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Furmanite Corp. Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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Furmanite Corp. (FRM) filed Quarterly Report for the period ended 2010-09-30.

Furmanite Corp. has a market cap of $263.26 million; its shares were traded at around $6.46 with a P/E ratio of 107.67 and P/S ratio of 0.95. Furmanite Corp. had an annual average earning growth of 27.9% over the past 5 years.FRM is in the portfolios of Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the nine months ended September 30, 2010, consolidated revenues increased by $7.4 million, or 3.6%, to $210.9 million, compared to $203.5 million for the nine months ended September 30, 2009. Changes related to foreign currency exchange rates favorably impacted revenues by $2.2 million, of which $0.2 million and $3.4 million were related to favorable impacts in the Americas and Asia-Pacific, respectively, which were partially offset by an unfavorable impact of $1.4 million in EMEA. Excluding the foreign currency exchange rate impact, revenues increased by $5.2 million, or 2.6%, for the nine months ended September 30, 2010 compared to the same period in the prior year. This $5.2 million increase in revenues consisted of a $6.0 million increase in the Americas and a $3.8 million increase in Asia-Pacific, partially offset by a $4.6 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 services which contributed to an approximately 11.8% increase in leak sealing and line stopping services revenues when compared to the same period in the prior year. Additionally, other services revenues in the Americas increased by approximately 10.0% 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

For the three months ended September 30, 2010, consolidated revenues decreased by $3.8 million, or 5.4%, to $66.9 million, compared to $70.7 million for the three months ended September 30, 2009. Changes related to foreign currency exchange rates unfavorably impacted revenues by $0.8 million, of which $1.5 million was related to unfavorable impacts in EMEA which was partially offset by favorable impacts of $0.7 million in Asia-Pacific. Excluding the foreign currency exchange rate impact, revenues decreased by $3.0 million, or 4.2%, for the three months ended September 30, 2010 compared to the same period in the prior year. This $3.0 million decrease in revenues consisted of decreases of $0.5 million and $3.2 million in the Americas and EMEA, respectively, partially offset by a $0.7 million increase in Asia-Pacific. The decrease in revenues in the Americas was primarily due to volume decreases in other services which contributed to an approximately 19.0% decrease in other services revenues when compared to revenues in the same period in the prior year. The decrease in revenues in EMEA was attributable to decreases in under pressure services, which included volume decreases in hot tapping and composite repair services resulting in approximately 24.5% decrease in hot tapping and composite repair services revenues as compared to revenues in the same period in the prior year. Additionally, EMEA revenues decreased within other services by approximately 16.3% related to volume decreases in product and other manufacturing services. The increase in revenues in Asia-Pacific was attributable to volume increases in both under pressure and other services, which included volume increases in leak sealing and product and other manufacturing services when compared to revenues in the same period in the prior year.

For the nine months ended September 30, 2010, operating costs, including $1.8 million of restructuring costs, increased $6.9 million, or 5.1%, to $143.3 million, compared to $136.4 million for the nine months ended September 30, 2009. Changes related to foreign currency exchange rates unfavorably impacted costs by $1.1 million, of which $2.1 million and $0.1 million were related to unfavorable impacts from Asia-Pacific and the Americas, respectively, which was partially offset by a favorable impact of $1.1 million in EMEA. Excluding the foreign currency exchange rate impact, operating costs increased $5.8 million, or 4.3%, for the nine months ended September 30, 2010, compared to the same period in the prior year. This change consisted of a $3.8 million, a $1.8 million and a $0.2 million increase in the Americas, Asia-Pacific and EMEA, respectively. The increases in operating costs in the Americas and Asia-Pacific were primarily related to higher material and labor costs of approximately 3.8% and 11.1%, respectively, when compared to the same period in the prior year and were attributable to the increase in revenues. The increase in EMEA was primarily due to $1.8 million of severance related restructuring costs and a 1.7% increase in equipment rent, substantially offset by a decrease in material and labor costs of 3.1% due to a decrease in revenues.

