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InnerWorkings Hits Record Net Income in Q2

Thursday, August 09, 2007

Press release from the issuing company

August 8, 2007 -- CHICAGO-- InnerWorkings, Inc., a leading provider of print procurement solutions to corporate clients in the United States, today reported record results for the three months ended June 30, 2007.
Quarterly Highlights:
- Revenue grew 92 percent versus the second quarter of 2006 to a record $67.3 million.
- Operating income rose 101 percent to $5.6 million, up from $2.8 million in the second quarter of 2006.
- Year-over-year enterprise revenue increased 51 percent to $42.9 million.
- During the quarter the Company added six new enterprise clients.
- The Company increased its sales force through the addition of nine new account executives during the quarter to bring its total to 170 as of June 30, 2007.
- Net income was $3.8 million, an increase of 122 percent from $1.7 million during the second quarter of 2006.
- Diluted earnings per share were $0.08, up from $0.04 in the second quarter of 2006.
Revenue for the Company's second quarter was $67.3 million, an increase of 92 percent compared to revenue of $35.1 million in the second quarter of 2006. Operating income was $5.6 million, an increase of 101 percent from $2.8 million during the same quarter of 2006. Operating income was 8.3 percent of revenue during the second quarter, up from 7.9 percent during the same quarter of the prior year.
For the three months ended June 30, 2007, net income was $3.8 million, an increase of 122 percent from $1.7 million during the second quarter of 2006. For the quarter, diluted earnings per share were $0.08.
“We are very pleased with our record results achieved during the quarter. Our business model continues to attract and retain customers interested in our approach to outsourcing their print procurement and management,” stated Steve Zuccarini, Chief Executive Officer of InnerWorkings. “Our value proposition delivers cost savings for our customers and drives consistent financial performance and solid growth for our business.”
“An important aspect of our results is the ability to translate strong revenue growth to the bottom line. During the quarter we saw net income and operating income grow at stronger rates than the top line,” stated Nick Galassi, Chief Financial Officer of InnerWorkings. “Further, we’re continuing to see increased efficiencies, the results of which are shown in our ability to generate positive cash flow during the quarter.”
Additional second quarter 2007 financial and operational highlights include the following:
- For the second quarter of 2007, revenue from enterprise clients increased to 64 percent, with the remainder coming from transactional clients.
- The Company had a cash and marketable securities balance of $68.7 million as of June 30, 2007. This cash balance increased over $2 million sequentially from the first quarter of 2007.
- The Company’s balance sheet contained no debt as of June 30, 2007.
- There were no acquisitions completed during the quarter.
The Company continues to anticipate revenue for fiscal year 2007 in the range of $260 million to $280 million with resulting net income and diluted earnings per share in the ranges of $16 million to $17 million and $0.30 to $0.33, respectively. The Company’s diluted earnings per share reflect the new capital structure as of its IPO and follow-on offering.
“Due to the exceptional efforts of the InnerWorkings’ team, we were able to carry through the strong momentum from our first quarter,” Zuccarini concluded. “Our multi-level growth strategy continues to be realized and we are proud of the track record we have created.”




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