InnerWorkings Announces Second Quarter 2009 Results
Chicago-based InnerWorkings, a leading global provider of managed print and promotional solutions to corporate clients, reported results for the three months ended June 30.
Report highlights include:
• The company generated second quarter revenue of $100.1 million and diluted earnings per share of $0.05, including $0.01 per share from the sale of Echo Global Logistics common stock.
• Nine new enterprise contracts were signed during the quarter, including two major contracts each expected to yield in excess of $10 million in annual revenue.
• Revenue from new accounts of $11 million in the quarter and $21 million year-to-date.
• Apart from customer bankruptcy and credit issues, the company has retained 24 of its top 25 clients in the past 12 months.
• Cash flow from operations in the quarter was $0.4 million, bringing year-to-date operating cash flow to $8.0 million.
Revenue for the second quarter was $100.1 million compared to revenue of $105.3 million in the year-earlier period. Despite a decline in same-customer revenue of 23 percent, revenue for the quarter only decreased 5 percent driven by the company's gains in market share. Second quarter net income was $2.1 million or $0.05 per diluted share. Adjusted EBITDA was $5.7 million for the quarter, a $1.2 million decrease versus $6.9 million in the year-earlier period.
Additional second quarter 2009 financial and operational highlights include:
• Sales to enterprise clients accounted for 65 percent of second quarter revenue, with the remaining 35 percent derived from transactional clients.
• Customer concentration for the top 10 accounts decreased to 31 percent of total revenue, compared to 39 percent in the second quarter of 2008.
• The company sold 94,444 shares of common stock in Echo Global Logistics for $850,000 in cash. The sale was in line with its plan to monetize the remaining 1.3 million share investment over time.