FFI Reports First Quarter Earnings

INDIANAPOLIS, Nov. 14, 2012 /PRNewswire/ -- Fortune Industries, Inc. (NYSE MKT:FFI) announced today results for the first quarter ended September 30, 2012.

Highlights

Net income available to common stock shareholders for the first quarter ended September 30, 2012 was $0.401 million or $0.03 per share fully diluted versus $0.391 million or $0.03 per share fully diluted for the first quarter ended September 30, 2011, representing a $0.01 million increase in net income available to common stock shareholders. 

Working capital for the first quarter ended September 30, 2012 was $4.6 million, versus $3.1 million for the first quarter ended September 30, 2011, representing an increase of $1.5 million.

The Company reported EBITDA of $1.007 million for the first quarter ended September 30, 2012, as compared to EBITDA of $0.902 million for the first quarter ended September 30, 2011, representing a $0.105 million increase in EBITDA. 

Revenue for the first quarter ended September 30, 2012 was $13.760 million as compared to revenue of $15.795 million for the first quarter ended September 30, 2011, representing a $2.0 million decrease in revenue.  Revenue decreased primarily due to the loss of a two major clients effective December 31, 2011.  Therefore, the total number of worksite employees decreased 1,725 at September 30, 2012 to 13,403 as compared to 15,128 at September 30, 2011.

The dividends on the Series C Preferred Stock increased from $5 per share to $6 per share effective July 1, 2012.  This change resulted in an increase of Preferred Stock Dividends of $0.068 million for the first quarter ended September 30, 2012 as compared to the same three month period in 2011. 

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 and management, employee assessment, training, and benefits administration.

Fortune Industries, Inc. is based in Indianapolis, Indiana and is publicly traded on the NYSE MKT 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:

 












Three Month Period Ended






September 30,


September 30,






2012


2011



(Dollars in thousands, except per share data)

TOTAL REVENUES


$           13,760


$           15,795









COST OF REVENUES


10,514


12,544

 

GROSS PROFIT



3,246


3,251









OPERATING EXPENSES


2,375


2,496









OPERATING INCOME


871


755









OTHER INCOME (EXPENSE)


6


9









INCOME BEFORE PROVISION FOR INCOME TAXES

877


764









  Provision for income tax expense

69


34









NET INCOME



808


730









Preferred stock dividends


407


339









NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$               401


$               391









BASIC INCOME PER COMMON SHARE

$              0.03


$              0.03









Basic Weighted Average Shares Outstanding

12,287,290


12,270,790









DILUTED INCOME PER COMMON SHARE

$              0.03


$              0.03









Diluted Weighted Average Shares Outstanding

14,593,290


14,634,740

 

 

SOURCE Fortune Industries, Inc.



RELATED LINKS
http://www.ffi.net

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