InnerWorkings Increases Revenue 57% and Net Income 60%
Thursday, August 14, 2008
Press release from the issuing companyChicago, IL, August 11, 2008 – InnerWorkings, Inc., a leading global provider of managed print and promotional solutions to corporate clients, today reported results for the three months ended June 30, 2008.
* Revenue grew 57 percent compared with the second quarter of 2007 to $105.3 million.
* Net income increased 60 percent to $6.1 million, up from $3.8 million in the second quarter of 2007.
* Quarter-over-quarter enterprise revenue increased 59 percent to $68.1 million.
* Nine new enterprise clients were added during the quarter.
* The Company increased its sales force through the addition of 25 new account executives during the quarter, increasing the total to 253 as of June 30, 2008.
* Diluted earnings per share were $0.12, up from $0.08 in the second quarter of 2007.
Revenue for the Company's second quarter was $105.3 million, an increase of 57 percent compared to revenue of $67.3 million in the second quarter of 2007. Operating income was $5.1 million versus $5.6 million during the same quarter of 2007.
For the three months ended June 30, 2008, net income was $6.1 million, an increase of 60 percent from $3.8 million during the second quarter of 2007. For the quarter, diluted earnings per share were $0.12.
"We are particularly pleased with the momentum we are gaining with our enterprise solution as demonstrated by the quarter's nine new enterprise client wins," stated Eric D. Belcher, President and Chief Operating Officer of InnerWorkings. "In addition, our recent acquisition of etrinsic provides our first entrée into Europe and effectively supports our goal of providing exceptional service to our rapidly expanding roster of multinational customers. Sustained execution of our growth strategy has positioned InnerWorkings to deliver on our stated goal of becoming a global multi-billion dollar business."
Additional second quarter 2008 financial and operational highlights include the following:
* Cash flow generated from operations was a record $9.3 million, a four-fold increase over the first quarter of 2008
* For the second 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.
* On May 7, 2008, the Company sold 500,000 common shares of Echo Global Logistics, Inc. for $5 million in cash. This represents a significant gain as InnerWorkings' total investment in Echo was $125,000 in February 2005.
The Company retains 1.5 million common shares of Echo. * As of June 30, 2008, the Company had a cash and marketable securities balance of $34.5 million.
* 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 581,000 shares of its common stock for $7.5 million at an average price of $12.95 per share.
"Given the significant size of our market opportunity and the stage of our development, we will continue to invest in the necessary people, processes and technology to support our growth initiatives," stated Joe Busky, Chief Financial Officer of InnerWorkings.
"We will continue to deploy capital with the goal of enhancing shareholder value," said Steven E. Zuccarini, Chief Executive Officer of InnerWorkings. "We have ample liquidity to repurchase additional shares of our common stock and further invest in strategic acquisitions. The buyback program reflects our strong confidence in the Company's near- and long-term prospects."
The Company is reaffirming 2008 revenue guidance of $450 million to $490 million. Annual earnings per share guidance is now projected to range between $0.50 and $0.54, with an anticipated $0.03 to $0.05 of earnings per share contributed from an additional sale of InnerWorkings' stock in Echo Global Logistics conducted throughout the remainder of the year. Operating earnings per share results are estimated to range from $0.25 to $0.28 for the remainder of the year, which reflect the Company's investments in infrastructure necessary to support the rapid revenue growth InnerWorkings continues to experience.
"We remain committed to funding the investments necessary to construct a platform for growth capable of yielding sustainable, long-term success," said Zuccarini. "The client relationships we have developed are growing in strength and depth, which further reinforces our belief that the investment decisions we are implementing today will pay large dividends in the future."
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