Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - FURMANITE CORP | d311594d8k.htm |
| EX-99.1 - PRESS RELEASE - FURMANITE CORP | d311594dex991.htm |
 Furmanite Corporation
QUARTER AND YEAR ENDED
DECEMBER 31, 2011
Charles R. Cox, Chairman & CEO
Joseph E. Milliron, President & COO
Robert S. Muff, Principal Financial Officer
Exhibit 99.2 |
 2
Certain of the Company’s statements in this presentation 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 plans, beliefs,
expectations, intentions 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 most recently in this presentation and
the Company’s Form 10-K as of December 31, 2011 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 presentation are based on information presently available to
management, and the Company assumes no obligation to update any forward-
looking statements.
|
 Furmanite Corporation
QUARTER AND YEAR ENDED
DECEMBER 31, 2011
Charles R. Cox, Chairman & CEO
3 |
 4
Full Year
•
Revenues up $30.3 million
•
Operating income up $2.3 million, excluding restructuring and
impairment costs
•
Net income up $1.5 million, excluding restructuring, impairment
costs and non-recurring tax related benefits
•
Not satisfied with full year or fourth quarter results relative to
potential
•
Identified issues were specific, not fundamental in nature, and
currently being addressed
•
Significant internal investment planned for 2012 and 2013 to
support Service Line and Geographic Growth Strategies
Financial Overview |
 5
•
Positive trends continuing in Americas, UK and Australia
•
Unclear direction in Central Europe, Scandinavia
•
Cautious optimism continues
•
Still not counting on consistently better markets
Business Conditions |
 6
•
Service Line (“SL”) Strategies initiated
•
Investment to support SL Strategies planned for 2012 and 2013
•
Orange Way Matrix organizational concept in place
•
Values, Culture Change and Overall Growth Strategies Unchanged
•
Corporate HQ move to Houston, Texas on schedule
Strategic
Update |
 7
•
Continue to get closer to our Customers and their needs
•
Finalize “Orange Way”
Global Matrix Organization
•
Appoint Service Line Teams to Implement “World Leader Vision”
•
Assemble Senior Marketing, Operations & Support Leadership in
new Houston HQ
•
Embed “Orange Code”
Culture, Drive Growth Strategies & Project
Execution Excellence
2012 Priorities |
 To safely and ethically establish
Furmanite as the World leader in all our
Service Lines by 2014, through
Innovation, Global Teamwork, Market
Dominance, Project Excellence and
Customer Service Perfection.
“The World Leader in All
Service Lines
by
2014”
8
Furmanite Vision |
 Furmanite Corporation
QUARTER AND YEAR ENDED
DECEMBER 31, 2011
Financial Review
Robert S. Muff, Principal Financial Officer
9 |
 Consolidated
Income Statements ($ in 000s except percentages and per share amounts) (Unaudited)
10
For the Three Months Ended
December 31,
2011
% of
Rev
2010
% of
Rev
Change
Revenues
$ 81,814
100.0%
$ 75,070
100.0%
$ 6,744
Operating costs
57,600
70.4%
51,115
68.1%
6,485
Depreciation and amortization expense
1,951
2.4%
1,723
2.3%
228
Selling, general and administrative expense
16,819
20.6%
16,268
21.7%
551
Operating income, excluding restructuring costs
5,444
6.7%
5,964
7.9%
(520)
Restructuring and impairment costs
947
1.2%
997
1.3%
(50)
Operating income
4,497
5.5%
4,967
6.6%
(470)
Interest and other income (expense), net
(286)
(208)
(78)
Income before income taxes
4,211
4,759
(548)
Income tax expense (benefit)
(7,005)
1,035
(8,040)
Net income
$ 11,216
$ 3,724
$ 7,492
Diluted EPS
$ 0.30
$ 0.10
$ 0.20
Adjusted Diluted EPS*
$ 0.12
$ 0.13
$ (0.01)
* Excludes $0.1 million of restructuring charges, net of tax, $0.9 million impairment charge
and $7.7 million income tax benefit from valuation allowance reversal in the United
States for the three months ended December 31, 2011. Excludes $1.0 million of restructuring
charges for the three months ended December 31, 2010. |
 Consolidated
Income Statements ($ in 000s except percentages and per share amounts)
11
For the Twelve Months Ended
December 31,
2011
% of
Rev
2010
% of
Rev
Change
Revenues
$ 316,207
100.0%
$ 285,953
100.0%
$ 30,254
Operating costs
218,132
69.0%
192,595
67.4%
25,537
Depreciation and amortization expense
8,231
2.6%
6,490
2.3%
1,741
Selling, general and administrative expense
68,176
21.6%
67,495
23.6%
681
Operating income, excluding restructuring costs
21,668
6.9%
19,373
6.8%
2,295
Restructuring and impairment costs
1,217
0.4%
5,713
2.0%
(4,496)
Operating income
20,451
6.5%
13,660
4.8%
6,791
Interest and other income (expense), net
(1,143)
(394)
(749)
Income before income taxes
19,308
13,266
6,042
Income tax expense (benefit)
(4,662)
3,780
(8,442)
Net income
$ 23,970
$ 9,486
$ 14,484
Diluted EPS
$ 0.64
$ 0.26
$ 0.38
Adjusted Diluted EPS*
$ 0.44
$ 0.40
$ 0.04
* Excludes $0.3 million of restructuring charges, net of tax, $0.9 million impairment charge
and $8.9 million income tax benefits from valuation allowance
reversal
in
the
United
States
and
acquisition
related
tax
benefit
for
the
twelve
months
ended
December
31,
2011.
