INDIANAPOLIS, Jan. 14 /PRNewswire-FirstCall/ -- Fortune Industries, Inc. (AMEX:FFI) announced today first quarter earnings for the quarter ended November 30, 2007.
Highlights Revenue for the three months ended November 30, 2007 were $43.8 million as compared to $40.7 million for the same period of 2006, representing a 7% increase.
Diluted net income available to common shareholders for the three months ended November 30, 2007 was $0.01 million or $0.00 per share as compared to diluted net income available to common shareholders of $0.726 million or $0.06 per share for the same period of 2006.
EBITDA for the three months ended November 30, 2007 was $1.55 million as compared to $2.15 million for the same period of 2006, representing a 27% decrease.
"Revenues were at an all-time record for the quarter," stated John Fisbeck, CEO. "Our goal has been to be net profitable coming out of the third quarter of fiscal year 2008 with a very strong fourth quarter, versus a loss of over $8 million for the first three quarters of fiscal year 2007. Our software conversion is still budgeted in excess of $1 million and is on schedule to be completed by June 30, 2008. Our EBITDA remains on budget and if we continue to execute, we should attain our goal this year of $7.5 million." Segment Information Business Solutions
Revenue for the three month period ended November 30, 2007 was $20.369 million, compared to $11.630 million for the three month period ended November 30, 2006, an increase of $8.739 million or 75.1%. Revenue increased due to organic growth and the acquisitions of Employer Solutions Group, LLC and Precision Employee Management, LLC in 2007.
Wireless Infrastructure Revenue for the three month period ended November 30, 2007 was $5.527 million compared to $8.996 million for the three month period ended November 30, 2006, a decrease of $3.469 million or 38.6%. The decrease in revenues is mainly due to our decision to downsize our operations and focus on earnings.
Transportation Infrastructure Revenue for the three month period ended November 30, 2007 was $11.580 million compared to $12.747 million for the three month period ended November 30, 2006, a decrease of $1.167 million or 9%. Revenue decreased primarily due to the completion of several long-term contracts within the Transportation Infrastructure segment.
Ultraviolet Technologies Revenue for the three month period ended November 30, 2007 were $3.266 million compared to $3.049 million for the three month period ended November 30, 2006, an increase of $0.217 million or 7.1%. Revenue increased primarily due to increased domestic sales of CD/DVD inks and toll manufactured products, as well as increased sales of nameplate inks in Asia, offset by a decrease in POP/Decal inks.
Electronics Integration Revenue for the three month period ended November 30, 2007 was $3.013 million compared to $4.257 million for the three month period ended November 30, 2006, a decrease of $1.244 million or 29%. Revenue decreased for the three month period ended November 30, 2007 primarily due to a lower volume of sales of television products as a result of the completion of two large contracts with Kingston.
About Fortune Industries, Inc.
Fortune Industries, Inc. operates as a global technology-based service company with offices in the United States, Singapore, China and England. It provides technology solutions to businesses in five segments: Business Solutions, Transportation Infrastructure, Wireless Infrastructure, Ultraviolet Technologies and Electronics Integration. The Business Solutions segment provides professional employment organization (PEO) services to small and medium sized businesses with up to 1,000 employees in 44 states, including human resource consulting & management, employee assessment, training, and benefits administration. The Wireless Infrastructure segment provides turnkey solutions directly to wireless carriers in 20 states. The Transportation Infrastructure segment provides the installation of highway safety products and commercial structural steel. The Ultraviolet Ink segment provides worldwide state-of-the-art UV ink technology solutions. The Electronics Integration segment provides sales and installation of commercial electronics.
Fortune Industries is based in Indianapolis, Indiana and is publicly traded on the American Stock Exchange under the symbol FFI. Additional information about Fortune Industries, Inc. can be found at http://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 August 31, 2007. 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 November 30,
2007 2006
(Dollars in
thousands,
expect per
share data)
Consolidated Total Revenue $43,757 $40,684 Operating Income 1,254 1,625 Net Income 134 850 Net Income Available to Common Shareholders $10 $726 Net Income (Loss) per Share:
Basic $0.00 $ 0.07 Diluted $0.00 $ 0.06
Segment Data Segment Revenue Business Solutions $20,369 $11,630
Wireless Infrastructure 5,527 8,996
Transportation Infrastructure 11,580 12,747
Ultraviolet Technologies 3,266 3,049
Electronics Integration 3,013 4,257
Subtotal Revenue 43,755 40,679 Variable Interest Entity 2 5 Total Revenue $43,757 $40,684 Segment Operating Income (Loss) Business Solutions $375 $738
Wireless Infrastructure 565 547
Transportation Infrastructure 503 593
Ultraviolet Technologies 13 83
Electronics Integration (37) 337
Holding Company (532) (850)
Subtotal Operating Income 887 1,448 Variable Interest Entity 367 177 Total Operating Income $1,254 $1,625
DATASOURCE: Fortune Industries, Inc.
CONTACT: Carrie Fitzsimons, General Counsel, Fortune Industries, Inc., +1-317-532-1374 Web site: http://www.ffi.net/
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