FFI Reports Second Quarter Earnings

INDIANAPOLIS, Feb. 14, 2013 /PRNewswire/ -- Fortune Industries, Inc. (NYSE MKT: FFI) announced today results for the second quarter ended December 31, 2012.

Highlights

Net income available to common stock shareholders for the second quarter ended December 31, 2012 was $0.115 million or $0.01 per share fully diluted versus $0.078 million or $0.01 per share fully diluted for the second quarter ended December 31, 2011, representing a $0.037 million (47.4%) increase. 

Working capital for the second quarter ended December 31, 2012 was $4.8 million, versus $3.3 million for the second quarter ended December 31, 2011, representing an increase of $1.5 million (45.5%).

The Company reported EBITDA of $0.669 million for the second quarter ended December 31, 2012, as compared to EBITDA of $0.559 million for the second quarter ended December 31, 2011, representing a $0.110 million (19.7%) increase in EBITDA. 

Revenue for the second quarter ended December 31, 2012 was $13.739 million as compared to revenue of $14.836 million for the second quarter ended December 31, 2011, representing a $1.1 million (7.4%) decrease in revenue.  Revenue decreased primarily due to the loss of two major clients effective December 31, 2011 which decreased our worksite employee count by 1,047or 7%.

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 second quarter ending December 31, 2012 as compared to the same quarter in fiscal year 2012 and an increase of $0.136 million year to date for fiscal year 2013 as compared to the year to date total for the same period in fiscal year 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 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






December 31,


December 31,






2012


2011



(Dollars in thousands, except per share data)

TOTAL REVENUES


$           13,739


$           14,836









COST OF REVENUES


10,551


11,726

 

GROSS PROFIT



3,188


3,110









OPERATING EXPENSES


2,654


2,686









OPERATING INCOME


534


424









OTHER INCOME (EXPENSE)


3


(1)









INCOME BEFORE PROVISION FOR INCOME TAXES

537


423









  Provision for income tax expense

15


6









NET INCOME



522


417









Preferred stock dividends


407


339









NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$               115


$               78









BASIC INCOME PER COMMON SHARE

$              0.01


$              0.01









Basic Weighted Average Shares Outstanding

12,287,290


12,270,790









DILUTED INCOME PER COMMON SHARE

$              0.01


$              0.01









Diluted Weighted Average Shares Outstanding

14,593,290


14,593,290

 

SOURCE Fortune Industries, Inc.



RELATED LINKS
http://www.ffi.net

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