Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended March 31, 2011. Revenues were up 10% to $73.1 million, compared with $66.4 million for the first quarter 2010. Net income for the quarter increased to $4.0 million after net-of-tax restructuring costs of $89,000 and an income tax benefit of $1.2 million related to the SLM acquisition. This compares with net income for the prior year first quarter of $391,000, which included net-of-tax restructuring costs of $1.6 million. Foreign currency fluctuations favorably impacted the company’s first quarter 2011 revenues, operating income and net income by approximately $1.7 million, $176,000 and $68,000, respectively, for the quarter. Earnings per share (diluted) were $0.11, or $0.08 excluding the acquisition related tax benefit in the quarter. This compares with first quarter 2010 earnings per share (diluted) of $0.01.
“Our first quarter performance confirms the progress we anticipated as a result of the restructuring initiatives we substantially completed last year. We benefited from a $6.6 million improvement in revenues and a $745,000 reduction in sales, general and administrative expenses, exclusive of restructuring costs, when compared with the first quarter last year. Those expenses as a percentage of revenue continue to move downward from 2010, and are substantially below 2009 levels,” said Charles R. Cox, chairman and CEO of Furmanite Corporation.
Mr. Cox continued, “This improvement is primarily the result of actions we have taken to impact the variables we control. On a global basis, we have not yet seen a consistent pattern of improvement in our markets from the tough conditions we experienced throughout 2009 and 2010. Although we are encouraged by early signs of improvement in some regions and industries we serve, we are taking nothing for granted. We remain focused on doing what is absolutely within our control to maximize our performance and profitability, no matter how dynamic or challenging future markets may prove to be. With our cost structure now balanced to our revenues, we continue a relentless drive to improve customer service, execution fundamentals, organizational effectiveness and marketing outreach, while embedding the culture change needed to support our long term success. These objectives are among our top priorities as we move beyond the turnaround of Furmanite in 2010 to the fundamental transformation needed to assure significant and sustainable future growth. Our first quarter results simply indicate we are doing the right things and moving in the right direction.”
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