Top 40 distributor InnerWorkings (asi/168860) has announced that its revenue reached $280 million in the third quarter, a year-over-year increase of 5.8%. Gross profit was $67.8 million, a 6.6% increase compared to the third quarter of 2015, while net income was $4.34 million, an increase of 10.15% year-over-year.
The company increased its year-to-date revenue by 8.08% to $820.3 million, while gross profit for the first three quarters was $194.8 million, an increase of 9.65% compared to the same time period in 2015. Diluted earnings per share for the year to date increased 44.4%, from 18 cents to 26 cents.
The company continues to sign new enterprise contracts, with a year-to-date collective total of over $100 million of annual gross revenue – an increase compared to the $60 million reported at the end of the second quarter. InnerWorkings expects the largest of the new contracts to generate $10 million of annual revenue at full run-rate.
Meanwhile, the largest increase of activity for an existing account is an expansion of a long-term partnership with a health-care industry client. InnerWorkings has seen an increase of more than $20 million of revenue from that account by expanding its print and creative services offering from one business unit to all of the client company’s U.S. and Canadian operations.
“We have devoted considerable energy to developing our presence in the international markets and new service offerings over the last few years, and the benefits of these investments are becoming more apparent,” said CEO Eric D. Belcher. “With the strength of our global capabilities and rate of penetration with our existing accounts, I’m excited by our performance and the path I see ahead for InnerWorkings.”
The company saw a diluted net loss of $4.34 million (8 cents per share) in the third quarter, while non-GAAP diluted earnings per share were 11 cents in the quarter, a year-over-year increase of 22.2%. Non-GAAP adjusted EBITDA increased 5.42% from the second quarter, reaching $16.92 million.
InnerWorkings upwardly revised its 2016 annual revenue expectations to between $1.075 billion and $1.082 billion, compared to previous expectations of $1.06 billion to $1.08 billion. Meanwhile, expectations for non-GAAP diluted earnings per share have also been upwardly revised to between 31 and 34 cents, from 30 and 33 cents.
“Our third quarter financial results demonstrate continued organic growth and further operating efficiency, particularly in our International segment,” said CFO Jeffrey P. Pritchett. “We are raising our financial performance expectations for 2016 as we continue to execute ahead of plan.”
InnerWorkings ranks as the 11th-largest distributor in the industry, with an estimated $147 million North American revenue for 2015.