DALLAS--(BUSINESS WIRE)--Furmanite Corporation (NYSE: FRM) today reported results for the year ended December 31, 2011. Revenues were $316.2 million compared with $286.0 million for 2010. Net income for 2011 increased to $24.0 million from $9.5 million in 2010. Net income for 2011 was favorably impacted by income tax benefits of $7.7 million related to the net effect of a fourth quarter reversal of valuation allowances on U.S. deferred income taxes as well as $1.2 million associated with the first quarter SLM acquisition. In addition, 2011 net income was unfavorably affected by net-of-tax charges of $0.3 million of restructuring costs and a fourth quarter $0.9 million charge associated with the Company’s decision to exit the heat exchanger business in Germany.
Revenues for the fourth quarter of 2011 were $81.4 million, compared with $75.1 million for the fourth quarter of 2010. Net income for the fourth quarter of 2011 increased to $11.2 million from $3.7 million for the fourth quarter of 2010. Net income for the fourth quarter of 2011 was favorably impacted by a $7.7 million income tax benefit related to the net effect of the reversal of valuation allowances on U.S. deferred income taxes. In addition, 2011 net income was unfavorably impacted by net-of-tax charges of $0.1 million of restructuring charges and the $0.9 million charge in Germany discussed above.
Foreign currency fluctuations favorably impacted the Company’s 2011 revenues, operating income and net income by approximately $9.8 million, $1.2 million and $0.3 million, respectively, for 2011. Foreign currency fluctuations in the fourth quarter of 2011 were insignificant. Earnings per share (diluted) were $0.64 for 2011, compared with 2010 earnings per share (diluted) of $0.26. Earnings per share (diluted) were $0.30 for the fourth quarter of 2011, compared with fourth quarter 2010 earnings per share (diluted) of $0.10.
“Our full year 2011 results indicate good progress in our commitment to transform Furmanite into a world leading and top performing specialty services firm,” said Charles R. Cox, chairman and CEO of Furmanite Corporation. “Revenue growth of nearly 11% and income before income tax growth of 46% in 2011 represents significant improvement over 2010, but still well below our potential. We have improvement opportunities before us in virtually every aspect of our business which are being addressed by our restructuring, culture change and strategic re-direction. We are confident our efforts are on target to deliver significant continued future growth.”
Joseph Milliron, Furmanite President and COO, said: “There is tremendous excitement throughout the Company as we have implemented our values and strategies, and created a new global organizational concept to accelerate growth. We also achieved strong revenue growth with solid sales margins in most regions and good project performance overall. A few underperforming projects and a number of one-time issues, however, created erosion in our delivered margins and operating income for 2011, particularly in the fourth quarter. The underperforming project issue is being addressed by a strong company-wide drive for consistent project execution excellence. Overall, we are pleased with our 2011 results and we continue to stay focused on the action needed to maximize our long-term growth.”
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. (collectively "SLM"), based in Melbourne, Australia, and Houston, Texas. The company’s headquarters will relocate to Houston, Texas in the first quarter of 2012. 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 Twelve Months | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues | $ | 81,814 | $ | 75,070 | $ | 316,207 | $ | 285,953 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Operating costs | 58,471 | 51,296 | 219,146 | 194,594 | ||||||||||||
| Depreciation and amortization expense | 1,951 | 1,723 | 8,231 | 6,490 | ||||||||||||
| Selling, general and administrative expense | 16,895 | 17,084 | 68,379 | 71,209 | ||||||||||||
| Total costs and expenses | 77,317 | 70,103 | 295,756 | 272,293 | ||||||||||||
| Operating income | 4,497 | 4,967 | 20,451 | 13,660 | ||||||||||||
|
Interest income and other income
(expense), net |
(27 | ) | 15 | (126 | ) | 549 | ||||||||||
| Interest expense | (259 | ) | (223 | ) | (1,017 | ) | (943 | ) | ||||||||
| Income before income taxes | 4,211 | 4,759 | 19,308 | 13,266 | ||||||||||||
| Income tax expense (benefit) | (7,005 | ) | 1,035 | (4,662 | ) | 3,780 | ||||||||||
| Net income | $ | 11,216 | $ | 3,724 | $ | 23,970 | $ | 9,486 | ||||||||
| Earnings per common share - Basic | $ | 0.30 | $ | 0.10 | $ | 0.65 | $ | 0.26 | ||||||||
| Earnings per common share - Diluted | $ | 0.30 | $ | 0.10 | $ | 0.64 | $ | 0.26 | ||||||||
| FURMANITE CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| December 31, | December 31, | |||||
| 2011 | 2010 | |||||
| Cash |
$ |
34,524 |
$ | 37,170 | ||
| Trade receivables, net | 71,508 | 63,630 | ||||
| Inventories | 26,557 | 24,366 | ||||
| Other current assets | 13,171 | 5,951 | ||||
| Total current assets | 145,760 | 131,117 | ||||
| Property and equipment, net | 34,060 | 30,720 | ||||
| Other assets | 27,412 | 20,264 | ||||
| Total assets | $ | 207,232 | $ | 182,101 | ||
| Total current liabilities | $ | 41,999 | $ | 42,936 | ||
| Total long-term debt | 31,051 | 30,085 | ||||
| Other liabilities | 15,293 | 10,992 | ||||
| Total stockholders' equity | 118,889 | 98,088 | ||||
| Total liabilities and stockholders' equity | $ | 207,232 | $ | 182,101 | ||
| FURMANITE CORPORATION | ||||||||
| CONDENSED CONSOLIDATED CASH FLOWS | ||||||||
| (in thousands) | ||||||||
|
For the Twelve Months Ended
December 31, |
||||||||
| 2011 | 2010 | |||||||
| Net income | $ | 23,970 | $ | 9,486 | ||||
| Depreciation, amortization and other non-cash items | 921 | 7,661 | ||||||
| Working capital changes | (17,003 | ) | (9,311 | ) | ||||
| Net cash provided by operating activities | 7,888 | 7,836 | ||||||
| Capital expenditures | (6,450 | ) | (7,312 | ) | ||||
| Acquisition of assets and business | (4,073 | ) | (350 | ) | ||||
| Proceeds from sale of assets | 137 | 574 | ||||||
| Payments on debt | (207 | ) | (237 | ) | ||||
| Proceeds from issuance of debt | – | 78 | ||||||
| Issuance of common stock | 270 | 578 | ||||||
| Effect of exchange rate changes on cash | (211 | ) | (114 | ) | ||||
| (Decrease) increase in cash and cash equivalents | (2,646 | ) | 1,053 | |||||
| Cash and cash equivalents at beginning of year | 37,170 | 36,117 | ||||||
| Cash and cash equivalents at end of year | $ | 34,524 | $ | 37,170 | ||||