Welcome!

.NET Authors: Trevor Parsons, Peter Silva, Yeshim Deniz, Pat Romanski, Adine Deford

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
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.