*GAAP Results: Revenue of $491 million (-5% vs. prior year), Operating loss of $67 million (-$113M vs. prior year), and EPS loss of $1.29 (-$1.92 vs. prior year). Losses primarily due to non-cash goodwill impairment in Education Services/University Services and restructuring charges *Fiscal 2023 Outlook: Reduced to reflect increased Academic headwinds and a publishing pause in a Hindawi special issues program *Accelerating wide-ranging simplification and optimization efforts to drive meaningful margin improvement
InnerWorkings, Inc. (NASDAQ: INWK), the leading global marketing execution firm, announced that it is postponing the release of its first quarter 2018 financial results and conference call due to errors in its historical financial statements identified during the course of its first quarter financial reporting close process. The Company will be restating its financial statements for the years ended December 31, 2017, 2016, and 2015, and all interim periods within those years.
The accounting errors relate primarily to recording a portion of costs of goods sold in the wrong period, and have no material impact on InnerWorkings’ cash flow, revenue, or liquidity. The restated financial statements will also correct other errors identified during prior periods, which were immaterial individually and in the aggregate. Based on its preliminary assessment, InnerWorkings estimates the aggregate impact of these corrections on income before income taxes as follows:
• For the year ended December 31, 2017, a decrease in income before income taxes of $2.5 – $4.5 million;
• For the year ended December 31, 2016, a decrease in income before income taxes of $1.5 – $2.5 million; and
• For the year ended December 31, 2015, an increase in income before income taxes of $0.5 – $1.5 million
In order to allow sufficient time to complete its review and corrections to the historical financial statements, InnerWorkings is delaying reporting first quarter 2018 financial results and hosting its conference call, originally scheduled for May 8, 2018. The Company expects to file an amendment to its 2017 Form 10-K reflecting the corrected financial statements and reschedule its first quarter 2018 earnings release and conference call to no later than May 31, 2018. For more information about the restatement, please see the Company’s Current Report on Form 8-K (Item 4.02) filed on May 7, 2018.