Business News
InnerWorkings Announces Record Fourth Quarter and Full Year 2010 Results
Wednesday 16. February 2011 - Record Quarterly and Annual Revenue; Expanding Geographic Footprint to Meet Needs of Global Clients
InnerWorkings, Inc. (NASDAQ: INWK), a leading global provider of managed print and promotional solutions, today reported results for the fourth quarter and fiscal year ended December 31, 2010.
Quarterly Highlights:
Record revenue for the fourth quarter of $130.4 million, an increase of 20.9% compared to revenue of $107.9 million in the fourth quarter of 2009.
Net income was $3.5 million, an increase of 61.9% compared to $2.2 million in the year-earlier period. Earnings were $0.07 per diluted share compared to $0.05 per diluted share in the fourth quarter of 2009.
Adjusted EBITDA was $7.9 million, an increase of 30.2% compared to $6.1 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information.
Revenue from new accounts was $12.8 million.
Cash flow generated from operations was $6.2 million compared to $4.1 million in the fourth quarter of 2009.
Fiscal Year Highlights:
Record revenue for fiscal year 2010 of $482.2 million, an increase of 20.4% compared to revenue of $400.4 million in fiscal year 2009.
Net income was $11.2 million and diluted earnings per share were $0.24, compared to net income of $6.3 million and diluted earnings per share of $0.13 in fiscal year 2009, an increase of 77.7% and 84.6%, respectively.
Adjusted EBITDA was $27.4 million, an increase of 37.0% compared to $20.0 million in fiscal year 2009. Please refer to the non-GAAP reconciliation table below for more information.
Revenue from new accounts was $59.7 million.
Cash flow generated from operations was $8.3 million compared to $14.2 million in fiscal year 2009.
“Fiscal year 2010 was a record year for growth and development at InnerWorkings. The Company’s strong results were driven by execution against our long-term growth strategy, particularly the establishment of profitable new enterprise relationships,” said Eric D. Belcher, Chief Executive Officer of InnerWorkings. “Moreover, we have taken important steps to fulfill our vision for global leadership in print management, including the recent acquisition of CPRO, the leading multi-national print management firm in Latin America. InnerWorkings will continue to grow its geographic footprint to meet the needs of our global clients.”
Additional fourth quarter 2010 financial and operational highlights include the following:
For the fourth quarter of 2010, 70 percent of the Company’s revenue was generated from sales to enterprise clients, with the remaining 30 percent derived from transactional clients.
The Company conducted business with all 25 of its top 25 customers from the year-earlier period.
As of December 31, 2010, the Company had an outstanding balance of $47.4 million on its $100 million bank credit facility and retained cash and short-term investments of $9.5 million.
“The Company’s strengthening financial position is reflected in our improving operating profit and return on invested capital,” said Joseph M. Busky, Chief Financial Officer of InnerWorkings. “Given our current stage of development, we will continue to invest in the necessary people, processes and technology to support our growth initiatives as we pursue our goal of becoming a global multi-billion dollar business.”