Record Quarterly Revenue and Highest Quarterly Operating Profit Since 2008

KENT, Wash., March 1, 2012 /PRNewswire/ -- 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 third quarter ended January 31, 2012.

For the third quarter of fiscal year 2012, Flow reported consolidated revenues of $65.8 million, a 15% increase from $57.5 million in the prior fiscal year.  Net income in the current quarter was $3.3 million or $0.07 per share.  In comparison, the Company reported net income in the prior-year period of $1.2 million or $0.03 per share.

Adjusted EBITDA for the quarter was $8.1 million or 12.3% of sales, compared to $4.9 million in the year-ago quarter.  A reconciliation of Adjusted EBITDA to Net Income is provided in the accompanying financial tables.

"This marks our sixth sequential quarter of increased sales and a new quarterly record for Flow," said Charley Brown, President and CEO of Flow.  "We also generated operating income in excess of 9% of sales, which represents our highest level of profitability in almost four years."


Operations Review for the Third 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 $59.1 million, an increase of $9.2 million or 18% 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 $6.7 million, a decline of $0.8 million or 11% 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 40% for the quarter, which was consistent with 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 27% in the current quarter, in line with the year-ago quarter.

  • Total operating expenses for the quarter were $20.1 million, consistent with $20.3 million in the year-ago quarter.


Consolidated Statement of Operations >>

Conference Call
Flow plans to hold a conference call to discuss these results today:  Thursday, March 1, 2012 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time).  The conference call may be heard by dialing 888-846-5003 or 480-629-9856.  A 7-day replay will be available following the call by dialing 800-406-7325 or 303-590-3030.  The conference call passcode is 4516393.  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