Excludes
$5.2 million of restructuring charges,
net of tax for the twelve months ended December 31, 2010. |
 Adjustments for Currency Rates
2011 amounts at 2010 exchange rates
($ in 000s except percentages) (Unaudited)
12
For the Three Months Ended
For the Twelve Months Ended
December 31,
December 31,
2011
2010
Change
2011
2010
Change
Revenues
$ 81,814
$ 75,070
$ 6,744
$ 316,207
$ 285,953
$ 30,254
Currency adjusted revenues
$ 82,040
$ 75,070
$ 6,970
$ 306,445
$ 285,953
$ 20,492
Operating income
$ 4,497
$ 4,967
$ (470)
$ 20,451
$ 13,660
$ 6,791
Currency adjusted operating income
$ 4,470
$ 4,967
$ (497)
$ 19,300
$ 13,660
$ 5,640
Net income
$ 11,216
$ 3,724
$ 7,492
$ 23,970
$ 9,486
$ 14,484
Currency adjusted net income
$ 11,309
$ 3,724
$ 7,585
$ 23,702
$ 9,486
$ 14,216 |
 Revenues Adjusted for Currency Rates
2011 amounts at 2010 exchange rates
($ in 000s except percentages) (Unaudited)
13
For the Twelve Months Ended
December 31,
2011
2010
Change
Revenues
Americas
$ 158,515
$ 135,174
$ 23,341
17%
EMEA
118,649
109,373
9,276
8%
Asia-Pacific
39,043
41,406
(2,363)
-6%
Total revenues
$ 316,207
$ 285,953
$ 30,254
11%
Currency adjusted revenues:
Americas
$ 158,182
$ 135,174
$ 23,008
17%
EMEA
113,199
109,373
3,826
3%
Asia-Pacific
35,064
41,406
(6,342)
-15%
Total currency adjusted revenues
$ 306,445
$ 285,953
$ 20,492
7% |
 Allocation of headquarter costs based on revenues
($ in 000s except percentages) (Unaudited)
14
For the Twelve Months Ended
December 31, 2011
Americas
EMEA
Asia-
Pacific
Corporate
& Other
Total
Operating income
$ 19,717
$ 8,995
$ 5,404
$ (13,665)
$ 20,451
Allocation of headquarter costs
(6,763)
(5,205)
(1,697)
13,665
–
Adjusted operating income
$ 12,954
$ 3,790
$ 3,707
–
$ 20,451
For the Twelve Months Ended
December 31, 2010
Americas
EMEA
Asia-
Pacific
Corporate
& Other
Total
Operating income
$ 16,208
$ 1,970
$ 10,891
$ (15,409)
$ 13,660
Allocation of headquarter costs
(7,228)
(5,983)
(2,198)
15,409
–
Adjusted operating income (loss)
$ 8,980
$ (4,013)
$ 8,693
–
$ 13,660 |
 Adjustments for Currency Rates
2011 amounts at 2010 exchange rates
($ in 000s) (Unaudited)
15
For the Twelve Months Ended
December 31,
2011
2010
Change
Operating income (loss) after allocation of headquarter
costs:
Americas
$ 12,954
$ 8,980
$ 3,974
EMEA
3,790
(4,013)
7,803
Asia-Pacific
3,707
8,693
(4,986)
Total operating income after allocation of
headquarter costs
$ 20,451
$ 13,660
$ 6,791
Currency adjusted operating income (loss) after
allocation of headquarter costs:
Americas
$ 12,859
$ 8,980
$ 3,879
EMEA
3,318
(4,013)
7,331
Asia-Pacific
3,123
8,693
(5,570)
Total currency adjusted operating income after
allocation of headquarter costs
$ 19,300
$ 13,660
$ 5,640 |
 Condensed Consolidated Balance Sheets
($ in 000s)
16
December 31,
December 31,
2011
2010
Change
Cash
$ 34,524
$ 37,170
$ (2,646)
