Furmanite Corporation Reports Second Quarter Results
Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended June 30, 2010. Revenues were $77.5 million, compared with $69.7 million for the second quarter 2009. Net income rose to $3.6 million for the quarter, after net-of-tax restructuring costs of $798,000. This compares with net income of $231,000 for the same period in 2009. Foreign currency fluctuations unfavorably impacted the company’s second quarter revenues by approximately $(400,000) but favorably impacted operating income and net income by approximately $234,000 and $107,000, respectively. Earnings per share (diluted) were $0.10 for the second quarter 2010, compared with earnings per share (diluted) of $0.01 for the prior year’s same quarter.
For the six months ended June 30, 2010, Furmanite reported revenues of $143.9 million, compared with $132.7 million for the 2009 period. Net income increased to $4.0 million, after $2.4 million of restructuring costs, net of tax, for the six months ended June 30, 2010, compared with 2009 same period net income of $1.1 million. Revenues, operating income and net income were favorably affected by foreign currency fluctuations by $2.9 million, $464,000 and $153,000, respectively. Earnings per share (diluted) were $0.11 for the six months ended June 30, 2010, compared with $0.03 for the prior year’s same period.
“Furmanite delivered a strong second quarter, and we are pleased with the results. Our performance, in a market that continues to show little improvement, demonstrates the positive impact of lowering our costs and aligning our resources with our business. It also indicates that Furmanite is gaining market share by leveraging our global reach and relationships across a broad array of industries,” said Charles R. Cox, chairman and CEO of Furmanite Corporation.
Mr. Cox continued: “We have substantially completed the initiative announced at year-end 2009 at a cost of $3.4 million, which was consistent with our expectations. We now estimate that total costs for the restructuring of the EMEA Region, announced in May, will be approximately $4.0 million – $592,000 of which was incurred in the second quarter. We had anticipated that the second quarter would absorb more of the total costs; however, more time has been required to satisfy the local regulatory processes. As a result, most of the remaining restructuring costs are expected to be taken in the third and fourth quarters of 2010. Looking ahead, we are confident that Furmanite is on the right track and that we are positioning our operations to take maximum advantage of current opportunities and future improvements in the market.”
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