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Furmanite Corporation (NYSE: FRM) today reported results for the quarter and year ended December 31, 2012.
Fourth Quarter 2012 Results
Revenues for the three months ended December 31, 2012 were $93.2 million, an increase of $11.4 million, or 13.9% above the $81.8 million reported for the three months ended December 31, 2011. Adjusted operating income for the quarter was $6.9 million
(A) before $2.7 million of EMEA restructuring costs, an increase of $2.3 million
(A), or 50.9%, over adjusted operating income of $4.6 million
(A) for the three months ended December 31, 2011. Net income for the quarter was $1.1 million or $0.03 per diluted share after a 73% effective income tax rate, which was heavily impacted by the effects of the restructuring costs. Foreign currency effects had an insignificant impact on quarterly revenues and operating income.
Year Ended December 2012 Results
Revenues for the year ended December 31, 2012 were $326.5 million compared with $316.2 million for the year ended December 31, 2011, an increase of $10.3 million or 3.3%. Foreign currency effects impacted revenues unfavorably by $3.7 million, but had minimal effect on operating income. Operating income for the year ended December 31, 2012, including $3.6 million of restructuring costs, was $7.5 million. Net income for the year was $0.8 million, or $0.02 per diluted share.
The EMEA restructuring actions implemented were greater than anticipated with total direct restructuring costs for the year of $3.6 million, $0.9 million above the Company’s initial estimates. The initiative was substantially complete as of the end of the year, with any remaining costs expected to be negligible. In addition to the direct restructuring costs, significant related indirect costs and inefficiencies impacted operating results.
The Company also absorbed direct costs associated with its corporate headquarters’ relocation of $1.6 million, as well as substantial costs associated with the startup of its new inspection service line, other acquisition timing, integration and assimilation, and implementation of the Company’s new global organizational structure.