InnerWorkings Announces Second Quarter 2009 Results
August 11, 2009
Chicago-based InnerWorkings, a leading global provider of managed print and promotional solutions to corporate clients, reported results for the three months ended June 30.
Report highlights include:
• The company generated second quarter revenue of $100.1 million and diluted earnings per share of $0.05, including $0.01 per share from the sale of Echo Global Logistics common stock.
• Nine new enterprise contracts were signed during the quarter, including two major contracts each expected to yield in excess of $10 million in annual revenue.
• Revenue from new accounts of $11 million in the quarter and $21 million year-to-date.
• Apart from customer bankruptcy and credit issues, the company has retained 24 of its top 25 clients in the past 12 months.
• Cash flow from operations in the quarter was $0.4 million, bringing year-to-date operating cash flow to $8.0 million.
Revenue for the second quarter was $100.1 million compared to revenue of $105.3 million in the year-earlier period. Despite a decline in same-customer revenue of 23 percent, revenue for the quarter only decreased 5 percent driven by the company's gains in market share. Second quarter net income was $2.1 million or $0.05 per diluted share. Adjusted EBITDA was $5.7 million for the quarter, a $1.2 million decrease versus $6.9 million in the year-earlier period.
Additional second quarter 2009 financial and operational highlights include:
• Sales to enterprise clients accounted for 65 percent of second quarter revenue, with the remaining 35 percent derived from transactional clients.
• Customer concentration for the top 10 accounts decreased to 31 percent of total revenue, compared to 39 percent in the second quarter of 2008.
• The company sold 94,444 shares of common stock in Echo Global Logistics for $850,000 in cash. The sale was in line with its plan to monetize the remaining 1.3 million share investment over time.
• The company has drawn $42.2 million on its $75 million bank credit facility and has an additional $19 million of cash and short-term investments (not including the 1.3 million shares of Echo mentioned above).
Although InnerWorkings still expects a seasonally stronger second half, it has yet to see any significant movement up in same-customer volume. To prepare for potential continued organic revenue declines, the company will reduce costs by an additional $1.2 million during the second half of the year through salary reductions and mandatory unpaid furloughs.
“In response to a slower than expected rebound in organic growth, we will take costs out of the business in the third and fourth quarters,” said Joseph M. Busky, chief financial officer. “We believe adjusting our flexible cost structure is prudent in this environment and encourage investors to look to our customer retention and steady order flow as an indication of our strength in 2010 and beyond.”
Report highlights include:
• The company generated second quarter revenue of $100.1 million and diluted earnings per share of $0.05, including $0.01 per share from the sale of Echo Global Logistics common stock.
• Nine new enterprise contracts were signed during the quarter, including two major contracts each expected to yield in excess of $10 million in annual revenue.
• Revenue from new accounts of $11 million in the quarter and $21 million year-to-date.
• Apart from customer bankruptcy and credit issues, the company has retained 24 of its top 25 clients in the past 12 months.
• Cash flow from operations in the quarter was $0.4 million, bringing year-to-date operating cash flow to $8.0 million.
Revenue for the second quarter was $100.1 million compared to revenue of $105.3 million in the year-earlier period. Despite a decline in same-customer revenue of 23 percent, revenue for the quarter only decreased 5 percent driven by the company's gains in market share. Second quarter net income was $2.1 million or $0.05 per diluted share. Adjusted EBITDA was $5.7 million for the quarter, a $1.2 million decrease versus $6.9 million in the year-earlier period.
Additional second quarter 2009 financial and operational highlights include:
• Sales to enterprise clients accounted for 65 percent of second quarter revenue, with the remaining 35 percent derived from transactional clients.
• Customer concentration for the top 10 accounts decreased to 31 percent of total revenue, compared to 39 percent in the second quarter of 2008.
• The company sold 94,444 shares of common stock in Echo Global Logistics for $850,000 in cash. The sale was in line with its plan to monetize the remaining 1.3 million share investment over time.
• The company has drawn $42.2 million on its $75 million bank credit facility and has an additional $19 million of cash and short-term investments (not including the 1.3 million shares of Echo mentioned above).
Although InnerWorkings still expects a seasonally stronger second half, it has yet to see any significant movement up in same-customer volume. To prepare for potential continued organic revenue declines, the company will reduce costs by an additional $1.2 million during the second half of the year through salary reductions and mandatory unpaid furloughs.
“In response to a slower than expected rebound in organic growth, we will take costs out of the business in the third and fourth quarters,” said Joseph M. Busky, chief financial officer. “We believe adjusting our flexible cost structure is prudent in this environment and encourage investors to look to our customer retention and steady order flow as an indication of our strength in 2010 and beyond.”
Companies Mentioned:
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