Press Release
Adjusted EBITDA grows 58% in constant currency;
new wins
add to record year for new contracts
Third Quarter Highlights
-
Revenue was
$264.7 million as reported and$283.3 million in constant currency, reflecting 12.6% growth in constant currency compared with$251.7 million in the third quarter of 2014.
-
Gross profit for the quarter was
$63.6 million as reported and$68.0 million in constant currency, reflecting 19.1% growth in constant currency compared with$57.1 million in the third quarter of 2014. -
Non-GAAP Adjusted EBITDA was
$17.6 million as reported and$19.4 million in constant currency, reflecting 57.8% growth in constant currency over$12.3 million in the third quarter of 2014. -
Non-GAAP diluted earnings per share were
$0.11 on a reported basis and$0.14 in constant currency, compared to Non-GAAP diluted earnings per share of$0.07 in the third quarter of 2014. -
Non-GAAP adjusted operating cash flow was
$(9.5) million on a reported basis, compared to Non-GAAP adjusted operating cash flow of$(11.3) million in the third quarter of 2014.
"The record-breaking results we announced today illustrate the momentum
we are seeing in our strategy to grow our enterprise business," said
Operational Highlights
-
A Fortune 1000 services provider to businesses and consumers that
signed a multi-year agreement through which
InnerWorkings will provide marketing execution services, including direct mail and marketing collateral, to support the company's business inNorth America . -
A Fortune 1000 grocery chain with 160+ locations that signed a
multi-year agreement through which
InnerWorkings will execute marketing activities, including direct mail, loyalty programs, point-of-sale displays and circulars.
"The strong earnings and top-line growth achieved in the quarter
underscore the strength of InnerWorkings' service offerings, the ongoing
commitment of our teams and our discipline in ensuring we maintain the
appropriate margins to mitigate fluctuations in international
currencies," said
Outlook
The Company reaffirms its revenue guidance of 8% to 11% growth over 2014
in constant currency. The Company also reaffirms its 2015 Non-GAAP
Adjusted EBITDA guidance of
Conference Call
The management team will host a conference call to discuss the Company's
third quarter 2015 results, which 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
Non-GAAP Financial Measures
This press release includes the following financial measures defined as
"non-GAAP financial measures" 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
About
|
Condensed Consolidated Statements of Income |
||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Revenue | $ | 264,720,003 | $ | 251,651,521 | $ | 759,042,648 | $ | 753,490,776 | ||||
| Cost of goods sold | 201,108,604 | 194,553,275 | 581,387,018 | 582,881,105 | ||||||||
| Gross profit | 63,611,399 | 57,098,246 | 177,655,630 | 170,609,671 | ||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative expenses | 47,220,821 | 46,187,034 | 145,304,423 | 146,393,186 | ||||||||
| Depreciation and amortization | 4,485,119 | 4,387,438 | 12,842,347 | 12,931,952 | ||||||||
| Change in fair value of contingent consideration | 701,086 | (1,570,129) | 1,690,743 | (1,743,637) | ||||||||
| Income from operations | 11,204,373 | 8,093,903 | 17,818,117 | 13,028,170 | ||||||||
| Total other expense | (2,214,349) | (1,180,813) | (4,319,468) | (3,354,653) | ||||||||
| Income before income taxes | 8,990,024 | 6,913,090 | 13,498,649 | 9,673,517 | ||||||||
| Income tax expense | 4,006,788 | 1,799,419 | 5,945,532 | 2,665,067 | ||||||||
| Net income | $ | 4,983,236 | $ | 5,113,671 | $ | 7,553,117 | $ | 7,008,450 | ||||
| Basic earnings per share | $ | 0.09 | $ | 0.10 | $ | 0.14 | $ | 0.13 | ||||
| Diluted earnings per share | $ | 0.09 | $ | 0.10 | $ | 0.14 | $ | 0.13 | ||||
