FFI Reports Quarterly Results

Nov 15, 2010, 06:00 ET from Fortune Industries, Inc.

INDIANAPOLIS, Nov. 15, 2010 /PRNewswire-FirstCall/ -- Fortune Industries, Inc. (NYSE Amex: FFI) announced today results for the quarter ended September 30, 2010.

Highlights

Revenue for the three months ended September 30, 2010 was $15.6 million as compared to revenue of $14.8 million for the same three-month period in 2009, representing a $0.8 million increase in revenue.  

Net income available to common stock shareholders for the three months ended September 30, 2010 was $0.302 million or $0.02 per share fully diluted versus $0.660 million or $0.05 per share fully diluted for the same three-month period in 2009, representing a $0.358 million decrease in net income available to common stock shareholders.  

Working capital at September 30, 2010 was $1.67 million, as compared to working capital at June 30, 2010 of $1.2 million, representing an increase of $0.470 million during the three-month period.  This increase was due to the continued profitability of the Company's operations.

The Company reported EBITDA of $0.669 million for the three months ended September 30, 2010, as compared to EBITDA of $0.742 million for the same three-month period in 2009, representing a $0.073 million decrease in EBITDA for the current period.

Total number of worksite employees at September 30, 2010 was 14,598 as compared to 14,024 at June 30, 2010, representing a net increase of 574 worksite employees.

"We are thrilled with the Company's performance this quarter, particularly with respect to working capital," stated Tena Mayberry, President and CEO.  "We have consistently performed over the past two years in this challenging economy, generating a profit 8 out of the past 9 reporting periods.  We continue to add worksite employees, which creates additional administrative fees and increased gross revenue.  Additionally, our management team has succeeded in cutting expenses, while adding these worksite employees and maintaining our exceptional service level.  We look forward to continuing to grow our worksite employee count at the beginning of the new calendar year, which will help drive revenue and shareholder income."

About Fortune Industries, Inc.

Fortune Industries, Inc. is focused as a professional employer organization (PEO) to small and medium-sized businesses in 48 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, 2010. 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,

2010

2009

TOTAL REVENUES

$           15,571

$           14,829

COST OF REVENUES

12,373

11,428

GROSS PROFIT

3,198

3,401

OPERATING EXPENSES

2,727

2,877

OPERATING INCOME

471

524

OTHER INCOME

21

24

INCOME BEFORE PROVISION FOR INCOME TAXES

492

548

 Provision for income tax expense (benefit)

35

(271)

NET INCOME FROM CONTINUING OPERATIONS

457

819

DISCONTINUED OPERATIONS

 Loss from discontinued operations

(7)

(11)

NET INCOME

450

808

Preferred stock dividends

148

148

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$               302

$               660

BASIC INCOME PER COMMON SHARE

$              0.02

$              0.05

Basic Weighted Average Shares Outstanding

12,231,543

12,089,380

DILUTED INCOME PER COMMON SHARE

$              0.02

$              0.05

Diluted Weighted Average Shares Outstanding

14,754,108

14,599,543

SOURCE Fortune Industries, Inc.



RELATED LINKS

http://www.ffi.net