Attached files
| file | filename |
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| 8-K - FORM 8-K - FURMANITE CORP | d392862d8k.htm |
| EX-99.1 - AUGUST 7, 2012 PRESS RELEASE - FURMANITE CORP | d392862dex991.htm |
 Furmanite Corporation
QUARTER AND YEAR ENDED
JUNE 30, 2012
Charles R. Cox, Chairman & CEO
Joseph E. Milliron, President & COO
Robert S. Muff, Principal Financial Officer
Exhibit 99.2 |
 Certain of the Company’s statements in this presentation are not purely
historical,
and
as
such
are
“forward-looking
statements”
within
the
meaning
of
the
Private Securities Litigation Reform Act of 1995. These include statements
regarding management’s plans, beliefs, expectations, intentions or
projections of the future. Forward-looking statements involve risks
and uncertainties, including without limitation, the various risks
inherent in the Company’s business, and other risks and
uncertainties detailed most recently in this presentation and the
Company’s Form 10-K as of December 31, 2011 filed with the Securities
and Exchange Commission. One or more of these factors could affect the
Company’s business and financial results in future periods, and
could cause actual results to differ materially from plans and
projections. There can be no assurance that the forward-looking
statements made in this document will prove to be accurate, and issuance
of such forward-looking statements should not be regarded as a
representation by the Company, or any other person, that the objectives and
plans of the Company will be achieved. All forward-looking
statements made in this presentation are based on information presently
available to management, and the Company assumes no obligation to update
any forward-looking statements. 2
Safe Harbor Statement |
 3
Opening Comments
•
Perspective on Revenue Growth
•
Perspective on European Restructuring
Charles R. Cox, Chairman & CEO |
 Furmanite Corporation
QUARTER AND YEAR ENDED
JUNE 30, 2012
Financial Review
Robert S. Muff, Principal Financial Officer
4 |
 Condensed
Consolidated Income Statements ($ in 000s except percentages and per share amounts)
(Unaudited) 5
For the Three Months Ended
June 30,
2012
% of
Rev
2011
% of
Rev
Change
Revenues
$ 85,928
100.0%
$ 83,009
100.0%
$ 2,919
Operating costs
58,211
67.8%
56,323
67.9%
1,888
Depreciation and amortization expense
1,964
2.3%
2,198
2.6%
(234)
Selling, general and administrative expense
19,526
22.7%
17,724
21.4%
1,802
Operating income, excluding relocation and
restructuring costs
6,227
7.2%
6,764
8.1%
(537)
Relocation and restructuring costs
1,424
1.6%
157
0.2%
1,267
Operating income
4,803
5.6%
6,607
7.9%
(1,804)
Interest and other income (expense), net
(269)
(135)
(134)
Income before income taxes
4,534
6,472
(1,938)
Income tax expense
(2,690)
(1,326)
(1,364)
Net income
$ 1,844
$ 5,146
$ (3,302)
Diluted earnings per share
$ 0.05
$ 0.14
$ (0.09)
Adjusted diluted earnings per share*
$ 0.08
$ 0.14
$ (0.06)
* Excludes $1.0 million of relocation and restructuring costs, net of tax for the three months
ended June 30, 2012. Excludes $0.1 million of restructuring costs, net of tax for the
three months ended June 30, 2011. |
 Condensed
Consolidated Income Statements ($ in 000s except percentages and per share amounts)
(Unaudited) 6
For the Six Months Ended
June 30,
2012
% of
Rev
2011
% of
Rev
Change
Revenues
$ 157,710
100.0%
$ 156,063
100.0%
$ 1,647
Operating costs
110,563
70.1%
106,725
68.4%
3,838
Depreciation and amortization expense
3,989
2.5%
4,073
2.6%
(84)
Selling, general and administrative expense
36,859
23.4%
34,588
22.2%
2,271
Operating income, excluding relocation and
restructuring costs
6,299
4.0%
10,677
6.8%
(4,378)
Relocation and restructuring costs
2,247
1.4%
245
0.2%
2,002
Operating income
4,052
2.6%
10,432
6.7%
(6,380)
Interest and other income (expense), net
(798)
(253)
(545)
Income before income taxes
3,254
10,179
(6,925)
Income tax expense
(2,240)
(1,007)
(1,233)
Net income
$ 1,014
$ 9,172
$ (8,158)
Diluted earnings per share
$ 0.03
$ 0.25
$ (0.22)
Adjusted diluted earnings per share*
$ 0.07
$ 0.22
$ (0.15)
* Excludes $1.5 million of relocation and restructuring costs, net of tax for the six months
ended June 30, 2012. Excludes $0.2 million of restructuring costs, net of tax and $1.2
million acquisition related income tax benefit for the six months ended June 30, 2011. |
 Revenues Adjusted for Currency Rates
2012 amounts at 2011 exchange rates
($ in 000s except percentages) (Unaudited)
7
For the Three Months Ended
For the Six Months Ended
June 30,
June 30,
2012
2011
Change
%
Change
2012
2011
Change
%
Change
Revenues
Americas
$ 46,944
$ 40,943
$ 6,001
15%
$ 87,642
$ 81,170
$ 6,472
8%
EMEA
27,485
32,266
(4,781)
-15%
50,512
56,939
(6,427)
-11%
Asia-Pacific
11,499
9,800
1,699
