Fortress International Group, Inc. Reports First Quarter 2013 Financial Results

COLUMBIA, Md., May 15, 2013 /PRNewswire/ -- Fortress International Group, Inc. (Other OTC: FIGI), a provider of consulting and engineering, construction management and site services for mission-critical facilities, today announced financial results for the first quarter ended March 31, 2013.

Anthony Angelini, Chief Executive Officer of Fortress, stated, "We are pleased with our continued progress both financially and strategically. We continue to build momentum in our recurring business as well as capturing opportunistic project related business.  During the quarter we delivered a significant portion of the Washington Metropolitan Area Transit Authority  contract we announced in January, revenue contribution from which was $5 million.  Revenue outside of that contract was down year over year, but margins remained strong and are consistent with our focus of developing a recurring stream of higher margin business. We are pleased to report another quarter of adjusted EBITDA profitability and are working diligently to grow our business in 2013.  To that end, we have retained additional sales and business development resources during the quarter and are gaining traction with new growth opportunities through direct sales, alliances and other external relationships.  We hope to be able to report to you on some results of those opportunities soon."

First Quarter 2013 Financial Highlights:

• Revenue of $14.1 million, compared with $14.3 million in the first quarter of 2012.
• Gross profit of $2.8 million, compared with $2.1 million in the first quarter of 2012.
• Normalized Adjusted EBITDA of $0.2 million, compared with Normalized Adjusted EBITDA loss of $(0.5) million in the first quarter of 2012.
• Net loss of $23,000, or $(0.00) per basic and diluted share, compared with net loss of $(1.3) million or $(0.09) per basic and diluted share, in the first quarter of 2012.
• Cash and cash equivalents totaling $4.6 million as of March 31, 2013.

Chief Financial Officer Kenneth D. Schwarz added, "Our first quarter results reflect continued positive EBITDA and growth in our more profitable Facilities Management business.  The Washington Metropolitan Area Transit Authority project previously disclosed temporarily expanded our balance sheet and had a slightly negative impact on our gross margin percentage.  We continue to focus on investing our resources to support our growth and initiatives that will propel us forward in the future."

Quarterly Conference Call Details

The Company will schedule a conference call to discuss the first quarter 2013 financial results and issue a subsequent announcement regarding the date and call-in details of that call.  

About Non-GAAP Financial Measures

Adjusted EBITDA and Normalized Adjusted EBITDA are supplemental financial measures not defined under Generally Accepted Accounting Principles (GAAP). We define Adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, and provision for bad debts.  We present Adjusted EBITDA because we believe this supplemental measure of operating performance is helpful in comparing our operating results across reporting periods on a consistent basis by excluding non-cash items that may, or could, have a disproportionate positive or negative impact on our results of operations in any particular period. We also use Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.

We define Normalized Adjusted EBITDA as Adjusted EBITDA before restructuring charges and certain other non-recurring costs. We present Normalized Adjusted EBITDA because we believe it is helpful in comparing our operating results across reporting periods on a consistent basis by excluding from Adjusted EBITDA certain non-recurring items that do not directly correlate to our business and may, or could, have a disproportionate positive or negative impact on our performance during a particular period.  Similar to Adjusted EBITDA, we also use Normalized Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.  

Adjusted EBITDA and Normalized Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Normalized Adjusted EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, Adjusted EBITDA and Normalized Adjusted EBITDA have been reconciled to the nearest GAAP measure, and this reconciliation is located under the heading "Normalized Adjusted EBITDA Reconciliation" following the Consolidated Statements of Operations included in this press release.

About Fortress International Group, Inc.

Fortress International Group, Inc. is leading mission-critical facilities into a new era of maximum uptime and efficiency. Fortress provides consulting and engineering, construction management and 24/7/365 site services for the world's most technology dependent organizations. Serving as a trusted advisor, Fortress delivers the strategic guidance and pre-planning that makes every stage of the critical facility lifecycle more efficient. For those who own, lease or manage mission-critical facilities, Fortress provides innovative end-to-end capital management, energy, IT strategy, procurement, design, construction, implementation and operations solutions that optimize performance and reduce cost.

Fortress International Group, Inc. is headquartered in Maryland, with offices throughout the U.S. For more information, visit: www.thefigi.com or call 888-321-4877.

Forward Looking Statements

This press release may contain "forward-looking statements" -- that is, statements related to future -- not past -- events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as "guidance," "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the Company's future results include: the Company's reliance on a significant portion of its revenues from a limited number of customers; risks relating to operating in a highly competitive industry; actual or potential conflicts of interest between the Company and members of the Company's senior management; risks relating to rapid technological, structural, and competitive changes affecting the industries the Company serves; the uncertainty as to whether the Company can replace its backlog; risks involved in properly managing complex projects; risks relating the possible cancellation of customer contracts on short notice; risks relating our ability to continue to implement our strategy, including having sufficient financial resources to carry out that strategy; risks relating to our ability to meet all of the terms and conditions of our debt obligations; uncertainty related to current economic conditions and the related impact on demand for our services; and other risks and uncertainties disclosed in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2012. These uncertainties may cause the Company's actual future results to be materially different than those expressed in the Company's forward-looking statements. The Company does not undertake to update its forward-looking statements.

Fortress International Group, Inc.
Condensed Consolidated Balance Sheets

Fortress International Group, Inc.
Condensed Consolidated Statements of Operations

Fortress International Group, Inc.
Normalized Adjusted EBITDA Reconciliation

SOURCE Fortress International Group, Inc.