Flow Announces First Quarter 2012 Results
Revenue Grows 29% Including Another Quarterly Record for Consumables
Kent, WA – September 1, 2011 – Flow International Corporation (NASDAQ: FLOW), the world's leading developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, today reported results for its fiscal 2012 first quarter ended July 31, 2011.
For the first quarter of fiscal 2012, Flow reported consolidated revenues of $60.0 million, a 29% increase from $46.6 million in the prior fiscal year. Net income in the current quarter was $0.7 million or $0.01 per share. In comparison, the Company reported a net loss in the prior-year period of $0.5 million or $0.01 loss per share.
Adjusted EBITDA for the quarter was $3.4 million, compared to $2.9 million in the year-ago quarter. A reconciliation of Adjusted EBITDA to Net Income is provided in the accompanying financial tables.
"Our global footprint was evident in the quarter as we grew in excess of 20% in every major geographic region", said Charley Brown, President and CEO of Flow. "Despite widely reported macroeconomic variability, we delivered our fourth consecutive quarter of sequential growth with recent order patterns showing continued stability."
Operations Review for the First Quarter of Fiscal 2012
- Standard segment sales, which include sales of systems that do not require significant custom configuration as well as parts and services for those installed systems, were $53.0 million, an increase of $12.2 million or 30% from the year-ago quarter.
- Advanced segment sales, which include sales of complex aerospace and application systems requiring specific custom configuration and advanced features, were $7.0 million, reflecting a $1.3 million or 22% increase from the year-ago quarter. Advanced segment sales are recorded using the percentage of completion method, with lead times generally ranging from 12 to 24 months.
- Aggregate gross margins were 37% for the quarter, compared to 39% in the prior-year quarter. Standard segment gross margins were 41%, which was in line with the year ago quarter. Advanced segment gross margins were 13% in the current quarter, compared to 26% a year ago. The decline in Advanced segment gross margin was attributable to $1.2 million in additional costs for certain contracts, primarily related to the installation phase of the projects for these complex systems.
- Aggregate gross margins were 39% for the quarter, compared to 42% in the year-ago quarter. Standard segment gross margins were 41%, which compares to 43% in the year-ago quarter. The decline was attributable to geographic and product mix. Advanced segment gross margins were 21% in the current quarter compared to 33% in the year-ago quarter. The decline in the Advanced segment gross margins was attributable to both project and product mix, as well as adjustments in original cost estimates for certain large aerospace contracts.
- Total operating expenses for the quarter were $22.0 million, compared to $18.7 million in the year-ago quarter. The $3.3 million increase from the year-ago quarter was primarily the result of higher commissions on increased sales, investments in lead generation, new product development and employee compensation including the reinstatement of wages and employee benefits that were reduced during the recession.
Consolidated Statement of Operations >>
Conference Call
Flow plans to hold a conference call to discuss these results today: Thursday, September 1st at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The conference call may be heard by dialing 877-941-1427 or 480-629-9664. A 7-day replay will be available following the call by dialing 800-406-7325 or 303-590-3030. The conference call passcode is 4467256. A live audio Webcast of the conference call may be found in the investor section. A Webcast replay of the call will also be available for 90 days.
About Flow International
Flow International Corporation is the world's leading developer and manufacturer of industrial waterjet machines for cutting and cleaning applications used in multiple industries including automotive, aerospace, job shop, surface preparation, and more. For more information, visit www.FlowWaterjet.com.
This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward-looking. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on a number of risk factors, including those set forth in the Company's filings with the U.S. Securities and Exchange Commission. Forward-looking statements in this press release include, without limitation, statements regarding order patterns showing continued stability. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.
Flow Investor Relations
Geoffrey Buscher
253-813-3286
investors@flowcorp.com