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Furmanite Corp. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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Furmanite Corp. (FRM) filed Quarterly Report for the period ended 2010-06-30.

Furmanite Corp. has a market cap of $170.4 million; its shares were traded at around $4.64 with and P/S ratio of 0.6. Furmanite Corp. had an annual average earning growth of 27.9% over the past 5 years.FRM is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the six months ended June 30, 2010, consolidated revenues increased by $11.2 million, or 8.4%, to $143.9 million, compared to $132.7 million for the six months ended June 30, 2009. Changes related to foreign currency exchange rates favorably impacted revenues by $2.9 million, of which $2.7 million, $0.1 million and $0.1 million were related to favorable impacts from Asia-Pacific, EMEA, and Americas, respectively. Excluding the foreign currency exchange rate impact, revenues increased by $8.3 million, or 6.2%, for the six months ended June 30, 2010 compared to the same period in the prior year. This $8.3 million increase in revenues consisted of a $6.6 million increase in the Americas and a $3.1 million increase in Asia-Pacific, partially offset by a $1.4 million decrease in EMEA. The increase in revenues in the Americas was due to increases in under pressure services, which included volume increases in leak sealing and line stopping of approximately 14.8% when compared to revenues in the same period in the prior year. Additionally, revenues increased within other services by approximately 14.7% related to volume increases in product and other manufacturing services, including a $4.7 million hot tapping equipment package sale. The increase in revenues in Asia-Pacific was primarily attributable to increases in turnaround services in Australia, which included volume increases in bolting services of approximately 39.6% when compared to revenues in the same period in the prior year. The decrease in revenues in EMEA was

For the three months ended June 30, 2010, consolidated revenues increased by $7.8 million, or 11.2%, to $77.5 million, compared to $69.7 million for the three months ended June 30, 2009. Changes related to foreign currency exchange rates unfavorably impacted revenues by $0.4 million, of which $1.6 million was related to unfavorable impacts in EMEA which were partially offset by favorable impacts of $1.2 million in Asia-Pacific. Excluding the foreign currency exchange rate impact, revenues increased by $8.2 million, or 11.7%, for the three months ended June 30, 2010 compared to the same period in the prior year. This $8.2 million increase in revenues consisted of increases of $5.3 million, $1.7 million and $1.2 million in the Americas, Asia-Pacific and EMEA, respectively. The increase in revenues in the Americas was due to increases in under pressure, turnaround and other services, which primarily included volume increases in leak sealing services of approximately 11.1%, bolting services of approximately 6.5% and product and other manufacturing services of approximately 39.3% when compared to revenues in the same period in the prior year. The increase in manufacturing and product sales includes a $4.7 million hot tapping equipment package sale. The increase in revenues in Asia-Pacific was primarily attributable to increases in turnaround services in Australia, which included volume increases in bolting services of approximately 46.6% when compared to revenues in the same period in the prior year. The increase in revenues in EMEA was attributable to volume increases in turnaround services of approximately 15.8%, which included volume increases in bolting and on-site machining services. Partially offsetting this increase were decreases in other services of approximately 13.8% and primarily related to decreases within product and other manufacturing services, when compared to revenues in the same period in the prior year.

For the six months ended June 30, 2010, operating costs, including $0.7 million of restructuring costs, increased $7.7 million, or 8.6%, to $97.5 million, compared to $89.8 million for the six months ended June 30, 2009. Changes related to foreign currency exchange rates unfavorably impacted costs by $1.9 million, of which $1.7 million, $0.1 million and $0.1 million were related to unfavorable impacts from Asia-Pacific, EMEA and the Americas, respectively. Excluding the foreign currency exchange rate impact, operating costs increased $5.8 million, or 6.5%, for the six months ended June 30, 2010, compared to the same period in the prior year. This change consisted of a $3.9 million, $1.2 million, and a $0.7 million increase in the Americas, Asia-Pacific and EMEA, respectively. The increase in operating costs in the Americas was primarily related to higher material and labor costs of approximately 6.5% when compared to the same period in the prior year, which were attributable to the increase in revenue. The increase in operating costs in Asia-Pacific was primarily attributable to an increase in labor and material costs of approximately 9.5% when compared to the same period in the prior year associated with the increased revenues in Australia. The increase in EMEA was primarily due to $0.7 million of severance related restructuring costs.

