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InnerWorkings announces Q3 earnings; 21% revenue growth

Press release from the issuing company

Chicago - InnerWorkings, Inc., a leading global provider of managed print and promotional solutions, today reported results for the three months ended September 30, 2010.

Quarterly Highlights:

- Revenue generated during the third quarter was $119.1 million, an increase of 21.3% compared with revenue of $98.2 million in the third quarter of 2009 and 14.6% compared to adjusted revenue for the third quarter of 2009. Please refer to the non-GAAP reconciliation table below for more information.
- Earnings per share for the third quarter were $0.05 per diluted share vs. $0.04 per diluted share in the third quarter of 2009. The 2010 figure includes $0.01 per diluted share from the sale of Echo Global Logistics stock in the third quarter.
- Revenue from new accounts was $11.8 million in the third quarter of 2010 and $46.3 million year-to-date.
- Adjusted EBITDA increased 28.6% to $6.3 million in the third quarter of 2010 from $4.9 million in the third quarter of 2009. Please refer to the non-GAAP reconciliation table below for more information.

"We have experienced steady business acceleration in 2010 as a result of important new client wins and a recovery in our end markets," said Eric D. Belcher, Chief Executive Officer of InnerWorkings. "The Company has continued to demonstrate the value of efficiently managing print spends in this cost conscious environment. As the adoption of outsourced print management accelerates, InnerWorkings is well positioned to deliver profitable revenue growth and to establish itself as the dominant global provider in the space."

Additional third quarter 2010 financial and operational highlights include the following:

- For the third quarter of 2010, 72% of the Company's revenue was generated from sales to enterprise clients, with the remaining 28% derived from transactional clients.
- As of September 30, 2010, the Company had an outstanding balance of $49.4 million on its bank credit facility and had cash and short-term investments of $11.1 million.
- Five new enterprise contracts were signed during the quarter with Realogy/Century 21, Arthur J. Gallagher, National Grid, Merial and Maui Jim.

"Marketplace recognition of the value of our business model continues to increase," said Joseph M. Busky, Chief Financial Officer of InnerWorkings. "We will continue managing expenses prudently while seeking to optimize our resources and deliver a strong return on invested capital."


The Company is narrowing and raising its 2010 revenue guidance to $465 million to $475 million from $440 million to $470 million. As communicated in the second quarter earnings announcement, 2010 earnings per share are expected at the lower end of $0.24 to $0.29 range due to strategic investments in growth initiatives.


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