News for 'FIGI' - (Fortress International Group, Inc. Reports Third Quarter 2011 Financial Results --Third Quarter Net Income of $0.1 Million and Adjusted EBITDA of $0.3 Million on $7.7 Million in Revenue --Backlog as of September 30, 2011 Totals $35.9 Million)
COLUMBIA, Md., Nov. 9, 2011 /PRNewswire via COMTEX/ -- Fortress International
Group, Inc. (Other OTC: FIGI) a provider of consulting and engineering,
construction management and 24/7/365 site services for mission-critical
facilities, today announced financial results for the third quarter ended
September 30, 2011.
Third Quarter 2011 Financial Highlights:
Revenue of $7.7 million, compared with $21.0 million in the third quarter of
2010.
Gross profit of $3.0 million, compared to $3.2 million in the third quarter of
2010.
Net income of $0.1 million, or $0.01 per basic and diluted share, compared with
$0.5 million, or $0.03 per basic and diluted share in the third quarter of 2010.
Adjusted EBITDA of $0.3 million, compared with adjusted EBITDA of $0.7 million
in the third quarter of 2010.
Backlog of $35.9 million at September 30, 2011.
Cash and cash equivalents totaling $7.5 million as of September 30, 2011.
Working capital of $8.4 million as of September 30, 2011.
Financial Highlights for the Nin e Months Ended September 30, 2011:
Revenue of $27.8 million, compared with $60.8 million in the nine months ended
September 30, 2010.
Gross profit of $11.0 million, compared with $8.9 million in the nine months
ended September 30, 2010.
Net income of $3.1 million, or $0.23 and $0.21 per basic and diluted share,
respectively, compared with $0.6 million, or $0.05 and $0.04 per basic and
diluted share, respectively, in the nine months ended September 30, 2010.
Adjusted EBITDA of $2.9 million, compared with adjusted EBITDA of $1.4 million
for the nine months ended September 30, 2010.
Commenting on the results, Chief Executive Officer Thomas P. Rosato stated, "Our
results for the third quarter were down from previous quarters, mainly due to
reduced volume from our Construction Management services and delayed project
starts. We did, however, maintain net income and positive adjusted EBITDA as a
result of our ongoing efforts to carefully manage expenses and our continued
focus on increasing recurring revenue opportunities. We are increasing the
quality of our revenue base by leveraging Fortress' industry-leading facility
management and technology consulting capabilities. In addition, our pipeline of
potential business remains strong, and we are confident in the Company's
longer-term prospects."
We remain keenly focused on growing both our Technology Consulting and
Facilities Management groups, as projects in these areas provide Fortress with a
base of higher-margin opportunities that sometimes include a recurring revenue
component, which reduces the lumpiness associated with our Construction
Management services. In addition to improving stability on our revenue and gross
profit lines, growth in Fortress' recurring revenue base will enable our team to
focus on the quality and profitability of the projects they pursue, and give the
Company an opportunity to invest in resources and initiatives that will broaden
the range of facility and IT services we provide. This strategy will increase
the value we generate for clients and position Fortress for even greater growth
over the long-term. We are confident that this strategy is sound, and that
Fortress is poised for long-term profitability."
Chief Financial Officer Timothy C. Dec added, "Our performance through the first
nine months of the year demonstrates the effectiveness of our team's efforts to
manage the business for profitability as we continue to focus on high-quality,
stable business opportunities while intensifying our efforts to build a backlog
of high margin business that will give us greater visibility. To date, these
efforts have enabled Fortress to remain profitable despite a shift in revenue
mix, and for the first nine months of 2011, we grew net income five-fold and
adjusted EBITDA by 101% against a decline of 54% on our revenue line. Going
forward, this strategy will enable us to more effectively allocate resources
ahead of changing industry dynamics to ensure that we are operating the business
to achieve maximum profitability regardless of circumstances."
