Welcome!

Microsoft Cloud Authors: David H Deans, Liz McMillan, Pat Romanski, Janakiram MSV, Jnan Dash

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 IoT Now has been named “Media Sponsor” of 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. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
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...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
SYS-CON Events announced today that Ocean9will 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of 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, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of 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. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that Loom Systems 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. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
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...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of 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. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buyers...