Press Release
New Enterprise Business Momentum Continues to Position the Company for Long-term Growth
Quarterly Highlights:
-
Revenue was
$210.9 million , compared to$201.4 million in the second quarter of 2012. -
Non-GAAP Adjusted EBITDA was
$5.4 million , compared to$11.9 million in the same period last year, due to a previously-announced loss of a portion of a significant client, lower inside sales profitability, and lower profitability in the EMEA region. Please refer to the Non-GAAP reconciliation table below for more information. -
GAAP diluted earnings per share were
$0.04 , compared to GAAP diluted earnings per share of$0.09 in the second quarter of 2012. -
Non-GAAP Adjusted Operating Cash Flow was
$3.9 million , compared to Non-GAAP Adjusted Operating Cash Flow of$0.8 million in the second quarter of 2012. Please refer to the non-GAAP reconciliation table below for more information. -
New organic enterprise account growth was
$19.9 million in the second quarter.
"As expected, this wasn't a particularly strong quarter by our
standards," said
Additional second quarter 2013 financial and operational highlights include the following:
- 77% of the Company's revenues were generated from the enterprise channel, with the remaining 23% derived from the middle market channel.
-
Today, a major new enterprise agreement was announced with Mondelez,
one of the world's largest snack companies. The long-term partnership
encompasses
$45 million of annual spending inBrazil and represents one of the largest agreements in the Company's history. -
Other new client agreements were recently signed with a large
publisher, as well as with a Fortune 1000 financial services firm,
both headquartered in
North America .
"We continue to add new blue-chip clients in many regions around the
world, as evidenced most recently by the new commitment from Mondelez,"
said
| Revenue Growth - Comparing 2013 to 2012 | ||||||||||||
| Q2 | YTD | |||||||||||
| $(MM) | Q2 % | $(MM) | YTD % | |||||||||
| Change | Change | Change | Change | |||||||||
| New Enterprise Account Growth |
|
10% |
|
10% | ||||||||
| New Middle Market Growth |
|
0% |
|
1% | ||||||||
| Same Customer Spend |
( |
-4% |
( |
-4% | ||||||||
| Lost Customer Spending |
( |
-4% |
( |
-2% | ||||||||
| Acquisitive Growth |
|
3% |
|
2% | ||||||||
| Total Revenue Growth |
|
5% |
|
6% | ||||||||
| Total Organic Revenue Growth (1) |
|
6% |
|
6% | ||||||||
|
(1) Organic Revenue Growth excludes Lost Customer Spending and Acquisitive Growth. |
||||||||||||
Outlook
The Company is increasing its 2013 revenue guidance range from
Conference Call
A conference call to discuss the Company's second quarter 2013 results
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 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
| Consolidated Statements of Income | ||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
| 2012 | 2013 | 2012 | 2013 | |||||||||||||||
| Revenue | $ | 201,397,471 | $ | 210,875,626 | $ | 389,943,873 | $ | 415,191,751 | ||||||||||
| Cost of goods sold | 153,551,408 | 162,699,024 | 300,704,427 | 321,022,654 | ||||||||||||||
| Gross profit | 47,846,063 | 48,176,602 | 89,239,446 | 94,169,097 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Selling, general and administrative expenses | 37,644,103 | 42,257,681 | 70,727,367 | 83,993,470 | ||||||||||||||
| Depreciation and amortization | 2,936,981 | 2,648,396 | 5,381,077 | 5,114,063 | ||||||||||||||
| Income from operations | 7,264,979 | 3,270,525 | 13,131,002 | 5,061,564 | ||||||||||||||
| Total other expense | (493,899 | ) | (488,760 | ) | (754,287 | ) | (1,412,696 | ) | ||||||||||
