DALLAS, Sept. 13, 2010 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company") (Nasdaq:PMFG) today reported financial results for the fourth quarter and fiscal year ended June 30, 2010.
Fourth Quarter Fiscal Year 2010 Compared to Fourth Quarter Fiscal Year 2009
Revenues were $28.7 million, a decrease of $8.9 million, or 23.7%, compared to revenues of $37.6 million.Gross profit was $10.7 million, or 37.3% of revenues, a decrease of $2.6 million, compared to $13.3 million, or 35.3% of revenues. Operating expenses were $9.1 million, an increase of $0.1 million, compared to $9.0 million. Operating income was $1.7 million, or 5.9% of revenues, a decrease of $2.6 million, compared to $4.3 million, or 11.5% of revenues. Other income (expense) was ($3.6) million, consisting of a ($2.0) million loss on the fair value adjustment to embedded derivative liabilities, ($0.9) million net interest expense, ($0.5) million foreign exchange loss and ($0.2) million other expense, compared to ($1.1) million, consisting of ($1.4) million net interest expense and ($0.1) million foreign exchange loss and $0.4 million other income. Income tax benefit was $0.1 million on ($2.0) million of pre-tax loss, compared to income tax expense of ($0.6) million on $3.2 million of pre-tax earnings. Net loss attributable to PMFG, Inc. common stockholders was ($2.3) million, or ($0.15) per diluted share, a decrease of $4.9 million, or $0.35 per diluted share, compared to net earnings of $2.6 million, or $0.20 per diluted share. In the first quarter of fiscal year 2010, the Company recorded an embedded derivative liability for the redemption options and conversion rights associated with the issuance on September 4, 2009 of its Series A Convertible Preferred Stock and warrants. In the fourth quarter of fiscal year 2010, the Company recorded a loss of $2.0 million related to the fair value adjustment to the derivative liability.