Fortress International Group, Inc. : Reports Fourth Quarter and Full-Year 2011 Financial Results
03/28/2012| 07:44am US/Eastern
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Fortress International Group, Inc. Reports Fourth Quarter and
Full-Year 2011 Financial Results
Company Appoints Peter Woodward Non-Executive Chairman
COLUMBIA, Md., March 28,
2012/PRNewswire/ --Fortress International Group,
Inc.(Other OTC: FIGI.PK) a provider of consulting and
engineering, construction management and site services for
mission-critical facilities, today announced financial
results for the fourth quarter and year ended
December 31, 2011.
Fourth Quarter 2011 Financial Highlights:
Revenue of $9.0 million, compared with
$14.1 millionin the fourth quarter of 2010.
Gross profit of $1.5 million, compared with
$3.0 millionin the fourth quarter of 2010.
Net loss from continuing operations of $(1.3)
million, or $(0.09)per basic and
diluted share, compared with net income from continuing
operations of $0.3 million, or
$0.02per basic and diluted share in the
fourth quarter of 2010.
Adjusted EBITDA from continuing operations of
$(1.1) million, compared with adjusted
EBITDA from continuing operations of $0.5
millionin the fourth quarter of 2010.
Backlog of $35.3 millionat December
31, 2011.
Cash and cash equivalents totaling $6.7
millionas of December 31, 2011.
Working capital of $7.0 millionas of
December 31, 2011.
Full Year 2011 Financial Highlights:
Revenue of $36.9 million, compared with
$74.9 millionfor the year ended
December 31, 2010.
Gross profit of $12.5 million, compared with
$12.0 millionfor the year ended
December 31, 2010.
Net income from continuing operations of $1.8
million, or $0.14and
$0.13per basic and diluted share,
respectively, compared with $0.9 million, or
$0.06per basic and diluted share, for the
year ended December 31, 2010.
Adjusted EBITDA from continuing operations of $1.8
million, compared with adjusted EBITDA from
continuing operations of $1.9 millionfor the
year ended December 31, 2010.
Anthony Angelini, Chief Executive Officer of
Fortress, stated, "When I took the role of CEO in
early January, we accelerated the process of evaluating our
current business opportunities and operating costs. Our
performance in the fourth quarter was reflective of the
need to realign our operating model to our current mix of
revenue while we address the changing dynamics within our
business. We are committed to driving improvements
throughout all areas of the Company while working intently
to seize emerging opportunities, strengthen our core
pipeline and drive profitable growth. This will take time,
and we expect the balance of 2012 to be a transitional
period during which we will be focused on repositioning the
Company to capture market opportunities over the
longer-term."
Mr. Angelini added, "The markets we serve are
undergoing a number of exciting changes. We are enhancing
our business model and organizational structure, which will
enable Fortress to capitalize on the opportunities
available through the rapid growth in data center
requirements. The growth in these requirements is
supporting the digitization of the global economy,
including growth in cloud adoption, mobile device
proliferation, social networking and video consumption. Our
core competencies in providing our customers with
professional services in the planning, design, construction
and management of data centers, position us well in a large
and rapidly growing market."
In addition, Fortress has named Peter
Woodwardas Non-Executive Chairman, effective
March 28, 2012. Mr. Woodward replaces
Thomas P. Rosato, Fortress' former CEO,
who has resigned as Chairman and from the Company's
Board following the completion of the three-month advisory
agreement he signed in conjunction with Mr. Angelini's
appointment as CEO on January 3, 2012.
Quarterly Conference Call Details
The Company will conduct its regularly scheduled financial
announcement conference call on March 28,
2012at 9:00 a.m. EDT. Investors may
listen to the conference call via telephone at:
877-941-1427 (U.S./Canada) or 480-629-9664
(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 April 11,
2012. The audio replay can be accessed by dialing
800-406-7325 (U.S./Canada) or 303-590-3030
(international) and entering conference call ID 4524156, or
via an archived webcast available on the investor relations
section of the Company's website at www.thefigi.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 strategy, including
having sufficient financial resources to carry out that
strategy; risks relating to our ability to meet all of the
terms and conditions of our 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.
Fortress International Group, Inc.
