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Fortune Industries Inc. (NYSE MKT: FFI), an Indianapolis-based professional employer organization, reported revenue fell 7.2 percent to $14.9 million in its fiscal third quarter ended March 31, 2013, compared to $16.0 million in the same quarter in the previous year.
The company reported revenue decreased primarily due to a 1.1 percent decrease in total worksite employees.
Fortune also announced plans for a special meeting on June 20 to consider and vote on previously announced plans to go private under a proposed management buyout via holding company CEP Inc. The company would cease to be a publicly traded company upon completion of the deal, which Fortune anticipates to close on or before July 1. Read about the buyout plan here.
Fortune took a non-cash $3.9 million one-time non-recurring impairment charge in the quarter that reduces the company’s goodwill from its previous value of $12.4 million to its anticipated balance of $8.5 million after the expected merger arrangement with CEP Inc.
Fortune’s third-quarter gross margin improved to 23.1 percent from 20.4 percent in the year-ago quarter. However, the PEO provider reported a third-quarter net loss of $3.3 million compared to net income of $536,000 in the same quarter last year.
Fortune Industries Inc. (NYSE MKT: FFI)
For the fiscal third quarter ended March 31, 2013, compared with the same period a year ago.
Revenue: $14.9 million, -7.2 percent
Net loss: $3.3 million vs. net income of $536,000