For the three months ended June 30, 2010, operating costs increased $4.6 million, or 9.7%, to $51.9 million, compared to $47.3 million for the three months ended June 30, 2009. Changes related to foreign currency exchange rates favorably impacted costs by $0.4 million, of which $1.2 million related to favorable impacts from EMEA but were partially offset by unfavorable impacts of $0.8 million in Asia-Pacific. Excluding the foreign currency exchange rate impact, operating costs increased $5.0 million, or 10.6% for the three months ended June 30, 2010, compared to the same period in the prior year. This change consisted of a $3.5 million, $0.8 million, and a $0.7 million increase in the Americas, Asia-Pacific and EMEA, respectively. The increase in operating costs in the Americas was primarily related to higher material and labor costs of approximately 11.6% as well as a slight increase in travel costs, when compared to the same period in the prior year, which were attributable to the increase in revenue. The increase in operating costs in Asia-Pacific was primarily attributable to an increase in labor and material costs of approximately 11.9% when compared to the same period in the prior year associated with the increased revenues in Australia. The increase in EMEA was primarily due increased labor and material costs of approximately 1%, when compared to the same period in the prior year, consistent with the increase in revenue.

For the six months ended June 30, 2010, selling, general and administrative expenses, including $2.0 million of restructuring costs, decreased $0.4 million, or 1.1%, to $37.3 million compared to $37.7 million for the six months ended June 30, 2009. Changes related to foreign currency exchange rates unfavorably impacted costs by $0.4 million, which were related to unfavorable impacts in Asia-Pacific. Excluding the foreign currency exchange rate differences, selling, general and administrative expenses decreased $0.8 million, or 2.1%, for the six months ended June 30, 2010, compared to the same period in the prior year. This $0.8 million decrease in selling, general and administrative costs consisted of a $0.4 million, $0.3 million and a $0.1 million decrease in Asia-Pacific, EMEA and the Americas, respectively. In Asia-Pacific, decreases in selling, general and administrative costs were primarily a result of reductions in salary and related cost and travel expenses of approximately 8.3% when compared to the same period in the prior year. In EMEA, decreases in selling, general and administrative costs were primarily a result of reductions in salary and related costs of approximately 9.5% when compared to the same period in the prior year. These decreases were substantially offset by restructuring costs of $1.6 million incurred in the six months ended June 30, 2010, which included $1.0 million, $0.4 million and $0.2 million related to severance and benefit costs, lease termination costs and other restructuring costs, respectively. Selling, general and administrative expense in the Americas declined slightly as reductions in costs of approximately 4.7% were substantially offset by $0.5 million of costs incurred in connection with the retirement of the Companys former Chairman and Chief Executive Officer, as well as severance related restructuring charges of $0.4 million, when compared to the same period in the prior year.

For the three months ended June 30, 2010, selling, general and administrative expenses, including $0.9 million of restructuring costs, decreased $1.7 million, or 8.5%, to $18.5 million compared to $20.2 million for the three months ended June 30, 2009. Changes related to foreign currency exchange rates favorably impacted costs by $0.2 million, of which $0.3 million were related to favorable impacts in EMEA and were partially offset by unfavorable impacts of $0.1 million in Asia-Pacific. Excluding the foreign currency exchange rate differences, selling, general and administrative expenses decreased $1.5 million, or 7.4%, for the three months ended June 30, 2010, compared to the same period in the prior year. This $1.5 million decrease in selling, general and administrative costs consisted of a $0.8 million, $0.4 million and a $0.3 million decrease in the Americas, Asia-Pacific and EMEA, respectively. The Americas decrease in selling, general and administrative expenses was related to reductions in salary and related costs, rent and travel expenses and other professional fees of approximately 5.7%, but was partially offset by additional severance related restructuring charges of $0.2 million when compared to the same period in the prior year. In Asia-Pacific, decreases in selling, general and administrative expenses were primarily a result of reductions in salary and related cost and travel expenses of approximately 14.8% when compared to the prior year. Decreases in selling, general and administrative costs in EMEA were primarily a result of reductions in salary and related costs of approximately 15.7% when compared to the same period in the prior year. These decreRead the The complete Report

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