InnerWorkings Announces Third Quarter 2011 Results
Record Quarterly Revenue Reflects 32.5% Year-Over-Year Growth; Company Raises 2011 Guidance
Quarterly Highlights:
-
Record revenue of
$157.8 million , an increase of 32.5% compared with the third quarter of 2010. This represents the fourth consecutive quarter of record revenue. - Signed six new enterprise agreements including a major BPO contract.
-
Net income was
$4.1 million , an increase of 75% compared to$2.4 million in the year-earlier period. Earnings were$0.09 per diluted share compared to$0.05 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. -
Record Adjusted EBITDA of
$9.5 million , an increase of 52% compared to$6.3 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 29% and transactional revenue growth of 41%.
-
Record cash flow generated from operations was
$12.1 million compared to$2.1 million in the third quarter of 2010.
"We have great momentum in the business, delivering record revenue for
the fourth consecutive quarter and signing a major BPO contract," said
Additional third quarter 2011 financial and operational highlights include the following:
- 72% of the Company's revenue was generated from sales to enterprise clients, with the remaining 28% derived from transactional clients.
-
As of
September 30, 2011 , the Company had an outstanding balance of$53.2 million on its$100 million bank credit facility and retained cash and short-term investments of$11.3 million .
"The record Adjusted EBITDA and operating cash flow we generated in the
quarter reflect leverage in the model and the underlying power of the
business," said
Outlook
The Company is raising its 2011 revenue guidance from a range of
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 Measure
This press release includes the following financial measure defined as a
"non-GAAP financial measure" 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 | ||||||
|
September 30, | |||||
2010 | 2011 | |||||
(unaudited) | ||||||
Cash and cash equivalents | $ | 5,259,272 | $ | 9,577,286 | ||
Short-term investments | 4,284,614 | 1,750,147 | ||||
Accounts receivable, net of allowance for doubtful accounts | 85,110,289 | 104,954,916 | ||||
Unbilled revenue | 24,626,558 | 30,965,531 | ||||
Inventories | 9,674,961 | 20,050,654 | ||||
Prepaid expenses | 9,836,486 | 10,727,255 | ||||
Other current assets | 7,683,794 | 22,329,572 | ||||
Total long-term assets | 133,448,806 | 176,112,466 | ||||
Total assets | $ | 279,924,780 | $ | 376,467,827 | ||
Accounts payable-trade | $ | 55,604,566 | $ | 96,358,716 | ||
Other current liabilities | 13,333,629 | 37,236,137 | ||||
Revolving credit facility | 47,400,000 | 53,200,000 | ||||
Other long-term liabilities | 3,402,486 | 16,834,269 | ||||
Total stockholders' equity | 160,184,099 | 172,838,705 | ||||
Total liabilities and stockholders' equity | $ | 279,924,780 | $ | 376,467,827 |
Consolidated Statements of Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Nine Months Ended September 30, | ||||||||||||||
2010 | 2011 | 2010 | 2011 | ||||||||||||
Revenue | $ | 119,130,589 | $ | 157,818,904 | $ | 351,814,421 | $ | 458,611,577 | |||||||
Cost of goods sold | 90,621,581 | 120,726,113 | 267,333,271 | 351,848,878 | |||||||||||
Gross profit | 28,509,008 | 37,092,791 | 84,481,150 | 106,762,699 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general, and administrative expenses | 23,089,731 | 28,664,137 | 67,266,789 | 83,365,659 | |||||||||||
Depreciation and amortization | 2,259,201 | 2,495,323 | 6,592,045 | 7,389,824 | |||||||||||
Preference claim charge | - | - | - | 950,000 | |||||||||||
Income from operations | 3,160,076 | 5,933,331 | 10,622,316 | 15,057,216 | |||||||||||
Total other income (expense) | 484,065 | 432,886 | 1,225,724 | 1,296,343 | |||||||||||
Income before taxes | 3,644,141 | 6,366,217 | 11,848,040 | 16,353,559 | |||||||||||
Income tax expense | 1,279,056 | 2,228,176 | 4,172,707 | 5,725,157 | |||||||||||
Net income | $ | 2,365,085 | $ | 4,138,041 | $ | 7,675,333 | $ | 10,628,402 | |||||||
Basic earnings per share | $ | 0.05 | $ | 0.09 | $ | 0.17 | $ | 0.23 | |||||||
Diluted earnings per share | $ | 0.05 | $ | 0.09 | $ | 0.16 | $ | 0.22 | |||||||
Weighted average shares outstanding, basic | 45,677,807 | 46,456,980 | 45,663,658 | 46,350,258 | |||||||||||
Weighted average shares outstanding, diluted | 47,637,992 | 48,485,484 | 47,532,976 | 48,421,908 |
|
||||||||
Nine Months Ended September 30, | ||||||||
2010 | 2011 | |||||||
Net cash provided by operating activities | 2,074,660 | 17,023,256 | ||||||
Net cash provided by (used in) investing activities | 1,382,154 | (19,239,802 | ) | |||||
Net cash provided by financing activities | (836,621 | ) |
6,680,848 |
|||||
Effect of exchange rate changes on cash and cash equivalents | 19,746 |
(146,288 |
) | |||||
Increase in cash and cash equivalents | 2,639,939 |
4,318,014 |
||||||
Cash and cash equivalents, beginning of period | 2,903,906 | 5,259,272 | ||||||
Cash and cash equivalents, end of period | $ | 5,543,845 | $ | 9,577,286 |
Reconciliation of Adjusted EBITDA | ||||||||
Three Months Ended |
Nine Months Ended September 30, | |||||||
2010 | 2011 | 2010 | 2011 | |||||
Operating Income |
|
|
|
|
||||
Preference claim charge | - | - | - | 950,000 | ||||
Depreciation and amortization | 2,259,201 | 2,495,323 | 6,592,045 | 7,389,824 | ||||
Stock based compensation | 872,171 | 1,118,890 | 2,269,540 | 2,889,030 | ||||
Adjusted EBITDA |
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skozak@inwk.com
Source:
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