InnerWorkings Announces Fourth Quarter and Fiscal 2008 Results
CHICAGO, Feb 19, 2009 (BUSINESS WIRE) -- InnerWorkings, Inc. (NASDAQ: INWK), a leading global provider of managed print and promotional solutions to corporate clients, today reported results for the fourth quarter and fiscal year ended December 31, 2008.
Fiscal Year Highlights:
"In 2008, we made impressive progress on multiple fronts, including achieving numerous enterprise wins and driving organic growth, capturing market share in a shrinking environment for printed and promotional materials, and expanding our footprint to include important new markets, all while reporting record revenues and cash flow," said Eric D. Belcher, Chief Executive Officer of InnerWorkings. "That said, the Company's fourth quarter was significantly impacted by the current economic environment, particularly in December. However, our low-cost, high service business model continues to resonate and gain momentum, while providing a solid and growing base of recurring revenue support for our business in 2009 and beyond."
Revenue for the Company's fourth quarter was $104.5 million, an increase of 16 percent compared to revenue of $90.0 million in the fourth quarter of 2007. Unprecedented print and promotional budget cutbacks, combined with an additional $2.3 million of bad debt expense, resulted in operating income of $0.8 million. Fourth quarter net income was $0.3 million, or $0.01 per diluted share, which includes a provision for bad debt of $0.03 per share.
In fiscal 2008, the Company achieved revenue of $419.0 million, an increase of 45 percent compared to revenue of $288.4 million in 2007. Operating income for the full year 2008 was $19.6 million. Absent increases in non-cash depreciation and amortization expense and stock-based compensation expense, 2008 operating income was flat compared to 2007. Actual bad debt expense was $4.1 million in 2008 versus $0.6 million in 2007. Full year net income and diluted earnings per share were $16.0 million and $0.32, respectively.
Additional fourth quarter 2008 financial and operational highlights include the following:
The Company is updating its 2009 revenue guidance to a range of $450 million to $475 million, while maintaining its previously announced 2009 annual earnings per share guidance of $0.35 to $0.39.
"We have been proactive in modifying our business in response to the changing economic landscape, including a 15 percent reduction in non-sales workforce instituted in January," stated Joseph M. Busky, Chief Financial Officer of InnerWorkings. "We remain vigilant and committed to right-sizing internal capacity to coincide with shifts in demand. At the same time, we will continue to leverage our healthy financial position to plan for the future as we spend wisely to enhance our growth profile."
A conference call will be broadcast live on Thursday, February 19, 2009, 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 Eric D. Belcher, Chief Executive Officer, and Joseph M. Busky, Chief Financial Officer. Interested parties are invited to listen to the live webcast by visiting the Investor "Events & Presentations" section of InnerWorkings' website at www.inwk.com. A replay of the webcast will be available later that day in the same section of the website.
About InnerWorkings, Inc.
InnerWorkings, Inc. (NASDAQ: INWK) is a leading global provider of managed print and promotional solutions to corporate clients across a wide range of industries. With proprietary technology, an extensive supplier network and domain expertise, the Company procures, manages and delivers printed materials and promotional products as part of a comprehensive outsourced enterprise solution. The Company is based in Chicago with other offices in the United States and in the United Kingdom. For more information on InnerWorkings, visit: www.inwk.com.
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 our most recently filed Form 10-K.
|Consolidated Statements of Income (Unaudited)|
|Twelve Months Ended||Three Months Ended|
|December 31,||December 31,|
|Cost of goods sold||215,043,482|
|Selling, general, and administrative expenses||47,981,962|
|Depreciation and amortization||2,215,543||4,760,819||635,728||1,552,915|
|Income from operations||23,190,292||19,605,200||7,996,962||845,918|
|Total other income (expense)||2,671,116||6,444,563||648,812||(434,739||)|
|Income before taxes||25,861,408||26,049,763||8,645,774||411,179|
|Income tax expense||3,357,334||10,096,668||(3,348,063||)||100,486|
|Basic earnings per share||$||0.47||$||0.34||$||0.25||$||0.01|
|Diluted earnings per share||$||0.45||$||0.32||$||0.24||$||0.01|
|Weighted average shares outstanding, basic||47,459,481||47,137,002||47,922,081||45,418,721|
|Weighted average shares outstanding, diluted||49,964,494||49,141,147||50,307,791||47,114,902|
|Consolidated Balance Sheet Data (Unaudited)|
|December 31,||December 31,|
|Cash and cash equivalents||$||26,716,239||$||4,011,855|
|Accounts receivable, net||77,280,954||73,628,112|
|Other current assets||2,900,546||10,670,209|
|Total long-term assets||57,418,999||120,912,517|
|Total current liabilities||13,222,817||65,854,864|
|Total long-term liabilities||147,481||144,993|
|Total stockholders' equity||147,445,079||133,738,029|
|Total liabilities and stockholders' equity||$||206,833,230||$||253,822,316|
|Cash Flow Data (Unaudited)|
|Years Ended December 31,|
|Net cash provided by operating activities||8,046,024||12,619,693|
Net cash used in investing activities and financing activities
|Increase (decrease) in cash and cash equivalents||6,103,295||(22,704,384||)|
|Cash and cash equivalents, beginning of period||20,612,944||26,716,239|
|Cash and cash equivalents, end of period||$||26,716,239||$||4,011,855|
SOURCE: InnerWorkings, Inc.
Mark Desky, 312-604-5470
Copyright Business Wire 2009