InnerWorkings Posts Wider Q4 Loss, Gives '14 View - Analyst Blog

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InnerWorkings Inc . ( INWK ) reported operating loss of 2 cents per share in the fourth quarter of 2013, wider than the Zacks Consensus Estimate loss as well as the year-ago loss of 1 penny.  The quarter disappointed as the third consecutive one ringing in a negative earnings surprise.

Behind the Headlines

InnerWorkings's revenue for the reported quarter grossed $245.6 million, up 22% year over year and surpassed the Zacks Consensus Estimate by about 10%.  Organic revenues improved 14% year over year.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) edged down 1.6% year over year to $6.2 million.

Though revenues were at a record high, mounting total other expense induced losses in the quarter. Total other expense in the quarter amounted to $1.1 million, considerably up from $0.2 million incurred in the year-ago quarter.

Full-Year Highlights

InnerWorkings delivered operating earnings of 7 cents per share in 2013, on revenues of $893.4 million. While the bottom line plunged nearly 71%, an impressive top line improved 13% year over year.

77% of revenues were generated from enterprise sales, with the remaining 23% generated from middle-market sales.

Escalating expenses more than offset the revenue improvement resulting in lower earnings.

Financial Update

InnerWorkings exited 2013 with cash and cash equivalents of $18.8 million, up from $17.2 million in 2012.

While revolving credit facility as on Dec 31, 2013 was $69 million (compared with $65 million as on Dec 31, 2012), other long-term liabilities totaled $86.1 million (compared with $53.1 million as on Dec 31, 2012).

Operating cash flow totaled $39 million, surging 88% year over year.

Guidance for 2014

InnerWorkings expects to generate revenues in the range of $0.965 to $1 billion, which translates into a year-over-year increase of 8 to 12%. Adjusted earnings are expected to range between 23 and 27 cents per share, marking a substantial improvement over the year-ago level.

Zacks Rank

InnerWorkings carries a Zacks Rank #4 (Sell).

Performance of Other Business Service Providers

Cardtronics Inc . ( CATM ) reported fourth-quarter 2013 operating earnings of 44 cents per share, beating the Zacks Consensus Estimate by a penny and improving 19% year over year.

SouFun Holdings Ltd . ( SFUN ) reported operating earnings of $1.41 per share exceeding the Zacks Consensus Estimate by 34.5%, and surged 86% year over year.

Avis Budget Group Inc . ( CAR ) posted earnings of 15 cents in the fourth quarter, exceeding the Zacks Consensus Estimate by 25% and rebounding from the year-ago loss of 7 cents.



AVIS BUDGET GRP (CAR): Free Stock Analysis Report

CARDTRONICS INC (CATM): Free Stock Analysis Report

INNERWORKINGS (INWK): Free Stock Analysis Report

SOUFUN HLDG-ADR (SFUN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CAR , CATM , INWK , SFUN

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