INDIANAPOLIS, July 13 /PRNewswire-FirstCall/ -- Fortune Industries, Inc. announced today operating results for the third quarter ended May 31, 2007.
Highlights
Revenue for the nine months ended May 31, 2007 were $115.2 million as compared to $109.3 million for the same period of 2006, representing a 5% increase. Revenue for the three months ended May 31, 2007 were $42.3 million as compared to $39.5 million for the same period of 2006, representing a 7% increase.
Diluted net loss available to common shareholders for the nine months ended May 31, 2007 was $8.4 million or ($0.67) per share as compared to diluted net income available to common shareholders of $1.3 million or $0.11 per share for the same period of 2006. Diluted net loss available to common shareholders for the three months ended May 31, 2007 was $1.4 million or ($0.10) per share as compared to diluted net income available to common shareholders of $0.1 million or $0.01 per share for the same period of 2006.
"We have improved operating results in our wireless infrastructure and electronics integration segments," stated John Fisbeck, CEO. "Within our wireless infrastructure unit we had significant losses in March but positive operating results in April and May. Additionally we experienced unfavorable workers compensation and health insurance results within our business solutions segment with two significant claims in May that were fully expensed."
"Our quarterly business solutions revenues increased from $11.1 million to $22.0 million, or 98% as a result of our two recent PEO acquisitions and organic growth. Within business solutions we are forecasting approximately $68 million in revenues for fiscal 2007 versus $44.5 million in fiscal 2006, a 53% increase. Revenues within this division are currently forecasted at $100 million for fiscal 2008, which should approximate 50% of our sales."
About Fortune Industries, Inc.
Fortune Industries, Inc. operates as a technology-based service company in the United States. It provides technology solutions to businesses in five segments: Wireless Infrastructure, Business Solutions, Transportation Infrastructure, Ultraviolet Technologies and Electronics Integration. The Wireless Infrastructure segment provides turnkey solutions directly to wireless carriers in 20 states and provides other specialty infrastructure services. The Business Solutions segment provides professional employment organization (PEO) services to small and medium sized businesses with up to 1,000 employees in over 44 states including human resource consulting & management, employee assessment, training, and benefits administration. The Transportation Infrastructure segment provides the installation of highway safety products and commercial structural steel. The Ultraviolet Technologies segment provides worldwide state-of-the-art UV ink technology solutions. The Electronics Integration segment provides sales and installation of commercial electronics.
Fortune Industries is based in Indianapolis, Indiana and is publicly traded on the American Stock Exchange under the symbol FFI. Additional information about Fortune Industries, Inc. can be found at http://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 August 31, 2006. 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 Nine Month Period
Ended May 31, Ended May 31,
2007 2006 2007 2006
(Dollars in thousands, except per share data)
Consolidated
Total Revenue $42,286 $39,468 $115,209 $109,267
Operating Income (Loss) (286) 792 (4,925) 3,001
Net Income (Loss) (1,231) 267 (8,012) 1,513
Net Income (Loss) Available
to Common Shareholders $(1,355) $143 $(8,384) $1,306
Net Income (Loss) per Share:
Basic $(0.12) $0.01 $(0.78) $0.12
Diluted $(0.10) $0.01 $(0.67) $0.11
Segment Data
Segment Revenue
Wireless Infrastructure $5,100 $6,922 $18,790 $19,508
Business Solutions 22,012 11,123 47,103 32,186
Transportation Infrastructure 8,882 15,144 29,514 38,871
Ultraviolet Technologies 3,378 3,297 9,340 8,876
Electronics Integrations 2,912 2,982 10,454 9,826
Subtotal Revenue 42,284 39,468 115,201 109,267
Variable Interest Entity 2 - 8 -
Total Revenue $42,286 $39,468 $115,209 $109,267
Segment Operating Income (Loss)
Wireless Infrastructure $(24) $(431) $(3,821) $343
Business Solutions 65 639 1,084 2,970
Transportation Infrastructure 427 1,018 1,338 1,417
Ultraviolet Technologies 196 272 180 347
Electronics Integrations (95) (237) (742) 157
Holding Company (1,267) (469) (3,819) (2,233)
Subtotal Operating Income (Loss) (698) 792 (5,780) 3,001
Variable Interest Entity 412 - 855 -
Total Operating Income (Loss) $(286) $792 $(4,925) $3,001
