Furmanite Corporation QUARTER AND SIX MONTHS ENDED JUNE 30, 2013 Charles R. Cox, Chairman & CEO Joseph E. Milliron, President & COO Robert S. Muff, Principal Financial Officer Exhibit 99.2 |
2 Safe Harbor Statement Safe Harbor Statement Certain of the Company’s statements in this presentation 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 plans, beliefs, expectations, intentions 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 most recently in this presentation and the Company’s Form 10-K as of December 31, 2012 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 presentation are based on information presently available to management, and the Company assumes no obligation to update any forward-looking statements. |
Furmanite Corporation QUARTER AND SIX MONTHS ENDED JUNE 30, 2013 Charles R. Cox, Chairman & CEO 3 |
4 2013 First Half Perspective • Our First Six Months Working as One Global Team have been Great Fun! • Nice Continuing Revenue and Earnings Growth • Three Years of Preparation Now Showing Early Results in Americas • Now Engaging Everyone in Accelerated Growth and Execution Excellence • ALL Global Operations now making Our Transformation Global, Consistent and Permanent |
5 2013 – 2015 Strategic Direction • Committed to Substantial Global Growth • Growth in Both Market Share and Target Market Size • Expanded Technical Solutions and Program Management Capabilities • Well on Our Way to World Leadership by Year End 2014 • Expanding Growth Platform and Differentiation • Broadening Customer Engagement and Value • Staying Focused! On Specialty Industrial Services for Complex, Specialized Energy Sector Projects |
Furmanite Corporation QUARTER AND SIX MONTHS ENDED JUNE 30, 2013 Financial Review Robert S. Muff, Principal Financial Officer 6 |
Condensed Consolidated Income Statements (Amounts in 000s except percentages and per share amounts) (Unaudited) 7 For the Three Months Ended June 30, 2013 % of Rev 2012 % of Rev Change Revenues $ 108,376 100.0% $ 85,928 100.0% $ 22,448 Operating costs 71,697 66.2% 58,211 67.8% 13,486 Depreciation and amortization expense 2,679 2.5% 1,964 2.3% 715 Selling, general and administrative expense 22,376 20.6% 19,526 22.7% 2,850 Operating income, excluding restructuring and relocation costs 11,624 10.7% 6,227 7.2% 5,397 Restructuring and relocation costs – – 1,424 1.6% (1,424) Operating income 11,624 10.7% 4,803 5.6% 6,821 Interest and other income (expense), net (459) (269) (190) Income before income taxes 11,165 4,534 6,631 Income tax expense (4,404) (2,690) (1,714) Net income $ 6,761 $ 1,844 $ 4,917 Diluted earnings per share $ 0.18 $ 0.05 $ Adjusted diluted earnings per share * $ 0.18 $ 0.08 $ * Excludes $1.0 million of relocation and restructuring costs, net of tax for the three months ended June 30, 2012. Weighted-average number of common and common equivalent shares used in computing earnings per common share: Basic 37,402 37,253 Diluted 37,552 37,342 0.13 0.10 |
Condensed Consolidated Income Statements (Amounts in 000s except percentages and per share amounts) (Unaudited) 8 For the Six Months Ended June 30, 2013 % of Rev 2012 % of Rev Change Revenues $ 197,414 100.0% $ 157,710 100.0% $ 39,704 Operating costs 134,428 68.1% 110,563 70.1% 23,865 Depreciation and amortization expense 5,508 2.8% 3,989 2.5% 1,519 Selling, general and administrative expense 41,776 21.2% 36,859 23.4% 4,917 Operating income, excluding restructuring and relocation costs 15,702 7.9% 6,299 4.0% 9,403 Restructuring and relocation costs – – 2,247 1.4% (2,247) Operating income 15,702 7.9% 4,052 2.6% 11,650 Interest and other income (expense), net (408) (798) 390 Income before income taxes 15,294 3,254 12,040 Income tax expense (5,969) (2,240) (3,729) Net income $ 9,325 $ 1,014 $ 8,311 Diluted earnings per share $ 0.25 $ 0.03 Adjusted diluted earnings per share* $ 0.25 $ 0.07 * Excludes $1.5 million of relocation and restructuring costs, net of tax for the six months ended June 30, 2012. Weighted-average number of common and common equivalent shares used in computing earnings per common share: Basic 37,372 37,229 Diluted 37,521 37,357 $ 0.22 $ 0.18 |
