InnerWorkings Announces Record Second Quarter 2012 Results

Chicago-based InnerWorkings, Inc., a leading global marketing supply chain company, reported results for the three months ended June 30, 2012.

Quarterly Highlights:

• Record revenue of $201.4 million, an increase of 29 percent compared to $155.6 million in the second quarter of 2011. Organic revenue growth in the quarter was 19 percent.
• Non-GAAP Adjusted EBITDA was $11.9 million, an increase of 22 percent compared to $9.7 million in the year-earlier period.
• Net income was $4.5 million, an increase of 21 percent compared to $3.7 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 second quarter of 2012 were $0.09 compared to $0.06 per diluted share in the second quarter of 2011.
• Year-over-year enterprise revenue growth of 30 percent and middle market revenue growth of 27 percent. Organic revenue from new enterprise accounts was a record $25.4 million in the second quarter.

"We achieved record revenue results for the seventh consecutive quarter, driven by the ramp from recent large enterprise wins and our success at expanding client relationships to new geographies,” said Eric D. Belcher, chief executive officer of InnerWorkings. “Further, we added talented new leaders in Brazil and EMEA and we continued to rapidly build out our Inside Sales division to accelerate the strong growth opportunities in front of us.”

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

• 75 percent of the company's revenue was generated from sales to enterprise clients, with the remaining 25 percent derived from sales to middle market clients.
• As of June 30, 2012, the company had an outstanding balance of $73.0 million on its $150 million bank credit facility and retained cash and short-term investments of $12.8 million.

“The company’s financial position is strong and continues to be supported by robust organic revenue growth,” said Joseph M. Busky, chief financial officer of InnerWorkings. “Despite the investments we are making to broaden the company’s platform and support large new clients, both domestically and internationally, we remain well positioned to generate additional leverage as the year progresses.”