Largest Customer's Asset Sale Results in Significant Reduction in
Scope of Work; Company Also Announces Acquisition of DB Studios
InnerWorkings (NASDAQ: INWK), a
leading global marketing supply chain company, today announced revised
full year guidance and previewed first quarter 2013 results.
Full year 2013 revenue guidance has been adjusted to $900 to $930
million, an increase of 13 to 17% over the prior year. Full year 2013
diluted GAAP earnings per share guidance has been adjusted to a range of
$0.45 to $0.50, an increase of 10 to 22% over the prior year's adjusted
diluted earnings per share of $0.41. This compares to the previous full
year revenue guidance of $930 to $960 million and diluted GAAP earnings
per share guidance of $0.57 to $0.61.
These full year estimates reflect a change in control at a large retail
client, resulting in the decision to redirect a significant portion of
work to a provider with an existing business relationship with the
client's new management team. Although the scope of work was reduced
beginning in March, InnerWorkings expects to continue serving a portion
of this client's business on a going forward basis.
The reduction in full year guidance is partially offset by the
acquisition of DB Studios, Inc., which was completed in late March 2013.
A California-based distributor of permanent POP displays and retail
fixtures, DB Studios' clients include major retail and consumer package
goods brands. The acquisition provides InnerWorkings with creative,
design, engineering, and prototyping capabilities, which are critical in
the permanent display world. DB Studios is expected to contribute
approximately $20 million of revenue for the balance of 2013.
"While we are disappointed by the revenue loss from a major client, we
understand this risk presents itself when a client undergoes a change in
control. We look forward to continuing to deliver excellent service and
savings for them, albeit in a new reduced role," said Eric Belcher,
Chief Executive Officer of InnerWorkings. "Importantly, our new business
pipeline remains strong and we fully expect to achieve our new business
growth targets for the year."
InnerWorkings expects to report first quarter 2013 revenue in the range
of $204 to $207 million, and diluted GAAP earnings per share in the
range of $.01 to $.03. The Company will provide further details when it
announces its full first quarter 2013 results after the financial
markets close on Thursday, May 9, 2013. Eric Belcher, Chief Executive
Officer, and Joseph Busky, Chief Financial Officer, will host a live
webcast presentation on the first quarter results at 10:00 a.m. CDT
(11:00 a.m. EDT) on Friday, May 10, 2013.
The phone number to access the conference call is (877) 771-7024. A live
webcast of the call will be available through the Investor "Events &
Presentations" section of InnerWorkings' website at http://investor.inwk.com/events.cfm.
A replay of the webcast will be available later that day in the same
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 SEC filings, including the "Risk
Factors" section of the Form 10-K we recently filed with the SEC.
About InnerWorkings, Inc.
Inc. (NASDAQ: INWK) is a leading global marketing supply chain
company servicing corporate clients across a wide range of industries.
With proprietary technology, an extensive supplier network and deep
domain expertise, the Company procures, manages and delivers printed
materials and promotional products as part of a comprehensive outsourced
enterprise solution. InnerWorkings is based in Chicago, IL, employs
approximately 1,400 individuals, and maintains 49 global offices. Among
the many industries InnerWorkings services
are: retail, financial services, hospitality, non-profits, healthcare,
food & beverage, broadcasting & cable, education, transportation and
For more information visit: www.inwk.com.
Source: InnerWorkings, Inc.
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