to enterprise clients, with the remaining 26% derived from transactional clients.
-
As of
June 30, 2011 , the Company had an outstanding balance of$53.9 million on its$100 million bank credit facility and retained cash and short-term investments of$11.6 million .
"The Company's financial position is strong and we are well positioned
to continue growing our net margins and generate additional leverage in
the model in 2011," said
Outlook
The Company is raising its 2011 revenue guidance from
Conference Call
A conference call 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
About
For more information visit: www.inwk.com.
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
| Consolidated Balance Sheets | ||||||
| December 31, | June 30, | |||||
| 2010 | 2011 | |||||
| (unaudited) | ||||||
| Cash and cash equivalents | $ | 5,259,272 | $ | 7,975,429 | ||
| Short-term investments | 4,284,614 | 3,651,175 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 85,654,403 | 102,727,882 | ||||
| Unbilled revenue | 24,626,558 | 27,971,096 | ||||
| Inventories | 9,674,961 | 12,387,029 | ||||
| Prepaid expenses | 9,836,486 | 12,066,727 | ||||
| Other current assets | 7,139,680 | 9,164,118 | ||||
| Total long-term assets | 133,448,806 | 163,951,066 | ||||
| Total assets | $ | 279,924,780 | $ | 339,894,522 | ||
| Accounts payable-trade | $ | 55,604,566 | $ | 72,553,052 | ||
| Other current liabilities | 13,333,629 | 30,750,030 | ||||
| Revolving credit facility | 47,400,000 | 53,900,000 | ||||
| Other long-term liabilities | 3,402,486 | 14,368,442 | ||||
| Total stockholders' equity | 160,184,099 | 168,322,998 | ||||
| Total liabilities and stockholders' equity | $ | 279,924,780 | $ | 339,894,522 | ||
| Consolidated Statements of Income | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2010 | 2011 | 2010 | 2011 | ||||||||||
| Revenue | $ | 120,471,286 | $ | 155,611,981 | $ | 232,683,832 | $ | 300,792,673 | |||||
| Cost of goods sold | 91,431,674 | 119,269,983 | 176,711,690 | 231,122,765 | |||||||||
| Gross profit | 29,039,612 | 36,341,998 | 55,972,142 | 69,669,908 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general, and administrative expenses | 22,172,634 | 27,711,286 | 44,177,058 | 54,701,523 | |||||||||
| Depreciation and amortization | 2,215,219 | 2,472,456 | 4,332,844 | 4,894,501 | |||||||||
| Preference claim liability | - | 950,000 | - | 950,000 | |||||||||
| Income from operations | 4,651,759 | 5,208,256 | 7,462,240 | 9,123,884 | |||||||||
| Total other income | 216,560 | 476,830 | 741,659 | 863,458 | |||||||||
| Income before taxes | 4,868,319 | 5,685,086 | 8,203,899 | 9,987,342 | |||||||||
| Income tax expense | 1,726,198 | 1,985,077 | 2,893,651 | 3,496,981 | |||||||||
| Net income | $ | 3,142,121 | $ | 3,700,009 | $ | 5,310,248 | $ | 6,490,361 | |||||
| Basic earnings per share | $ | 0.07 | $ | 0.08 | $ | 0.12 | $ | 0.14 | |||||
| Diluted earnings per share | $ | 0.07 | $ | 0.08 | $ | 0.11 | $ | 0.13 | |||||
| Weighted average shares outstanding, basic | 45,659,907 | 46,433,846 | 45,656,230 | 46,281,531 | |||||||||
| Weighted average shares outstanding, diluted | 47,576,328 | 48,419,650 | 47,484,046 | 48,375,616 | |||||||||
| Cash Flow Data | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2010 | 2011 | |||||||
| Net cash provided by operating activities | 6,599 | 4,876,247 | ||||||
| Net cash provided by (used in) investing activities | 1,731,686 | (9,100,882 | ) | |||||
| Net cash provided by (used in) financing activities | (1,091,263 | ) | 6,997,007 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (36,104 | ) | (56,215 | ) | ||||
| Increase in cash and cash equivalents | 610,918 | 2,716,157 | ||||||
| Cash and cash equivalents, beginning of period | 2,903,906 | 5,259,272 | ||||||
| Cash and cash equivalents, end of period | $ | 3,514,824 | $ | 7,975,429 | ||||
|
Reconciliation of Adjusted EBITDA |
||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||
| Operating Income | $ | 4,651,759 | $ | 5,208,256 | $ | 7,462,240 | $ | 9,123,884 | ||||
| Preference claim liability | - | 950,000 | - | 950,000 | ||||||||
| Depreciation and amortization | 2,215,219 | 2,472,456 | 4,332,844 | 4,894,501 | ||||||||
| Stock based compensation | 836,351 | 828,778 | 1,397,369 | 1,770,140 | ||||||||
| Adjusted EBITDA | $ | 7,703,329 | $ | 9,459,490 | $ | 13,192,453 | $ | 16,738,525 | ||||
| Reconciliation of Adjusted Net Income | ||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||||
| Net Income | $ | 3,142,121 | $ | 3,700,009 | $ | 5,310,248 | $ | 6,490,361 | ||||||
| Preference claim liability | - | 950,000 | - | 950,000 | ||||||||||
| Tax effect of preference claim liability | - | (380,000 | ) | - | (380,000 | ) | ||||||||
| Adjusted net income | $ | 3,142,121 | $ | 4,270,009 | $ | 5,310,248 | $ | 7,060,361 | ||||||
|
Adjusted diluted EPS |
$ | 0.07 | $ | 0.09 | $ | 0.11 | $ | 0.15 | ||||||
| Diluted shares | 47,576,328 | 48,419,650 | 47,484,046 | 48,375,616 | ||||||||||
skozak@inwk.com
Source:
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