Flow Announces Second Quarter 2012 Results
Earnings per Share of $0.06 is Highest in Three Years
Kent, WA - December 8, 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 second quarter ended October 31, 2011.
For the second quarter of fiscal 2012, Flow reported consolidated revenues of $64.5 million, a 22% increase from $52.9 million in the prior fiscal year. Net income in the current quarter was $2.8 million or $0.06 per share. In comparison, the Company reported a net loss in the prior-year period of $0.3 million or $0.01 loss per share.
Adjusted EBITDA for the quarter was $7.4 million, compared to $3.1 million in the year-ago quarter. A reconciliation of Adjusted EBITDA to Net Income is provided in the accompanying financial tables.
"We continue to reach new markets through both our direct and indirect channels, having now grown our top-line sequentially in eight of the past nine quarters," said Charley Brown, President and CEO of Flow. "Our strength has been driven by our industry leading product line and the increased reach and penetration of our two distribution channels. During this quarter alone, we sold products into more than 60 countries. In addition, our operating income for the quarter was $5.2 million, or 8% of sales, our highest profitability in three years."
Operations Review for the Second 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 $59.2 million, an increase of $14.3 million or 32% 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 $5.3 million, reflecting a $2.7 million decline 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 39% for the quarter, compared to 38% in the year-ago quarter. Standard segment gross margins were 41%, which is down from 42% in the year-ago quarter as a result of product mix. Advanced segment gross margins were 21% in the current quarter, compared to 15% in the year-ago quarter, which was impacted by unanticipated adjustments in original cost estimates for certain large aerospace contracts.
- Total operating expenses for the quarter were $20.2 million, compared to $19.0 million in the year-ago quarter. The $1.2 million increase from the year-ago quarter was primarily the result of higher commissions on increased sales and the reinstatement of wages and employee benefits that had been reduced during the recession, in addition to investment in new product development and customer lead generation.
Consolidated Statement of Operations >>
Conference Call
Flow plans to hold a conference call to discuss these results today: Thursday, December 8, 2011 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). The conference call may be heard by dialing 877-941-2068 or 480-629-9712. A 7-day replay will be available following the call by dialing 800-406-7325 or 303-590-3030. The conference call passcode is 4491189. 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 the increased reach and penetration of distribution channels. 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