InnerWorkings Reports 69% increase in revenue, 41% increase in income
Monday, November 10, 2008
Press release from the issuing companyCHICAGO, Nov 06, 2008 -- InnerWorkings, Inc., a leading global provider of managed print and promotional solutions to corporate clients, today reported results for the three months ended September 30, 2008.
Revenue for the Company's third quarter was $122.0 million, an increase of 69 percent compared to revenue of $72.1 million in the third quarter of 2007. Operating income was $7.8 million versus $5.8 million during the same quarter of 2007.
"We continued to generate strong sales momentum during the third quarter, particularly among our enterprise relationships, positioning the Company very favorably for strong organic growth in 2009 and beyond," stated Steven E. Zuccarini, Chief Executive Officer of InnerWorkings. "While we realized many achievements during the period, InnerWorkings is not immune to the current macroeconomic environment. Beginning in September and intensifying in October, we have experienced new increased pressure on marketing and advertising budgets, particularly among our clients in the financial, retail, housing and pharmaceutical industries."
Additional third quarter 2008 financial and operational highlights include the following:
-- For the third quarter of 2008, 65 percent of the Company's revenue was generated from sales to enterprise clients, with the remaining 35 percent derived from transactional clients.
-- In the third quarter of 2008, the Company sold 150,000 common shares of Echo Global Logistics, Inc. for $1.5 million in cash. The Company retains 1,350,000 common shares of Echo.
-- As of September 30, 2008, the Company had a cash and marketable securities balance of $32.5 million.
-- In the second quarter of 2008, the Company authorized a share repurchase program to buy back up to $50 million of its outstanding shares through December 31, 2009. Since the inception of the program, the Company has purchased approximately 2.2 million shares of its common stock for $26.2 million at an average price of $11.82 per share.
-- During the third quarter of 2008, the Company made additional borrowings under our existing credit facilities bringing our total debt to $35.5 million with a total net debt of $3.0 million as of September 30, 2008. The Company has $72.2 million of available liquidity.
"Our success as a high-service, low cost provider continues to reap long-term benefits and we firmly believe that InnerWorkings is on track to become a global multi-billion dollar business," stated Eric D. Belcher, President and Chief Operating Officer of InnerWorkings.
The Company is adjusting near-term 2008 revenue guidance to a range of $435 million to $450 million. Annual earnings per share guidance has been revised to a range of $0.41 to $0.43. Operating earnings per share results are now estimated to range from $0.09 to $0.11 for the fourth quarter of 2008, which reflect the macroeconomic environment.
"We are taking the actions necessary to successfully navigate through this period of economic uncertainty," stated Joseph M. Busky, Chief Financial Officer of InnerWorkings. "Despite the weak economy, we are actively taking advantage of the opportunities presented and remain very positive about the business in 2009 and beyond. Even with the revised 2008 guidance, we expect to finish with an annual revenue run-rate in excess of $500 million as we enter 2009. Additionally, we expect strong organic growth and to continue to make selective acquisitions throughout 2009."
Details regarding 2009 guidance will be provided during the Company's Investor Day scheduled for November 20, 2008 in New York City.
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