Indianapolis-based Fortune Industries Inc. managed a small profit in its second quarter even after the sales of subsidiaries drastically cut revenue, the company announced this morning.
Revenue for the quarter ended Feb. 28 fell to $16.4 million, compared to $41.9 million in the same period a year ago – a 61-percent decrease.
Fortune, a professional employer organization, sold all of its non-PEO subsidiaries last November, just prior to its second quarter, switching from a diversified holding company into strictly a PEO. PEOs provide outsourced human resources-related services to small- and medium-sized businesses.
The company had profit of $262,000 in the quarter compared to a $2.7 million loss in the last year’s second quarter.
“We achieved our goal of being profitable in the second quarter, in what has historically been our most volatile period,” said CEO John Fisbeck in a prepared statement. “Our emergence as a pure-play PEO in December has allowed us to attain positive earnings for the first two quarters of our fiscal year, and we expect to continue this trend through our fiscal year-end.”
Fortune provides PEO services to clients in 47 states, including human resource consulting and management, employee assessment, training, and benefits administration.
Fortune shares closed at 63 cents each yesterday, down from their 52-week high of $1.95 a year ago.
The company today also announced the promotion of Tena Mayberry to president of the firm and Randy Butler to chief financial officer.
Mayberry previously served as president of Fortune subsidiary Century II Inc. in Brentwood, Tenn., one of the oldest PEOs in the nation.
Butler joined Century II in 2006 as the controller and assumed responsibility for all the financial functions of PSM Inc., another subsidiary of Fortune Industries, in 2008.