Record Revenues of $67.7 Million and Sequential Quarterly Revenue Growth in Nine of the Past Ten Quarters

Kent, WA - March 11, 2013 - 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 year 2013 third quarter ended January 31, 2013.

For the quarter, Flow reported revenues of $67.7 million, an increase of 3% from the year-ago quarter revenues of $65.8 million, and another all-time quarterly high. Standard Segment revenues of $62.6 million represent a 6% improvement versus the year-ago quarter, with consumable spare parts sales up 9% to $20.7 million over the year-ago quarter.  Income from continuing operations in the third quarter was $2.7 million or $0.06 per share, compared to income from continuing operations of $3.3 million or $0.07 per share in the prior-year period.

Adjusted EBITDA for the quarter was $6.9 million or 10.3% of sales, compared to $8.1 million or 12.3% of sales for the year-ago quarter. A reconciliation of Adjusted EBITDA to Net Income is provided in the accompanying financial tables.

"Even when comparing with a strong year-ago quarter, our aftermarket business grew 9% while our standard systems business grew 4%, and even while continuing to invest for growth, we continue to post double digit Adjusted EBITDA margins," said Charley Brown, President and CEO of Flow.  "We are very pleased with our trajectory; it has delivered sequential growth for nine of the past ten quarters."


Operations Review for the 2013 Fiscal Third Quarter 

  • 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 $62.6 million for the quarter, an increase of $3.5 million or 6% 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 $5.1 million for the quarter, and as anticipated, a decline of $1.7 million or 25% 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 profits were $26.7 million or 39% of sales for the quarter, compared to $26.1 million or 40% of sales in the prior-year quarter.

    • Standard Segment gross profits were $25.1 million or 40% of sales for the quarter, compared to the year-ago quarter gross profit of $24.2 million or 41% of sales. The gross profit variation is driven by product and geographic mix.

    • Advanced Segment gross profits were $1.6 million or 31% of sales in the current quarter, compared to $1.8 million or 27% of sales in the year-ago quarter.

  • Total operating expenses for the quarter were $21.9 million, compared to $20.1 million in the prior-year quarter. The year over year increase reflects timing of initiatives undertaken by the Company, higher relative labor and compensation related costs, variable costs associated with higher sales, as well as the timing of marketing and other sales related support.

Consolidated Statement of Operations >>

Conference Call
Flow plans to hold a conference call to discuss these results today: Monday, March 11, 2013 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 4603891. 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

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