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InnerWorkings Increases Revenue for 1Q

Monday, May 11, 2009

Press release from the issuing company

CHICAGO -- InnerWorkings, Inc., a leading global provider of managed print and promotional solutions to corporate clients, today reported results for the three months ended March 31, 2009.

Quarterly Highlights:

- Revenue grew eight percent to $94.3 million compared with the first quarter of 2008.
- Enterprise revenue increased 10 percent to $61.4 million from $55.6 million in the first quarter of 2008.
- The Company added eight new enterprise clients, including several well-known brands such as Samsung Electronics.
- Cash flow generated from operations was $7.7 million in the first quarter of 2009 compared to the $1.8 million generated from operations in the year-earlier period.

"Our enterprise offering represents our most significant growth opportunity and is resonating strongly with customers as evidenced by the fact that we added eight new accounts in the period while continuing to retain and grow existing relationships," said Eric D. Belcher, Chief Executive Officer of InnerWorkings. "We strongly believe that the Company is poised for healthy and profitable market share gains in the months and years ahead."

Revenue for the Company's first quarter was $94.3 million, an increase of eight percent compared to revenue of $87.2 million in the first quarter of 2008. First quarter net income was $0.2 million, or $0.01 per diluted share.

Additional first quarter 2009 financial and operational highlights include the following:

- For the first quarter of 2009, 65 percent of the Company's revenue was generated from sales to enterprise clients, with the remaining 35 percent derived from transactional clients.
- Customer concentration for the Company's top 10 accounts decreased to 37% of total revenue compared to 42% in the year-earlier period.
- The Company implemented a reduction in non-sales workforce of approximately 15%. As a result of this initiative, the Company expects to realize cost savings of approximately $6 million on an annualized basis.
- The Company has approximately $30 million of available liquidity on its bank credit facility and an additional $19 million of cash and auction rate securities.


The Company is reaffirming its previously stated 2009 guidance, including a revenue range of $450 million to $475 million and an earnings per share range of $0.35 to $0.39.

"The current economic environment and our strong financial position in the industry are creating market opportunities for us and we remain positive about the business for 2009 and beyond," said Joseph M. Busky, Chief Financial Officer of InnerWorkings. "Furthermore, our focus on disciplined cost management and maximizing the deployment of capital will continue to reap long-term benefits while enhancing shareholder value."




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