Flow Announces Fourth Quarter 2011 Results
Revenues of $216.5 Million for the Year Exceed Prior Year by 25%
Kent, WA - June 22, 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 2011 fourth quarter and year ended April 30, 2011.
For the fiscal year ended April 30, 2011, Flow reported consolidated revenues of $216.5 million, a 25% increase from $173.7 million in the prior fiscal year. Net income for fiscal 2011 was $0.8 million or $0.02 per share, compared to a net loss of $8.5 million or $0.19 per share, which included non-recurring pre-tax charges aggregating to $5.8 million.
For the fourth quarter of fiscal 2011, Flow reported consolidated revenues of $59.5 million, a 22% increase from $48.6 million in the prior-year period. Net income in the current quarter was $0.4 million or $0.01 per share. In comparison, the Company reported net income of $0.1 million in the prior-year period.
Consolidated Adjusted EBITDA for the quarter was $2.8 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.
"Standard segment sales remained strong across all geographies while our spare parts business set new revenue records in the current quarter and for the entire year," said Charley Brown, President and CEO of Flow. "We are also very pleased with the excellent performance from both our direct and indirect channels of distribution which have helped us outpace the economic recovery."
Operations Review for the Fourth Quarter of Fiscal 2011
- 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 $52.3 million, an increase of $11.6 million or 28% from the prior-year quarter.
- Advanced segment sales, which include sales of complex aerospace and application systems requiring specific custom configuration and advanced features were $7.3 million for the quarter, reflecting a $0.6 million decline from the prior-year 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.
- Total operating expenses for the quarter were $21.6 million, compared to $18.4 million in the prior-year quarter. The $3.2 million increase from the year-ago quarter was primarily the result of the full reinstatement of wages and benefits, higher commissions on increased sales, and investments for product development, employees and lead generation.
- The Company recorded a negligible tax benefit during the quarter, resulting from changes in certain deferred tax assets and liabilities.
Consolidated Statement of Operations >>
Conference Call
Flow plans to hold a conference call to discuss these results today: Wednesday, June 22nd 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 4446428. 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 ultrahigh-pressure waterjet cutting technology to 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 new credit facility enhancing funding of working capital and improving flexibility. 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