GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Furmanite Corp. Reports Operating Results (10-Q)

August 07, 2012 | About:
10qk

10qk

18 followers
Furmanite Corp. (FRM) filed Quarterly Report for the period ended 2012-06-30.

Furmanite Corporation has a market cap of $166.5 million; its shares were traded at around $4.42 with a P/E ratio of 13.2 and P/S ratio of 0.5. Furmanite Corporation had an annual average earning growth of 55.3% over the past 5 years.

Highlight of Business Operations:

The Companys net income for the three and six months ended June 30, 2012 decreased by $3.3 million and $8.2 million, respectively, compared to the three and six months ended June 30, 2011. The Companys diluted earnings per share for the three and six months ended June 30, 2012 were $0.05 and $0.03, respectively, compared to $0.14 and $0.25 for the three and six months ended June 30, 2011, respectively.

For the six months ended June 30, 2012, consolidated revenues increased by $1.6 million, or 1.1%, to $157.7 million, compared to $156.1 million for the six months ended June 30, 2011. Changes related to foreign currency exchange rates unfavorably impacted revenues by $2.7 million, of which $2.3 million and $0.4 million were related to unfavorable impacts in EMEA and Asia-Pacific, respectively. Excluding the foreign currency exchange rate impact, revenues increased by $4.3 million, or 2.8%, for the six months ended June 30, 2012 compared to the same period in 2011. This $4.3 million increase in revenues consisted of $6.5 million and $1.9 million increases in the Americas and Asia-Pacific, respectively, but were offset by a $4.1 million decrease in EMEA. The increase in revenues in the Americas was primarily related to increases in off-line services, which included volume increases in on-site machining and valve repair services of approximately 12% when compared to revenues in the same period in 2011. In addition, revenues increased within other services by approximately 18%, when compared to the same period in 2011. The increase in revenues in Asia-Pacific was attributable to increases in both on-line and off-line services. The increases within on-line services primarily included volume increases in composite repair and leak sealing services of approximately 22% when compared to revenues in the same period in 2011. The increase within Asia-Pacifics off-line services primarily included volume increases in

For the three months ended June 30, 2012, consolidated revenues increased by $2.9 million, or 3.5%, to $85.9 million, compared to $83.0 million for the three months ended June 30, 2011. Changes related to foreign currency exchange rates unfavorably impacted revenues by $2.4 million, of which $1.7 million and $0.7 million were related to unfavorable impacts in EMEA and Asia-Pacific, respectively. Excluding the foreign currency exchange rate impact, revenues increased by $5.3 million, or 6.4%, for the three months ended June 30, 2012 compared to the same period in 2011. This $5.3 million increase in revenues consisted of increases of $6.0 million and $2.4 million in the Americas and Asia-Pacific, respectively, which were partially offset by a decrease of $3.1 million in EMEA. The increase in revenues in the Americas was due to increases in off-line services, which included volume increases primarily related to increases in valve repair, on-site machining and bolting services of approximately 33% when compared to revenues in the same period in 2011. The increase in revenues in Asia-Pacific was primarily attributable to increases in off-line services, which primarily related to volume increases in bolting services in Australia of approximately 57%, when compared to revenues in the same period in 2011, but also included volume increases in on-site machining services. The decrease in revenues in EMEA was primarily related to decreases in off-line services and primarily related to volume decreases in valve repair and bolting services of approximately 20% when compared to revenues in the same period in 2011.

For the six months ended June 30, 2012, operating costs, including $0.1 million of restructuring costs, increased $3.8 million, or 3.6%, to $110.7 million, compared to $106.9 million for the six months ended June 30, 2011. Changes related to foreign currency exchange rates favorably impacted costs by $2.0 million, of which $1.8 million and $0.2 million were related to favorable impacts from EMEA and Asia-Pacific, respectively. Excluding the foreign currency exchange rate impact, operating costs increased $5.8 million, or 5.4%, for the six months ended June 30, 2012, compared to the same period in 2011. This change consisted of $6.2 million and $0.1 million of increases in the Americas and Asia-Pacific, respectively, partially offset by a decrease of $0.5 million in EMEA. The increase in operating costs in the Americas was primarily related to higher material and labor costs of approximately 10% when compared to the same period in 2011, which were attributable to the increase in revenues. The operating costs in Asia-Pacific were consistent with the prior period as increases in labor costs, associated with the higher revenues in Australia, were substantially offset by lower material costs. The decrease in operating costs in EMEA was associated with moderate reductions in labor and material costs when compared to the same period in 2011. These cost reductions, however, were disproportionate to the decrease in revenues due to lower margin realization in EMEA in the first quarter of 2012.

For the three months ended June 30, 2012, operating costs, including $0.1 million of restructuring costs, increased $1.9 million, or 3.4%, to $58.3 million, compared to $56.4 million for the three months ended June 30, 2011. Changes related to foreign currency exchange rates favorably impacted costs by $1.7 million, of which $1.3 million and $0.4 million were related to favorable impacts in EMEA and Asia-Pacific, respectively. Excluding the foreign currency exchange rate impact, operating costs increased by $3.6 million, or 6.4%, for the three months ended June 30, 2012, compared to the same period in 2011. This change consisted of $4.7 million and $0.4 million increases in the Americas and Asia-Pacific, respectively, which were partially offset by a $1.5 million decrease in EMEA. The increase in operating costs in the Americas was primarily attributable to an increase in labor and material costs of approximately 14% and was associated with the increase in revenues when compared to the same period in 2011. The increase in Asia-Pacific was due to increases in labor costs and travel expenses of approximately 21% associated with increases in revenues but was partially offset by lower material costs of approximately 8% when compared to the same period in 2011. The operating costs in EMEA decrease was primarily related to a decrease in labor and material costs of approximately 9% when compared to the same period in 2011.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 1.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide