LITTLE ROCK, Ark., Aug. 08, 2018 (GLOBE NEWSWIRE) -- Inuvo, Inc. (NYSE American:INUV), a leading provider of artificial intelligence for advertising that serves partners, brands and agencies across various industries, is reporting its financial results for the second quarter ended June 30, 2018.

“The second quarter followed its seasonal pattern, starting off weak and ending strong,” commented Rich Howe, Chairman and CEO of Inuvo. “Despite the slow start, we increased revenue, expanded margins and more than doubled adjusted EBITDA. After increasing revenue 11% in the first half of the year, we now enter the strongest quarters of the year for Inuvo and look forward to continued growth and improved performance. Our previously issued 2018 guidance of double digit revenue growth over 2017 with higher adjusted EBITDA remains on track.”

Second Quarter 2018 Summary vs. Same Year-Ago Quarter (where applicable):

-- Revenue increased 4% to $19 million and 11% to $39.5 million for the second quarter and first half, respectively. -- Gross margin increased 490 basis points to 63.2%. -- Adjusted EBITDA (a non-GAAP financial measure) increased 102% to $0.3 million. -- Net loss improved to $0.8 million or $(0.03) per share compared to a net loss of $1.4 million or $ (0.05) per share. -- Net proceeds of $2.1 million from the issuance of Inuvo common stock; proceeds used for working capital. -- Cash balance at June 30, 2018 was $4.1 million with $4.0 million of debt. -- Eight new advertiser clients signed during the quarter.

Conference Call Information: Date: Wednesday, August 8, 2018Time: 4:30 p.m. Eastern time (3:30 p.m. Central time)Toll-free dial-in number: 1-800-289-0438International dial-in number: 1-323-794-2423Conference ID: 1122350

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Inuvo website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 22, 2018.

Toll-free replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay ID: 1122350

About Inuvo, Inc. Inuvo®, Inc. (NYSE American:INUV) is a market leader in intelligent advertising, aligning brands with appropriate content and consumer intent. The artificial intelligence within our patented IntentKey™ leverages contextually-based machine learning that mirrors the manner in which the human brain can instantly associate ideas, emotions, places, people and objects. Inuvo harnesses this power by delivering high performing campaigns reaching audiences that would typically be missed. To learn more about Inuvo, please visit www.inuvo.com or download our app for Apple iPhone or for Android.

Forward-looking Statements This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations with respect to our lack of profitable operating history, changes in our business, potential need for additional capital, fluctuations in demand; changes to economic growth in the U.S. economy; and government policies and regulations, including, but not limited to those affecting the Internet, all as set forth in our Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the SEC on February 8, 2018, and our subsequent filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Inuvo and are difficult to predict. Inuvo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

INUVO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, 2018 2017 ---------- ---------- Assets Current assets Cash $4,117,388 $4,084,686 Accounts receivable, net 7,587,429 10,759,250 Prepaid expenses and other current assets 380,075 400,191 Total current assets 12,084,892 15,244,127 Property and equipment, net 2,359,696 2,306,279 Other assets Goodwill 9,853,342 9,853,342 Intangible assets, net 10,116,933 10,808,018 Other assets 35,170 36,070 ---------- ---------- Total other assets 20,005,445 20,697,430 ---------- ---------- Total assets $34,450,033 $38,247,836 ----------- ----------- Liabilities and Stockholders’ Equity Current liabilities Accounts payable $10,262,768 $13,614,053 Accrued expenses and other current liabilities 2,973,153 2,887,816 Revolving credit line 4,000,000 4,900,000 Total current liabilities 17,235,921 21,401,869 Long-term liabilities Deferred tax liability 2,331,900 2,331,900 Other long-term liabilities 306,163 426,725 Total long-term liabilities 2,638,063 2,758,625 Total stockholders' equity 14,576,049 14,087,342 Total liabilities and stockholders' equity $34,450,033 $38,247,836 ----------- -----------

INUVO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 ---------- ----------- ----------- ----------- Net revenue $19,004,851 $18,271,181 $39,508,836 $35,487,043 Cost of revenue 6,991,304 7,620,743 15,769,898 15,512,466 ---------- ----------- ----------- ----------- Gross profit 12,013,547 10,650,438 23,738,938 19,974,577 Operating expenses Marketing costs (traffic acquisition costs or TAC) 8,446,163 7,493,273 16,740,457 13,960,584 Compensation 2,323,654 2,301,696 4,943,169 4,689,407 Selling, general and administrative 1,982,851 2,165,180 4,109,213 4,283,298 Total operating expenses 12,752,668 11,960,149 25,792,839 22,933,289 ---------- ----------- ----------- ----------- Operating loss (739,121) (1,309,711) (2,053,901) (2,958,712) Interest expense, net (94,556) (72,660) (195,445) (115,604) ---------- ----------- ----------- ----------- Loss from continuing operations before taxes (833,677) (1,382,371) (2,249,346) (3,074,316) Income tax benefit 980 - 8,625 - ---------- ----------- ----------- ----------- Net loss from continuing operations (832,697) (1,382,371) (2,240,721) (3,074,316) Net loss from discontinued operations - - - (1,109) ---------- ----------- ----------- ----------- Net loss (832,697) (1,382,371) (2,240,721) (3,075,425) Earnings per share, basic and diluted From continuing operations ($0.03) ($0.05) ($0.08) ($0.11) From discontinued operations - - - - Net loss ($0.03) ($0.05) ($0.08) ($0.11) ----------- ------------ ------------ ------------ Weighted average shares outstanding Basic 30,614,207 28,486,809 29,634,023 27,764,613 Diluted 30,614,207 28,486,809 29,634,023 27,764,613

RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO EBITDA and ADJUSTED EBITDA (Unaudited) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2018 2017 2018 2017 ------- --------- --------- ----------- Loss from continuing operations before taxes ($833,677 ($1,382,371 ($2,249,346 ($3,074,316) ) ) ) Interest expense, net 94,556 72,660 195,445 115,604 Depreciation 447,790 343,075 885,975 671,129 Amortization 337,626 398,617 691,085 763,738 ------- --------- --------- ----------- EBITDA 46,295 (568,019) (476,841) (1,523,845) Stock-based compensation 289,950 293,825 667,797 586,159 Non-recurring expense associated with acquiring NetSeer - 441,041 - 996,467 ------- --------- --------- ----------- Adjusted EBITDA $336,245 $166,847 $190,956 $58,781 -------- ---------- ---------- ------------

Reconciliation of Loss from Continuing Operations before Taxes to EBITDA and Adjusted EBITDA

We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as net loss from continuing operations before taxes plus (i) interest expense, net, (ii) depreciation, and (iii) amortization. We further define Adjusted EBITDA as EBITDA plus (iv) stock-based compensation and (v) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

Company Contact:Inuvo, Inc.Wally Ruiz Chief Financial Officer501-205-8397 wallace.ruiz@inuvo.com

Investor Relations Contact:LioliosMatt Glover or Sean Mansouri, CFA949-574-3860 INUV@liolios.com