Attached files
| file | filename |
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| 8-K - FORM 8-K - FURMANITE CORP | form8-kq42014earnings.htm |
| EX-99.1 - EXHIBIT 99.1 - FURMANITE CORP | q42014exhibit991.htm |
Furmanite Corporation QUARTER AND YEAR ENDED DECEMBER 31, 2014 Joseph E. Milliron, Chief Executive Officer & President Robert S. Muff, Chief Financial Officer & Chief Administrative Officer
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, 2013 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 presentation 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. 2
Furmanite Corporation QUARTER AND YEAR ENDED DECEMBER 31, 2014 Financial Review Robert S. Muff, Chief Financial Officer & Chief Administrative Officer 3
Condensed Consolidated Income Statements (Amounts in 000s except percentages and per-share amounts) (Unaudited) 4 For the Three Months Ended For the Twelve Months Ended December 31, December 31, 2014 2013 Change 2014 2013 Change Revenues $ 133,885 $ 130,357 $ 3,528 $ 529,197 $ 427,294 $ 101,903 Operating costs 99,499 99,763 (264) 397,629 306,042 91,587 Depreciation and amortization expense 3,434 3,186 248 12,579 11,418 1,161 Selling, general and administrative expense¹ 23,366 22,757 609 98,302 85,034 13,268 Operating income 7,586 4,651 2,935 20,687 24,800 (4,113) Interest and other income (expense), net (109) (752) 643 (1,903) (1,957) 54 Income before income taxes 7,477 3,899 3,578 18,784 22,843 (4,059) Income tax expense (2,707) (1,317) (1,390) (7,429) (8,816) 1,387 Net income $ 4,770 $ 2,582 $ 2,188 $ 11,355 $ 14,027 $ (2,672) Diluted earnings per share $ 0.13 $ 0.07 $ 0.06 $ 0.30 $ 0.37 $ (0.07) Weighted-average number of common and common equivalent shares used in computing earnings per common share: Basic 37,678 37,511 37,631 37,422 Diluted 37,897 37,762 37,867 37,630 ¹ Includes nil and approximately $0.5 million of direct costs associated with management transition and integration of the Furmanite Technical Solutions division for three and twelve months ended December 31, 2014, respectively, and approximately $0.6 million and $0.7 million of such costs for the three and twelve months ended December 31, 2013. In addition, the three and twelve months ended December 31, 2014 include approximately $0.8 million and $1.7 million, respectively of non-recurring, incremental retirement-related executive compensation costs.
Consolidating Income Statements (Amounts in 000s except percentages) (Unaudited) 5 For the Three Months Ended For the Three Months Ended December 31, 2014 December 31, 2013 Technical Services Engineering & Project Solutions Corporate¹ Total Technical Services Engineering & Project Solutions Corporate¹ Total Revenues $ 96,319 $ 37,566 $ – $ 133,885 $ 95,965 $ 34,392 $ – $ 130,357 Operating costs 65,687 33,812 – 99,499 67,248 32,515 – 99,763 % of revenues 68.2% 90.0% 74.3% 70.1% 94.5% 76.5% Depreciation and amortization expense 2,842 435 157 3,434 2,509 570 107 3,186 % of revenues 3.0% 1.2% 2.6% 2.6% 1.7% 2.4% Selling, general and administrative expense² 16,292 2,498 4,576 23,366 17,369 3,115 2,273 22,757 % of revenues 16.9% 6.6% 17.4% 18.1% 9.1% 17.5% Operating income (loss) 11,498 821 (4,733) 7,586 8,839 (1,808) (2,830) 4,651 % of revenues 11.9% 2.2% 5.7% 9.2% -5.3% 3.6% Interest and other income (expense), net (109) (752) Income before income taxes 7,477 3,899 Income tax expense (2,707) (1,317) Net income $ 4,770 $ 2,582 ¹ Corporate represents certain corporate overhead costs, including executive management, strategic planning, treasury, legal, human resources, information technology, accounting and risk management, which are not allocated to reportable segments. ² The Engineering & Project Solutions segment includes approximately $0.6 million of direct costs associated with management transition and integration of the Furmanite Technical Solutions division for three months ended December 31, 2013, there were no such costs for the three months ended December 31, 2014. Corporate includes approximately $0.8 million of non-recurring, incremental retirement-related executive compensation costs for the three months ended December 31, 2014.
