Welcome!

Microsoft Cloud Authors: Stackify Blog, Liz McMillan, David H Deans, Automic Blog, Pat Romanski

News Feed Item

Fortress International Group, Inc. Reports Third Quarter 2012 Financial Results

Third Quarter Revenue Increases 21% Year-over-Year to $9.3 Million

COLUMBIA, Md., Nov. 13, 2012 /PRNewswire/ -- Fortress International Group, Inc. (Other OTC: FIGI) a provider of consulting and engineering, construction management and site services for mission-critical facilities, today announced financial results for the three and nine months ended September 30, 2012.

Anthony Angelini, Chief Executive Officer of Fortress, stated, "Our results for the third quarter reflect continued progress with our efforts to transition the company and we are pleased to see a return to positive Normalized Adjusted EBITDA. Our continued focus on more profitable and recurring streams of business contributed to the achievement of higher gross margins. After a slower period of new contract awards in the early summer, we were pleased to see an uptick in new, profitable bookings toward the end of the quarter. This will lay a foundation for our business in early 2013. We continue to develop several strategic initiatives that we believe will further position the company for long-term profitability."

Third Quarter 2012 Financial Highlights:

  • Revenue of $9.3 million, compared with $7.7 million in the third quarter of 2011.
  • Gross profit of $2.6 million, compared with $3.0 million in the third quarter of 2011.
  • Normalized Adjusted EBITDA of $337 thousand, compared with Normalized Adjusted EBITDA of $287 thousand in the third quarter of 2011.
  • Net loss of $(0.3) million, or $(0.02) per basic and diluted share, compared with net income of $0.1 million or $0.01 per basic and diluted share, in the third quarter of 2011.
  • Cash and cash equivalents totaling $5.4 million as of September 30, 2012.

Financial Highlights for the Nine Months Ended September 30, 2012:

  • Revenue of $39.1 million, compared with $27.8 million in the nine months ended September 30, 2011.
  • Gross profit of $7.0 million, compared with $11.0 million in the nine months ended September 30, 2011.
  • Normalized Adjusted EBITDA loss of $(24) thousand, compared with Normalized Adjusted EBITDA of $2.9 million in the nine months ended September 30, 2011.
  • Net loss of $(3.8) million, or $(0.27) per basic and diluted share, compared with net income of $3.1 million, or $0.23 and $0.21 per basic and diluted share, respectively, in the nine months ended September 30, 2011.

Chief Financial Officer Kenneth D. Schwarz added, "In this release and going forward, we will be referring to Adjusted EBITDA, which excludes non-cash items such as stock-based compensation, and Normalized Adjusted EBITDA, which excludes non-recurring and other items from Adjusted EBITDA.  During the third quarter we continued to focus on our Facility Management business. Our mix of business in the third quarter supported this focus and contributed to strong gross margins. Going forward, we believe we can sustain gross margins in the 20% to 25% range. Expense reduction measures undertaken during the first half of 2012 have generated marked improvements in SG&A and operating expenses. We expect to be able to maintain our SG&A at this new level and are investing carefully in resources and initiatives that will support the growth of the business over the longer-term. We are pleased with the progress we have made and look forward to improved results as we move ahead."

Quarterly Conference Call Details
The Company will conduct its regularly scheduled financial announcement conference call on November 13, 2012 at 4:30 p.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 November 27, 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 4573235, 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 and Normalized Adjusted EBITDA are supplemental financial measures not defined under Generally Accepted Accounting Principles (GAAP). We define Adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization, impairment loss on goodwill and other intangibles, stock-based compensation, and provision for bad debts.  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 non-cash 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 as a factor in evaluating the performance of certain management personnel when determining incentive compensation.

We define Normalized Adjusted EBITDA as Adjusted EBITDA before restructuring charges and certain other non-recurring costs. We present Normalized Adjusted EBITDA because we believe it is helpful in comparing our operating results across reporting periods on a consistent basis by excluding from Adjusted EBITDA certain non-recurring items that do not directly correlate to our business and may, or could, have a disproportionate positive or negative impact on our performance during a particular period.  Similar to Adjusted EBITDA, we also use Normalized Adjusted EBITDA as a factor in evaluating the performance of certain management personnel when determining incentive compensation.  

Adjusted EBITDA and Normalized Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Normalized 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 and Normalized Adjusted EBITDA have been reconciled to the nearest GAAP measure, and this reconciliation is located under the heading "Normalized 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.

