EX-99.1 2 d67690exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(FURMANITE LOGO)
     
For immediate release
  For more information, contact:
 
  Investor Relations
 
  (972) 699-4055
 
  Email: investor@furmanite.com
FURMANITE CORPORATION REPORTS 1Q 2009 RESULTS
Results affected by project slowdown and negative currency fluctuations;
reports net income of $880,000 and EPS of $0.02
DALLAS, TEXAS (May 11, 2009) — Furmanite Corporation (NYSE: FRM) today reported results for the quarter ended March 31, 2009. Revenues for the quarter were $63.0 million, compared with $73.4 million for the same period in 2008. The company reported net income of $880,000 for the quarter, compared with $3.7 million in 2008. Earnings per share (diluted) were $0.02, compared with $0.10 for the prior year’s quarter.
“Furmanite’s first quarter results show the effect of a severe slowdown in project work in the U.S. and the continuing effect of negative currency fluctuations that we expect will affect our results at least through the third quarter this year,” said Michael L. Rose, chairman and chief executive officer of Furmanite Corporation. “As we discussed at year-end, we anticipated that the recession would have an effect on our business and made substantial reductions in our general and administrative costs, without sacrificing our plans to increase expertise and capacity. What we could not predict was the severity of the drop in discretionary capital projects in America, where this work represented a significant part of our revenues. We are accelerating the pace in strengthening our sustained base of U.S. business, in order to reduce the effect of project variability.”
Mr. Rose added: “Around the world, we have aggressive efforts underway to drive growth in the industry sectors where there are ongoing and substantial opportunities for our company. We have the financial resources and the discipline it takes to weather this current economic environment and to use the opportunities it presents to grow our capabilities and our business.”
2435 North Central Expressway, Suite 700 Richardson, Texas 75080 972-699-4055

 

 

Joseph Milliron, president and chief operating officer of Furmanite Corporation, said: “In line with our strategy to provide the full array of services in all our locations, we saw a continuing positive impact on results for a number of our operations, notably in the United Kingdom, Germany, Norway and the Malaysia/Singapore region. Our operations in Australia and the Netherlands were negatively affected in the first quarter because of contractions in the industries that use the services we have emphasized in those markets. We have implemented plans to broaden the industries we serve and further deploy the additional services we offer. We expect to see improvement in both of these operations by mid-year.”
The company’s revenues, operating income and net income were unfavorably impacted by foreign currency fluctuations by approximately $(8.0) million, $(682,000) and $(162,000), respectively, for the first quarter in 2009.
ABOUT FURMANITE CORPORATION
Furmanite Corporation (NYSE: FRM) is a worldwide technical services firm. Headquartered in Dallas, Texas, Furmanite, one of the world’s largest specialty technical services companies, delivers a broad portfolio of engineering solutions that keep facilities operating, minimizing downtime and maximizing profitability. Furmanite’s diverse, global operations serve a broad array of industry sectors, including offshore drilling operations, pipelines, refineries and power generation facilities, chemical and petrochemical plants, steel mills, automotive manufacturers, pulp and paper mills, food and beverage processing plants, semi-conductor manufacturers and pharmaceutical manufacturers. Furmanite operates more than 80 offices on six continents. For more information, visit www.furmanite.com.
Certain of the Company’s statements in this press release are not purely historical, and as such are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding management’s intentions, plans, beliefs, expectations or projections of the future. Forward-looking statements involve risks and uncertainties, including without limitation, the various risks inherent in the Company’s business, and other risks and uncertainties detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission. One or more of these factors have affected, and could in the future affect the Company’s business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this document will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the Company, or any other person, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and the Company assumes no obligation to update any forward-looking statements.

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FURMANITE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                 
    Three Months  
    Ended March 31,  
    2009     2008  
 
                
Revenues
   $ 63,032     $ 73,387  
 
                
Costs and expenses:
                
Operating costs
     42,578       47,308  
Depreciation and amortization
     1,343       1,256  
Selling, general and administrative
     17,471       19,598  
 
            
Total costs and expenses
     61,392       68,162  
 
            
 
                
Operating income
     1,640       5,225  
 
                
Interest and other income (expense), net
     (94 )     178  
 
                
Interest expense
     (293 )     (631 )
 
            
 
                
Income before income taxes
     1,253       4,772  
 
                
Income tax expense
     (373 )     (1,062 )
 
            
 
                
Net income
   $ 880     $ 3,710  
 
            
 
                
Earnings per common share — Basic
   $ 0.02     $ 0.10  
 
            
Earnings per common share — Diluted
   $ 0.02     $ 0.10  
 
            

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FURMANITE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) (Unaudited)
                 
    March 31,   December 31,
     
    2009   2008
     
Cash
   $ 34,670     $ 30,793  
Trade receivables, net
     55,592       64,879  
Inventories
     25,679       24,868  
Other current assets
     7,294       7,187  
     
Total current assets
     123,235       127,727  
Property and equipment, net
     29,126       29,278  
Other assets
     16,865       16,273  
     
Total assets
   $ 169,226     $ 173,278  
     
 
Total current liabilities
   $ 74,714     $ 43,901  
Total long-term debt
     222       35,363  
Other liabilities
     2,929       2,697  
Total stockholders’ equity
     91,361       91,317  
     
Total liabilities and stockholders’ equity
   $ 169,226     $ 173,278  
     

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FURMANITE CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(In thousands) (Unaudited)
                 
    Three Months
    Ended March 31,
    2009   2008
     
 
Net income
   $ 880     $ 3,710  
Depreciation, amortization and other non-cash items
     1,593       1,295  
Working capital changes
     3,282       1,660  
     
Net cash provided by operating activities
     5,755       6,665  
 
Capital expenditures
     (1,410 )     (2,254 )
Payments on debt
     (119 )     (2,299 )
Other, net
     12       55  
Effect of exchange rate changes on cash
     (361 )     543  
     
 
Increase in cash and cash equivalents
     3,877       2,710  
Cash and cash equivalents at beginning of period
     30,793       31,570  
     
Cash and cash equivalents at end of period
   $ 34,670     $ 34,280  
     

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