| Income before income taxes | 6,771,080 | 2,781,765 | 12,376,715 | 3,648,868 | ||||||||||||||
| Income tax expense | 2,296,680 | 878,420 | 4,214,627 | 850,393 | ||||||||||||||
| Net income | $ | 4,474,400 | $ | 1,903,345 | $ | 8,162,088 | $ | 2,798,475 | ||||||||||
| Basic earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.17 | $ | 0.06 | ||||||||||
| Diluted earnings per share | $ | 0.09 | $ | 0.04 | $ | 0.16 | $ | 0.05 | ||||||||||
| Weighted average shares outstanding, basic | 48,617,646 | 50,728,372 | 47,904,961 | 50,533,521 | ||||||||||||||
| Weighted average shares outstanding, diluted | 50,706,956 | 51,965,539 | 50,554,642 | 52,046,000 | ||||||||||||||
| Consolidated Balance Sheets | ||||||||
|
|
|
|||||||
| 2012 | 2013 | |||||||
| Cash and cash equivalents | $ | 17,218,899 | $ | 14,164,356 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 149,246,568 | 151,357,448 | ||||||
| Unbilled revenue | 30,798,230 | 27,041,664 | ||||||
| Inventories | 17,406,863 | 16,390,726 | ||||||
| Prepaid expenses | 16,210,053 | 16,276,354 | ||||||
| Other current assets | 22,565,321 | 20,156,268 | ||||||
| Total long-term assets | 268,797,648 | 321,587,535 | ||||||
| Total assets | $ | 522,243,582 | $ | 566,974,351 | ||||
| Accounts payable-trade | $ | 121,132,051 | $ | 117,661,216 | ||||
| Other current liabilities | 44,262,065 | 52,726,450 | ||||||
| Revolving credit facility | 65,000,000 | 78,300,000 | ||||||
| Other long-term liabilities | 68,870,021 | 87,210,243 | ||||||
| Total stockholders' equity | 222,979,445 | 231,076,443 | ||||||
| Total liabilities and stockholders' equity | $ | 522,243,582 | $ | 566,974,351 | ||||
|
|
||||||||||
|
Six Months Ended |
||||||||||
| 2012 | 2013 | |||||||||
| Net cash provided by (used in) operating activities | $ | (9,996,549 | ) | $ | 8,305,023 | |||||
| Net cash used in investing activities | (7,247,738 | ) | (17,381,833 | ) | ||||||
| Net cash provided by financing activities | 16,119,500 | 6,112,521 | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | (123,182 | ) | (90,254 | ) | ||||||
| Decrease in cash and cash equivalents | (1,247,969 | ) | (3,054,543 | ) | ||||||
| Cash and cash equivalents, beginning of period | 13,219,385 | 17,218,899 | ||||||||
| Cash and cash equivalents, end of period | $ | 11,971,416 | $ | 14,164,356 | ||||||
| Reconciliation of Adjusted EBITDA and Adjusted Operating Cash Flows | ||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
| 2012 | 2013 | 2012 | 2013 | |||||||||||||||
| Operating income | $ | 7,264,979 | $ | 3,270,525 | $ | 13,131,002 | $ | 5,061,564 | ||||||||||
| Depreciation and amortization | 2,936,981 | 2,648,396 | 5,381,077 | 5,114,063 | ||||||||||||||
| Stock-based compensation expense | 1,403,729 | 1,080,913 | 2,451,374 | 2,054,106 | ||||||||||||||
| Change in fair value of contingent consideration | 266,544 | (1,649,389 | ) | 466,685 | (1,040,557 | ) | ||||||||||||
| Adjusted EBITDA | $ | 11,872,233 | $ | 5,350,445 | $ | 21,430,138 | $ | 11,189,176 | ||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
| 2012 | 2013 | 2012 | 2013 | |||||||||||||||
| Net cash provided by (used in) operating activities | $ | (2,523,911 | ) | $ | 3,752,643 | $ | (9,996,549 | ) | $ | 8,305,023 | ||||||||
| Excess tax benefit from exercise of stock awards * | 3,283,275 | 115,291 | 7,447,068 | 1,066,357 | ||||||||||||||
| Cash paid for settlement of preference claim | - | - | - | 900,000 | ||||||||||||||
| Adjusted net cash provided by (used in) operating activities | $ | 759,364 | $ | 3,867,934 | $ | (2,549,481 | ) | $ | 10,271,380 | |||||||||
* 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 exercise price.
bmoore@inwk.com
Source:
News Provided by Acquire Media