INX Inc. (INXI, Financial) filed Quarterly Report for the period ended 2011-03-31.
Inx Inc. has a market cap of $75.59 million; its shares were traded at around $6.75 with and P/S ratio of 0.24.
Gross Profit. Total gross profit increased by $2,573, or 20.5%, to $15,106 from $12,533 and gross profit as a percentage of revenue increased to 19.1% from 17.9%. Gross profit on the products sales component increased $1,866 or 17.0%, to $12,820 from $10,954 and, as a percentage of sales, increased to 18.8% from 18.0%, primarily due to a large volume, low margin order in the Gulf Coast Region in 2010. Gross profit on services revenue increased $707 or 44.8% to $2,286 from $1,579 and gross profit as a percent of services revenue increased to 21.3% from 17.3%, primarily due to improved engineer utilization.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $5,543, or 42.1% to $18,714 from $13,171. As a percentage of total revenue, these expenses increased to 23.7% in 2011 versus 18.8% in 2010. Excluding 2011 restatement costs of $2,672, selling, general and administrative expenses in 2011 represented 20.3% of total revenue. In addition to the restatement costs, 2011 expenses increased due to higher commissions on increased sales and increased bonuses. 2010 expenses were reduced by a $254 adjustment to estimated contingent purchase price consideration for the ANX acquisition and a $198 legal settlement.
Cash Flows. During the three months ended March 31, 2011, our cash decreased by $4,028. Operating activities used cash of $16,241, investing activities used $597, and financing activities provided $12,810.
Operating Activities. Operating activities used $16,241 in the three months ended March 31, 2011, as compared to providing cash of $7,518 in the comparable 2010 period. During the three months ended March 31, 2011, net income and noncash adjustments to net income used $1,802 and changes in asset and liability accounts used cash of $14,439, primarily due to increased accounts receivable and inventory resulting from higher sales. During the three months ended March 31, 2010, net income and noncash adjustments to net income provided cash of $433 and changes in asset and liability accounts provided cash of $7,085, primarily due to reduced inventory resulting from shipments of product initially received in 2009.
Financing Activities. Financing activities provided $12,810 in the three months ended March 31, 2011, compared to using $8,999 in the comparable 2010 period. Funds provided in the three months ended March 31, 2011 were primarily from net borrowings under the floor plan financing of $12,879 compared to funds used for net payments in the three months ended March 31, 2010 of $9,054.
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Inx Inc. has a market cap of $75.59 million; its shares were traded at around $6.75 with and P/S ratio of 0.24.
Highlight of Business Operations:
Revenue. Total revenue increased by $8,906, or 12.7%, to $78,954 from $70,048. Products revenue increased $7,299, or 12.0% to $68,200 from $60,901. The increase in products revenue was primarily due to large customer orders in our Central Texas Region. Services revenue increased $1,607 or 17.6% to $10,754 from $9,147, primarily due to increases in virtually every operating region.Gross Profit. Total gross profit increased by $2,573, or 20.5%, to $15,106 from $12,533 and gross profit as a percentage of revenue increased to 19.1% from 17.9%. Gross profit on the products sales component increased $1,866 or 17.0%, to $12,820 from $10,954 and, as a percentage of sales, increased to 18.8% from 18.0%, primarily due to a large volume, low margin order in the Gulf Coast Region in 2010. Gross profit on services revenue increased $707 or 44.8% to $2,286 from $1,579 and gross profit as a percent of services revenue increased to 21.3% from 17.3%, primarily due to improved engineer utilization.
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $5,543, or 42.1% to $18,714 from $13,171. As a percentage of total revenue, these expenses increased to 23.7% in 2011 versus 18.8% in 2010. Excluding 2011 restatement costs of $2,672, selling, general and administrative expenses in 2011 represented 20.3% of total revenue. In addition to the restatement costs, 2011 expenses increased due to higher commissions on increased sales and increased bonuses. 2010 expenses were reduced by a $254 adjustment to estimated contingent purchase price consideration for the ANX acquisition and a $198 legal settlement.
Cash Flows. During the three months ended March 31, 2011, our cash decreased by $4,028. Operating activities used cash of $16,241, investing activities used $597, and financing activities provided $12,810.
Operating Activities. Operating activities used $16,241 in the three months ended March 31, 2011, as compared to providing cash of $7,518 in the comparable 2010 period. During the three months ended March 31, 2011, net income and noncash adjustments to net income used $1,802 and changes in asset and liability accounts used cash of $14,439, primarily due to increased accounts receivable and inventory resulting from higher sales. During the three months ended March 31, 2010, net income and noncash adjustments to net income provided cash of $433 and changes in asset and liability accounts provided cash of $7,085, primarily due to reduced inventory resulting from shipments of product initially received in 2009.
Financing Activities. Financing activities provided $12,810 in the three months ended March 31, 2011, compared to using $8,999 in the comparable 2010 period. Funds provided in the three months ended March 31, 2011 were primarily from net borrowings under the floor plan financing of $12,879 compared to funds used for net payments in the three months ended March 31, 2010 of $9,054.
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