InnerWorkings Announces Record First Quarter 2012 Results

Chicago-based InnerWorkings Inc., a leading global marketing supply chain company, reported results for the three months ended March 31, 2012.

Quarterly Highlights:

Record revenue of $188.5 million, an increase of 30 percent compared to $145.2 million in the first quarter of 2011. Organic revenue growth in the quarter was 21 percent.
Two of the contracts signed in the quarter are expected to become the company's largest enterprise relationships.
Non-GAAP Adjusted EBITDA was $9.6 million, an increase of 31 percent compared to $7.3 million in the year-earlier period.
Net income was $3.7 million, an increase of 32 percent compared to $2.8 million in the year-earlier period. Excluding proceeds from the sale of Echo Global Logistics stock in both periods, earnings per diluted share in the first quarter of 2012 were $0.07 compared to $0.05 per diluted share in the first quarter of 2011.
Year-over-year enterprise revenue growth of 35 percent and transactional revenue growth of 15 percent. Revenue from new enterprise accounts was a record $23.2 million in the first quarter.
Amended credit facility, which lowered borrowing costs, increased the line of credit to $150 million and extended the maturity date to August 2015.

"Our business momentum continues to grow, as we delivered record revenue for the sixth consecutive quarter, were awarded what we expect to be our two largest ever enterprise contracts and raised our revenue guidance for the year," said Eric D. Belcher, chief executive officer of InnerWorkings. "The investments we are making to win large global print management contracts and gain share in the middle market are driving the innovation curve in our industry."

Additional first quarter 2012 financial and operational highlights include the following:

79 percent of the company's revenue was generated from sales to enterprise clients, with the remaining 21 percent derived from transactional clients.
As of March 31, 2012, the company had an outstanding balance of $71.4 million on its newly amended $150 million bank credit facility and retained cash and short term investments of $16.6 million.

"We continued to execute effectively against our goals, generating strong operational and financial results," said Joseph M. Busky, chief financial officer of InnerWorkings. "We also amended our credit facility, which lowers our borrowing costs by 20 percent, and also provides the Company with additional liquidity to continue growing the business."

The company is raising its 2012 revenue guidance to $780 million to $810 million from $770 million to $800 million. 2012 earnings per share guidance remains in its previously announced range of $0.42 to $0.45.