FFI Reports Second Quarter Earnings
INDIANAPOLIS, Feb. 16 /PRNewswire-FirstCall/ -- Fortune Industries, Inc. (NYSEAMEX: FFI) (the "Company") announced today second quarter earnings of $0.01 per diluted share for the three months ended December 31, 2009.
Highlights
Net income available to common stock shareholders for the three months ended December 31, 2009 was $0.186 million or $0.01 per share fully diluted versus pro forma earnings of $(0.306) million or $(0.02) per share fully diluted for the same three-month period in 2008, representing an increase in net income available to common stock shareholders of $0.492 million or $0.03 per share fully diluted.
Net income available to common stock shareholders for the six months ended December 31, 2009 was $0.846 million or $0.06 per share fully diluted versus pro forma earnings of $(4.328) million or $(0.31) per share fully diluted for the same six-month period in 2008, representing an increase in net income available to common stock shareholders of $5.174 million or $0.37 per share fully diluted.
"I am pleased with the Company's results for the second quarter, establishing a positive trend of six profitable reporting periods," stated Tena Mayberry, CEO. "As I combine my new role of CEO with my current responsibilities as President, we are starting to see the results of initiatives and strategies put into place over the last year, which should continue this positive momentum."
"Our management team has had a laser focus on retaining customers and increasing profitability. Even with the weak economy, this attention to detail has allowed us to achieve higher earnings on lower revenue, as compared to the same period last year. While operationally we have been successful in implementing several cost-containment initiatives, we have continued and will continue to invest additional resources in our sales strategies to expand our existing footprint. Since we have the capacity operationally and the experience with integrating new operations into our existing, we will continue exploring smaller geographical acquisition opportunities. Our plan is to drive top-line growth by organic sales and digestible acquisitions."
The Company reported EBITDA of $0.504 million for the three months ended December 31, 2009, as compared to pro forma EBITDA of $0.009 million for the same three-month period in 2008, representing a $0.495 million increase EBITDA for the current period.
The Company reported EBITDA of $1.250 million for the six months ended December 31, 2009, as compared to pro forma EBITDA of $(1.684) million for the same six-month period in 2008, representing a $2.934 million increase EBITDA for the current period.
Revenue for the three months ended December 30, 2009 was $15.0 million as compared to pro forma revenue of $17.0 million for the same three-month period in 2008, representing a $2.0 million decrease in revenue for the current period.
Revenue for the six months ended December 30, 2009 was $29.8 million as compared to pro forma revenue of $33.6 million for the same six-month period in 2008, representing a $3.8 million decrease in revenue for the current period.
About Fortune Industries, Inc.
Fortune Industries, Inc. is a professional employer organization (PEO) to small and medium-sized businesses in 47 states, providing human resource management & consulting, training & compliance, risk management, and benefits administration.
Fortune Industries, Inc. is based in Indianapolis, Indiana and is publicly traded on the NYSE Amex exchange under the symbol FFI. Additional information about Fortune Industries, Inc. can be found at www.ffi.net.
This press release and other statements by Fortune Industries, Inc. may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "potential," or future/conditional verbs such as "will," "should," and "could" or the negative of those terms or other variations of them or by comparable terminology. The absence of such terms, however, does not mean that the statement is not forward-looking. Any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences, include, but are not limited to, the risks and uncertainties that are discussed under the heading "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" within the Company's Form 10-K for the year ended June 30, 2009. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. Readers should carefully review the risk factors disclosed within the Company's Form 10-K and other documents filed by the Company with the Securities and Exchange Commission.
Consolidated Financial Information
Three-Month Period Six-Month Period
Ended Ended
------------------ ----------------
Pro- Forma Pro-Forma
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
(Dollars in thousands, expect per share data)
Revenue $14,985 $16,969 $29,814 $33,625
Cost of Revenue 11,799 13,694 23,227 28,191
------ ------ ------ ------
Gross Profit 3,186 3,275 6,587 5,434
Operating Expenses:
Selling, general
and administrative
expenses 2,707 3,256 5,383 7,116
Depreciation and
amortization 182 145 383 308
Impairment 2,297
------ ------ ------ ------
Total Operating
Expenses 2,889 3,401 5,766 9,721
Operating
Income 297 (126) 821 (4,287)
Other Income
(Expense) 24 (10) 48 (1)
--- --- --- ---
Income Before
Provision for
Income Tax 321 (136) 869 (4,288)
Provision for
Income Taxes (21) 22 (292) (256)
--- --- ---- ----
Net Income from
Continuing
Operations 342 (158) 1,161 (4,032)
Loss from
Discontinued
Operations (8) - (19) -
--- --- --- ---
Net Income 334 (158) 1,142 (4,032)
Preferred Stock
Dividends 148 148 296 296
--- --- --- ---
Net Income
Available to
Common
Shareholders $186 $(306) $846 $(4,328)
==== ===== ==== =======
Net Income per
Share:
Basic $0.02 $(0.03) $0.07 $(0.37)
===== ====== ===== ======
Diluted $0.01 $(0.02) $0.06 $(0.31)
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SOURCE Fortune Industries, Inc.
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