FFI Reports Second Quarter Earnings
INDIANAPOLIS, Feb. 13, 2012 /PRNewswire/ -- Fortune Industries, Inc. (NYSE AMEX: FFI) announced today results for the second quarter ended December 31, 2011.
Net income available to common stock shareholders for the second quarter ended December 31, 2011 was $0.078 million or $0.01 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 $0.313 million decrease in net income available to common stock shareholders. Also, this represents a $0.148 million decrease in net income available to common stock shareholders for the same three month period in 2010.
Working capital for the second quarter ended December 31, 2011 was $3.3 million, as compared to working capital at first quarter ended September 30, 2011 of $3.1 million, representing an increase of $0.2 million.
The Company reported EBITDA of $0.559 million for the second quarter ended December 31, 2011, as compared to EBITDA of $0.902 million for the first quarter ended September 30, 2011, representing a $0.343 million decrease in EBITDA. EBITDA decreased $0.003 over this same three month period in 2010.
Revenue for the second quarter ended December 31, 2011 was $14.836 million as compared to revenue of $15.795 million for the first quarter ended September 30, 2011, representing a $0.959 million decrease in revenue. Further revenue ended December 31, 2011 versus this same three month period 2010 decreased $1.024 million.
Total number of worksite employees at December 31, 2011 is 14,550 as compared to 15,141 at September 30, 2011, representing a decrease of 591 worksite employees.
The dividends on the Series C Preferred Stock increased from $2 per share to $5 per share effective July 1, 2011. This change resulted in an increase of Preferred Stock Dividend of $0.191 million for the second quarter ended December 31, 2011 as compared to the same three month period in 2010.
"Even though our second quarter is one of our toughest quarters due to the seasonal component, as well as cyclical nature of our industry, we are pleased to announce positive earnings," stated Tena Mayberry, President and CEO. "This time of year is always hard on our industry, and when you add the increased dividend payment, we are still on target this fiscal year. We must continue to focus on new sales and the fine-tuning of our operations to be as profitable as possible."
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:
Three Month Period Ended
(Dollars in thousands, except per share data)
COST OF REVENUES
OTHER INCOME (EXPENSE)
INCOME BEFORE PROVISION FOR INCOME TAXES
Provision for income tax expense
NET INCOME FROM CONTINUING OPERATIONS
Loss from discontinued operations
Preferred stock dividends
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
BASIC INCOME PER COMMON SHARE
Basic Weighted Average Shares Outstanding
DILUTED INCOME PER COMMON SHARE
Diluted Weighted Average Shares Outstanding
SOURCE Fortune Industries, Inc.