For the three months ended September 30, 2010, operating costs, including $1.2 million of restructuring costs, decreased $0.9 million, or 1.9%, to $45.7 million, compared to $46.6 million for the three months ended September 30, 2009. Changes related to foreign currency exchange rates favorably impacted costs by $0.8 million, of which $1.2 million related to favorable impacts from EMEA but were partially offset by unfavorable impacts of $0.4 million in Asia-Pacific. Excluding the foreign currency exchange rate impact, operating costs decreased by $0.1 million, or 0.2% for the three months ended September 30, 2010, compared to the same period in the prior year. This change consisted of a $0.6 million increase in Asia-Pacific, partially offset by a $0.1 million and a $0.6 million decrease in the Americas and EMEA, respectively. The increase in operating costs in Asia-Pacific was primarily attributable to an increase in labor and material costs of approximately 13.5% associated with increased revenues when compared to the same period in the prior year. The decrease in EMEA was due to a decrease in material and labor costs of 4.3% associated with the cost reduction initiatives and decreases in revenues but was substantially offset by $1.2 million of severance related restructuring costs. The operating costs in the Americas remained relatively flat.

For the nine months ended September 30, 2010, selling, general and administrative expenses, including $2.9 million of restructuring costs, decreased $4.6 million, or 7.8%, to $54.1 million compared to $58.7 million for the nine months ended September 30, 2009. Changes related to foreign currency exchange rates unfavorably impacted costs by $0.2 million, which were related to unfavorable impacts in Asia-Pacific of approximately $0.5 million, partially offset by favorable impacts in EMEA of approximately $0.3 million. Excluding the foreign currency exchange rate impact, selling, general and administrative expenses decreased $4.8 million, or 8.2%, for the nine months ended September 30, 2010, compared to the same period in the prior year. This $4.8 million decrease in selling, general and administrative costs consisted of a $2.9 million, a $1.1 million and a $0.8 million decrease in the Americas, EMEA and Asia-Pacific, respectively. Selling, general and administrative expense in the Americas declined as a result of reductions in salary and related costs of approximately 6.2% associated with cost reduction initiatives. These decreases were partially 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 and benefit related restructuring costs of $0.2 million and other restructuring costs of $0.2 million when compared to the same period in the prior year. In EMEA, decreases in selling, general and administrative expenses were primarily a result of reductions in salary and related costs of approximately 10.5% when compared to the same period in the prior year. These decreases were offset by restructuring costs of $2.5 million incurred in the nine months ended September 30, 2010, which included $1.6 million, $0.6 million and $0.3 million related to severance and benefit costs, lease termination costs and other restructuring costs, respectively. In Asia-Pacific, decreases in selling, general and administrative costs were primarily a result of reductions in salary and related costs of approximately 9.3% when compared to the same period in the prior year.

For the three months ended September 30, 2010, selling, general and administrative expenses, including $0.8 million of restructuring costs, decreased $4.1 million, or 19.5%, to $16.9 million compared to $21.0 million for the three months ended September 30, 2009. Changes related to foreign currency exchange rates favorably impacted costs by $0.3 million, of which $0.4 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 impact, selling, general and administrative expenses decreased $3.8 million, or 18.1%, for the three months ended September 30, 2010, compared to the same period in the prior year. This $3.8 million decrease in selling, general and administrative costs consisted of a $2.8 million, a $0.7 million and a $0.3 million decrease in the Americas, EMEA and Asia-Pacific, respectively. The Americas decrease in selling, general and administrative expenses was related to reductions in salary and related costs of approximately 16.1% when compared to the same period in 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 12.4% when compared to the same period in the prior year. These decreases were offset by restructuring costs of $0.7 million incurred in the three months ended September 30, 2010, which included $0.5 million and $0.2 million related to severance and benefit costs and lease termination costs, respectively. In Asia-Pacific, decreases in selling, general and administraRead the The complete Report

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