Trade receivables, net
71,508
63,630
7,878
Inventories
26,557
24,366
2,191
Other current assets
13,171
5,951
7,220
Total current assets
145,760
131,117
14,643
Property and equipment, net
34,060
30,720
3,340
Other assets
27,412
20,264
7,148
Total assets
$ 207,232
$ 182,101
$ 25,131
Total current liabilities
$ 41,999
$ 42,936
$ (937)
Total long-term debt
31,051
30,085
966
Other liabilities
15,293
10,992
4,301
Total stockholders' equity
118,889
98,088
20,801
Total liabilities and
stockholders' equity
$ 207,232
$ 182,101
$ 25,131 |
 Condensed Consolidated Cash Flows
($ in 000s)
17
For the Twelve Months Ended
December 31,
2011
2010
Change
Net income
$ 23,970
$ 9,486
$ 14,484
Depreciation, amortization and other non-cash items
921
7,661
(6,740)
Working capital changes
(17,003)
(9,311)
(7,692)
Net cash provide by operating activities
7,888
7,836
52
Capital expenditures
(6,450)
(7,312)
862
Acquisition of assets and business
(4,073)
(350)
(3,723)
Payments on debt
(207)
(237)
30
Other, net
407
1,230
(823)
Effect of exchange rate changes on cash
(211)
(114)
(97)
(Decrease) increase in cash and cash equivalents
(2,646)
1,053
(3,699)
Cash and cash equivalents at beginning of year
37,170
36,117
1,053
Cash and cash equivalents at end of year
$ 34,524
$ 37,170
$ (2,646) |
 Furmanite Corporation
QUARTER AND YEAR ENDED
DECEMBER 31, 2011
Operations Review
Joseph E. Milliron, President and Chief Operating Officer
18 |
 19
at December 31, 2011
•
1,646 total employees, including temporary technicians
–
7 less than December 31, 2010
•
1,201 technicians, including temporary technicians
–
11 higher than December 31, 2010
•
445 selling, general and administrative (SG&A) personnel
–
18 less than December 31, 2010
Costs aligned with revenues |
 As of December 31, 2011
20 |
 21
Total
Americas
EMEA
APAC
On-line Services 4
th
Qtr. 2011
$ 34,410
$ 18,462
$ 12,220
$ 3,728
On-line Services 4
th
Qtr. 2010
29,052
15,240
10,457
3,355
Variance
$ 5,358
$ 3,222 $
1,763 $ 373 On-line
Services YTD 2011 $ 124,836
$ 67,139
$ 43,909
$ 13,788
On-line Services YTD 2010
104,651
51,076
37,051
16,524
Variance
$ 20,185
$ 16,063
$ 6,858 $ (2,736)
Business
and
Geographic
Data
–
On-line¹
Services
Revenues
($ in 000’s) (Unaudited)
1
Formerly referred to as under-pressure services |
 Business
and
Geographic
Data
–
Off-line¹
Services
Revenues
($ in 000’s) (Unaudited)
22
1
Formerly referred to as turnaround services
Total
Americas
EMEA
APAC
Off-line Services 4
th
Qtr. 2011
$ 34,622
$ 18,632
$ 11,110
$ 4,880
Off-line Services 4
th
Qtr 2010
35,218
18,625
11,520
5,073
Variance
$ (596)
$ 7
$ (410) $
(193) Off-line Services YTD
2011 $ 137,883
$ 66,785
$ 50,147
$ 20,951
Off-line Services YTD 2010
132,171
61,601
50,674
19,896
Variance
$ 5,712
$ 5,184
$ (527)
$
1,055 |
 Furmanite Corporation
Review of 2011
March 6, 2012
www.furmanite.com
23 |