FFI Reports Second Quarter Earnings
February 16 2010 - 6:00AM
PR Newswire (US)
INDIANAPOLIS, Feb. 16 /PRNewswire-FirstCall/ -- Fortune Industries,
Inc. (NYSE AMEX: FFI) (the "Company") announced today second
quarter earnings of $0.01 per diluted share for the three months
ended December 31, 2009. Highlights Net income available to common
stock shareholders for the three months ended December 31, 2009 was
$0.186 million or $0.01 per share fully diluted versus pro forma
earnings of $(0.306) million or $(0.02) per share fully diluted for
the same three-month period in 2008, representing an increase in
net income available to common stock shareholders of $0.492 million
or $0.03 per share fully diluted. Net income available to common
stock shareholders for the six months ended December 31, 2009 was
$0.846 million or $0.06 per share fully diluted versus pro forma
earnings of $(4.328) million or $(0.31) per share fully diluted for
the same six-month period in 2008, representing an increase in net
income available to common stock shareholders of $5.174 million or
$0.37 per share fully diluted. "I am pleased with the Company's
results for the second quarter, establishing a positive trend of
six profitable reporting periods," stated Tena Mayberry, CEO. "As I
combine my new role of CEO with my current responsibilities as
President, we are starting to see the results of initiatives and
strategies put into place over the last year, which should continue
this positive momentum." "Our management team has had a laser focus
on retaining customers and increasing profitability. Even with the
weak economy, this attention to detail has allowed us to achieve
higher earnings on lower revenue, as compared to the same period
last year. While operationally we have been successful in
implementing several cost-containment initiatives, we have
continued and will continue to invest additional resources in our
sales strategies to expand our existing footprint. Since we have
the capacity operationally and the experience with integrating new
operations into our existing, we will continue exploring smaller
geographical acquisition opportunities. Our plan is to drive
top-line growth by organic sales and digestible acquisitions." The
Company reported EBITDA of $0.504 million for the three months
ended December 31, 2009, as compared to pro forma EBITDA of $0.009
million for the same three-month period in 2008, representing a
$0.495 million increase EBITDA for the current period. The Company
reported EBITDA of $1.250 million for the six months ended December
31, 2009, as compared to pro forma EBITDA of $(1.684) million for
the same six-month period in 2008, representing a $2.934 million
increase EBITDA for the current period. Revenue for the three
months ended December 30, 2009 was $15.0 million as compared to pro
forma revenue of $17.0 million for the same three-month period in
2008, representing a $2.0 million decrease in revenue for the
current period. Revenue for the six months ended December 30, 2009
was $29.8 million as compared to pro forma revenue of $33.6 million
for the same six-month period in 2008, representing a $3.8 million
decrease in revenue for the current period. About Fortune
Industries, Inc. Fortune Industries, Inc. is a professional
employer organization (PEO) to small and medium-sized businesses in
47 states, providing human resource management & consulting,
training & compliance, risk management, 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 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 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 Six-Month Period Ended Ended
------------------ ---------------- Pro- Forma Pro-Forma December
31, December 31, December 31, December 31, 2009 2008 2009 2008 ----
---- ---- ---- (Dollars in thousands, expect per share data)
Revenue $14,985 $16,969 $29,814 $33,625 Cost of Revenue 11,799
13,694 23,227 28,191 ------ ------ ------ ------ Gross Profit 3,186
3,275 6,587 5,434 Operating Expenses: Selling, general and
administrative expenses 2,707 3,256 5,383 7,116 Depreciation and
amortization 182 145 383 308 Impairment 2,297 ------ ------ ------
------ Total Operating Expenses 2,889 3,401 5,766 9,721 Operating
Income 297 (126) 821 (4,287) Other Income (Expense) 24 (10) 48 (1)
--- --- --- --- Income Before Provision for Income Tax 321 (136)
869 (4,288) Provision for Income Taxes (21) 22 (292) (256) --- ---
---- ---- Net Income from Continuing Operations 342 (158) 1,161
(4,032) Loss from Discontinued Operations (8) - (19) - --- --- ---
--- Net Income 334 (158) 1,142 (4,032) Preferred Stock Dividends
148 148 296 296 --- --- --- --- Net Income Available to Common
Shareholders $186 $(306) $846 $(4,328) ==== ===== ==== ======= Net
Income per Share: Basic $0.02 $(0.03) $0.07 $(0.37) ===== ======
===== ====== Diluted $0.01 $(0.02) $0.06 $(0.31) ===== ====== =====
====== DATASOURCE: Fortune Industries, Inc. CONTACT: Fortune
Industries, Inc., Carrie Hill, General Counsel, +1-317-532-1374 Web
Site: http://www.ffi.net/
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