Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended March 31, 2010. Revenues for the quarter were $66.4 million, compared with $63.0 million for the first quarter 2009. The company reported net income of $391,000 for the quarter, inclusive of $1.6 million, net of tax, in restructuring costs. This compares with net income of $880,000 for the same period in 2009. The company’s first quarter revenues, operating income and net income were favorably impacted by foreign currency fluctuations by approximately $3.3 million, $230,000 and $49,000, respectively, for the first quarter 2010. Earnings per share (diluted) were $0.01 for the first quarter 2010, compared with earnings per share (diluted) of $0.02 for the prior year’s quarter.

“Our plan is working, and we are pleased that Furmanite is back in the black for the first quarter. Although market conditions showed little improvement, we maintained our revenues for the quarter at a level equivalent to the same period last year, after accounting for currency effects,” said Charles R. Cox, chairman and CEO of Furmanite Corporation. “Our results this quarter begin to show the kind of improvement that can be produced by lowering our costs and achieving greater efficiencies in our operating structure. Across all of our operations, we are committed to doing what is needed to control our own destiny and continue to deliver positive results.”

As part of the company’s ongoing initiative to contain costs and improve performance, Furmanite also announced today that it will restructure its operations in Scandinavia and Central Europe, and rename its Europe, Middle East and Africa operations, now called EMEA.

“The change in EMEA is part of Furmanite’s continuing drive to serve our customers better and increase our competitiveness. In effect, we are creating greater operating and administrative efficiencies among all offices in the region, while expanding our geographic and service coverage in Europe,” said Joseph E. Milliron, president and chief operating officer of Furmanite Corporation.

The EMEA operation will include three closely-linked and mutually-supportive regional organizations: an expanded Scandinavia Region, a unified Central Europe Region and the United Kingdom Region, which will provide support to the other two regions.

Furmanite’s Scandinavia Region will continue to serve established markets in Norway, while expanding coverage with new offices in Denmark and Sweden. The services offered through these offices will be Composite Repair, Leak Sealing and On-Site Machining. The industries served include Offshore, Refining, Nuclear and Hydro Power, Petrochemical and Pulp & Paper.

Furmanite’s Central Europe Region, currently organized as four separate country operations, will combine resources to operate as a single operating entity. Regional leadership, administration and operations will consolidate, while local sales and project execution in Germany, France, Belgium and The Netherlands will be maintained and strengthened. The full line of Furmanite services will continue to be offered to the industrial base in this region, which includes Refining, Petrochemical, Power, Nuclear, Metals and Offshore.

Furmanite’s United Kingdom Region will continue to serve all of the United Kingdom, as well as Africa, the Caspian Sea, Russia and the Middle East. This region will also support the other two EMEA Regions with engineering and manufacturing assistance.

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. 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 have affected, and could in the future 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
Ended March 31,
2010   2009
 
Revenues $ 66,435 $ 63,032
 
Costs and expenses:
Operating costs 45,662 42,578
Depreciation and amortization expense 1,549 1,343
Selling, general and administrative expense   18,763     17,471  
Total costs and expenses   65,974     61,392  
 
Operating income 461 1,640
 
Interest income and other income (expense), net 342 (94 )
 
Interest expense   (241 )   (293 )
 
Income before income taxes 562 1,253
 
Income tax expense   (171 )   (373 )
 
Net income $ 391   $ 880  
 
Earnings per common share - Basic $ 0.01   $ 0.02  
Earnings per common share - Diluted $ 0.01   $ 0.02  
 
FURMANITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)
   
March 31, December 31,
2010 2009
Cash

$

31,418
$ 36,117
Trade receivables, net 52,838 52,021
Inventories 27,880 26,827
Other current assets   8,040   9,085
Total current assets 120,176 124,050
Property and equipment, net 30,421 30,168
Other assets   20,431   20,771
Total assets $ 171,028 $ 174,989
 
Total current liabilities $ 41,834 $ 44,439
Total long-term debt 30,107 30,139
Other liabilities 14,284 15,081
Total stockholders' equity   84,803   85,330
Total liabilities and stockholders' equity $ 171,028 $ 174,989
 
FURMANITE CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(In thousands) (Unaudited)
  For the Three Months
Ended March 31,
2010   2009
 
Net income $ 391 $ 880
Depreciation, amortization and other non-cash items 2,182 1,593
Working capital changes (4,521) 3,282
Net cash (used in) provided by operating activities (1,948) 5,755
 
Capital expenditures (2,365) (1,410)
Payments on debt (52) (119)
Other, net (36) 12
Effect of exchange rate changes on cash (298) (361)
 
(Decrease) increase in cash and cash equivalents (4,699) 3,877
Cash and cash equivalents at beginning of period 36,117 30,793
Cash and cash equivalents at end of period $ 31,418 $ 34,670

Copyright Business Wire 2010

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