Fortune profit ticks up despite lower revenue

Indianapolis-based Fortune Industries Inc.’s profit ticked up slightly in its fiscal first quarter but revenue fell due to the loss of two large clients, the company announced Wednesday.

For the quarter ended Sept. 30, the professional employer organization earned $401,000, or 3 cents per share, compared with $391,000, or 3 cents per share, in the year-ago period.

Revenue fell 13 percent, to $13.8 million, due to the loss of the clients, the company said. As a result, the number of Fortune “worksite” employees dropped to 13,403 from 15,128 during its first quarter.

Fortune provides services to small and medium-sized businesses in 47 states. Those services include human-resources consulting and management, employee assessment, training, and benefits administration.

Following the August death of founder Carter Fortune, the company announced that it would exit the PEO business in favor of becoming a skilled-nursing operator.

The restructuring hinges on shareholder approval of a merger agreement with skilled-nursing operator Ide Management Group LLC of Greenfield.

Fortune shares were trading at 18 cents each Thursday morning, within a penny of where they've been for the past three weeks.
 

Please enable JavaScript to view this content.

Editor's note: IBJ is now using a new comment system. Your Disqus account will no longer work on the IBJ site. Instead, you can leave a comment on stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Past comments are not currently showing up on stories, but they will be added in the coming weeks. Please note our updated comment policy that will govern how comments are moderated.