Top 40 distributor InnerWorkings (asi/168860) increased total company gross revenue and gross profit in the fourth quarter of 2017 and for last year as a whole. That’s according to preliminary, unaudited results from the Chicago-based firm, which said this week that it will reveal final results for the year and Q4 on March 12.
InnerWorkings initially planned to release final audited results on Tuesday, February 27, but had to push the date back to allow more time to complete the financial close and audit. “The extended timeframe for closing 2017 is due to resource demands associated with implementing new revenue recognition standards effective January 1, 2018,” InnerWorkings stated in a news release.
According to preliminary results, InnerWorkings increased total revenue for 2017 to between $1.138 billion and $1.143 billion. That’s an increase of 4% to 5% compared to 2016. Meanwhile, gross profit is expected to tally between $281 million and $282 million, a 7% annual rise. As is customary, InnerWorkings did not break out promotional products sales.
During 2017, InnerWorkings signed new client contracts that total $130 million of annual revenue at the full run-rate. “The growth is a blend of expansions with existing accounts, as well as the addition of a number of first-time clients,” the company said in a news release.
As for last year’s fourth quarter, preliminary results indicate that total gross revenue shot up to between $303 million and $308 million, a 12% to 14% increase over the same quarter in 2016. During Q4, gross profit is expected to have reached $74 to $75 million, a year-over-year jump of 8% to 9%.
"The fourth quarter rounded out a solid year of growth for InnerWorkings in 2017," said CEO Eric D. Belcher. "With $130 million in client contracts signed last year, plus another $31 million signed in January with three global brands, we enter 2018 highly confident in our financial expectations for this year."
InnerWorkings expects 2018 annual gross revenue to range between $1.195 billion and $1.23 billion. The company forecasts 2018 non-GAAP diluted earnings per share to be $0.56 to $0.59. In early February, InnerWorkings announced a plan that will see executive Rich Stoddart take over as president/CEO on or before April 5. Belcher, the current CEO, will transition into the role of executive chairman of the board of directors.
In its latest listing, Counselor ranks InnerWorkings as the 15th largest distributor in the industry, estimating the firm generated 2016 promotional products sales of $147 million.