Exhibit 99.1
For immediate release | For more information, contact: | |
| Investor Relations | ||
| (972) 699-4055 | ||
| Email: investor@furmanite.com |
FURMANITE CORPORATION REPORTS THIRD QUARTER RESULTS
Net Income Increased to $1.8 million; Earnings per Share to $0.05
DALLAS, TEXAS(November 8, 2010) — Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended September 30, 2010. Revenues were $66.9 million, compared with $70.8 million for the third quarter 2009. Net income rose to $1.8 million for the quarter, after net-of-tax restructuring costs of $1.9 million. This compares with net income of $203,000 for the same period in 2009. Foreign currency fluctuations unfavorably impacted the company’s third quarter revenues by approximately $(800,000), but favorably impacted operating income and net income by approximately $300,000 and $400,000, respectively. Earnings per share (diluted) were $0.05 for the third quarter 2010, compared with earnings per share (diluted) of $0.01 for the prior year’s same quarter.
For the nine months ended September 30, 2010, Furmanite reported revenues of $210.9 million, compared with $203.5 million for the same period in 2009. Net income increased to $5.8 million, after $4.3 million of restructuring costs, net of tax, for the nine months ended September 30, 2010, compared with net income of $1.3 million for the same period in 2009. Revenues, operating income and net income were favorably affected by foreign currency fluctuations of approximately $2.2 million, $700,000 and $500,000, respectively. Earnings per share (diluted) were $0.16 for the nine months ended September 30, 2010, compared with $0.04 for the prior year’s same period.
“Furmanite is performing in line with our intentions, and we continue to meet our goals as planned. We are extremely pleased to be nearing the end of our announced restructuring efforts, with a significant portion of the remaining related costs absorbed in the third quarter. Excluding restructuring costs of $1.9 million for the quarter and $4.3 million year to date, our underlying financial results are beginning to reflect the positive impact of this action, with improvement of approximately $3.5 million and $8.7 million respectively at the net income level,” said Charles R. Cox, chairman and CEO of Furmanite Corporation. “The restructuring has improved our effectiveness, as well as our efficiency, and has helped us direct our attention more precisely on further performance improvement opportunities. Our highest priorities are customer service, culture change and responsible growth. Our entire organization is now fully focused on what we want our company to be and where we want it to go in the future.”
Joseph E. Milliron, president and chief operating officer of Furmanite Corporation, added, “We also know that Furmanite’s continuing improvement and results throughout this year are a direct reflection of our people. Their expertise and commitment to service are what make Furmanite the company the customer calls when the situation is urgent, the needs are complex and the timing is critical, just as we are for routine but essential services. Our people are the foundation of our performance and our success.”
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, visitwww.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)
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, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues | $ | 66,935 | $ | 70,757 | $ | 210,883 | $ | 203,515 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Operating costs | 45,714 | 46,592 | 143,298 | 136,431 | ||||||||||||
| Depreciation and amortization expense | 1,646 | 1,563 | 4,767 | 4,353 | ||||||||||||
| Selling, general and administrative expense | 16,869 | 21,016 | 54,125 | 58,699 | ||||||||||||
| Total costs and expenses | 64,229 | 69,171 | 202,190 | 199,483 | ||||||||||||
| Operating income | 2,706 | 1,586 | 8,693 | 4,032 | ||||||||||||
| Interest income and other income (expense), net | 438 | 191 | 534 | 410 | ||||||||||||
| Interest expense | (238 | ) | (524 | ) | (720 | ) | (1,116 | ) | ||||||||
| Income before income taxes | 2,906 | 1,253 | 8,507 | 3,326 | ||||||||||||
| Income tax expense | (1,095 | ) | (1,050 | ) | (2,745 | ) | (2,012 | ) | ||||||||
| Net income | $ | 1,811 | $ | 203 | $ | 5,762 | $ | 1,314 21,868 | ||||||||
| Earnings per common share — Basic | $ | 0.05 | $ | 0.01 | $ | 0.16 | $ | 0.04 | ||||||||
| Earnings per common share — Diluted | $ | 0.05 | $ | 0.01 | $ | 0.16 | $ | 0.04 | ||||||||
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FURMANITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| September 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Cash | $ | 39,782 | $ | 36,117 | ||||
| Trade receivables, net | 58,437 | 52,021 | ||||||
| Inventories | 25,997 | 26,827 | ||||||
| Other current assets | 5,903 | 9,085 | ||||||
| Total current assets | 130,119 | 124,050 | ||||||
| Property and equipment, net | 29,718 | 30,168 | ||||||
| Other assets | 21,282 | 20,771 | ||||||
| Total assets | $ | 181,119 | $ | 174,989 | ||||
| Total current liabilities | $ | 43,781 | $ | 44,439 | ||||
| Total long-term debt | 30,092 | 30,139 | ||||||
| Other liabilities | 14,787 | 15,081 | ||||||
| Total stockholders’ equity | 92,459 | 85,330 | ||||||
| Total liabilities and stockholders’ equity | $ | 181,119 | $ | 174,989 | ||||
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FURMANITE CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(In thousands)
(Unaudited)
CONDENSED CONSOLIDATED CASH FLOWS
(In thousands)
(Unaudited)
| For the Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2010 | 2009 | |||||||
| Net income | $ | 5,762 | $ | 1,314 | ||||
| Depreciation, amortization and other non-cash items | 5,683 | 4,746 | ||||||
| Working capital changes | (3,483 | ) | 5,298 | |||||
| Net cash provided by operating activities | 7,962 | 11,358 | ||||||
| Capital expenditures | (4,484 | ) | (5,446 | ) | ||||
| Payments on debt | (188 | ) | (35,382 | ) | ||||
| Proceeds on issuance of debt | 76 | 35,049 | ||||||
| Debt issuance costs | — | (567 | ) | |||||
| Other, net | 429 | (348 | ) | |||||
| Effect of exchange rate changes on cash | (130 | ) | 753 | |||||
| Increase in cash and cash equivalents | 3,665 | 5,417 | ||||||
| Cash and cash equivalents at beginning of period | 36,117 | 30,793 | ||||||
| Cash and cash equivalents at end of period | $ | 39,782 | $ | 36,210 | ||||
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