Innotrac Corporation Announces 2003 Fourth Quarter and Yearend Results
ATLANTA, March 30 -- Innotrac Corporation (NASDAQ:INOC) announced financial results today for the fourth quarter and year ended December 31, 2003. For the three months ended December 31, 2003, the Company generated $5.9 million in positive cash flow from operations on revenues of $20.2 million. Revenues were up approximately 9.1% on a quarter- over-quarter basis. Gross margins were 53.3%. For the year ended December 31, 2003, the Company generated $3.8 million in positive cash flow from operations on revenues of $74.7 million.
In the fourth quarter, the Company recorded valuation allowances totaling approximately $10.6 million on an after-tax basis against the Company`s deferred tax asset and a certain aged account receivable. The receivable allowance relates to past due amounts owed by a long-term client with whom the Company has an ongoing relationship. In February 2004, the Company entered into an arrangement with this client to reduce the aged balance over the next several months and has received significant payments from this client in February and March. In regards to the second valuation allowance, the Company determined the need to record the deferred tax asset allowance once the recording of the receivable allowance generated an operating loss for the quarter and the full year. Accordingly, the Company reported net losses of $10.4 million or $.89 per share, and $12.0 million or $1.04 per share, for the fourth quarter and year ended December 31, 2003, respectively.
"In the fourth quarter, we continued our pace of revenue and cash flow growth. The valuation allowances we recorded had no effect on the Company`s cash flow, as they were both non-cash charges. Additionally, income taxes associated with future earnings will be offset by a reduction in the valuation allowance which will benefit our earnings per share for the foreseeable future," stated David L. Gamsey, Chief Financial Officer.
Conference Call
Innotrac Corporation will hold a conference call to discuss this release this evening, March 30th, at 5:00 p.m. Eastern Standard Time. Investors can listen to the conference call live by dialing 1-877-569-0972 (Conference ID: 5964942) or by logging on to www.innotrac.com and clicking on "Webcasts and Presentations" in the "Company" section. The Webcast will be archived and available at the same Web address. Additionally, audio playback will be available at 1-800-642-1687 (Conference ID: 5964942).
About Innotrac
Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service fulfillment and logistics provider serving enterprise clients and world-class brands. The Company employs sophisticated order processing and warehouse management technology and operates seven fulfillment centers and two call centers in five cities spanning all time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, www.innotrac.com .
Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Innotrac`s operating results, performance or financial condition are competition, the demand for Innotrac`s services, Innotrac`s ability to retain its clients, the state of the telecommunications industry in general, Innotrac`s ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac`s 2003 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission.
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