DALLAS--(BUSINESS WIRE)--Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended September 30, 2011. Revenues were up 17% to $78.3 million, compared with $66.9 million for the third quarter 2010. Net income for the quarter increased to $3.6 million. This compares with net income for the prior year third quarter of $1.8 million, which included net-of-tax restructuring costs of $1.9 million. Foreign currency fluctuations favorably impacted the company’s third quarter 2011 revenues, operating income and net income by approximately $3.0 million, $441,000 and $199,000, respectively, for the quarter. Earnings per share (diluted) were $0.10 for the third quarter 2011 compared with $0.05 in the third quarter of 2010.
"We are very pleased with this continued revenue and earnings growth, and are optimistic with the early signs of improved conditions we now see in more of our markets,” said Charles R. Cox, Furmanite Chairman and CEO. “Our year-to-date net income, excluding restructuring costs, is up approximately $3.0 million or nearly 30% over 2010 results, even after absorbing approximately $0.7 million of legal expenses related to legacy matters. In addition to this solid current performance, good progress is also being made re-aligning our global organization to accelerate future growth, continuing to implement our new culture, and planning the relocation of our corporate office to Houston next year.”
Joseph Milliron, Furmanite President and COO, said: “The commitment to a culture that is 100% customer-focused and quality-driven led to our best third quarter revenue performance in the history of our company. While the Americas provided the primary revenue growth during the first half of the year, significant improvements in both EMEA and APAC have also played a key role in our positive operating results during the third quarter. Even without the benefit of major turnaround projects, and in spite of weather-related impediments over the past year, we are pleased to report the fourth consecutive quarter with year over year revenue growth, and look forward to continued success across our global operations.”
ABOUT FURMANITE CORPORATION
Furmanite Corporation (NYSE: FRM) is a worldwide technical services firm. Headquartered in Dallas, Texas, Furmanite, one of the world’s largest specialty technical services companies, delivers a broad portfolio of engineering solutions that keep facilities operating, minimizing downtime and maximizing profitability. Furmanite’s diverse, global operations serve a broad array of industry sectors, including offshore drilling operations, pipelines, refineries and power generation facilities, chemical and petrochemical plants, steel mills, automotive manufacturers, pulp and paper mills, food and beverage processing plants, semi-conductor manufacturers and pharmaceutical manufacturers. Furmanite operates more than 75 offices on six continents. The company recently expanded its global capabilities to deliver specialized solutions for large-scale equipment or operations through the acquisition of Self Leveling Machines International Pty Ltd. and Self Leveling Machines, Inc., based in Melbourne, Australia, and Houston, Texas. For more information, visit www.furmanite.com.
Certain of the Company’s statements in this press release are not purely historical, and as such are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding management’s intentions, plans, beliefs, expectations or projections of the future. Forward-looking statements involve risks and uncertainties, including without limitation, the various risks inherent in the Company’s business, and other risks and uncertainties detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission. One or more of these factors could affect the Company’s business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this document will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the Company, or any other person, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and the Company assumes no obligation to update any forward-looking statements.
| FURMANITE CORPORATION | ||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||||||||||||
|
(in thousands, except per share data)
(Unaudited) |
||||||||||||||||||||||||||
| For the Three Months | For the Nine Months | |||||||||||||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
| Revenues | $ | 78,330 | $ | 66,935 | $ | 234,393 | $ | 210,883 | ||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||
| Operating costs | 53,807 | 45,714 | 160,675 | 143,298 | ||||||||||||||||||||||
| Depreciation and amortization expense | 2,207 | 1,646 | 6,280 | 4,767 | ||||||||||||||||||||||
| Selling, general and administrative expense | 16,794 | 16,869 | 51,484 | 54,125 | ||||||||||||||||||||||
| Total costs and expenses | 72,808 | 64,229 | 218,439 | 202,190 | ||||||||||||||||||||||
| Operating income | 5,522 | 2,706 | 15,954 | 8,693 | ||||||||||||||||||||||
|
Interest income and other income
(expense), net |
(341 | ) | 438 | (99 | ) | 534 | ||||||||||||||||||||
| Interest expense | (263 | ) | (238 | ) | (758 | ) | (720 | ) | ||||||||||||||||||
| Income before income taxes | 4,918 | 2,906 | 15,097 | 8,507 | ||||||||||||||||||||||
| Income tax expense | (1,336 | ) | (1,095 | ) | (2,343 | ) | (2,745 | ) | ||||||||||||||||||
| Net income | $ | 3,582 | $ | 1,811 | $ | 12,754 | $ | 5,762 | ||||||||||||||||||
| Earnings per common share - Basic | $ | 0.10 | $ | 0.05 | $ | 0.34 | $ | 0.16 | ||||||||||||||||||
| Earnings per common share - Diluted | $ | 0.10 | $ | 0.05 | $ | 0.34 | $ | 0.16 | ||||||||||||||||||
| FURMANITE CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| Cash |
$ |
35,098 |
$ | 37,170 | ||||
| Trade receivables, net | 70,214 |
63,630 |
||||||
| Inventories | 26,939 | 24,366 | ||||||
| Other current assets | 4,616 | 5,951 | ||||||
| Total current assets | 136,867 | 131,117 | ||||||
| Property and equipment, net | 34,549 | 30,720 | ||||||
| Other assets | 24,272 | 20,264 | ||||||
| Total assets | $ | 195,688 | $ | 182,101 | ||||
| Total current liabilities | $ | 41,311 | $ | 42,936 | ||||
| Total long-term debt | 32,709 | 30,085 | ||||||
| Other liabilities | 10,658 | 10,992 | ||||||
| Total stockholders' equity | 111,010 | 98,088 | ||||||
| Total liabilities and stockholders' equity | $ | 195,688 | $ | 182,101 | ||||
| FURMANITE CORPORATION | ||||||||||
| CONDENSED CONSOLIDATED CASH FLOWS | ||||||||||
| (in thousands) | ||||||||||
| (Unaudited) | ||||||||||
|
For the Nine Months Ended
September 30, |
||||||||||
| 2011 | 2010 | |||||||||
| Net income | $ | 12,754 | $ | 5,762 | ||||||
| Depreciation, amortization and other non-cash items | 6,238 | 5,683 | ||||||||
| Working capital changes | (13,364 | ) | (3,483 | ) | ||||||
| Net cash provided by operating activities | 5,628 | 7,962 | ||||||||
| Capital expenditures | (3,915 | ) | (4,484 | ) | ||||||
| Acquisition of assets and business | (3,815 | ) | (350 | ) | ||||||
| Proceeds from sale of assets | 131 | 759 | ||||||||
| Payments on debt | (85 | ) | (188 | ) | ||||||
| Proceeds from issuance of debt | – | 76 | ||||||||
| Issuance of common stock | 271 | 20 | ||||||||
| Effect of exchange rate changes on cash | (287 | ) | (130 | ) | ||||||
| (Decrease) increase in cash and cash equivalents | (2,072 | ) | 3,665 | |||||||
| Cash and cash equivalents at beginning of period | 37,170 | 36,117 | ||||||||
| Cash and cash equivalents at end of period | $ | 35,098 | $ | 39,782 | ||||||