Update: Fortress International Group

Jul.14.10 | About: Fortress International (FIGI)

Fortress International Group (OTC:FIGI) filed an 8K disclosing their sales progress during the first half:

today announced that it has closed approximately $44.0 million in new contracts for the six months ended June 30, 2010, an increase of nearly 300% compared with $15.0 million in new contracts for the comparable period in 2009.

Seems like the industry capital expenditure is back after the severe cash crunch after Lehman and the pent-up demand is showing. We also discussed this sales uptrend while reviewing the first quarter announcement and the deep cost reductions.

The breakdown by division is as follows:

  • Technology consulting – $12.4 million (includes the previously announced Task Order Contract of $10.0 million, which covers a five-year period)
  • Construction management – $25.1 million
  • Facility management – $6.2 million

It is nice to see some facility management recurring revenue. Management also emphasized that they are getting repeat business from old contracts:

In addition to new contracts, we are attracting considerable repeat business from premier customers such as Power Loft, SAIC, Home Depot, US Army Corps of Engineers, as well as our three fortune 500 IT based customers and the NIH. We also continue to add to our list of recurring service contracts for maintenance and emergency service coverage on containerized systems throughout the US where we see considerable opportunity to capture additional business.

Disclosure: Long FIGI