Press Release
Major New Enterprise Wins Contribute to Increase in Revenue Guidance
Quarterly Highlights:
-
Record revenue of
$188.5 million , an increase of 30% compared to$145.2 million in the first quarter of 2011. Organic revenue growth in the quarter was 21%. - Two of the contracts signed in the quarter are expected to become the Company's largest enterprise relationships.
-
Non-GAAP Adjusted EBITDA was
$9.6 million , an increase of 31% compared to$7.3 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information. -
Net income was
$3.7 million , an increase of 32% compared to$2.8 million in the year-earlier period. Excluding proceeds from the sale of Echo Global Logistics stock in both periods, earnings per diluted share in the first quarter of 2012 were$0.07 compared to$0.05 per diluted share in the first quarter of 2011. -
Year-over-year enterprise revenue growth of 35% and transactional
revenue growth of 15%. Revenue from new enterprise accounts was a
record
$23.2 million in the first quarter. -
Amended credit facility, which lowered borrowing costs, increased the
line of credit to
$150 million and extended the maturity date toAugust 2015 .
"Our business momentum continues to grow, as we delivered record revenue
for the sixth consecutive quarter, were awarded what we expect to be our
two largest ever enterprise contracts and raised our revenue guidance
for the year," said
Additional first quarter 2012 financial and operational highlights include the following:
- 79% of the Company's revenue was generated from sales to enterprise clients, with the remaining 21% derived from transactional clients.
-
As of
March 31, 2012 , the Company had an outstanding balance of$71.4 million on its newly amended$150 million bank credit facility and retained cash and short-term investments of$16.6 million .
"We continued to execute effectively against our goals, generating
strong operational and financial results," said
Outlook
The Company is raising its 2012 revenue guidance to
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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 Statements of Income | ||||||||
| Three Months Ended March 31, | ||||||||
| 2011 | 2012 | |||||||
| Revenue | $ | 145,180,692 | $ | 188,546,402 | ||||
| Cost of goods sold | 111,852,782 | 147,153,019 | ||||||
| Gross profit | 33,327,910 | 41,393,383 | ||||||
| Operating expenses: | ||||||||
| Selling, general, and administrative expenses | 26,990,237 | 33,083,264 | ||||||
| Depreciation and amortization | 2,422,045 | 2,444,096 | ||||||
| Income from operations | 3,915,628 | 5,866,023 | ||||||
| Total other income (expense) | 386,628 | (260,388 | ) | |||||
| Income before taxes | 4,302,256 | 5,605,635 | ||||||
| Income tax expense | 1,511,904 | 1,917,947 | ||||||
| Net income | $ | 2,790,352 | $ | 3,687,688 | ||||
|
|
$ | 0.06 | $ | 0.08 | ||||
| Diluted earnings per share | $ | 0.06 | $ | 0.07 | ||||
| Weighted average shares outstanding, basic | 46,128,025 | 47,193,327 | ||||||
| Weighted average shares outstanding, diluted | 48,339,024 | 50,013,569 | ||||||
| Consolidated Balance Sheets | ||||||
|
|
March 31, | |||||
| 2011 | 2012 | |||||
| Cash and cash equivalents | $ | 13,219,385 | $ | 15,665,972 | ||
| Short-term investments | 1,129,757 | 888,897 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 124,678,502 | 146,807,088 | ||||
| Unbilled revenue | 28,318,751 | 30,883,113 | ||||
| Inventories | 14,201,606 | 12,198,821 | ||||
| Prepaid expenses | 11,066,451 | 10,696,763 | ||||
| Other current assets | 15,873,386 | 26,454,173 | ||||
| Total long-term assets | 249,165,348 | 250,731,846 | ||||
| Total assets | $ | 457,653,186 | $ | 494,326,673 | ||
| Accounts payable-trade | $ | 102,245,865 | $ | 119,531,508 | ||
| Other current liabilities | 46,135,672 | 43,690,982 | ||||
| Revolving credit facility | 60,000,000 | 71,400,000 | ||||
| Other long-term liabilities | 67,769,862 | 67,684,309 | ||||
| Total stockholders' equity | 181,501,787 | 192,019,874 | ||||
| Total liabilities and stockholders' equity | $ | 457,653,186 | $ | 494,326,673 | ||
|
|
||||||||
| Three Months Ended March 31, | ||||||||
| 2011 | 2012 | |||||||
| Net cash provided by (used in) operating activities |
$ |
7,050,787 |
$ |
(7,472,638 | ) | |||
| Net cash used in investing activities | (6,070,325 | ) | (3,189,117 | ) | ||||
| Net cash provided by financing activities | 519,668 | 12,886,424 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 127,224 | 221,918 | ||||||
| Increase in cash and cash equivalents | 1,627,354 | 2,446,587 | ||||||
| Cash and cash equivalents, beginning of period | 5,259,272 | 13,219,385 | ||||||
| Cash and cash equivalents, end of period | $ | 6,886,626 | $ | 15,665,972 | ||||
| Reconciliation of Adjusted EBITDA | ||||||
| Three Months Ended March 31, | ||||||
| 2011 | 2012 | |||||
| Operating Income | $ | 3,915,628 | $ | 5,866,023 | ||
| Depreciation and amortization | 2,422,045 | 2,444,096 | ||||
| Stock based compensation | 941,362 | 1,047,645 | ||||
| Change in fair Value of contingent consideration | - | 200,141 | ||||
| Adjusted EBITDA | $ | 7,279,035 | $ | 9,557,905 | ||
(312) 642-3700
skozak@inwk.com
Source:
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