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Furmanite Corporation (NYSE:FRM)

Q4 2007 Earnings Call

March 14, 2008 11:00 am ET

Executives

John Barnes – CEO

Mike Rose – President

Howard Wadsworth – CFO

Analysts

Tyson Bauer – Wealth Monitors Inc.

Mike Carney – Coker & Palmer

Beth Lilly – Gabelli

Craig Swan – [Brozel] Capital

Operator

Good morning and thank you for joining the call. Before I introduce Mr. Barnes allow me to explain the format of the call. Following Mr. Barnes presentation today we will invite questions from analysts and fund managers. At that time I will explain the procedure for indicating that you wish to ask a question. The questions will be taken in order. In the interest of time and allow everyone an equal opportunity we request that you ask your primary question and limit yourself to one follow up question so that the next participants questions may be taken.

On behalf of the company we would like to say that certain statements that may be made in the call today may not be purely historical and as such are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There can be no assurance that any forward looking statements made on this call will prove to be accurate and should not be regarded as a brief presentation that the adjusters and plans of the company will be achieved.

Any forward looking statements made on the call are based on information presently available to management. The company assumes no obligation to update them. Now I would like to introduce Mr. John Barnes, CEO of Furmanite Corporation.

John Barnes

Let me begin by welcoming everyone to our year end conference call. With me today is President, Mike Rose and CFO, Howard Wadsworth. I would like to start off saying we are very pleased with the company’s performance for 2007. You can see in the fourth quarter results that we’ve maintained the momentum that we established very early in the year. Revenues in the fourth quarter increased by over $6 million and net income increased $4.3 million. This, of course, is a significant turn around from the fourth quarter of last year.

Turning to the year overall, our revenues grew to $290.3 million an increase of $43.4 million over last year. Our net income grew to $12.5 million which represents a $15.9 million profit improvement over last year. Our strong growth this year both in revenues and operating income are on target where we had planned for them to be. We had positive increases every quarter in every region around the world. We are on course with our strategy.

This year we expanded our service offerings in key markets and very importantly we increased the number of customers using our full array of services. This is going to be a very central theme in our strategy going forward because we have very few customers around the world in any of our office that we are doing the full compliment of services for and this is a focus to roll these out every location to every customer over the next several years and there is a very very large benefit to be gained from that.

To support the substantial growth in the company we made significant investments in capital equipment and people to handle this business. These investments paid off very well as our results show. We did all of this out our cash flow from our operations. We have absolutely no debt borrowings whatsoever. This year it was all funded out of cash flow and in fact our plans call for us to begin some debt pay down in 2008.

We are very much on course for 2008 and you’ll continue to see us leverage our worldwide presence to build long term customer relationships, attract new customers, open new markets and expand our business to industry sectors. Now I’d like to turn it over to Howard Wadsworth to walk you through the financials.

Howard Wadsworth

First let me go through some highlights on the income statement. Starting with revenues our fourth quarter revenues $72.9 million include about $3.8 million in currency gain, for the year revenues of $290.3 million as John mentioned include currency gains totaling $12.8 million. Our US revenues were up $2.8 million for the quarter and $20 million or 18% for the year. In Europe, revenues were up $3.3 million for the quarter and $17.4 million for the year.

Asia/Pacific revenues were up only $59,000 for the quarter and that doesn’t sound like much but when you consider that the fourth quarter last year was extraordinarily good quarter, almost 40% of the whole year and we were able to slightly beat that again this year its not really disappointing a number. Asia/Pacific revenue for the year were up $6.5 million or about 27%.

Our total cost expenses were up $755,000 for the quarter and $25.2 million for the year which reflects the higher operating costs associated with our revenue growth as well as the effects of currency. Our operating income increased $5.4 million for the quarter and $18.7 million for the year. Our net income, as John said, was $12.5 million for the year which was a $15.9 million improvement over 2006 and that includes about $1.5 million of currency.

The tax increase of $2.5 million for the year represents foreign tax expense and that reflects the mix of the growth we experienced in countries were foreign taxes apply as well as the different tax rates in those countries. We don’t have any US taxes due to our NOL’s. On the balance sheet it taxes a lot of cash and resources to operate worldwide and we are happy to say we have solid cash and working capital positions.

