Large Backlog of New Contracts Provides Momentum for a Strong 2018
Company Reschedules Earnings Release and Conference Call to March 12,
InnerWorkings, Inc. (NASDAQ: INWK), the leading global marketing
execution firm, today announced select preliminary and unaudited fourth
quarter and full-year 2017 results, and provided guidance for 2018. The
Company also announced that it has rescheduled its fourth quarter and
full year 2017 earnings release and conference call to allow additional
time to complete the Company's 2017 financial close and audit. The
extended timeframe for closing 2017 is due to resource demands
associated with implementing new revenue recognition standards effective
January 1, 2018.
"The fourth quarter rounded out a solid year of growth for InnerWorkings
in 2017," said Chief Executive Officer Eric D. Belcher. "With $130
million in client contracts signed last year, plus another $31 million
signed in January with three global brands, we enter 2018 highly
confident in our financial expectations for this year."
Select Preliminary Unaudited Fourth Quarter 2017 Highlights
Gross revenue is expected to be between $303 million and $308 million
in the fourth quarter, an increase of 12 to 14% compared with $270.4
million in the fourth quarter of 2016.
Gross profit (net revenue) is expected to be between $74 million and
$75 million in the fourth quarter, an increase of 8 to 9% compared to
$68.7 million in the same period of 2016.
Select Preliminary Unaudited Full Year 2017 and Recent Highlights
Gross revenue is expected to be between $1,138 million and $1,143
million in 2017, an increase of 4 to 5% compared with $1,090.7 million
Gross profit (net revenue) is expected to be between $281 million and
$282 million, a 7% increase compared to $263.5 million in 2016.
InnerWorkings signed new client contracts during 2017 totaling $130
million of annual revenue at full run-rate. This growth is a blend of
expansions with existing accounts as well as the addition of a number
of first time clients.
InnerWorkings also signed new client contracts in January 2018
totaling $31 million of annual revenue at full run-rate.
The Company expects 2018 annual gross revenue to range between $1,195
million and $1,230 million. Non-GAAP adjusted EBITDA is expected to be
between $74 million and $77 million in 2018. The Company forecasts 2018
non-GAAP diluted earnings per share to be $0.56 to $0.59.
Rich Stoddart, incoming Chief Executive Officer, added, "With the
strength of our current backlog and pipeline of opportunities for growth
in the future, now is an exciting time to be joining InnerWorkings. We
have a compelling value proposition for customers, and I'm looking
forward to a successful 2018 and beyond."
Earnings Release and Conference Call Schedule
InnerWorkings has rescheduled its fourth quarter and full-year earnings
release and conference call, originally planned for February 27, 2018.
The Company will now issue its fourth quarter and full-year earnings
release on March 12, 2018 after market close, and will host a conference
call at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) that same day.
The phone number to access the conference call is (877) 771-7024. A live
audio webcast of the call will be available through InnerWorkings'
website at http://investor.inwk.com/events.cfm.
A replay of the webcast will be available later that day at the same
The new schedule gives the Company more time to complete its 2017
financial close and audit. The extended timeframe for closing 2017 is
due to resource demands associated with implementing new revenue
recognition standards effective January 1, 2018 (FASB Accounting
Standards Codification (ASC) Topic 606). ASC 606 does not apply to 2017
financial results and is not expected to have a material impact on the
Company's 2018 outlook.
The select preliminary 2017 results disclosed in this announcement have
been provided prior to completion of all internal and external review
and audit procedures and, therefore, are subject to adjustment until the
filing of the Company's Annual Report on Form 10-K with the SEC, which
the Company expects to complete on time, not later than March 16, 2018.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as
"non-GAAP financial measures" by the SEC: non-GAAP adjusted EBITDA and
non-GAAP diluted earnings per share. The Company believes these measures
provide useful information to investors because they provide further
insights into the Company's financial performance. These measures are
also used by management in its financial and operational decision-making
and evaluation of overall performance. The presentation of this
financial information, which is not prepared under any comprehensive set
of accounting rules or principles, is not intended to be considered in
isolation or as a substitute for the financial information prepared and
presented in accordance with generally accepted accounting principles.
For a reconciliation of these non-GAAP financial measures to the nearest
comparable GAAP measures, please see the reconciliation of non-GAAP
adjusted EBITDA and non-GAAP diluted earnings per share included in this
The Company has not quantitatively reconciled its guidance for non-GAAP
adjusted EBITDA or non-GAAP diluted earnings per share to their most
comparable GAAP measure because the Company does not provide specific
guidance for the various reconciling items as certain items that impact
these measures have not occurred, are out of the Company's control, or
cannot be reasonably predicted. Accordingly, a reconciliation to the
nearest GAAP financial metric is not available without unreasonable
effort. Please note that the unavailable reconciling items could
significantly impact the Company's results.
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 SEC filings, including the "Risk
Factors" section of our most recently filed Form 10-K. In addition, this
release contains preliminary financial results for fourth quarter and
full-year 2017. Preliminary unaudited results for 2017 are provided
prior to completion of all internal and external review and audit
procedures and therefore are subject to adjustment.
InnerWorkings, Inc. (NASDAQ: INWK) is the leading global marketing
execution firm serving Fortune 1000 brands across a wide range of
industries. As a comprehensive outsourced enterprise solution, the
Company leverages proprietary technology, an extensive supplier network
and deep domain expertise to streamline the production of branded
materials and retail experiences across geographies and formats.
InnerWorkings is headquartered in Chicago, IL and employs approximately
2,000 individuals to support global clients in the execution of
multi-faceted brand campaigns in every major market around the world.
InnerWorkings serves many industries, including: retail, financial
services, hospitality, consumer packaged goods, nonprofit, healthcare,
food & beverage, broadcasting & cable, automotive, and transportation.
For more information visit: www.inwk.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180226006562/en/
Source: InnerWorkings, Inc.
News Provided by Acquire Media