InnerWorkings, Inc., a leading provider of global print management and promotional solutions, today reported results for the three months ended September 30, 2011.
Record revenue of $157.8 million, an increase of 32.5% compared with the third quarter of 2010. This represents the fourth consecutive quarter of record revenue.
Signed six new enterprise agreements including a major BPO contract.
Net income was $4.1 million, an increase of 75% compared to $2.4 million in the year-earlier period. Earnings were $0.09 per diluted share compared to $0.05 per diluted share in the year-earlier period. Both earnings per share figures include $0.01 per diluted share from the sale of Echo Global Logistics stock.
Record Adjusted EBITDA of $9.5 million, an increase of 52% compared to $6.3 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information.
Year-over-year enterprise revenue growth of 29% and transactional revenue growth of 41%.
Record cash flow generated from operations was $12.1 million compared to $2.1 million in the third quarter of 2010.
"We have great momentum in the business, delivering record revenue for the fourth consecutive quarter and signing a major BPO contract," said Eric D. Belcher, chief executive officer of InnerWorkings. "The recent acquisition of Productions Graphics fills out our platform in Europe and helps us to better service large multinational clients around the world. We are executing against our strategy and expect to keep building on our success."
Additional third quarter 2011 financial and operational highlights include the following:
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, 2011, the Company had an outstanding balance of $53.2 million on its $100 million bank credit facility and retained cash and short-term investments of $11.3 million.
"The record Adjusted EBITDA and operating cash flow we generated in the quarter reflect leverage in the model and the underlying power of the business," said Joseph M. Busky, Chief Financial Officer of InnerWorkings. "We are updating our full-year 2011 guidance to reflect the Company's continued strong performance and the financial impact from the October acquisition of Productions Graphics."
The Company is raising its 2011 revenue guidance from a range of $600 million to $625 million to a range of $620 million to $635 million. The Company is raising its 2011 earnings per share guidance from a range of $0.29 to $0.32 to a range of $0.30 to $0.33.