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; risks 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, 2011. 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





(Unaudited)





September 30,

2012


December 31,

2011

Assets






Current Assets





Cash and cash equivalents



$5,375,070


$6,731,487


Contract and other receivables, net



8,425,276


7,147,714

Costs and estimated earnings in excess of billings on

uncompleted contracts 



655,137


2,729,424


Prepaid expenses and other current assets



621,342


497,712

Total current assets



15,076,825


17,106,337

Property and equipment, net



341,585


305,463

Goodwill



1,768,861


3,839,861

Other intangible assets, net



60,000


60,000

Other assets



20,937


20,975

Total assets



$17,268,208


$21,332,636

Liabilities and Stockholders' Equity




Current Liabilities





Convertible notes payable, current portion



$500,000


$375,000


Accounts payable and accrued expenses



6,405,859


6,886,094


Billings in excess of costs and estimated earnings on

uncompleted contracts



2,927,814


2,819,368

Total current liabilities



9,833,673


10,080,462

Convertible notes, less current portion



2,082,301


2,457,301

Other liabilities



60,012


76,073

Total liabilities



11,975,986


12,613,836

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 shares authorized; 15,074,522 and 14,749,356 issued; 14,271,133 and 14,028,407 outstanding at September 30, 2012 and December 31, 2011, respectively















1,507


1,475


Additional paid-in capital



66,208,124


65,805,358


Treasury stock 803,389 and 720,949 shares at cost at







September 30, 2012 and December 31, 2011, respectively



(1,491,690)


(1,450,455)


Accumulated deficit



(59,425,719)


(55,637,578)

Total stockholders' equity



5,292,222


8,718,800

Total liabilities and stockholders' equity



$17,268,208


$21,332,636








 

Fortress International Group, Inc.
Condensed Consolidated Statements of Operations






(Unaudited)

For the Three Months Ended


(Unaudited)

 For the Nine Months Ended












September 30,

2012


September 30,

 2011


September 30,

2012


September 30,

 2011

Results of Operations:











Revenue



$9,266,635


$7,681,732


$39,117,349


$27,812,160


Cost of revenue, excluding depreciation and

amortization


6,637,221


4,718,065


32,102,042


16,811,234


Gross profit, excluding depreciation and

amortization


2,629,414


2,963,667


7,015,307


11,000,926


Operating expenses:












Selling, general and administrative



2,653,038


2,764,176


7,960,174


8,581,016



Restructuring and other charges



-


-


279,286


-



Depreciation and amortization



58,725


59,233


216,987


179,730



Impairment loss on goodwill



-


-


2,071,000


-


Total operating costs



2,711,763


2,823,409


10,527,447


8,760,746


Operating (loss) income



(82,349)


140,258


(3,512,140)


2,240,180


Interest income (expense), net



(24,787)


(27,440)


(116,001)


(62,023)


Other income (expense), net



(160,000)


-


(160,000)


919,084


(Loss) income before income taxes



(267,136)


112,818


(3,788,141)


3,097,241


Income tax expense



-


-


-


-


Net (loss) income



$(267,136)


$112,818


$(3,788,141)


$3,097,241

Basic (Loss) Earnings  per Share:











(Loss) earnings per common share



$(0.02)


$0.01


$(0.27)


$0.23


Weighted average common shares outstanding


14,178,644


13,686,977


14,142,468


13,514,323

Diluted (Loss) Earnings per Share:











(Loss) earnings per common share



$(0.02)


$0.01


$(0.27)


$0.21


Weighted average common shares outstanding


14,178,644


14,915,336


14,142,468


14,857,206













 

Fortress International Group, Inc.
Normalized Adjusted EBITDA Reconciliation



(Unaudited)

For the Three Months Ended 


(Unaudited)

For the Nine Months Ended






September 30,

2012


September 30,

 2011


September 30,

2012


September 30,

2011

Net income (loss)

$(267,136)


$112,818


$(3,788,141)


$3,097,241

Interest (income) expense, net

24,787


27,440


116,001


62,023

Income tax expense (benefit)

-


-


-


-

Depreciation and amortization

58,725


59,233


216,987


179,730

EBITDA


$(183,624)


$199,491


$(3,455,153)


$3,338,994

Stock based compensation

196,376


87,549


361,130


429,715

Impairment loss on goodwill

-


-


2,071,000


-

Provision for bad debts

-


-


55,290


90,000

   Adjusted EBITDA

$12,752


$287,040


$(967,733)


$3,858,709

Restructuring charges

-


-


279,286



Other (income) /charges including

severance, consulting and litigation

323,992


-


664,517


(952,146)

 

Normalized Adjusted EBITDA

$336,744


$287,040


$(23,930)


$2,906,563

 

 

SOURCE Fortress International Group, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busin...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...