FFI Reports Annual Results

INDIANAPOLIS,  Sept. 28, 2011 /PRNewswire/ -- Fortune Industries, Inc. (NYSE AMEX: FFI) announced today results for the fiscal year ended June 30, 2011.

Highlights

Net income available to common stock shareholders for the fiscal year ended June 30, 2011 was $1.283 million or $0.09 per share fully diluted versus $0.579 million or $0.04 per share fully diluted, for the fiscal year ended June 30, 2010, representing a $0.704 million increase in net income available to common stock shareholders.  

Working capital for the year ended June 30, 2011 was $2.631 million, as compared to working capital at June 30, 2010 of $1.212 million, representing an increase of $1.419 million.  

The Company reported EBITDA of $2.578 million for the fiscal year ended June 30, 2011, as compared to EBITDA of $1.707 million for the fiscal year ended June 30, 2010, representing a $0.871 million increase in EBITDA for the current year.

Revenue for the fiscal year ended June 30, 2011 was $64.335 million as compared to revenue of $60.694 million for the fiscal year ended June 30, 2010, representing a $3.641 million increase in revenue.  

Total number of worksite employees at June 30, 2011 is 15,030 as compared to 13,956 at June 30, 2010, representing a net increase of 1,074 worksite employees.  

"Our clients who have survived this still-struggling economy have taken a small step forward this quarter, and as a result we have increased our total worksite employee count, driven largely by existing customer growth," stated Tena Mayberry, President and CEO.  "Our increase in revenue, net income and earnings per share can largely be attributed to an increase in same-store sales with the addition of new hires and returning previously-laid-off workers.  At the same time, we have focused on managing our expenses in order to maximize earnings from the increase in revenue.  

"During the fourth quarter our workers compensation program was a high performing area.  We successfully renegotiated one of our largest national contracts, allowing us to minimize increases to our customers going against the industry trend and solidifying customer retention.

"We believe we will continue to experience some same-store sales growth along with the addition of new customers due to the growing compliance requirements relating to state and federal unemployment, homeland security and health care reform.  The newness of the health care reform legislation and the lack of precedent should create opportunities for our sales force to attract new customers.  We look forward to continued earnings per share growth in our upcoming fiscal year."

About Fortune Industries, Inc.

Fortune Industries, Inc. is focused as a professional employer organization (PEO) to small and medium-sized businesses in 47 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, 2011. 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


Financial highlights are as follows:



Fiscal Year Ended


June 30,


June 30,


2011


2010


(Dollars in thousands, except per share data)

TOTAL REVENUES

$           64,335


$           60,694





COST OF REVENUES

51,527


48,068

GROSS PROFIT

12,808


12,626





OPERATING EXPENSES

10,959


11,816





OPERATING INCOME

1,849


810





OTHER INCOME

75


118





INCOME BEFORE PROVISION FOR INCOME TAXES

1,924


928





 Provision for income tax expense (benefit)

65


(262)





NET INCOME FROM CONTINUING OPERATIONS

1,859


1,190





DISCONTINUED OPERATIONS





 Loss from discontinued operations

(8)


(19)





NET INCOME

1,851


1,171





Preferred stock dividends

568


592





NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$            1,283


$               579





BASIC INCOME PER COMMON SHARE

$              0.10


$              0.05





Basic Weighted Average Shares Outstanding

12,251,329


12,177,741





DILUTED INCOME PER COMMON SHARE

$              0.09


$              0.04





Diluted Weighted Average Shares Outstanding

14,558,965


14,687,904




SOURCE Fortune Industries, Inc.



RELATED LINKS
http://www.ffi.net

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