UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K/A

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 1, 2014

 

 

INNERWORKINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware

(State or other jurisdiction

of incorporation)

000-52170

(Commission

File Number)

 

20-5997364

(I.R.S. Employer

Identification No.)

   

600 West Chicago Avenue

Suite 850

Chicago, Illinois

(Address of principal executive offices)

 

 

60654

(Zip Code)

   

(312) 642-3700

(Registrant’s telephone number, including area code)

 
 

 

N/A

   

(Former name or former address, if changed since last report)

 

 

 
             

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

  

Explanatory Note

 

This Form 8-K/A is filed to correct clerical errors with respect to the weighted average shares outstanding, diluted for each of the periods presented for the year ended December 31, 2012 contained in the Current Report on Form 8-K that was filed with the Securities and Exchange Commission on April 1, 2014 (the “Original Form 8-K”).  No other numbers presented in the Original Form 8-K changed as a result of these clerical errors.  The Original Form 8-K is hereby amended and restated in its entirety as follows.

 

 

Item 7.01 Regulation FD.*

 

On March 18, 2014, InnerWorkings, Inc. (the “Company”) filed its Form 10-K for the year ended December 31, 2013 (the “2013 10-K”). Based on the restated financial statements included in the 2013 10-K, the Company is now supplementally providing for the periods presented below Adjusted EBITDA and Non-GAAP diluted earnings per share, which are defined as "non-GAAP financial measures" by the Securities and Exchange Commission. The Company believes that Non-GAAP Adjusted EBITDA and Non-GAAP diluted earnings per share provide useful information to investors because they provide information about the estimated financial performance of the Company's ongoing business. Non-GAAP Adjusted EBITDA and Non-GAAP diluted earnings per share are used by management in its financial and operational decision-making and evaluation of overall operating performance. Non-GAAP Adjusted EBITDA and Non-GAAP diluted earnings per share may be different from similar measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles and should be should be read in conjunction with the 2013 10-K. Adjusted EBITDA and Non-GAAP diluted earnings per share, as well as a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP measures, are presented below.

 

   Year Ended December 31, 2013 
   First Quarter   Second Quarter   Third Quarter   Fourth Quarter   Fiscal Year 
Operating income (loss)  $(3,836,315)  $5,830,412   $(8,027,062)  $52,437   $(5,980,528)
Depreciation and amortization   2,465,667    2,648,396    3,880,431    4,669,365    13,663,859 
Stock-based compensation expense   973,193    1,080,913    982,082    1,696,843    4,733,031 
Change in fair value of contingent consideration   608,832    (1,649,389)   (29,627,005)   (663,005)   (31,330,567)
Payments to former owner of Productions Graphics, net of cash recovered   6,308,660    (2,521,635)   (910,811)   (252,156)   2,624,059 
Goodwill impairment charge   -    -    37,908,000    -    37,908,000 
Restructuring and asset write down charges   -    -    4,321,862    -    4,321,862 
Legal fees in connection with patent infringement defense   245,340    506,880    209,075    -    961,295 
Adjusted EBITDA  $6,765,377   $5,895,577   $8,736,572   $5,503,484   $26,901,011 

 

   Year Ended December 31, 2012 
   First Quarter   Second Quarter   Third Quarter   Fourth Quarter   Fiscal Year 
Operating income  $6,947,361   $6,212,101   $6,630,234   $25,959,085   $45,748,781 
Depreciation and amortization   2,444,096    2,936,981    2,696,255    2,713,120    10,790,452 
Stock-based compensation expense   1,047,645    1,403,729    719,699    3,021,797    6,192,870 
Change in fair value of contingent consideration   200,141    266,544    330,791    (28,486,250)   (27,688,774)
Preference claim settlement charge   -    -    -    1,099,386    1,099,386 
VAT settlement charge   -    -    -    1,485,088    1,485,088 
Payments to former owner of Productions Graphics, net of cash recovered   (1,410,979)   1,004,253    (4,355)   -    (411,082)
Adjusted EBITDA  $9,228,264   $11,823,608   $10,372,624   $5,792,226   $37,216,721 

 

   Year Ended December 31, 2013 
   First Quarter   Second Quarter   Third Quarter   Fourth Quarter   Fiscal Year 
Net income (loss)  $(2,801,274)  $3,675,521   $(9,066,070)  $(468,526)  $(8,660,349)
Change in fair value of contingent consideration, net of tax   645,020    (1,202,166)   (28,489,495)   (610,877)   (29,657,518)
Payments to former owner of Productions Graphics, net of cash recovered, net of tax   4,169,056    (1,746,673)   (630,896)   (174,662)   1,616,825 
Goodwill impairment charge   -    -    37,908,000    -    37,908,000 
Restructuring and asset write down charges, net of tax   -    -    2,614,726    -    2,614,726 
Legal fees in connection with patent infringement defense, net of tax   159,520    329,573    135,941    -    625,034 
Adjusted net income (loss)   2,172,322    1,056,256    2,472,206    (1,254,065)   4,446,719 
                          
Weighted average shares outstanding, diluted   52,006,801    51,965,539    52,217,066    52,125,182    50,875,131 
                          
Adjusted Diluted EPS  $0.04   $0.02   $0.05   $(0.02)  $0.09 

 

   Year Ended December 31, 2012 
   First Quarter   Second Quarter   Third Quarter   Fourth Quarter   Fiscal Year 
Net income  $4,429,214   $3,773,824   $4,303,494   $26,287,490   $38,794,022 
Change in fair value of contingent consideration, net of tax   174,694    204,991    370,163    (28,458,372)   (27,708,524)
Preference claim settlement charge, net of tax   -    -    -    668,449    668,449 
VAT settlement charge, net of tax   -    -    -    1,121,241    1,121,241 
Payments to former owner of Productions Graphics, net of cash recovered, net of tax   (1,000,402)   665,766    (3,040)   -    (337,676)
Adjusted net income (loss)   3,603,507    4,644,581    4,670,617    (381,192)   12,537,513 
                          
Weighted average shares outstanding, diluted   50,013,569    50,706,956    51,244,909    51,612,009    51,240,076 
                          
Adjusted Diluted EPS  $0.07   $0.09   $0.09   $(0.01)  $0.24 

 

*The information furnished under Item 7.01 of this Current Report on Form 8-K is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. 

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  INNERWORKINGS, INC.
     
     
Dated: April 7, 2014 By: /s/  Joseph M.  Busky
  Name: Joseph M. Busky
  Title: Chief Financial Officer