Furmanite Corporation Reports Third Quarter 2011 Results

Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended September 30, 2011. Revenues were up 17% to $78.3 million, compared with $66.9 million for the third quarter 2010. Net income for the quarter increased to $3.6 million. This compares with net income for the prior year third quarter of $1.8 million, which included net-of-tax restructuring costs of $1.9 million. Foreign currency fluctuations favorably impacted the company’s third quarter 2011 revenues, operating income and net income by approximately $3.0 million, $441,000 and $199,000, respectively, for the quarter. Earnings per share (diluted) were $0.10 for the third quarter 2011 compared with $0.05 in the third quarter of 2010.

"We are very pleased with this continued revenue and earnings growth, and are optimistic with the early signs of improved conditions we now see in more of our markets,” said Charles R. Cox, Furmanite Chairman and CEO. “Our year-to-date net income, excluding restructuring costs, is up approximately $3.0 million or nearly 30% over 2010 results, even after absorbing approximately $0.7 million of legal expenses related to legacy matters. In addition to this solid current performance, good progress is also being made re-aligning our global organization to accelerate future growth, continuing to implement our new culture, and planning the relocation of our corporate office to Houston next year.”

Joseph Milliron, Furmanite President and COO, said: “The commitment to a culture that is 100% customer-focused and quality-driven led to our best third quarter revenue performance in the history of our company. While the Americas provided the primary revenue growth during the first half of the year, significant improvements in both EMEA and APAC have also played a key role in our positive operating results during the third quarter. Even without the benefit of major turnaround projects, and in spite of weather-related impediments over the past year, we are pleased to report the fourth consecutive quarter with year over year revenue growth, and look forward to continued success across our global operations.”

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., 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 Nine Months
Ended September 30, Ended September 30,
  2011           2010       2011           2010  
 
Revenues $ 78,330 $ 66,935 $ 234,393 $ 210,883
 
Costs and expenses:
Operating costs 53,807 45,714 160,675 143,298
Depreciation and amortization expense 2,207 1,646 6,280 4,767
Selling, general and administrative expense   16,794     16,869     51,484     54,125  
Total costs and expenses   72,808     64,229     218,439     202,190  
 
Operating income 5,522 2,706 15,954 8,693
 
Interest income and other income

(expense), net
(341 ) 438 (99 ) 534
 
Interest expense   (263 )   (238 )   (758 )   (720 )
 
Income before income taxes 4,918 2,906 15,097 8,507
 
Income tax expense   (1,336 )   (1,095 )   (2,343 )   (2,745 )
 
Net income $ 3,582   $ 1,811   $ 12,754   $ 5,762  
 
Earnings per common share - Basic $ 0.10   $ 0.05   $ 0.34   $ 0.16  
Earnings per common share - Diluted $ 0.10   $ 0.05   $ 0.34   $ 0.16  
 
FURMANITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
       
September 30, December 31,
2011     2010
 
Cash

$

35,098
$ 37,170
Trade receivables, net 70,214

63,630
Inventories 26,939 24,366
Other current assets   4,616       5,951
Total current assets 136,867 131,117
 
Property and equipment, net 34,549 30,720
Other assets   24,272       20,264
Total assets $ 195,688     $ 182,101
 
Total current liabilities $ 41,311 $ 42,936
Total long-term debt 32,709 30,085
Other liabilities 10,658 10,992
Total stockholders' equity   111,010       98,088
Total liabilities and stockholders' equity $ 195,688     $ 182,101
 
FURMANITE CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(in thousands)
(Unaudited)
   
For the Nine Months Ended

September 30,
  2011         2010  
   
Net income $ 12,754 $ 5,762
 
Depreciation, amortization and other non-cash items 6,238 5,683
Working capital changes   (13,364 )       (3,483 )
Net cash provided by operating activities 5,628 7,962
 
Capital expenditures (3,915 ) (4,484 )
Acquisition of assets and business (3,815 ) (350 )
Proceeds from sale of assets 131 759
Payments on debt (85 ) (188 )
Proceeds from issuance of debt 76
Issuance of common stock 271 20
Effect of exchange rate changes on cash   (287 )       (130 )
(Decrease) increase in cash and cash equivalents (2,072 ) 3,665
Cash and cash equivalents at beginning of period   37,170         36,117  
Cash and cash equivalents at end of period $ 35,098       $ 39,782  

Copyright Business Wire 2010

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