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8-K - FORM 8-K - FURMANITE CORPd84090e8vk.htm
EX-99.2 - EX-99.2 - FURMANITE CORPd84090exv99w2.htm
         
Exhibit 99.1
(FURMANITE LOGO)
For immediate release   For more information, contact:
     
    Investor Relations
(972) 699-4055
Email: investor@furmanite.com
FURMANITE CORPORATION REPORTS SECOND QUARTER 2011 RESULTS
Revenues Up 7%; Net Income Increased to $5.1 million; Earnings per Share to $0.14
DALLAS, TEXAS (August 9, 2011) — Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended June 30, 2011. Revenues were up 7% to $83.0 million, compared with $77.5 million for the second quarter 2010. Net income for the quarter increased to $5.1 million. This compares with net income for the prior year second quarter of $3.6 million, which included net-of-tax restructuring costs of $797,000. Foreign currency fluctuations favorably impacted the company’s second quarter 2011 revenues, operating income and net income by approximately $5.3 million, $507,000 and $94,000, respectively, for the quarter. Earnings per share (diluted) were $0.14 for the second quarter 2011 compared with $0.10 in the second quarter of 2010.
“We are pleased to be reporting one of our best ever revenue quarters under market conditions which continue to be very average overall,” said Charles R. Cox, chairman and CEO of Furmanite Corporation. “Our primary focus going forward continues to be on preparing the company for future growth while maintaining the operating efficiency gained from last year’s restructuring program.”
Joseph Milliron, Furmanite President and COO, said: “The core success of our performance this quarter was the result of our sales staff, support group and our technicians embracing teamwork and collaboration. We had no help from large, one-off projects this quarter. Contribution from the Americas’ region provided a significant portion of the quarter’s improvement and EMEA
 
2435 North Central Expressway, Suite 700 Richardson, Texas 75080 972-699-4055

 


 

second quarter revenues were up almost 16%. All in all, company-wide, the second quarter was a result of lots of hard work.”
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. 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 Six Months  
    Ended June 30,     Ended June 30,  
    2011     2010     2011     2010  
Revenues
  $ 83,009     $ 77,513     $ 156,063     $ 143,948  
 
Costs and expenses:
                               
Operating costs
    56,425       51,922       106,868       97,584  
Depreciation and amortization expense
    2,198       1,572       4,073       3,121  
Selling, general and administrative expense
    17,779       18,493       34,690       37,256  
 
                       
Total costs and expenses
    76,402       71,987       145,631       137,961  
 
                       
 
                               
Operating income
    6,607       5,526       10,432       5,987  
 
Interest income and other income (expense), net
    120       (246 )     242       96  
 
Interest expense
    (255 )     (241 )     (495 )     (482 )
 
                       
 
Income before income taxes
    6,472       5,039       10,179       5,601  
 
Income tax expense
    (1,326 )     (1,479 )     (1,007 )     (1,650 )
 
                       
 
Net income
  $ 5,146     $ 3,560     $ 9,172     $ 3,951  
 
                       
 
                               
Earnings per common share — Basic
  $ 0.14     $ 0.10     $ 0.25     $ 0.11  
 
                       
Earnings per common share — Diluted
  $ 0.14     $ 0.10     $ 0.25     $ 0.11  
 
                       


 

FURMANITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)
(Unaudited)
                 
    June 30,     December 31,  
    2011     2010  
     
Cash
  $ 30,855     $ 37,170  
Trade receivables, net
    74,014       63,630  
Inventories
    26,168       24,366  
Other current assets
    5,769       5,951  
     
Total current assets
    136,806       131,117  
 
               
Property and equipment, net
    35,189       30,720  
Other assets
    25,456       20,264  
     
Total assets
  $ 197,451     $ 182,101  
     
 
               
Total current liabilities
  $ 43,113     $ 42,936  
Total long-term debt
    32,855       30,085  
Other liabilities
    11,189       10,992  
Total stockholders’ equity
    110,294       98,088  
     
Total liabilities and stockholders’ equity
  $ 197,451     $ 182,101  
     


 

FURMANITE CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS

(in thousands)
(Unaudited)
                 
    For the Six Months Ended  
    June 30,  
    2011     2010  
     
Net income
  $ 9,172     $ 3,951  
 
Depreciation, amortization and other non-cash items
    3,672       4,297  
Working capital changes
    (14,807 )     (7,729 )
     
Net cash (used in) provided by operating activities
    (1,963 )     519  
 
Capital expenditures
    (1,579 )     (3,451 )
Acquisition of assets and business
    (4,029 )     (350 )
Proceeds from sale of assets
    105       195  
Payments on debt
    (69 )     (99 )
Issuance of common stock
    126        
Effect of exchange rate changes on cash
    1,094       (1,094 )
     
 
Decrease in cash and cash equivalents
    (6,315 )     (4,280 )
 
Cash and cash equivalents at beginning of period
    37,170       36,117  
     
 
Cash and cash equivalents at end of period
  $ 30,855     $ 31,837