Fortress International Group Announces 2007 Second Quarter Financial Results

COLUMBIA, Md., Aug. 14 /PRNewswire-FirstCall/ -- Fortress International Group (Nasdaq: FIGI), holding company for Total Site Solutions (TSS), a company providing comprehensive services for the planning, design and development of mission critical...


COLUMBIA, Md., Aug. 14 /PRNewswire-FirstCall/ -- Fortress International Group (Nasdaq: FIGI), holding company for Total Site Solutions (TSS), a company providing comprehensive services for the planning, design and development of mission critical facilities and information infrastructure, today announced financial results for the 2007 second quarter.

For the second quarter ended June 30, 2007 , the Company reported on a pro forma basis revenue of $10.9 million and a loss before income taxes of $2.4 million compared to pro forma revenue of $18.4 million and income before taxes of $0.7 million for the second quarter of 2006. The loss for the quarter ended June 30, 2007 includes $1.0 million of non cash costs including depreciation, amortization and restricted stock compensation.

For the six months ended June 30, 2007 , the Company reported pro forma combined revenues of $21.0 million and a loss before income taxes of $4.2 million compared to revenue of $34.7 million and income before taxes of $1.7 million for the six months ended June 30, 2006 . The loss for the six months ended June 30, 2007 includes $1.8 million of non cash costs including depreciation, amortization and restricted stock compensation.

Commenting on the quarter and six month period, CEO Tom Rosato said, "We continue to make strides in growing our company. The increased costs incurred to become a public company and more importantly to pursue and capture new business has greatly increased our selling, general and administrative expenses over historic levels and combining that with lower than expected revenues, we experienced a loss for the quarter and six months ended June 30, 2007 . Our public company infrastructure is now in place and operating and should not require any significant increase in costs. Our sales, marketing and proposal activity produced a large increase in backlog and our new proposals pipeline remains strong. We closed $44.9 million in new business during the quarter and our backlog increased to a record high level of $55.3 million. We see a continued strong demand for our services. If the backlog converts to revenues, and new sales activity continues to improve, we believe that we can achieve positive cash flow in the near future."

In order to assist investors in better understanding the changes in our business between the three and six months ended June 30, 2007 and June 30, 2006 , we discussed above pro forma results of operations for the Company and TSS/Vortech for the three and six months ended June 30, 2007 and June 30, 2006 as if the acquisition of TSS/Vortech occurred on January 1, 2007 and January 1, 2006 , respectively. We derived the pro forma results of operations from (i) the unaudited consolidated financial statements of TSS/Vortech for the period from December 31, 2006 to January 19, 2007 (the date of the acquisition) and the six months ended June 30, 2006 , and (ii) our unaudited consolidated financial statements for the six months ended June 30, 2007 and June 30, 2006 .

The Company will conduct a conference call and webcast to discuss its financial results on Wednesday, August 15 at 8:30 a.m. ET . The call may be accessed live by dialing (877) 704-5391 five minutes before the start of the

call. An accompanying slide presentation will be available via the Internet at:

The webcast and conference call will be archived after its completion and will remain available through August 22, 2007 by dialing (888) 203-1112 and entering replay passcode 9643657.

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