| Weighted average shares outstanding, basic | 52,972,500 | 52,655,284 | 52,759,404 | 51,974,408 | ||||||||
| Weighted average shares outstanding, diluted | 53,348,376 | 53,742,472 | 53,456,972 | 52,781,851 | ||||||||
|
Condensed Consolidated Balance Sheets |
||||||
|
|
|
|||||
| 2015 | 2014 | |||||
| Cash and cash equivalents | $ | 12,637,589 | $ | 22,577,942 | ||
| Accounts receivable, net of allowance for doubtful accounts | 191,045,581 | 179,465,922 | ||||
| Unbilled revenue | 36,463,538 | 31,698,924 | ||||
| Inventories | 40,278,890 | 27,162,642 | ||||
| Prepaid expenses | 14,263,851 | 12,684,237 | ||||
| Other current assets | 41,113,384 | 30,638,030 | ||||
| Total non-current assets | 324,865,808 | 327,022,683 | ||||
| Total assets | $ | 660,668,641 | $ | 631,250,380 | ||
| Accounts payable | $ | 148,515,725 | $ | 144,044,592 | ||
| Other current liabilities | 59,879,554 | 50,107,105 | ||||
| Revolving credit facility | 128,027,431 | 104,538,750 | ||||
| Other non-current liabilities | 26,055,796 | 36,413,364 | ||||
| Total stockholders' equity | 298,190,135 | 296,146,569 | ||||
| Total liabilities and stockholders' equity | $ | 660,668,641 | $ | 631,250,380 | ||
|
Cash Flow Data |
||||||
|
Nine Months Ended |
||||||
| 2015 | 2014 | |||||
| Net cash used in operating activities | $ | (7,256,705) | $ | (16,037,736) | ||
| Net cash used in investing activities | (12,125,611) | (11,500,078) | ||||
| Net cash provided by financing activities | 10,255,494 | 31,691,417 | ||||
| Effect of exchange rate changes on cash and cash equivalents | (813,531) | (605,970) | ||||
| (Decrease) increase in cash and cash equivalents | (9,940,353) | 3,547,633 | ||||
| Cash and cash equivalents, beginning of period | 22,577,942 | 18,606,030 | ||||
| Cash and cash equivalents, end of period | $ | 12,637,589 | $ | 22,153,663 | ||
|
GAAP to Non-GAAP Reconciliation |
|||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||
| Operating income | $ | 11,204,373 | $ | 8,093,903 | $ | 17,818,117 | $ | 13,028,170 | |||
| Depreciation and amortization | 4,485,119 | 4,387,438 | 12,842,347 | 12,931,952 | |||||||
| Stock-based compensation expense | 1,226,490 | 1,374,496 | 4,854,194 | 4,023,227 | |||||||
| Change in fair value of contingent consideration | 701,086 | (1,570,129) | 1,690,743 | (1,743,637) | |||||||
| Restatement-related professional fees | - | - | - | 2,093,104 | |||||||
| Non-GAAP Adjusted EBITDA | $ | 17,617,068 | $ | 12,285,708 | $ | 37,205,401 | $ | 30,332,816 | |||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||
| Net cash used in operating activities | $ | (8,243,708) | $ | (11,849,650) | $ | (7,256,705) | $ | (16,037,736) | |||
| Net short-term advances on International receivables * | (1,219,902) | 521,313 | (550,921) | 2,717,222 | |||||||
| Non-GAAP Adjusted Operating Cash Flow | $ | (9,463,610) | $ | (11,328,337) | $ | (7,807,626) | $ | (13,320,514) | |||
| * US GAAP requires classification in financing activities despite inclusion in working capital on the balance sheet. | |||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||
| Net income | $ | 4,983,236 | $ | 5,113,671 | $ | 7,553,117 | $ | 7,008,450 | |||
| Change in fair value of contingent consideration, net of tax | 700,350 | (1,504,985) | 1,679,727 | (1,448,566) | |||||||
| Restatement-related professional fees, net of tax | - | - | - | 1,266,328 | |||||||
| Adjusted net income | $ | 5,683,586 | $ | 3,608,686 | $ | 9,232,844 | $ | 6,826,212 | |||
| Weighted average shares outstanding, diluted | 53,348,376 | 53,742,472 | 53,456,972 | 52,781,851 | |||||||
| Non-GAAP Diluted Earnings Per Share | $ | 0.11 | $ | 0.07 | $ | 0.17 | $ | 0.13 | |||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151105006683/en/
jpritchett@inwk.com
Source:
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