FFI Reports Earnings For Fiscal Year Ended June 30, 2012

Sep 28, 2012, 06:00 ET from Fortune Industries, Inc.

INDIANAPOLIS, Sept. 28, 2012 /PRNewswire/ -- Fortune Industries, Inc. (NYSE AMEX: FFI) announced results for the fiscal year ended June 30, 2012.

Highlights

Net income available to common stock shareholders for the fiscal year ended June 30, 2012 was $0.926 million or $0.06 per share fully diluted versus $1.283 million or $0.09 per share fully diluted for the fiscal year ending June 30, 2011, representing a $0.357 million decrease in net income available to common stock shareholders. 

Working capital for the fiscal year ended June 30, 2012 was $4.1 million, versus $2.6 million for the fiscal year ending June 30, 2011, representing an increase of $1.5 million.

The Company reported EBITDA of $2.90 million for the fiscal year ended June 30, 2012, as compared to EBITDA of $2.60 million for the fiscal year ending June 30, 2011, representing a $0.30 million increase. 

Revenue for the fiscal year ended June 30, 2012 was $60.90 million as compared to revenue of $64.30 million for the fiscal year ending June 30, 2011, representing a decrease of $3.4 million

Further, total number of worksite employees at June 30, 2012 was 13,619 as compared to 15,098 at June 30, 2011 representing a decrease of 1,479 worksite employees.  The decrease in revenue is due to the loss of two large clients as of December 31, 2011 with approximately 1,200 worksite employees.

The dividends on the Series C Preferred Stock increased from $2 per share to $5 per share effective July 1, 2011.  The Preferred Stock dividends incurred for fiscal year ended June 30, 2012 were $1.357 million as compared to $0.568 million for fiscal year ending June 30, 2011. This change resulted in an increase of Preferred Stock Dividend of $0.800 million for the fiscal year ended June 30, 2012.

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, 2012. 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,

2012

2011

(Dollars in thousands, except per share data)

TOTAL REVENUES

$           60,891

$           64,335

COST OF REVENUES

47,793

51,527

GROSS PROFIT

 

13,098

12,808

OPERATING EXPENSES

10,760

10,959

OPERATING INCOME

2,338

1,849

OTHER INCOME (EXPENSE)

12

67

INCOME BEFORE PROVISION FOR INCOME TAXES

2,350

1,916

  Provision for income tax expense

67

65

NET INCOME

2,283

1,851

Preferred stock dividends

1,357

568

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$               926

1,283

BASIC INCOME PER COMMON SHARE

$              0.08

$              0.10

Basic Weighted Average Shares Outstanding

12,278,710

12,251,329

DILUTED INCOME PER COMMON SHARE

$              0.06

$              0.09

Diluted Weighted Average Shares Outstanding

14,599,710

14,558,965

 

SOURCE Fortune Industries, Inc.



RELATED LINKS

http://www.ffi.net