Condensed Consolidated Balance Sheets
December 31,
December 31,
2011
(Unaudited)
2010
(Unaudited)
Assets
Current Assets
Cash and cash equivalents
$6,731,487
$10,980,420
Contract and other receivables, net
7,147,714
10,134,475
Costs and estimated earnings in excess of
billings
on uncompleted contracts
2,729,424
1,079,813
Prepaid expenses and other current
assets
497,712
555,375
Total current assets
17,106,337
22,750,083
Property and equipment, net
305,463
375,926
Goodwill
3,839,861
3,811,127
Other intangible assets, net
60,000
60,000
Other assets
20,975
40,210
Total assets
$21,332,636
$27,037,346
Liabilities and Stockholders'
Equity
Current Liabilities
Notes payable, current portion
$375,000
$200,572
Accounts payable and accrued expenses
6,886,094
9,370,446
Billings in excess of costs and estimated
earnings
on uncompleted contracts
2,819,368
7,892,460
Total current liabilities
10,080,462
17,463,478
Convertible notes, less current
portion
2,457,301
2,750,000
Other liabilities
76,073
137,218
Total liabilities
12,613,836
20,350,696
Commitments and Contingencies
-
-
Stockholders' Equity
Preferred stock- $.0001 par value; 1,000,000
shares authorized; no shares issued or
outstanding
-
-
Common stock- $.0001 par value, 49,000,000
and 100,000,000 shares authorized; 14,749,362 and
13,857,127 issued; 14,028,413 and 13,384,860
outstanding at December 31, 2011 and December 31,
2010, respectively
1,475
1,386
Additional paid-in capital
65,805,358
65,247,545
Treasury stock 720,949 and 472,267 shares at
cost at
December 31, 2011 and December 31, 2010,
respectively
(1,450,455)
(1,084,809)
Accumulated deficit
(55,637,578)
(57,477,472)
Total stockholders' equity
8,718,800
6,686,650
Total liabilities and stockholders'
equity
$21,332,636
$27,037,346
Fortress International Group, Inc.
Condensed Consolidated Statements of
Operations
(Unaudited)
For the Three Months Ended
(Unaudited)
For the Twelve Months Ended
December 31, 2011
December 31, 2010
December 31, 2011
December 31, 2010
Results of Operations:
Revenue
$9,042,976
$14,133,615
$36,855,135
$74,903,900
Cost of revenue, excluding depreciation and
amortization
7,564,827
11,093,795
24,376,061
62,953,021
Gross profit, excluding depreciation and
amortization
1,478,149
3,039,820
12,479,074
11,950,879
Operating expenses:
Selling, general and administrative
2,654,307
2,687,501
11,235,322
10,624,168
Depreciation and amortization
53,997
70,404
233,727
342,220
Total operating costs
2,708,304
2,757,905
11,469,049
10,966,388
Operating income
(1,230,155)
281,915
1,010,025
984,491
Interest income (expense), net
(27,192)
(31,852)
(89,215)
(124,510)
Other income (expense), net
-
-
919,084
-
Income (loss) before income taxes
(1,257,347)
250,063
1,839,894
859,981
Income tax expense
-
-
-
-
Net income (loss) from continuing
operations
$(1,257,347)
$250,063
$1,839,894
$859,981
Loss on discontinued operations, net of
income taxes
-
(8,723)
-
(8,723)
Net income (loss)
$(1,257,347)
$241,340
$1,839,894
$851,258
Basic Earnings (loss) per Share:
Earnings (loss) per common share
$(0.09)
$0.02
$0.14
$0.06
Weighted average common shares
outstanding
13,889,675
13,384,081
13,608,161
13,266,531
Diluted Earnings (loss) per Share:
Earnings (loss) per common share
$(0.09)
$0.02
$0.13
$0.06
Weighted average common shares
outstanding
13,889,675
14,256,684
14,853,760
14,126,631
Fortress International Group, Inc.
Adjusted EBITDA Reconciliation
(Unaudited)
For the Three Months Ended
(Unaudited)
For the Twelve Months Ended
December 31, 2011
December 31, 2010
December 31, 2011
December 31, 2010
Net income from Continuing Operations
$(1,257,347)
$250,063
$1,839,894
$859,981
Interest (income) expense, net
27,192
31,852
89,215
124,510
Income tax expense (benefit)
-
-
-
-
Depreciation and amortization
53,997
70,404
233,727
342,220
EBITDA from Continuing Operations
$(1,176,158)
$352,319
$2,162,836
$1,326,711
Stock based compensation
81,123
101,425
510,838
554,821
Other income (expense), net
-
-
(919,084)
-
Lease exit costs
-
-
(33,062)
19,888
Provision for bad debts
24,980
-
114,980
-
Adjusted EBITDA from Continuing
Operations
$(1,070,055)
$453,744
$1,836,508
$1,901,420
SOURCE Fortress International Group, Inc.
News Provided by Acquire Media
distributed by
This press release was issued by Fortress International Group Inc. and was initially posted at http://ir.thefigi.com/releasedetail.cfm?ReleaseID=659947 . It was distributed, unedited and unaltered, by noodls on 2012-03-28 13:35:55 PM. The issuer is solely responsible for the accuracy of the information contained therein.
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