Fortress International Group, Inc. Reports Third Quarter 2010 Financial Results

COLUMBIA, Md., Nov. 12, 2010 /PRNewswire-FirstCall/ -- Fortress International Group, Inc. (Other OTC: FIGI), a provider of consulting and engineering, construction management and 24/7/365 site services for mission-critical facilities, today announced its financial results for the three and nine months ended September 30, 2010.

During the fourth quarter of 2009, Fortress completed the sale of its Rubicon Professional Services division. Sales and operations under this division have been restated and are now classified as discontinued operations in the Company's financial statements.

Third Quarter 2010 Financial Highlights from Continuing Operations:

• Revenue of $21.0 million, an increase of 108% over the third quarter of 2009
• Gross profit of $3.2 million, an increase of 53% over the third quarter of 2009
• Net income of $0.5 million, or $0.03 per basic and diluted share, compared with a net loss from of $(0.6) million or $(0.05) per basic and diluted share for the third quarter of 2009
• Adjusted EBITDA of $0.7 million, compared with an adjusted EBITDA loss of $(0.1) million for the third quarter of 2009
• Backlog of $35.1 million at September 30, 2010
• Cash and cash equivalents totaling $11.2 million at September 30, 2010

Financial Highlights for the Nine Months Ended September 30, 2010 from Continuing Operations:

• Revenue of $60.8 million, an increase of 55% over $39.1 million for the nine months ended September 30, 2009
• Gross profit of $8.9 million, an increase of 39% over the nine months ended September 30, 2009
• Net income of $0.6 million, or $0.04 per diluted share, compared with a net loss of $(15.5) million or $(1.22) per diluted share for the nine months ended September 30, 2009
• Adjusted EBITDA from continuing operations of $1.4 million, compared with an adjusted EBITDA loss from continuing operations of $(1.7) million for the nine months ended September 30, 2009

Commenting on the results, Chief Executive Officer Thomas P. Rosato stated, "We delivered strong year-over-year revenue, net income and adjusted EBITDA growth in the third quarter and through the first nine months of 2010. Our success to date has been driven by solid performance across all areas of our business, as we have won both new and follow-on projects while diversifying our revenue base through the further expansion of our higher-margin, recurring revenue Facilities Management contracts. We are expecting to build our backlog over the next several months as we continue to see solid customer interest and capital investment in our market from both the public and private sectors. We anticipate that our current pipeline of projects will not only bolster our backlog, but help position the Company to remain on track toward achieving our goals of sustained profitability, revenue growth and positive adjusted EBITDA."

"We are actively working to generate some of our near-term revenue opportunities to grow our business through the remainder of the year and beyond. We expect several of the smaller scale projects underway will turn into larger, full-scale projects in the near-term. During the third quarter we began rolling out a concentrated sales and marketing program focused on the large data center opportunities that currently exist in the markets we serve. We are already gaining a meaningful increase in new customer inquiries, which we believe may contribute to our continued growth," Mr. Rosato concluded.

Chief Financial Officer Timothy C. Dec added, "Our performance in the third quarter exceeded our internal targets and positions us well as we head into the end of the year. We achieved significant top- and bottom-line growth while maintaining gross margins within our targeted range and minimizing growth in operating expenses, despite strategic investments in sales and marketing. Our financial position continues to improve as well, as we completed the third sequential quarter of positive adjusted EBITDA and ended the third quarter with $11.2 million in cash. We are delivering on all key operational and strategic measures, and are increasingly confident about what the future holds for Fortress."

Quarterly Conference Call Details

The Company will conduct its regularly scheduled financial announcement conference call on Friday, November 12, 2010, at 9:00 a.m. EST. Investors may listen to the conference call via telephone at: 877-941-4774 (U.S./Canada) or 480-629-9760 (international) or via live audio web cast on the investor relations section of the Company's website at www.thefigi.com.

An audio replay of the conference call will also be available approximately two hours after the conclusion of the call and will be available until Friday, November 26, 2010. The audio replay can be accessed by dialing 800-406-7325 (U.S./Canada) or 303-590-3030 (international) and entering conference call ID 4380324, or via an archived webcast available on the investor relations section of the Company's website at www.thefigi.com.

About Non-GAAP Financial Measures

The Company uses adjusted EBITDA from continuing operations as a measure of the Company's operating trends. Investors are cautioned that adjusted EBITDA from continuing operations is not a measure of liquidity or of financial performance under Generally Accepted Accounting Principles (GAAP). The adjusted EBITDA from continuing operations numbers presented may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA from continuing operations, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Consistent with Regulation G under the U.S. federal securities laws, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measure, and this reconciliation is located under the heading "Adjusted EBITDA From Continuing Operations Reconciliation" following the Condensed Consolidated Statements of Operations included in this press release.

About Fortress International Group, Inc.

Fortress International Group, Inc. is leading mission-critical facilities into a new era of maximum uptime and efficiency. Fortress provides consulting and engineering, construction management and 24/7/365 site services for the world's most technology dependent organizations. Serving as a trusted advisor, Fortress delivers the strategic guidance and pre-planning that makes every stage of the critical facility lifecycle more efficient. For those who own, lease or manage mission-critical facilities, Fortress provides innovative end-to-end capital management, energy, IT strategy, procurement, design, construction, implementation and operations solutions that optimize performance and reduce cost.

Fortress International Group, Inc. is headquartered in Maryland, with offices throughout the U.S. For more information, visit: www.thefigi.com or call 888-321-4877.

Fortress International Group, Inc. -- setting a new standard for the optimized critical facility.

Forward Looking Statements

This press release may contain "forward-looking statements" -- that is, statements related to future -- not past -- events, plans, and prospects. In this context, forward-looking statements may address matters such as our expected future business and financial performance, and often contain words such as "guidance," "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the Company's future results include: the Company's reliance on a significant portion of its revenues from a limited number of customers; risks relating to our ability to continue as a going concern; the uncertainty of whether the Company can raise additional funds to continue its operations, if necessary;  risks associated with our effort to meet our working capital requirements and scheduled maturities of indebtedness absent restructuring; the uncertainty as to whether the Company can replace its backlog; risks involved in properly managing complex projects; risks relating to revenues under customer contracts, many of which can be canceled on short notice; risks relating to our ability to implement a reduction in our expenses; risks relating our ability to continue to implement our business plan; risks relating to our liquidity; risks relating to our ability to meet all of the terms and conditions of our debt obligations; uncertainty related to current economic conditions and the related impact on demand for our services; and other risks and uncertainties disclosed in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2009. These uncertainties may cause the Company's actual future results to be materially different than those expressed in the Company's forward-looking statements. The Company does not undertake to update its forward-looking statements.

SOURCE Fortress International Group, Inc.