InnerWorkings Announces Record First Quarter 2011 Results
Quarterly Revenue Reflects 29% Year-Over-Year Growth; Company Raises Revenue Guidance
Quarterly Highlights:
-
Record revenue generated during the first quarter was
$145.2 million , an increase of 29% compared with the first quarter of 2010. -
Adjusted EBITDA was
$7.3 million , an increase of 33% compared to$5.5 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information. -
Net income was
$2.8 million , an increase of 29% compared to$2.2 million in the year-earlier period. Earnings were$0.06 per diluted share compared to$0.05 per diluted share in the first quarter of 2010. Both earnings per share figures include$0.01 per diluted share from the sale ofEcho Global Logistics stock. -
Year-over-year enterprise revenue growth of 35% and transactional
revenue growth of 14%. Revenue from new enterprise accounts was
$15.1 million in the first quarter. -
Cash flow generated from operations was
$7.1 million compared to$4.2 million in the first quarter of 2010.
"I am pleased with our execution in the quarter and excited about our
growth prospects," said
Additional first quarter 2011 financial and operational highlights include the following:
- 76% of the Company's revenue was generated from sales to enterprise clients, with the remaining 24% derived from transactional clients.
-
As of
March 31, 2011 , the Company had an outstanding balance of$47.9 million on its$100 million bank credit facility and retained cash and short-term investments of$10.4 million .
"Our momentum in the first quarter is setting the tone for 2011," said
Joseph M. Busky, Chief Financial Officer of
Outlook
The Company is raising its 2011 revenue guidance to
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For more information visit: www.inwk.com.
Non-GAAP Financial Measures
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
(inwk-e)
Consolidated Balance Sheet Data | ||||||||
December 31, | March 31, | |||||||
2010 | 2011 | |||||||
(unaudited) | ||||||||
Cash and cash equivalents | $ | 5,259,272 | $ | 6,886,626 | ||||
Short-term investments | 4,284,614 | 3,549,892 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 85,654,403 | 108,179,728 | ||||||
Unbilled revenue | 24,626,558 | 26,275,136 | ||||||
Inventories | 9,674,961 | 10,613,325 | ||||||
Prepaid expenses | 9,836,486 | 13,014,195 | ||||||
Other current assets | 7,139,680 | 13,014,026 | ||||||
Total long-term assets | 133,448,806 | 156,457,116 | ||||||
Total assets | $ | 279,924,780 | $ | 337,990,044 | ||||
Accounts payable-trade | $ | 55,604,566 | $ | 87,996,336 | ||||
Other current liabilities | 13,333,629 | 24,573,008 | ||||||
Revolving credit facility | 47,400,000 | 47,900,000 | ||||||
Other long-term liabilities | 3,402,486 | 13,820,230 | ||||||
Total stockholders' equity | 160,184,099 | 163,700,470 | ||||||
Total liabilities and stockholders' equity | $ | 279,924,780 | $ | 337,990,044 |
Consolidated Statements of Income (Unaudited) |
|||||||||
Three Months Ended March 31, | |||||||||
2010 | 2011 | ||||||||
Revenue | $ | 112,212,546 | $ | 145,180,692 | |||||
Cost of goods sold | 85,280,016 | 111,852,782 | |||||||
Gross profit | 26,932,530 | 33,327,910 | |||||||
Operating expenses: | |||||||||
Selling, general, and administrative expenses | 22,004,424 | 26,990,237 | |||||||
Depreciation and amortization | 2,117,625 | 2,422,045 | |||||||
Income from operations | 2,810,481 | 3,915,628 | |||||||
Total other income | 525,099 | 386,628 | |||||||
Income before taxes | 3,335,580 | 4,302,256 | |||||||
Income tax expense | 1,167,453 | 1,511,904 | |||||||
Net income | $ | 2,168,127 | $ | 2,790,352 | |||||
Basic earnings per share | $ | 0.05 | $ | 0.06 | |||||
Diluted earnings per share | $ | 0.05 | $ | 0.06 | |||||
Weighted average shares outstanding, basic | 45,652,208 | 46,128,025 | |||||||
Weighted average shares outstanding, diluted | 47,406,736 | 48,339,024 |
Cash Flow Data (Unaudited) | ||||||||||
Three Months Ended March 31, | ||||||||||
2010 | 2011 | |||||||||
Net cash provided by operating activities |
$ |
4,213,913 |
$ |
7,050,787 | ||||||
Net cash provided by (used in) investing activities | 190,762 | (6,070,325 | ) | |||||||
Net cash provided by financing activities | 75,827 | 519,668 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (15,434 | ) | 127,224 | |||||||
Increase in cash and cash equivalents | 4,465,068 | 1,627,354 | ||||||||
Cash and cash equivalents, beginning of period | 2,903,906 | 5,259,272 | ||||||||
Cash and cash equivalents, end of period | $ | 7,368,974 | $ | 6,886,626 |
Reconciliation of Adjusted EBITDA | |||||||||
Three Months Ended March 31, | |||||||||
2010 | 2011 | ||||||||
Operating Income | $ | 2,810,481 | $ | 3,915,628 | |||||
Depreciation and amortization | 2,117,625 | 2,422,045 | |||||||
Stock based compensation | 561,018 | 941,362 | |||||||
Adjusted EBITDA | $ | 5,489,124 | $ | 7,279,035 |
skozak@inwk.com
Source:
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