FFI Earnings Surprise - $0.05 Per Share First Quarter
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INDIANAPOLIS, Nov. 12 /PRNewswire-FirstCall/ -- Fortune Industries, Inc. (NYSE
AMEX: FFI) (the "Company") announced today earnings of $0.05 per share for the
three months ended September 30, 2009.
Highlights
Net income available to common stock shareholders for the three months ended
September 30, 2009 was $0.660 million or $0.05 per share fully diluted versus
pro forma earnings of $(4.022) million or $(0.34) per share fully diluted for
the same period in 2008, representing an increase in net income available to
common stock shareholders of $4.682 million or $0.39 per share fully diluted.
The Company reported EBITDA of $0.742 million for the three months ended
September 30, 2009, as compared to pro forma EBITDA of $(1.692) million for
the same period in 2008, representing a $2.434 million increase EBITDA for the
current period.
Revenue for the three months ended September 30, 2009 was $14.8 million as
compared to pro forma revenue of $16.6 million for the same period in 2008,
representing a $1.8 million decrease in revenue for the current period.
"This is our fifth reporting period in a row as a profitable company," stated
John Fisbeck, CEO. "We achieved earnings of $0.05 per share for the first
quarter, and exceeded our budget of $0.02 per share, or $0.08 per share
annualized. We now have earnings of $0.06 per share trailing twelve months,
and a current P/E ratio of 18, based on the most recent closing stock price."
"Our sales force and management team have done an excellent job stabilizing
the Company over the last twelve months, and I am very happy with the results
in this difficult economic environment. We experienced a net gain in worksite
employees during the first quarter. Operationally, our risk-management
controls and software implementation have substantially helped increase our
margins over the last twelve months. Our next objective is to start driving
our revenue top line growth through net worksite employee gains and
acquisition opportunities. Our goal is to be driving our PEO business at a
15% annualized growth rate going forward."
About Fortune Industries, Inc.
Fortune Industries, Inc. is focused as a professional employer organization
(PEO) to small and medium-sized businesses in 48 states, including human
resource consulting & management, employee assessment, training, and benefits
administration.
Fortune Industries, Inc. is based in Indianapolis, Indiana and is publicly
traded on the NYSE Amex exchange under the symbol FFI. Additional information
about Fortune Industries, Inc. can be found at www.ffi.net.
This press release and other statements by Fortune Industries, Inc. may
contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
typically identified by words or phrases such as "believe," "expect,"
"estimate," "potential," or future/conditional verbs such as "will," "should,"
and "could" or the negative of those terms or other variations of them or by
comparable terminology. The absence of such terms, however, does not mean that
the statement is not forward-looking. Any such forward-looking statements are
not guarantees of future performance and involve risks and uncertainties that
could cause actual results to differ materially. Factors that might cause or
contribute to such differences, include, but are not limited to, the risks and
uncertainties that are discussed under the heading "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" within the Company's Form 10-K for the year ended June 30, 2009.
The Company undertakes no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise. Readers should carefully review the risk factors disclosed within
the Company's Form 10-K and other documents filed by the Company with the
Securities and Exchange Commission.
Consolidated Financial Information
Three-Month Period Ended
Pro-Forma
September November
30, 2009 30, 2008
--------- --------
(Dollars in thousands,
expect per share data)
Consolidated
Total Revenue $14,829 $16,741
Cost of Revenue 11,428 13,340
------ ------
Gross Profit 3,401 3,401
Operating Expenses
Selling, general and
administrative expenses 2,676 3,148
Depreciation and amortization 201 169
------ ------
Total Operating Expenses 2,877 3,317
Operating Income 524 84
Other Income (Expense) 24 31
------ ------
Income Before Provision for Income Tax 548 115
Provision for Income Taxes (271) 24
------ ------
Net Income from Continuing Operations 819 91
Loss from discontinued operations (11) -
------ ------
Net Income 808 91
Preferred Stock Dividends 148 370
------ ------
Net Income (Loss) Available to Common
Shareholders $660 $(279)
==== =====
Net Income (Loss) per Share:
Basic $0.05 $(0.02)
===== ======
Diluted $0.05 $(0.02)
===== ======
SOURCE Fortune Industries, Inc.
Carrie Hill of Fortune Industries, Inc., +1-317-532-1374
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