WhatTheyThink.com - InnerWorkings Responds to Barron's Column: "Our Supplier Network. The column implies that the number of vendors in our supplier network was inflated in our IPO offering documents. We categorically deny this assertion. Since the completion of our IPO in August 2006, the number of vendors in our supplier network has continued to increase. Our supplier network currently includes over 4,500 vendors.
Impact of Acquisitions. The column incorrectly states that acquisitions have driven much of the Company's growth. For the nine months ended September 30, 2006, our revenues increased by approximately 82% over the prior year period. A substantial majority of this revenue growth was unrelated to acquisitions. In 2005, we experienced revenue growth of approximately 97% without the benefit of any acquisitions. As the Company has previously disclosed, acquisitions will continue to be a component of our growth strategy.
Related Party Transaction. The column erroneously alleges that a related party transaction accounted for a significant portion of the Company's profits in the months preceding the IPO. In March 2006, the Company entered into a strategic agreement with SNP Corporation Ltd., a Singapore corporation. Our non-executive Chairman also serves as the non-executive Chairman of SNP. For the nine months ended September 30, 2006, this transaction accounted for less than 7% of the Company's income from operations.
Role of Eric P. Lefkofsky. The article mischaracterizes the role that Eric P. Lefkofsky plays with respect to the Company. Mr. Lefkofsky is not an officer or a director of InnerWorkings, and he does not have any decision-making authority or responsibility for any management function. Mr. Lefkofsky and Richard A. Heise, Jr. were instrumental in the formation of the business, and the senior management team and the Board of Directors regularly consult with them."
