Press Release
New Global Offering Drives Record Quarterly Revenue and 29% Year-Over-Year Growth
Quarterly Highlights:
-
Record revenue of
$201.4 million , an increase of 29% compared to$155.6 million in the second quarter of 2011. Organic revenue growth in the quarter was 19%.
-
Non-GAAP Adjusted EBITDA was
$11.9 million , an increase of 22% compared to$9.7 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information. -
Net income was
$4.5 million , an increase of 21% compared to$3.7 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 second quarter of 2012 were$0.09 compared to$0.06 per diluted share in the second quarter of 2011. Please refer to the non-GAAP reconciliation table below for more information. -
Year-over-year enterprise revenue growth of 30% and middle market
revenue growth of 27%. Organic revenue from new enterprise accounts
was a record
$25.4 million in the second quarter.
"We achieved record revenue results for the seventh consecutive quarter,
driven by the ramp from recent large enterprise wins and our success at
expanding client relationships to new geographies," said Eric D.
Belcher, chief executive officer of
Additional second quarter 2012 financial and operational highlights include the following:
- 75% of the Company's revenue was generated from sales to enterprise clients, with the remaining 25% derived from sales to middle market clients.
-
As of
June 30, 2012 , the Company had an outstanding balance of$73.0 million on its$150 million bank credit facility and retained cash and short-term investments of$12.8 million .
"The Company's financial position is strong and continues to be
supported by robust organic revenue growth," said
Outlook
The Company is maintaining its previously stated 2012 guidance of
Conference Call
A conference call will be broadcast live on
To access the conference call by telephone, interested parties may dial
(877) 771-7024. Interested parties are also invited to listen to the
live webcast by visiting the Investor "Events & Presentations" section
of
About
For more information visit: www.inwk.com.
Non-GAAP Financial Measure
This press release includes the following financial measures defined as
"non-GAAP financial measures" by the
- Non-GAAP Adjusted EBITDA, which represents income from operations with the addition of depreciation and amortization and stock-based compensation expense, less any change in the fair value of contingent consideration liabilities;
- Non-GAAP Adjusted Operating Cash Flow, which represents net cash provided by (used in) operating activities, excluding the adjustment for cash tax benefits arising from option exercises; and
- Non-GAAP Earnings per Diluted Share, which represents earnings per diluted share, excluding the gain from the sale of Echo Global Logistics stock.
We believe that Non-GAAP Adjusted EBITDA , Non-GAAP Adjusted Operating
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 |
Six Months Ended June 30, | |||||||||||||||
| 2011 | 2012 | 2011 | 2012 | |||||||||||||
| Revenue | $ | 155,611,981 | $ | 201,397,471 | $ | 300,792,673 | $ | 389,943,873 | ||||||||
| Cost of goods sold | 119,269,983 | 153,551,408 | 231,122,765 | 300,704,427 | ||||||||||||
| Gross profit | 36,341,998 | 47,846,063 | 69,669,908 | 89,239,446 | ||||||||||||
| Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
| Selling, general and administrative expenses | 27,711,286 | 37,644,103 | 54,701,523 | 70,727,367 | ||||||||||||
| Depreciation and amortization | 2,472,456 | 2,936,981 | 4,894,501 | 5,381,077 | ||||||||||||
| Preference claim charge | 950,000 | - | 950,000 | - | ||||||||||||
| Income from operations | 5,208,256 | 7,264,979 | 9,123,884 | 13,131,002 | ||||||||||||
| Total other income (expense) | 476,830 | (493,899 | ) | 863,458 | (754,287 | ) | ||||||||||
| Income before taxes | 5,685,086 | 6,771,080 | 9,987,342 | 12,376,715 | ||||||||||||
| Income tax expense | 1,985,077 | 2,296,680 | 3,496,981 | 4,214,627 | ||||||||||||
| Net income | $ | 3,700,009 | $ | 4,474,400 | $ | 6,490,361 | $ | 8,162,088 | ||||||||
