InnerWorkings Q1 Impacted by Spending Reduction; Harwood Feffer Investigates CompanyMay 9, 2013
CHICAGO—May 9, 2013—InnerWorkings Inc., a leading global marketing supply chain company, reported results for the three months ended March 31, 2013.
- Revenue was $204.3 million, compared to $188.5 million in the first quarter of 2012.
- Non-GAAP Adjusted EBITDA was $5.8 million, compared to Non-GAAP Adjusted EBITDA of $9.6 million in the first quarter of 2012.
- GAAP diluted earnings per share were $0.02, compared to GAAP diluted earnings per share of $0.07 in the first quarter of 2012.
- Non-GAAP Adjusted Operating Cash Flow was $6.4 million, compared to Non-GAAP Adjusted Operating Cash Outflow of $3.3 million in the first quarter of 2012.
- New organic enterprise account growth was $18.1 million in the first quarter.
"Our team is excited about our global enterprise opportunity," said Eric D. Belcher, CEO of InnerWorkings. "Our pipeline is strong and we expect to achieve our new organic enterprise revenue goals again this year."
Additional first quarter 2013 financial and operational highlights include the following:
- The enterprise channel accounted for 79 percent of revenue and middle market accounted for 21 percent, consistent with the revenue mix in the first quarter of 2012.
- Gross profit margin was 22.5 percent, compared to 22.0 percent in the prior year period.
- DB Studios, a California-based distributor of permanent point-of-purchase displays was acquired in March 2013. DB Studios is expected to generate revenues of approximately $20 million during the period from acquisition date to the end of the year.
"While we continue to realize solid new enterprise growth, we are disappointed by our modest growth in the first quarter due to a decrease in a large customer's spending," noted Joseph M. Busky, CFO of InnerWorkings. "Given the new enterprise activity happening across our global footprint, we anticipate stronger results for the balance of the year."
The company reaffirms its recently revised 2013 revenue and EPS guidance. 2013 revenue guidance of $900 million to $930 million represents 13 to 17 percent growth over 2012, and 2013 EPS guidance of $0.45 to $0.50 represents 10 to 22 percent growth over 2012 adjusted diluted earnings per share.
About InnerWorkings Inc.
InnerWorkings Inc. (NASDAQ: INWK) is a leading global marketing supply chain company servicing corporate clients across a wide range of industries. With proprietary technology, an extensive supplier network and deep domain expertise, the Company procures, manages and delivers printed materials and promotional products as part of a comprehensive outsourced enterprise solution. InnerWorkings is based in Chicago, employs approximately 1,400 individuals, and maintains 49 global offices. Among the many industries InnerWorkings services are: retail, financial services, hospitality, non-profits, healthcare, food and beverage, broadcasting and cable, education, transportation and utilities.