InnerWorkings Announces Second Quarter 2011 Results
InnerWorkings Inc., Chicago, a leading provider of global print management and promotional solutions, reported results for the three months ended June 30, 2011.
- Record revenue generated during the quarter was $155.6 million, an increase of 29 percent compared with the second quarter of 2010.
- Net income was $3.7 million, an increase of 18 percent compared to $3.1 million in the year-earlier period. Earnings were $0.08 per diluted share compared to $0.07 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.
- Second quarter 2011 net income was negatively impacted by a one-time $950,000 preference claim liability accrual related to a client bankruptcy in 2008. Excluding this one-time item, second quarter 2011 non-GAAP net income was $4.3 million, an increase of 36 percent compared to net income of $3.1 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information.
- Adjusted EBITDA was $9.5 million, an increase of 23 percent compared to $7.7 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 30 percent and transactional revenue growth of 26 percent. Revenue from new enterprise accounts was $15.0 million in the second quarter.
"InnerWorkings' record second quarter performance reflects strong operational execution and increased demand for our print management solution," said Eric D. Belcher, chief executive officer of InnerWorkings. "The company's long-term growth will be driven by our expanding global platform and the value it provides to multinational businesses seeking a single global partner."
Additional second quarter 2011 financial and operational highlights include the following:
- 74 percent of the company's revenue was generated from sales to enterprise clients, with the remaining 26 percent derived from transactional clients.
- As of June 30, 2011, the company had an outstanding balance of $53.9 million on its $100 million bank credit facility and retained cash and short-term investments of $11.6 million.
"The company's financial position is strong and we are well positioned to continue growing our net margins and generate additional leverage in the model in 2011," said Joseph M. Busky, chief financial officer of InnerWorkings.