Consolidating Income Statements (Amounts in 000s except percentages) (Unaudited) 6 For the Twelve Months Ended For the Twelve Months Ended December 31, 2014 December 31, 2013 Technical Services Engineering & Project Solutions Corporate¹ Total Technical Services Engineering & Project Solutions Corporate¹ Total Revenues $ 376,120 $ 153,077 $ – $ 529,197 $ 368,587 $ 58,707 $ – $ 427,294 Operating costs 257,020 140,609 – 397,629 250,688 55,354 – 306,042 % of revenues 68.3% 91.8% 75.1% 68.0% 94.3% 71.6% Depreciation and amortization expense 10,067 1,888 624 12,579 9,723 1,108 587 11,418 % of revenues 2.7% 1.2% 2.4% 2.6% 1.9% 2.7% Selling, general and administrative expense² 67,754 10,971 19,577 98,302 64,354 4,248 16,432 85,034 % of revenues 18.0% 7.2% 18.6% 17.5% 7.2% 19.9% Operating income (loss) 41,279 (391) (20,201) 20,687 43,822 (2,003) (17,019) 24,800 % of revenues 11.0% -0.2% 3.9% 11.9% -3.4% 5.8% Interest and other income (expense), net (1,903) (1,957) Income before income taxes 18,784 22,843 Income tax expense (7,429) (8,816) Net income $ 11,355 $ 14,027 ¹ Corporate represents certain corporate overhead costs, including executive management, strategic planning, treasury, legal, human resources, information technology, accounting and risk management, which are not allocated to reportable segments. ² The Engineering & Project Solutions segment includes approximately $0.5 million of direct costs associated with management transition and integration of the Furmanite Technical Solutions division for twelve months ended December 31, 2014 and approximately $0.7 million of such costs for the twelve months ended December 31, 2013. Corporate includes approximately $1.7 million of non-recurring, incremental retirement-related executive compensation costs for the twelve months ended December 31, 2014.
Revenues Adjusted for Currency Rates 2014 amounts at 2013 exchange rates (Amounts in 000s except percentages) (Unaudited) 7 For the Three Months Ended For the Twelve Months Ended December 31, December 31, 2014 2013 Change % Change 2014 2013 Change % Change Technical Services revenues Americas $ 59,611 $ 55,547 $ 4,064 7% $ 225,403 $ 233,100 $ (7,697) -3% EMEA 24,341 32,216 (7,875) -24% 106,042 102,199 3,843 4% Asia-Pacific 12,367 8,202 4,165 51% 44,675 33,288 11,387 34% Total Technical Services revenues 96,319 95,965 354 0% 376,120 368,587 7,533 2% Engineering & Project Solutions revenues 37,566 34,392 3,174 9% 153,077 58,707 94,370 161% Total revenues $ 133,885 $ 130,357 $ 3,528 3% $ 529,197 $ 427,294 $ 101,903 24% Currency adjusted revenues: Americas $ 59,722 $ 55,547 $ 4,175 8% $ 225,752 $ 233,100 $ (7,348) -3% EMEA 25,681 32,216 (6,535) -20% 103,338 102,199 1,139 1% Asia-Pacific 13,209 8,202 5,007 61% 46,596 33,288 13,308 40% Total currency adjusted Technical Services revenues 98,612 95,965 2,647 3% 375,686 368,587 7,099 2% Engineering & Project Solutions revenues 37,566 34,392 3,174 9% 153,077 58,707 94,370 161% Total currency adjusted revenues $ 136,178 $ 130,357 $ 5,821 4% $ 528,763 $ 427,294 $ 101,469 24%
