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Furmanite Corporation Reports Second Quarter 2011 Results

Stocks in this article: FRM

Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended June 30, 2011. Revenues were up 7% to $83.0 million, compared with $77.5 million for the second quarter 2010. Net income for the quarter increased to $5.1 million. This compares with net income for the prior year second quarter of $3.6 million, which included net-of-tax restructuring costs of $797,000. Foreign currency fluctuations favorably impacted the company’s second quarter 2011 revenues, operating income and net income by approximately $5.3 million, $507,000 and $94,000, respectively, for the quarter. Earnings per share (diluted) were $0.14 for the second quarter 2011 compared with $0.10 in the second quarter of 2010.

“We are pleased to be reporting one of our best ever revenue quarters under market conditions which continue to be very average overall,” said Charles R. Cox, chairman and CEO of Furmanite Corporation. “Our primary focus going forward continues to be on preparing the company for future growth while maintaining the operating efficiency gained from last year’s restructuring program.”

Joseph Milliron, Furmanite President and COO, said: “The core success of our performance this quarter was the result of our sales staff, support group and our technicians embracing teamwork and collaboration. We had no help from large, one-off projects this quarter. Contribution from the Americas’ region provided a significant portion of the quarter’s improvement and EMEA second quarter revenues were up almost 16%. All in all, company-wide, the second quarter was a result of lots of hard work.”

ABOUT FURMANITE CORPORATION

Furmanite Corporation (NYSE: FRM) is a worldwide technical services firm. Headquartered in Dallas, Texas, Furmanite, one of the world’s largest specialty technical services companies, delivers a broad portfolio of engineering solutions that keep facilities operating, minimizing downtime and maximizing profitability. Furmanite’s diverse, global operations serve a broad array of industry sectors, including offshore drilling operations, pipelines, refineries and power generation facilities, chemical and petrochemical plants, steel mills, automotive manufacturers, pulp and paper mills, food and beverage processing plants, semi-conductor manufacturers and pharmaceutical manufacturers. Furmanite operates more than 75 offices on six continents. The company recently expanded its global capabilities to deliver specialized solutions for large-scale equipment or operations through the acquisition of Self Leveling Machines International Pty Ltd. and Self Leveling Machines, Inc. (collectively "SLM"), based in Melbourne, Australia, and Houston, Texas. For more information, visit www.furmanite.com.

Certain of the Company’s statements in this press release are not purely historical, and as such are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding management’s intentions, plans, beliefs, expectations or projections of the future. Forward-looking statements involve risks and uncertainties, including without limitation, the various risks inherent in the Company’s business, and other risks and uncertainties detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission. One or more of these factors could affect the Company’s business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this document will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the Company, or any other person, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and the Company assumes no obligation to update any forward-looking statements.

 
FURMANITE CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share data)

(Unaudited)

 
 
  For the Three Months   For the Six Months
Ended June 30, Ended June 30,
2011   2010 2011   2010
 
Revenues $ 83,009 $ 77,513 $ 156,063 $ 143,948
 
Costs and expenses:
Operating costs 56,425 51,922 106,868 97,584
Depreciation and amortization expense 2,198 1,572 4,073 3,121
Selling, general and administrative expense   17,779     18,493     34,690     37,256  
Total costs and expenses   76,402     71,987     145,631     137,961  
 
Operating income 6,607 5,526 10,432 5,987
 

Interest income and other income (expense), net

 

120 (246 ) 242 96
 
Interest expense   (255 )   (241 )   (495 )   (482 )
 
Income before income taxes 6,472 5,039 10,179 5,601
 
Income tax expense   (1,326 )   (1,479 )   (1,007 )   (1,650 )
 
Net income $ 5,146   $ 3,560   $ 9,172   $ 3,951  
 
Earnings per common share - Basic $ 0.14   $ 0.10   $ 0.25   $ 0.11  
Earnings per common share - Diluted $ 0.14   $ 0.10   $ 0.25   $ 0.11  
 
FURMANITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
   
June 30, December 31,
2011 2010
 
Cash

$

30,855

$ 37,170
Trade receivables, net 74,014 63,630
Inventories 26,168 24,366
Other current assets   5,769   5,951
Total current assets 136,806 131,117
 
Property and equipment, net 35,189 30,720
Other assets   25,456   20,264
Total assets $ 197,451 $ 182,101
 
Total current liabilities $ 43,113 $ 42,936
Total long-term debt 32,855 30,085
Other liabilities 11,189 10,992
Total stockholders' equity   110,294   98,088
Total liabilities and stockholders' equity $ 197,451 $ 182,101
 
FURMANITE CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(in thousands)
(Unaudited)
 
For the Six Months Ended

June 30,

2011   2010
 
Net income $ 9,172 $ 3,951
 
Depreciation, amortization and other non-cash items 3,672 4,297
Working capital changes   (14,807 )   (7,729 )
Net cash (used in) provided by operating activities (1,963 ) 519
 
Capital expenditures (1,579 ) (3,451 )
Acquisition of assets and business (4,029 ) (350 )
Proceeds from sale of assets 105 195
Payments on debt (69 ) (99 )
Issuance of common stock 126
Effect of exchange rate changes on cash   1,094     (1,094 )
Decrease in cash and cash equivalents (6,315 ) (4,280 )
Cash and cash equivalents at beginning of period   37,170     36,117  
Cash and cash equivalents at end of period $ 30,855   $ 31,837  




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