InnerWorkings Announces Record Fourth Quarter and Full Year 2010 Results
Record Quarterly and Annual Revenue; Expanding Geographic Footprint to Meet Needs of Global Clients
Quarterly Highlights:
-
Record revenue for the fourth quarter of
$130.4 million , an increase of 20.9% compared to revenue of$107.9 million in the fourth quarter of 2009. -
Net income was
$3.5 million , an increase of 61.9% compared to$2.2 million in the year-earlier period. Earnings were$0.07 per diluted share compared to$0.05 per diluted share in the fourth quarter of 2009. -
Adjusted EBITDA was
$7.9 million , an increase of 30.2% compared to$6.1 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information. -
Revenue from new accounts was
$12.8 million . -
Cash flow generated from operations was
$6.2 million compared to$4.1 million in the fourth quarter of 2009.
Fiscal Year Highlights:
-
Record revenue for fiscal year 2010 of
$482.2 million , an increase of 20.4% compared to revenue of$400.4 million in fiscal year 2009. -
Net income was
$11.2 million and diluted earnings per share were$0.24 , compared to net income of$6.3 million and diluted earnings per share of$0.13 in fiscal year 2009, an increase of 77.7% and 84.6%, respectively. -
Adjusted EBITDA was
$27.4 million , an increase of 37.0% compared to$20.0 million in fiscal year 2009. Please refer to the non-GAAP reconciliation table below for more information. -
Revenue from new accounts was
$59.7 million . -
Cash flow generated from operations was
$8.3 million compared to$14.2 million in fiscal year 2009.
"Fiscal year 2010 was a record year for growth and development at
Additional fourth quarter 2010 financial and operational highlights include the following:
- For the fourth quarter of 2010, 70 percent of the Company's revenue was generated from sales to enterprise clients, with the remaining 30 percent derived from transactional clients.
- The Company conducted business with all 25 of its top 25 customers from the year-earlier period.
-
As of
December 31, 2010 , the Company had an outstanding balance of$47.4 million on its$100 million bank credit facility and retained cash and short-term investments of$9.5 million .
"The Company's strengthening financial position is reflected in our
improving operating profit and return on invested capital," said Joseph
M. Busky, Chief Financial Officer of
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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
(inwk-e)
| Consolidated Statements of Income (unaudited) | |||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
| 2009 | 2010 | 2009 | 2010 | ||||||||||||
| Revenue | $ | 107,865,897 | $ | 130,397,680 | $ | 400,447,044 | $ | 482,212,101 | |||||||
| Cost of goods sold | 81,742,080 | 98,866,457 | 301,671,851 | 366,199,728 | |||||||||||
| Gross profit | 26,123,817 | 31,531,223 | 98,775,193 | 116,012,373 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general, and administrative expenses | 20,609,451 | 24,529,777 | 81,287,702 | 91,796,566 | |||||||||||
| Depreciation and amortization | 2,274,525 | 2,416,469 | 8,030,772 | 9,008,514 | |||||||||||
| Income from operations | 3,239,841 | 4,584,977 | 9,456,719 | 15,207,293 | |||||||||||
| Total other income (expense) | (350,490 | ) | 526,278 | (439,204 | ) | 1,752,002 | |||||||||
| Income before taxes | 2,889,351 | 5,111,255 | 9,017,515 | 16,959,295 | |||||||||||
| Income tax expense | 705,155 | 1,576,099 | 2,708,057 | 5,748,806 | |||||||||||
| Net income | $ | 2,184,196 | $ | 3,535,156 | $ | 6,309,458 | $ | 11,210,489 | |||||||
| Basic earnings per share | $ | 0.05 | $ | 0.08 | $ | 0.14 | $ | 0.25 | |||||||
| Diluted earnings per share | $ | 0.05 | $ | 0.07 | $ | 0.13 | $ | 0.24 | |||||||
| Weighted average shares outstanding, basic | 45,623,101 | 45,822,658 | 45,535,357 | 45,703,699 | |||||||||||
| Weighted average shares outstanding, diluted | 47,304,351 | 47,733,052 | 47,156,705 | 47,582,337 | |||||||||||
| Consolidated Balance Sheet Data | ||||||
| December 31, | December 31, | |||||
| 2009 | 2010 | |||||
| Cash and cash equivalents | $ | 2,903,906 | $ | 5,259,272 | ||
| Short-term investments | 23,541,199 | 4,284,614 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 72,565,814 | 85,654,403 | ||||
| Unbilled revenue | 20,189,900 | 24,626,558 | ||||
| Inventories | 8,749,266 | 9,674,961 | ||||
| Prepaid expenses | 11,399,560 | 9,836,486 | ||||
| Other current assets | 7,391,905 | 7,139,680 | ||||
| Total long-term assets | 120,416,506 | 133,448,806 | ||||
| Total assets | $ | 267,158,056 | $ | 279,924,780 | ||
| Accounts payable-trade | $ | 53,915,750 | $ | 55,604,566 | ||
| Other current liabilities | 16,717,920 | 13,316,491 | ||||
| Revolving credit facility | 46,384,586 | 47,400,000 | ||||
| Other long-term liabilities | 3,089,784 | 3,419,624 | ||||
| Total stockholders' equity | 147,050,016 | 160,184,099 | ||||
| Total liabilities and stockholders' equity | $ | 267,158,056 | $ | 279,924,780 | ||
| Cash Flow Data (Unaudited) | ||||||||
| 2009 | 2010 | |||||||
| Net cash provided by operating activities | $ | 14,201,861 | $ | 8,324,293 | ||||
| Net cash used in investing activities | (18,948,010 | ) | (4,182,676 | ) | ||||
| Net cash provided by (used in) financing activities | 3,770,465 | (1,780,381 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (132,265 | ) | (5,870 | ) | ||||
| Increase (decrease) in cash and cash equivalents | (1,107,949 | ) | 2,355,366 | |||||
| Cash and cash equivalents, beginning of period | 4,011,855 | 2,903,906 | ||||||
| Cash and cash equivalents, end of period | $ | 2,903,906 | $ | 5,259,272 | ||||
| Reconciliation of Adjusted EBITDA | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2009 | 2010 | 2009 | 2010 | |||||||||
| Operating Income | $ | 3,239,841 | $ | 4,584,976 | $ | 9,456,719 | $ | 15,207,293 | ||||
| Depreciation and amortization | 2,274,525 | 2,416,469 | 8,030,772 | 9,008,514 | ||||||||
| Stock based compensation | 540,573 | 879,079 | 2,481,159 | 3,148,619 | ||||||||
| Adjusted EBITDA | $ | 6,054,939 | $ | 7,880,524 | $ | 19,968,650 | $ | 27,364,426 | ||||
skozak@inwk.com
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