| Basic earnings per share | $ | 0.08 | $ | 0.09 | $ | 0.14 | $ | 0.17 | ||||||||
| Diluted earnings per share | $ | 0.08 | $ | 0.09 | $ | 0.13 | $ | 0.16 | ||||||||
| Weighted average shares outstanding, basic | 46,433,846 | 48,617,646 | 46,281,531 | 47,904,961 | ||||||||||||
| Weighted average shares outstanding, diluted | 48,419,650 | 50,706,956 | 48,375,616 | 50,554,642 | ||||||||||||
| Consolidated Balance Sheets | ||||||
|
|
June 30, | |||||
| 2011 | 2012 | |||||
| Cash and cash equivalents | $ | 13,219,385 | $ | 11,971,416 | ||
| Short-term investments | 1,129,757 | 793,707 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 124,946,621 | 139,408,050 | ||||
| Unbilled revenue | 28,318,751 | 33,512,456 | ||||
| Inventories | 14,201,606 | 11,787,614 | ||||
| Prepaid expenses | 11,066,451 | 11,288,934 | ||||
| Other current assets | 15,605,267 | 21,308,976 | ||||
| Total long-term assets | 249,165,348 | 251,253,468 | ||||
| Total assets | $ | 457,653,186 | $ | 481,324,621 | ||
| Accounts payable-trade | $ | 102,290,443 | $ | 100,130,613 | ||
| Other current liabilities | 46,091,094 | 39,195,906 | ||||
| Revolving credit facility | 60,000,000 | 73,000,000 | ||||
| Other long-term liabilities | 67,769,862 | 66,107,784 | ||||
| Total stockholders' equity | 181,501,787 | 202,890,318 | ||||
| Total liabilities and stockholders' equity | $ | 457,653,186 | $ | 481,324,621 | ||
|
|
||||||||
| Six Months Ended June 30, | ||||||||
| 2011 | 2012 | |||||||
| Net cash provided by (used in) operating activities | 4,876,247 | (9,996,549 | ) | |||||
| Net cash used in investing activities | (9,100,882 | ) | (7,247,738 | ) | ||||
| Net cash provided by financing activities | 6,997,007 | 16,119,500 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (56,215 | ) | (123,182 | ) | ||||
| Increase (decrease) in cash and cash equivalents | 2,716,157 | (1,247,969 | ) | |||||
| Cash and cash equivalents, beginning of period | 5,259,272 | 13,219,385 | ||||||
| Cash and cash equivalents, end of period | $ | 7,975,429 | $ | 11,971,416 | ||||
|
Reconciliation of Adjusted EBITDA, Adjusted Operating Cash Flows and Adjusted Diluted earnings per share |
|||||||||||||||
|
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
| 2011 | 2012 | 2011 | 2012 | ||||||||||||
| Operating income | $ | 5,208,256 | $ | 7,264,979 | $ | 9,123,884 | $ | 13,131,002 | |||||||
| Depreciation and amortization | 2,472,456 | 2,936,981 | 4,894,501 | 5,381,077 | |||||||||||
| Stock-based compensation expense | 828,778 | 1,403,729 | 1,770,140 | 2,451,374 | |||||||||||
| Preference claim charge | 950,000 | - | 950,000 | - | |||||||||||
| Change in fair value of contingent consideration | 232,356 | 266,544 | 260,955 | 466,685 | |||||||||||
| Adjusted EBITDA | $ | 9,691,846 | $ | 11,872,233 | $ | 16,999,480 | $ | 21,430,138 | |||||||
|
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
| 2011 | 2012 | 2011 | 2012 | ||||||||||||
| Net cash provided by (used in) operating activities | $ | (2,174,540 | ) | $ | (2,523,911 | ) | $ | 4,876,247 | $ | (9,996,549 | ) | ||||
|
Excess tax benefit from exercise of stock awards * |
$ | 288,705 | $ | 3,283,275 | $ | 288,705 | $ | 7,447,068 | |||||||
|
Adjusted net cash provided by (used in) operating activities |
$ | (1,885,835 | ) | $ | 759,364 | $ | 5,164,952 | $ | (2,549,481 | ) | |||||
* Represents a U.S. tax deduction in an amount equal to the excess of the market price of the stock on the date of exercise over the exercise price.
| Three Months Ended June 30, | ||||||||
| 2011 | 2012 | |||||||
| Net income | $ | 3,700,009 | $ | 4,474,400 | ||||
| Gain on sale of Echo shares, net of tax | (607,002 | ) | (150,713 | ) | ||||
| Net income, excluding gain on sale of Echo shares | $ | 3,093,007 | $ | 4,323,687 | ||||
| Weighted average shares outstanding, diluted | 48,419,650 | 50,706,956 | ||||||
|
Adjusted Diluted EPS, excluding gain on sale of Echo Global Logistics Stock |
$ | 0.06 | $ | 0.09 | ||||
skozak@inwk.com
Source:
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