Quarterly Conference Call Details
The Company will conduct its regularly scheduled financial announcement
conference call on Wednesday, November 9, 2011, at 9:00 a.m. EST. Investors may
listen to the conference call via telephone at: 877-941-2068 (U.S./Canada) or
480-629-9712 (international) or via live audio web cast on the investor
relations section of the Company's website at www.thefigi.com.
An audio replay of the conference call will also be available approximately two
hours after the conclusion of the call and will be available until Wednesday,
November 23, 2011. The audio replay can be accessed by dialing 800-406-7325
(U.S./Canada) or 303-590-3030 (international) and entering conference call ID
4481529, or via an archived webcast available on the investor relations section
of the Company's website at www.the figi.com.
About Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental financial measure not defined under Generally
Accepted Accounting Principles (GAAP). We define adjusted EBITDA as net income
before interest expense, income taxes, depreciation and amortization, impairment
loss on goodwill and other intangibles, stock-based compensation, lease exit
costs, provision for bad debts and other income (expense), net. We present
adjusted EBITDA because we believe this supplemental measure of operating
performance is helpful in comparing our operating results across reporting
periods on a consistent basis by excluding items that may, or could, have a
disproportionate positive or negative impact on our results of operations in any
particular period. We also use adjusted EBITDA from continuing operations as a
factor in evaluating the performance of certain management personnel when
determining incentive compensation. The adjusted EBITDA presented may not be
comparable to similarly titled measures reported by other companies. Adjusted
EBITDA, while providing useful information, should not be considered in
isolation or as an alternative to net income or cash flows as determined under
GAAP. Consistent with Regulation G under the U.S. federal securities laws,
adjusted EBITDA has been reconciled to the nearest GAAP measure, and this
reconciliation is located under the heading "Adjusted EBITDA Reconciliation"
following the Consolidated Statements of Operations included in this press
release.
About Fortress International Group, Inc.
Fortress International Group, Inc. is leading mission-critical facilities into a
new era of maximum uptime and efficiency. Fortress provides consulting and
engineering, construction management and 24/7/365 site services for the world's
most technology dependent organizations. Serving as a trusted advisor, Fortress
delivers the strategic guidance and pre-planning that makes every stage of the
critical facility lifecycle more efficient. For those who own, lease or manage
mission-critical facilities, Fortress provides innovative end-to-end capital
management, energy, IT strategy, procurement, design, construction,
implementation and operations solutions that optimize performance and reduce
cost.
Fortress International Group, Inc. is headquartered in Maryland, with offices
throughout the U.S. For more information, visit: www.thefigi.com or call
888-321-4877.
Fortress International Group, Inc. -- setting a new standard for the optimized
critical facility.
Forward Looking Statements
This press release may contain "forward-looking statements" -- that is,
statements related to future -- not past -- events, plans, and prospects. In
this context, forward-looking statements may address matters such as our
expected future business and financial performance, and often contain words such
as "guidance," "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should," or "will." Forward-looking statements by their nature address
matters that are, to different degrees, uncertain. Particular uncertainties that
could adversely or positively affect the Company's future results include: the
Company's reliance on a significant portion of its revenues from a limited
number of customers; risks relating to operating in a highly competitive
industry; actual or potential conflicts of interest between the Company and
members of the Company's senior management; risk relating to rapid
technological, structural, and competitive changes affecting the industries the
Company serves; the uncertainty as to whether the Company can replace its
backlog; risks involved in properly managing complex projects; risks relating
the possible cancellation of customer contracts on short notice; risks relating
our ability to continue to implement our business plan; risks relating to our
ability to meet all of the terms and conditions of o ur debt obligations;
uncertainty related to current economic conditions and the related impact on
demand for our services; and other risks and uncertainties disclosed in the
Company's filings with the Securities and Exchange Commission, including the
Annual Report on Form 10-K for the fiscal year ended December 31, 2010. These
uncertainties may cause the Company's actual future results to be materially
different than those expressed in the Company's forward-looking statements. The
Company does not undertake to update its forward-looking statements.
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