Press Release
Record Revenue and Adjusted EBITDA for Quarter and Year; Established Global Platform Servicing Multinational Clients
Quarterly Highlights:
-
Record revenue of
$175.2 million , an increase of 34.4% compared to revenue of$130.4 million in the fourth quarter of 2010. This represents the fifth consecutive quarter of record revenue. -
Net income was
$5.8 million , an increase of 63.1% compared to$3.5 million in the year-earlier period. Earnings were$0.12 per diluted share compared to$0.07 per diluted share in the year-earlier period. Both earnings per share figures include$0.01 per diluted share from the sale of Echo Global Logistics stock. -
Record Adjusted EBITDA of
$11.4 million , an increase of 45.0% compared to$7.9 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information. - Year-over-year enterprise revenue growth of 31.7% and transactional revenue growth of 42.0%.
-
Cash flow generated from operations was
$10.8 million , an increase of 72.1% compared to$6.3 million in the fourth quarter of 2010.
Fiscal Year Highlights:
-
Record revenue for fiscal year 2011 of
$633.8 million , an increase of 31.4% compared to revenue of$482.2 million in fiscal year 2010. -
Net income was
$16.4 million and diluted earnings per share were$0.34 , compared to net income of$11.2 million and diluted earnings per share of$0.24 in fiscal year 2010, an increase of 46.2% and 41.7%, respectively. -
Record Adjusted EBITDA was
$37.7 million , an increase of 37.8% compared to$27.4 million in fiscal year 2010. Please refer to the non-GAAP reconciliation table below for more information. -
Record organic revenue of
$60.4 million from new enterprise accounts. -
Record cash flow generated from operations was
$27.8 million , an increase of 233.2% compared to$8.4 million in fiscal year 2010.
"Our record 2011 financial results were driven by successful execution
against our strategic priorities and the breadth of our global
platform," said
Additional fourth quarter 2011 financial and operational highlights include the following:
- 72% of the Company's revenue was generated from sales to enterprise clients, with the remaining 28% derived from transactional clients.
-
As of
December 31, 2011 , the Company had an outstanding balance of$60.0 million on its$100 million bank credit facility and retained cash and short-term investments of$14.3 million .
"We achieved a number of significant milestones in 2011, including
records for revenue, Adjusted EBITDA and operating cash flow, which
demonstrate our growth and profitability momentum," said Joseph M.
Busky, chief financial officer of
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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
| Consolidated Statements of Income | |||||||||||||
|
Three Months Ended |
Twelve Months Ended December 31, | ||||||||||||
| 2010 | 2011 | 2010 | 2011 | ||||||||||
| Revenue | $ | 130,397,680 | $ | 175,234,543 | $ | 482,212,101 | $ | 633,846,120 | |||||
| Cost of goods sold | 98,866,457 | 132,634,714 | 366,199,728 | 484,483,592 | |||||||||
| Gross profit | 31,531,223 | 42,599,829 | 116,012,373 | 149,362,528 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general, and administrative expenses | 24,529,777 | 32,258,617 | 91,796,566 | 115,624,276 | |||||||||
| Depreciation and amortization | 2,416,469 | 2,781,934 | 9,008,514 | 10,171,758 | |||||||||
| Preference claim charge | - | - | - | 950,000 | |||||||||
| Income from operations | 4,584,977 | 7,559,278 | 15,207,293 | 22,616,494 | |||||||||
| Total other income (expense) | 526,278 | 582,779 | 1,752,002 | 1,879,122 | |||||||||
| Income before taxes | 5,111,255 | 8,142,057 | 16,959,295 | 24,495,616 | |||||||||
| Income tax expense | 1,576,099 | 2,377,452 | 5,748,806 | 8,102,609 | |||||||||
| Net income | $ | 3,535,156 | $ | 5,764,605 | $ | 11,210,489 | $ | 16,393,007 | |||||
| Basic earnings per share | $ | 0.08 | $ | 0.12 | $ | 0.25 | $ | 0.35 | |||||
| Diluted earnings per share | $ | 0.07 | $ | 0.12 | $ | 0.24 | $ | 0.34 | |||||
| Weighted average shares outstanding, basic | 45,822,658 | 46,658,537 | 45,703,699 | 46,428,443 | |||||||||
| Weighted average shares outstanding, diluted | 47,733,052 | 49,188,391 | 47,582,337 | 48,826,958 | |||||||||
| Consolidated Balance Sheets | ||||||
|
|
December 31, | |||||
| 2010 | 2011 | |||||
| Cash and cash equivalents | $ | 5,259,272 | $ | 13,219,385 | ||
| Short-term investments | 4,284,614 | 1,129,757 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 85,110,289 | 124,678,502 | ||||
| Unbilled revenue | 24,626,558 | 28,318,751 | ||||
| Inventories | 9,674,961 | 14,201,606 | ||||
| Prepaid expenses | 9,836,486 | 11,066,451 | ||||
| Other current assets | 7,683,794 | 15,873,386 | ||||
| Total long-term assets | 133,448,806 | 249,165,348 | ||||
| Total assets | $ | 279,924,780 | $ | 457,653,186 | ||
| Accounts payable-trade | $ | 55,604,566 | $ | 102,245,865 | ||
| Other current liabilities | 13,333,629 | 46,135,672 | ||||
| Revolving credit facility | 47,400,000 | 60,000,000 | ||||
| Other long-term liabilities | 3,402,486 | 67,769,862 | ||||
| Total stockholders' equity | 160,184,099 | 181,501,787 | ||||
| Total liabilities and stockholders' equity | $ | 279,924,780 | $ | 457,653,186 | ||
|
|
||||||||
| Twelve Months Ended December 31, | ||||||||
| 2010 | 2011 | |||||||
| Net cash provided by operating activities | 8,352,524 | 27,830,536 | ||||||
|
Net cash provided by (used in) investing activities |
(4,182,676 | ) | (33,575,352 | ) | ||||
|
Net cash provided by (used in) financing activities |
(1,780,381 | ) | 14,067,712 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (34,101 | ) | (362,783 | ) | ||||
| Increase in cash and cash equivalents | 2,355,366 | 7,960,113 | ||||||
| Cash and cash equivalents, beginning of period | 2,903,906 | 5,259,272 | ||||||
| Cash and cash equivalents, end of period | $ | 5,259,272 | $ | 13,219,385 | ||||
| Reconciliation of Adjusted EBITDA | ||||||||||||
|
Three Months Ended |
Twelve Months Ended December 31, | |||||||||||
| 2010 | 2011 | 2010 | 2011 | |||||||||
| Operating Income | $ | 4,584,977 | $ | 7,559,278 | $ | 15,207,293 | $ | 22,616,494 | ||||
| Preference claim charge | - | - | - | 950,000 | ||||||||
| Depreciation and amortization | 2,416,469 | 2,781,934 | 9,008,514 | 10,171,758 | ||||||||
| Stock based compensation | 879,079 | 1,087,157 | 3,148,619 | 3,976,187 | ||||||||
| Adjusted EBITDA | $ | 7,880,525 | $ | 11,428,369 | $ | 27,364,426 | $ | 37,714,439 | ||||
skozak@inwk.com
Source:
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