17%
19,556
17,954
1,602
9%
Total revenues
$ 85,928
$ 83,009
$ 2,919
4%
$
157,710
$ 156,063
$ 1,647
1%
Currency adjusted revenues:
Americas
$ 46,972
$ 40,943
$ 6,029
15%
$ 87,678
$ 81,170
$ 6,508
8%
EMEA
29,175
32,266
(3,091)
-10%
52,817
56,939
(4,122)
-7%
Asia-Pacific
12,150
9,800
2,350
24%
19,915
17,954
1,961
11%
Total currency adjusted
revenues
$ 88,297
$ 83,009
$ 5,288
6%
$ 160,410
$ 156,063
$ 4,347
3% |
 Condensed Consolidated Balance Sheets
($ in 000s)
8
(Unaudited)
June 30,
December 31,
2012
2011
Cash
$ 28,733
$ 34,524
Trade receivables, net
79,431
71,508
Inventories
32,402
26,557
Other current assets
11,734
13,171
Total current assets
152,300
145,760
Property and equipment, net
36,445
34,060
Other assets
32,815
27,412
Total assets
$ 221,560
$ 207,232
Total current liabilities
$ 45,235
$ 41,999
Total long-term debt
39,347
31,051
Other liabilities
15,563
15,293
Total stockholders' equity
121,415
118,889
Total liabilities and
stockholders' equity
$ 221,560
$ 207,232 |
 Condensed Consolidated Statements of Cash Flows
($ in 000s) (Unaudited)
9
For the Six Months Ended
June 30,
2012
2011
Net income
$ 1,014
$ 9,172
Depreciation, amortization and other non-cash items
7,162
3,672
Working capital changes
(7,821)
(14,807)
Net cash provided by (used in) operating activities
355
(1,963)
Capital expenditures
(3,309)
(1,579)
Acquisitions of assets and business, net of cash acquired
(9,259)
(4,029)
Payments on debt
(32,714)
(69)
Proceeds from issuance of debt
39,300
–
Other, net
(71)
231
Effect of exchange rate changes on cash
(93)
1,094
Decrease in cash and cash equivalents
(5,791)
(6,315)
Cash and cash equivalents at beginning of period
34,524
37,170
Cash and cash equivalents at end of period
$ 28,733
$ 30,855 |
 Furmanite Corporation
QUARTER AND YEAR ENDED
JUNE 30, 2012
Operations Review
Joseph E. Milliron, President and Chief Operating Officer
10 |
 As of June
30, 2012 11
Global Service Network
The
Americas
EMEA
APAC
•
752 technicians
•
56% of YTD revenues
•
29 locations
•
401 technicians
•
32% of YTD revenues
•
30 locations
•
140 technicians
•
12% of YTD revenues
•
15 locations |
 12
Business
and
Geographic
Data
–
On-line¹
Services
Revenues
($ in 000’s) (Unaudited)
1
Formerly referred to as under-pressure services
Total
Americas
EMEA
APAC
On-line Services 2
nd
Qtr. 2012
$ 29,949
$ 15,977
$ 10,485
$ 3,487
On-line Services 2
nd
Qtr. 2011
31,625
17,054
10,696
3,875
Variance
$ (1,676)
$ (1,077) $
(211) $ (388) On-line
Services YTD 2012 $ 60,094
$ 32,624
$ 19,787
$ 7,683
On-line Services YTD 2011
59,549
32,999
20,166
6,384
Variance
$ 545
$ (375) $
(379) $ 1,299 |
 Business
and
Geographic
Data
–
Off-line¹
Services
Revenues
($ in 000’s) (Unaudited)
13
1
Formerly referred to as turnaround services
Total
Americas
EMEA
APAC
Off-line Services 2
nd
Qtr. 2012
$ 42,652
$ 23,312
$ 11,866
$ 7,474
Off-line Services 2
nd
Qtr. 2011
37,678
17,401
15,593
4,684
Variance
$ 4,974
$ 5,911 Off-line
Services YTD Qtr. 2012 $ 71,370
$ 40,382
$ 20,338
$ 10,650
Off-line Services YTD Qtr. 2011
70,178
35,765
25,689
8,724
Variance
$ 1,192
$ 4,617 $
(3,727) $ (5,351)
$ 2,790
$ 1,926 |
 Furmanite Corporation
QUARTER AND YEAR ENDED
JUNE 30, 2012
Charles R. Cox, Chairman & CEO
14 |
 15
2
nd
Quarter
•
Revenues up $2.9 million, after recouping $8 million of
year-over-year “takeaways”
•
1
st
Quarter
slowness
did
not
continue
in
2
nd
Quarter
•
Caution on year-over-year, quarter to quarter comparison –
Quarterly variability is a constant reality
•
European Restructuring includes strong medicine –
Behind
us by year-end
Financial Comments |
 16
•
4
th
Quarter
and
Beyond
look
Potentially
Strong
–
for
Good
Reason!
•
Year-over-Year Variability should be Expected
•
Furmanite
is
Experiencing
More
Positive
Change
–
Fully
Embraced by the Team
•
Strong Performance-Based Incentives in place
Positive Future Outlook |
 17
•
Markets Remain Remarkably Consistent with 2010 and 2011
•
Except for four countries –
Europe markets are slightly
weaker
•
Australia much stronger
•
Future direction of European markets remains an open
question
•
We
aim
to
be
the
Best
and
Most
Competitive
–
Key
to
Success in Any Market
Business Conditions |
 18
•
Much
Already
Accomplished
–
Direction
&
Goals
Clear
•
So Much to Improve –
so Much Yet to Do!
•
Both Major Revenue Growth & Execution Excellence are our
Primary Goals
•
Organic Growth and Solid Execution Fundamentals, First
Priority
Summary |
 To safely and ethically establish
Furmanite as the World leader in all our
Service Lines by 2014, through
Innovation, Global Teamwork, Market
Dominance, Project Excellence and
Customer Service Perfection.
“The World Leader in All
Service Lines
by
2014”
19
Furmanite Vision |
 Furmanite Corporation
Review of 2Q 2012
August 7, 2012
www.furmanite.com
20 |