FFI Reports Record Second Quarter Revenue
INDIANAPOLIS, April 14 /PRNewswire-FirstCall/ -- Fortune Industries, Inc. (AMEX:FFI) announced today second quarter earnings for the quarter ended February 29, 2008.
Highlights Revenue for the three months ended February 29, 2008 was $41.926 million as compared to $32.239 million for the same period of 2007, representing a 30% increase in revenue. Revenue for the six months ended February 29, 2008 was $85.683 million as compared to $72.923 million for the same period of 2007, representing an 18% increase in revenue.
Net loss available to common stock shareholders for the three months ended February 29, 2008 was ($2.839) million or ($0.22) per diluted share as compared to ($7.755) million or ($0.63) per diluted share for the same period of 2007, representing a $4.9 million improvement in net loss available to common stock shareholders. Net loss available to common stock shareholders for the six months ended February 29, 2008 was ($2.829) million or ($0.22) per diluted share as compared to ($7.029) million or ($0.57) per diluted share for the same period of 2007, representing a $4.2 million improvement in net loss available to common stock shareholders. EBITDA for the three months ended February 29, 2008 was ($0.835) million as compared to ($3.610) million for the same period of 2007, representing a $2.775 million improvement in EBITDA. EBITDA for the six months ended February 29, 2008 was $1.180 million as compared to ($1.178) million for the same period of 2007, representing a $2.358 million improvement in EBITDA. "We had all-time record revenue for the quarter," stated John Fisbeck, CEO. "Our EBITDA was a substantial improvement over last year, but the slowdown in the economy has affected our Business Solutions segment, with an approximate $10 million reduction in pro forma revenue this fiscal year. We've positioned our company to a point where our current cash needs are $1.8 million for interest coverage and $0.7 million for capital expenditures on an annualized basis. Anything over this $2.5 million in EBITDA in the fiscal year goes directly towards the reduction of debt." Segment Information Business Solutions
Wireless Infrastructure Revenue for the three month period ended February 29, 2008 was $4.253 million compared to $4.694 million for the three month period ended February 28, 2007, a decrease of $0.441 million or 9%. The decrease in revenue is mainly due to our decision to downsize our operations and focus on earnings. Transportation Infrastructure Revenue for the three month period ended February 29, 2008 was $10.047 million compared to $7.885 million for the three month period ended February 28, 2007, an increase of $2.162 million or 27%. Revenue increased primarily due to the Company beginning work on new specialty projects during the three month period ended February 29, 2008. Ultraviolet Technologies Revenue for the three month period ended February 29, 2008 was $2.811 million compared to $2.913 million for the three month period ended February 28, 2007, a decrease of $0.102 million or 4%. Revenue decreased primarily due to a decline in sales of conductive inks in the UK, a decline in sales of CD inks in South Africa, and a decrease in nameplate ink sales in Asia. Electronics Integration Revenue for the three month period ended February 29, 2008 was $2.556 million compared to $3.284 million for the three month period ended February 28, 2007, a decrease of $0.728 million or 22%. Revenue decreased primarily due to a lower volume of sales of television products as a result of the completion of a large contract, as well as a shortage of healthcare sets due to manufacturing issues within the period.
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, Wireless Infrastructure, Transportation 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 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 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 Six Month Period Ended Consolidated Total Revenue $41,926 $32,239 $85,683 $72,923 Segment Data Segment Revenue Business Solutions $22,258 $13,462 $42,627 $25,092 Variable Interest Entity 1 1 3 6 Total Revenue $41,926 $32,239 $85,683 $72,923 Segment Operating Income (Loss) Business Solutions $26 $282 $ 418 $1,020 Variable Interest Entity 373 266 740 443 Total Operating Income (Loss) $(1,615) $(6,264) $(361) $(4,639)
CONTACT: Carrie Fitzsimons, General Counsel of Fortune Industries, Inc., Web site: http://www.ffi.net/
2008-04-14 20:01:56 0335520 PRNEWSWIRE
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