Business Segment Data ($ in 000s) (Unaudited) 9 Americas EMEA APAC Reconciling Items ¹ Total Three months ended June 30, 2013 Revenues from external customers $ 74,347 $ 24,694 $ 9,335 $ – $ 108,376 Operating income (loss) $ 13,122 $ 3,001 $ 1,274 $ (5,773) $ 11,624 Three months ended June 30, 2012 Revenues from external customers $ 46,944 $ 27,485 $ 11,499 $ – $ 85,928 Operating income (loss) $ 6,244 $ 1,466 $ 2,587 $ (5,494) $ 4,803 Six months ended June 30, 2013 Revenues from external customers $ 135,107 $ 44,999 $ 17,308 $ – $ 197,414 Operating income (loss) $ 20,326 $ 3,803 $ 1,909 $ (10,336) $ 15,702 Six months ended June 30, 2012 Revenues from external customers $ 87,642 $ 50,512 $ 19,556 $ – $ 157,710 Operating income (loss) $ 10,599 $ 270 $ 2,813 $ (9,630) $ 4,052 ¹ Reconciling Items represent certain corporate overhead costs, including executive management, strategic planning, treasury, legal, human resources, information technology, accounting and risk management, which are not allocated to reportable segments. |
Condensed Consolidated Balance Sheets ($ in 000s) 10 (Unaudited) June 30, December 31, 2013 2012 Cash $ 24,688 $ 33,185 Trade receivables, net 93,111 77,042 Inventories 35,367 31,711 Other current assets 9,295 15,355 Total current assets 162,461 157,293 Property and equipment, net 45,267 42,243 Other assets 34,093 32,092 Total assets $ 241,821 $ 231,628 Total current liabilities $ 52,013 $ 50,439 Total long-term debt 41,045 39,609 Other liabilities 21,342 22,501 Total stockholders' equity 127,421 119,079 Total liabilities and stockholders' equity $ 241,821 $ 231,628 |
Condensed Consolidated Statements of Cash Flows ($ in 000s) (Unaudited) 11 For the Six Months Ended June 30, 2013 2012 Net income $ 9,325 $ 1,014 Depreciation, amortization and other non-cash items 10,381 7,162 Working capital changes (17,206) (7,821) Net cash provided by operating activities 2,500 355 Capital expenditures (6,818) (3,309) Acquisition of businesses (905) (9,259) Payments on debt (2,227) (32,714) Proceeds from issuance of debt – 39,300 Other, net 123 (71) Effect of exchange rate changes on cash (1,170) (93) Decrease in cash and cash equivalents (8,497) (5,791) Cash and cash equivalents at beginning of period 33,185 34,524 Cash and cash equivalents at end of period $ 24,688 $ 28,733 |
Furmanite Corporation QUARTER AND SIX MONTHS ENDED JUNE 30, 2013 Operations Review Joseph E. Milliron, President and Chief Operating Officer 12 |
As of June 30, 2013 13 Global Service Network The Americas EMEA APAC • 1,107 technicians • 68% of YTD revenues • 40 locations • 361 technicians • 23% of YTD revenues • 24 locations • 123 technicians • 9% of YTD revenues • 16 locations |
14 Total Americas EMEA APAC On-line Services 2 nd Qtr. 2013 $ 38,212 $ 23,830 $ 11,115 $ 3,267 On-line Services 2 nd Qtr. 2012 29,949 15,977 10,485 3,487 Variance $ 8,263 $ 7,853 $ 630 On-line Services 2 nd YTD 2013 $ 69,565 $ 42,971 $ 19,798 $ 6,796 On-line Services 2 nd YTD 2012 60,094 32,624 19,787 7,683 Variance $ 9,471 $ 10,347 $ 11 Business and Geographic Data – On-line Services Revenues ($ in 000’s) (Unaudited) $ (220) $ (887) |
Business and Geographic Data – Off-line Services Revenues ($ in 000’s) (Unaudited) 15 Total Americas EMEA APAC Off-line Services 2 nd Qtr. 2013 $ 58,351 $ 43,100 $ 9,579 $ 5,672 Off-line Services 2 nd Qtr. 2012 42,652 23,312 11,866 7,474 Variance Off-line Services 2 nd YTD 2013 $ 103,927 $ 76,966 $ 17,324 $ 9,637 Off-line Services 2 nd YTD 2012 71,370 40,382 20,338 10,650 Variance $ (1,802) $ (1,013) $ 15,699 $ 32,557 $ 19,788 $ 36,584 $ (3,014) $ (2,287) |
Furmanite Corporation Review of 2Q 2013 August 2, 2013 www.furmanite.com 16 |