InnerWorkings Reports Q1 Results

Chicago-based InnerWorkings Inc., a leading global marketing supply chain company, reported results for the three months ended March 31, 2013.

Quarterly Highlights:

• Revenue was $204.3 million, compared to $188.5 million in the first quarter of 2012.
• Non-GAAP Adjusted EBITDA was $5.8 million, compared to Non-GAAP Adjusted EBITDA of $9.6 million in the first quarter of 2012.
• GAAP diluted earnings per share were $0.02, compared to GAAP diluted earnings per share of $0.07 in the first quarter of 2012.
• Non-GAAP Adjusted Operating Cash Flow was $6.4 million, compared to Non-GAAP Adjusted Operating Cash Outflow of $3.3 million in the first quarter of 2012.
• New organic enterprise account growth was $18.1 million in the first quarter.

"Our team is excited about our global enterprise opportunity,” said Eric D. Belcher, chief executive officer of InnerWorkings. “Our pipeline is strong and we expect to achieve our new organic enterprise revenue goals again this year.”

Additional first quarter 2013 financial and operational highlights include the following:

• The enterprise channel accounted for 79 percent of revenue and middle market accounted for 21 percent, consistent with the revenue mix in the first quarter of 2012.
• Gross profit margin was 22.5 percent, compared to 22.0 percent in the prior year period.
• DB Studios, a California-based distributor of permanent point-of-purchase displays was acquired in March 2013. DB Studios is expected to generate revenues of approximately $20 million during the period from acquisition date to the end of the year.

“While we continue to realize solid new enterprise growth, we are disappointed by our modest growth in the first quarter due to a decrease in a large customer’s spending,” said Joseph M. Busky, chief financial officer of InnerWorkings. “Given the new enterprise activity happening across our global footprint, we anticipate stronger results for the balance of the year.”

Outlook

The company reaffirms its recently revised 2013 revenue and EPS guidance. 2013 revenue guidance of $900 million to $930 million represents 13 percent to 17 percent growth over 2012, and 2013 EPS guidance of $0.45 to $0.50 represents 10 percent to 22 percent growth over 2012 adjusted diluted earnings per share.

For more information, visit www.inwk.com.