ATLANTA, July 29 -- Innotrac Corporation (NASDAQ: INOC) , a full-service provider of customized order fulfillment and call center services, today announced financial results for the second quarter ended June 30, 2002. The Company reported revenues of $16.2 million and net income of $313,000, or $0.03 per diluted share, including special credits. Gross margins for the quarter were 55.7%. Furthermore, EBITDA margins reached 11.5%, or $1.9 million in the second quarter and cash flows from operations were $9.5 million.
For the six months ended June 30, 2002, the Company reported revenues of $32.6 million and net income of $1.3 million, or $0.11 per diluted share, including special credits. Gross margins for the six month period were 57.4%. Furthermore, EBITDA margins reached 14.3%, or $4.7 million for the six month period and cash flows from operations were $14.0 million.
Innotrac`s balance sheet continues to be strong with $2.3 million in cash and no debt. Furthermore, as previously announced, the Company`s $40 million credit facility was recently renewed for an additional three years.
"The direct marketing industry is suffering in this weakened economy thereby causing some softness in our revenues. We anticipate that this weakness will continue to affect our numbers through the remainder of the year. Furthermore, the start-up costs associated with the addition of several new clients and IT implementation and conversion costs will continue to impact our results for the balance of the year," stated Mr. Scott D. Dorfman, President and Chief Executive Officer.
Innotrac Corporation will hold a conference call to discuss this release tomorrow, July 30, at 9:00 AM Eastern Daylight Time. The Company may answer questions concerning business and financial trends, and other business and financial matters affecting the Company. Investors can listen to the conference call live by dialing 1-800-291-3901 (Conference ID: 4874907) or logging on to http://www.innotrac.com/ and clicking on "Webcasts and Presentations" in the "Company" section.
About Innotrac
Innotrac Corporation, founded in 1984 and based in Atlanta, Georgia, is a full-service provider of customized order fulfillment and call center services. The Company operates fulfillment and call centers in various cities spanning all four time zones across the continental United States. For more information about Innotrac, visit the Innotrac Web site, http://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 telecommunications 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 2001 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission
CONTACT:
Jennifer Sekel Church, Investor Relations
Innotrac Corporation
+1-678-584-4055
jsekelchurch@innotrac.com
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