FFI Reports Second Quarter Earnings

INDIANAPOLIS, Feb. 16 /PRNewswire-FirstCall/ -- Fortune Industries, Inc. (NYSEAMEX: FFI) (the "Company") announced today second quarter earnings of $0.01 per diluted share for the three months ended December 31, 2009.

Highlights

Net income available to common stock shareholders for the three months ended December 31, 2009 was $0.186 million or $0.01 per share fully diluted versus pro forma earnings of $(0.306) million or $(0.02) per share fully diluted for the same three-month period in 2008, representing an increase in net income available to common stock shareholders of $0.492 million or $0.03 per share fully diluted.  

Net income available to common stock shareholders for the six months ended December 31, 2009 was $0.846 million or $0.06 per share fully diluted versus pro forma earnings of $(4.328) million or $(0.31) per share fully diluted for the same six-month period in 2008, representing an increase in net income available to common stock shareholders of $5.174 million or $0.37 per share fully diluted.  

"I am pleased with the Company's results for the second quarter, establishing a positive trend of six profitable reporting periods," stated Tena Mayberry, CEO.  "As I combine my new role of CEO with my current responsibilities as President, we are starting to see the results of initiatives and strategies put into place over the last year, which should continue this positive momentum."

"Our management team has had a laser focus on retaining customers and increasing profitability.  Even with the weak economy, this attention to detail has allowed us to achieve higher earnings on lower revenue, as compared to the same period last year.  While operationally we have been successful in implementing several cost-containment initiatives, we have continued and will continue to invest additional resources in our sales strategies to expand our existing footprint.  Since we have the capacity operationally and the experience with integrating new operations into our existing, we will continue exploring smaller geographical acquisition opportunities.  Our plan is to drive top-line growth by organic sales and digestible acquisitions."           

The Company reported EBITDA of $0.504 million for the three months ended December 31, 2009, as compared to pro forma EBITDA of $0.009 million for the same three-month period in 2008, representing a $0.495 million increase EBITDA for the current period.

The Company reported EBITDA of $1.250 million for the six months ended December 31, 2009, as compared to pro forma EBITDA of $(1.684) million for the same six-month period in 2008, representing a $2.934 million increase EBITDA for the current period.

Revenue for the three months ended December 30, 2009 was $15.0 million as compared to pro forma revenue of $17.0 million for the same three-month period in 2008, representing a $2.0 million decrease in revenue for the current period.  

Revenue for the six months ended December 30, 2009 was $29.8 million as compared to pro forma revenue of $33.6 million for the same six-month period in 2008, representing a $3.8 million decrease in revenue for the current period.  

About Fortune Industries, Inc.

Fortune Industries, Inc. is a professional employer organization (PEO) to small and medium-sized businesses in 47 states, providing human resource management & consulting, training & compliance, risk management, 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, 2009. 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

    
    
                          Three-Month Period           Six-Month Period
                                Ended                       Ended
                          ------------------           ----------------
                                      Pro- Forma                   Pro-Forma
                        December 31,  December 31,  December 31,  December 31,
                           2009          2008          2009          2008
                           ----          ----          ----          ----
                           (Dollars in thousands, expect per share data)
    
    
    Revenue               $14,985       $16,969       $29,814      $33,625
    Cost of Revenue        11,799        13,694        23,227       28,191
                           ------        ------        ------       ------
      Gross Profit          3,186         3,275         6,587        5,434
    
    Operating Expenses:
    Selling,  general 
     and administrative
     expenses               2,707         3,256         5,383        7,116
    Depreciation and
     amortization             182           145           383          308
    Impairment                                                       2,297
                           ------        ------        ------       ------
      Total Operating
       Expenses             2,889         3,401         5,766        9,721
    
    Operating
     Income                   297          (126)          821       (4,287)
    
    Other Income
     (Expense)                 24           (10)           48           (1)
                              ---           ---           ---          ---
    
    Income Before
     Provision for
     Income Tax               321          (136)          869       (4,288)
    
    Provision for
     Income Taxes             (21)           22          (292)        (256)
                              ---           ---          ----         ----
    
    Net Income from
     Continuing
     Operations               342          (158)        1,161       (4,032)
    
    Loss from
     Discontinued
     Operations                (8)            -           (19)           -
                              ---           ---           ---          ---
    
    Net Income                334          (158)        1,142       (4,032)
    
    Preferred Stock
     Dividends                148           148           296          296
                              ---           ---           ---          ---
    
    Net Income
     Available to
     Common
     Shareholders            $186         $(306)         $846      $(4,328)
                             ====         =====          ====      =======
    
    Net Income per
     Share:
      Basic                 $0.02        $(0.03)        $0.07       $(0.37)
                            =====        ======         =====       ======
    
      Diluted               $0.01        $(0.02)        $0.06       $(0.31)
                            =====        ======         =====       ======
    

SOURCE Fortune Industries, Inc.