InnerWorkings 16% increase in revenue on 4th quarter
Monday, February 23, 2009
Press release from the issuing companyCHICAGO -- InnerWorkings, Inc., a leading global provider of managed print and promotional solutions to corporate clients, today reported results for the fourth quarter and fiscal year ended December 31, 2008.
"In 2008, we made impressive progress on multiple fronts, including achieving numerous enterprise wins and driving organic growth, capturing market share in a shrinking environment for printed and promotional materials, and expanding our footprint to include important new markets, all while reporting record revenues and cash flow," said Eric D. Belcher, Chief Executive Officer of InnerWorkings. "That said, the Company's fourth quarter was significantly impacted by the current economic environment, particularly in December. However, our low-cost, high service business model continues to resonate and gain momentum, while providing a solid and growing base of recurring revenue support for our business in 2009 and beyond."
Revenue for the Company's fourth quarter was $104.5 million, an increase of 16 percent compared to revenue of $90.0 million in the fourth quarter of 2007. Unprecedented print and promotional budget cutbacks, combined with an additional $2.3 million of bad debt expense, resulted in operating income of $0.8 million. Fourth quarter net income was $0.3 million, or $0.01 per diluted share, which includes a provision for bad debt of $0.03 per share.
In fiscal 2008, the Company achieved revenue of $419.0 million, an increase of 45 percent compared to revenue of $288.4 million in 2007. Operating income for the full year 2008 was $19.6 million. Absent increases in non-cash depreciation and amortization expense and stock-based compensation expense, 2008 operating income was flat compared to 2007. Actual bad debt expense was $4.1 million in 2008 versus $0.6 million in 2007. Full year net income and diluted earnings per share were $16.0 million and $0.32, respectively.
Additional fourth quarter 2008 financial and operational highlights include the following:
* For the fourth quarter of 2008, 62 percent of the Company's revenue was generated from sales to enterprise clients, with the remaining 38 percent derived from transactional clients.
* The Company acquired Atlanta-based Origen Partners, which services an impressive client roster, including some of the world's best-known brands.
* During the fourth quarter of 2008, the Company made additional borrowings under existing bank credit facilities bringing total gross debt to $42.6 million and net debt to $25.4 million as of December 31, 2008.
* The Company has an additional $32.4 million of available liquidity on the bank credit facility and $17.2 million of cash and auction rate securities for a total of $49.6 million of available liquidity.
The Company is updating its 2009 revenue guidance to a range of $450 million to $475 million, while maintaining its previously announced 2009 annual earnings per share guidance of $0.35 to $0.39.
"We have been proactive in modifying our business in response to the changing economic landscape, including a 15 percent reduction in non-sales workforce instituted in January," stated Joseph M. Busky, Chief Financial Officer of InnerWorkings. "We remain vigilant and committed to right-sizing internal capacity to coincide with shifts in demand. At the same time, we will continue to leverage our healthy financial position to plan for the future as we spend wisely to enhance our growth profile."
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