This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Furmanite Corporation Reports Second Quarter 2012 Results

Stocks in this article: FRM

Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended June 30, 2012. Revenues increased 3.5% to $85.9 million, compared with $83.0 million for the second quarter of 2011. Gross margin on the $85.9 million revenue was 32.2%. Excluding foreign exchange rate fluctuations, revenues would have increased 6.4% over prior year levels. Operating income for the quarter, including $1.4 million of restructuring and corporate headquarter relocation costs, was $4.8 million. Net income for the quarter of $1.8 million, or $0.05 per diluted share, included a $1.0 million net of tax expense for European restructuring and corporate office relocation costs as well as a $2.7 million income tax provision. The elevated income tax rate, at 59% of pre-tax income, is primarily due to unfavorable, non-cash tax effects related to countries impacted by the restructuring initiatives. The full year effective income tax rate for 2012 is projected to be considerably less than 59%, but well above the Company’s estimated 2013 effective tax rate range of 30% to 35%. This quarter’s effective income tax rate is in contrast with an unusually low 20.5% effective income tax rate for the same period in 2011. While foreign currency fluctuations unfavorably impacted second quarter 2012 revenues by $2.4 million as noted above, they had minimal impact on operating results for the quarter.

“Our revenues and earnings are fully in line with our expectations as we continue to address the unfavorable market conditions in four of the European countries in which we operate. We are pleased with the continuing revenue growth achieved by our other locations this quarter, with 15% improvement in the Americas, 17% in Asia Pacific and nearly 6% growth in all other Europe, Middle East and Africa operations,” said Charles R. Cox, chairman and CEO of Furmanite Corporation. “We did not create the economic conditions in Europe, but dealing effectively with changing global conditions goes with our unique position as the only full-service company in our industry that truly “covers the world.” We are confident that the long term benefit of our global footprint will far outweigh the short term expense of adjustments such as those we are now making in Europe.”

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs