InnerWorkings Reports Q1 Revenues
An 8.5% Year-Over-Year Gain
Counselor Top 40 distributor InnerWorkings (asi/168860) has reported that its total first-quarter 2013 sales increased to $204.3 million, an 8.5% year-over-year gain. The revenues, though – while a company record for Q1 – fell about $15 million short of what analysts had projected earlier this 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, CFO of InnerWorkings.
While InnerWorkings remains positive about 2013, last month the Chicago-based company cut its full-year earnings forecast. InnerWorkings reaffirmed its updated forecast in its Q1 report, expecting 2013 sales between $900 million and $930 million, with earnings per share of 45 cents to 50 cents. Earlier forecasts predicted sales of up to $960 million and earnings of 57 cents to 61 cents per share.
InnerWorkings does expect to make up some of its lost 2013 revenue through the acquisition of California-based DB Studios, which distributes retail displays. InnerWorkings believes DB Studios can contribute about $20 million in sales this year. The firm also believes it can continue to improve its enterprise channel growth, which accounted for 79% of its Q1 revenues. “Our team is excited about our global enterprise opportunity,” said Eric Belcher, InnerWorkings’ CEO. “Our pipeline is strong and we expect to achieve our new organic enterprise revenue goals again this year.”
InnerWorkings, which provides promotional items as well as print products, has reported to Counselor that its 2012 North American ad specialty sales were $114.1 million, an 8.4% increase over 2011. The distributor’s promotional products sales have risen 35% since 2008.