Condensed Consolidated Balance Sheets (Amounts in 000s) (Unaudited) 8 December 31, December 31, 2014 2013 Cash $ 33,753 $ 33,240 Trade receivables, net 110,219 106,853 Inventories, net 37,383 35,443 Other current assets 21,335 21,159 Total current assets 202,690 196,695 Property and equipment, net 51,930 55,347 Other assets 29,551 33,125 Total assets $ 284,171 $ 285,167 Total current liabilities $ 56,067 $ 62,523 Total long-term debt 61,853 63,196 Other liabilities 23,787 25,952 Total stockholders' equity 142,464 133,496 Total liabilities and stockholders' equity $ 284,171 $ 285,167
Condensed Consolidated Statements of Cash Flows (Amounts in 000s) (Unaudited) 9 For the Twelve Months Ended December 31, 2014 2013 Net income $ 11,355 $ 14,027 Depreciation, amortization and other non-cash items 13,560 17,364 Working capital changes (14,414) (13,716) Net cash provided by operating activities 10,501 17,675 Capital expenditures (8,090) (18,392) Acquisition of businesses (265) (16,695) Proceeds from issuance of debt – 20,000 Payments on debt (1,012) (2,274) Other, net 913 303 Effect of exchange rate changes on cash (1,534) (562) Increase in cash and cash equivalents 513 55 Cash and cash equivalents at beginning of year 33,240 33,185 Cash and cash equivalents at end of year $ 33,753 $ 33,240
Furmanite Corporation QUARTER AND YEAR ENDED DECEMBER 31, 2014 Operations Review Joseph E. Milliron, Chief Executive Officer & President 10
The Americas¹ EMEA APAC ¹ Included in the Americas is Engineering & Project Solutions •1,921 technicians & engineers •72% of YTD revenues •45 locations •414 technicians & engineers •20% of YTD revenues •24 locations •175 technicians & engineers •8% of YTD revenues •16 locations •998 technicians & engineers •29% of YTD revenues •5 locations As of December 31, 2014 11
12 Geographic Data – On-line Technical Services Revenues (Amounts in 000’s) (Unaudited) Total Americas EMEA APAC On-line Services 4th Qtr. 2014 $ 38,473 $ 25,767 $ 10,132 $ 2,574 On-line Services 4th Qtr. 2013 35,954 19,052 14,219 2,683 Variance $ 2,519 $ 6,715 $ (4,087) $ (109) On-line Services YTD 2014 $ 143,413 $ 89,106 $ 44,048 $ 10,259 On-line Services YTD 2013 138,660 80,903 45,364 12,393 Variance $ 4,753 $ 8,203 $ (1,316) $ (2,134)
Geographic Data – Off-line Technical Services Revenues (Amounts in 000’s) (Unaudited) 13 Total Americas EMEA APAC Off-line Services 4th Qtr. 2014 $ 44,939 $ 26,582 $ 9,340 $ 9,017 Off-line Services 4th Qtr. 2013 48,283 29,721 13,915 4,647 Variance $ (3,344) $ (3,139) $ (4,575) $ 4,370 Off-line Services YTD 2014 $ 181,037 $ 106,630 $ 42,507 $ 31,900 Off-line Services YTD 2013 182,631 123,686 40,332 18,613 Variance $ (1,594) $ (17,056) $ 2,175 $ 13,287
Geographic Data – Engineering & Project Solutions Revenues (Amounts in 000’s) (Unaudited) 14 Total ¹ Engineering & Project Solutions 4th Qtr. 2014 $ 37,566 Engineering & Project Solutions 4th Qtr. 2013 34,392 Variance $ 3,174 Engineering & Project Solutions YTD 2014 $ 153,077 Engineering & Project Solutions YTD 2013 58,707 Variance $ 94,370 ¹ Substantially all of the operations of the Engineering & Project Solutions segment are conducted in the Americas.
Furmanite Corporation QUARTER AND YEAR ENDED DECEMBER 31, 2014 Closing Comments 15
Furmanite Corporation Review of 4Q 2014 March 6, 2015 www.furmanite.com 16