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


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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Zacks Investment Research

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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