InnerWorkings Reports 2015 Revenue Growth

Top 40 distributor InnerWorkings (asi/168860) reported it generated $1.03 billion and $1.09 billion in constant currency in 2015, reflecting 9.3% growth in constant currency over 2014. Furthermore, net cash provided by operating activities in 2015 was $43.4 million, compared to net cash used for operating activities of $12.5 million in 2014.

"2015 marked the best year in our company's history in terms of both profitability and new client wins," said Eric D. Belcher, CEO of InnerWorkings.

The company attributed part of its success last year to signing enterprise contracts totaling $135 million in annual revenue at the full-run rate. This achievement entailed, in part, inking four new enterprise contracts in the fourth quarter, including a large comprehensive agreement with Beam Suntory, a global spirits company.

In 2015, InnerWorkings’ non-GAAP diluted earnings per share were $0.25 as reported and $0.31 in constant currency. However, GAAP net loss per share was $0.61 and GAAP net loss was $32.3 million, mainly due to a noncash goodwill impairment charge and other realignment-related items totaling $46 million. Non-GAAP adjusted EBITDA was $51.9 million as reported and $55.7 million in constant currency, reflecting 30% growth in constant currency.

For the fourth quarter of 2015, InnerWorkings generated $270.3 million in revenue as reported and $283.8 million in constant currency, reflecting 15% growth in constant currency compared with the same quarter the prior year. Net cash, meanwhile, registered in at $50.7 million, compared to $3.5 million in the fourth quarter of 2014.

This year, InnerWorkings expects annual revenue growth to range between 6% and 8% compared to 2015 on a constant currency basis and excluding two operations the company is exiting, one in Venezuela and another in Europe. "I am confident we can continue to improve our returns on invested capital through cost discipline and operating leverage as we onboard a growing list of enterprise clients in 2016 and beyond,” said InnerWorkings’ CFO Jeffrey P. Pritchett.

With reported North American promotional products revenue of $140 million in 2014, InnerWorkings ranks 11th on Counselor’s 2015 list of the top 40 largest distributors in the industry by revenue.