InnerWorkings Reports Q3 Sales
Chicago Firm Reports Quarterly Net Income Of $7.3 Million
Counselor Top 40 distributor InnerWorkings (asi/168860) has announced third-quarter sales of $232.6 million, a 16% year-over-year improvement. Strengthened by one-time gains, the Chicago-based firm reported quarterly net income of $7.3 million, or 14 cents per share, a 46% rise. However, InnerWorkings said its profits were hurt by its Europe-based Productions Graphics business, initially sending the company's stock lower, down by as much as 22%, late Wednesday.
"While our core enterprise business continues to drive our growth globally, the performance of Productions Graphics in Europe and the restructuring of our inside sales division resulted in lower profitability for the quarter," said Eric Belcher, CEO of InnerWorkings. "We have already taken action to proactively address these areas of our business. In Europe, we have installed new leadership and, with our inside sales division, we are pivoting towards a new customer acquisition strategy through a channel partnership."
While InnerWorkings reported disappointing results from Europe, the company continued its strong growth in enterprise markets, which accounted for 78% of its Q3 revenues. In its statement, the company said, during Q3, it signed new enterprise agreements with a global consumer package goods company and two large charitable organizations, among others.
Still, InnerWorkings is lowering its 2013 revenue guidance from a range of $910 to $940 million to a range of $865 to $880 million, which falls short of consensus expectations among analysts. The company, though, is predicting full-year revenue growth of between 9% and 10%. Ranked by Counselor as the 12th largest distributor in the industry, InnerWorkings reported 2012 North American ad specialty sales of $114.1 million, a year-over-year gain of 8.4%.