Our cash remains strong at $31.6 million which is up from $23.9 million in the last year and we’ve got $76 million in working capital up from $69 million at the end of last year. Current ratio is very strong at 2.6 to 1. We’ve got $42.6 million outstanding under our $50 million revolver. We’ve got about $1.2 million of capital leases. We had no borrowings under our revolver in 2007 and that means that we funded all of our expansion and expenses with our cash flow.

The old sport convertible adventure matured in January 15, 2008 and are now gone. Almost 97% of the $5 million that we had outstanding at the beginning of 2007 converted and that’s into a total of about 920,000 shares of common stock which gives us a total of about 36.3 million shares currently outstanding. We plan significant debt pay downs this year at the same time we’re in a very strong financial position to continue our growth. At this point I’d like to turn it over to Mike Rose.

Mike Rose

I’m happy to report that Furmanite continue to perform very well. John mentioned earlier that deliberate strategies we employed this year to drive the results we see this quarter and year to date. I’d like to expand on these strategies and what they mean to the business.

First let’s look at where our business is today. Traditionally the bulk of our business has been the petroleum, chemical, petro-chemical and fossil fuel power generation industries. We recognize that in order for us to grow at our target rate we need to compliment our current business by increasing our focus in other industries such as pulp and paper, mining, government and water, natural gas and product crude pipelines.

Over the course of last year we expanded in several sectors including mining in Australia, government contracts in the UK, Australia and US, nuclear power generation in the US, UK, Belgium, Netherlands and France, water and natural gas and crude pipelines in Norway, Malaysia and Australia. Also over the course of the year we expanded the number of services we perform by adding heat treatment and carbon based composite repair.

In fact, our heat treatment business is so strong we cannot fill the equipment fast enough which I might add represents state of the art to meet the demand. Beyond expanding our presence across more industries and in more geographic areas our focus has been on full array of services available to all our operations around the world. This year we expanded our hot tapping capabilities including the training of our technicians and the placement of equipment for mainly residing in the US and the UK into such regions as Malaysia, Singapore, France and Australia.

We have expanded our carbon based composite repair capabilities from the UK to the US, Australia, Malaysia, Netherlands and France. The scope and breadth as well as the quality of our services are a fundamental differentiator for Furmanite. Our ability to deliver multiple services has yielded closer customer relationships.

Let me give you a few examples of the work we are accomplishing and the opportunities we see in each of our regions. Through our UK operations we are aggressively expanding our work in the Middle East. In the fourth quarter 2007 we performed a hot tapping job for Qatar’s gas company valued at over $750,000. In Kazakhstan we sold one of our self sealing plants for the value of over $500,000. Our office in Bahrain, which opened in late 2006, is now an approved vendor and is performing services for major petro-chemical company in Saudi Arabia.

Our operations in Norway are growing through the quality of our work and through offering the full array of services. In the fourth quarter of 2007 Norway completed and on-site machining job that brought the largest and most advanced drilling rig in the Norwegian Sea. The revenue generated form this job was over $500,000. A year ago the Norway operations was mainly an OSM and liquid pass service company.

As you may recall, during 2007 this location did and smart shim service and just completed a hot tapping and line stopping job for a petro-chemical plant. The value of the hot tapping job was over $300,000. Since the main industry in Norway is located offshore and connected to the mainland by pipelines a smart shim product address drilling problems experienced by offshore drilling platforms in the North Sea. While hot tapping address the pipeline industry and their need to minimize production curtailments. In the spirit of expanding our service offering late in 2007 we purchased a small heat treating operation in Norway. To date we have performed over 40 jobs. We are quite pleased with the bottom line results.

In the Netherlands, we pursued the same strategy, increasing our array of services which translates in to increased business. We completed a bolting and safety relief job for Ritadem refinery in the fourth quarter 2007 valued at $500,000. We also serviced heat exchanges in a paper mill for $450,000. I mentioned these two events to demonstrate our strategy to offer every service in every location and to expand our work in less traditional businesses.

The fourth quarter 2007 in Belgium produced $1 million in repair value activity presently dislocation is mainly a valve repair service sector. During 2007 we have been training our technicians to do our traditional services as well. In the first quarter 2008 the Belgian operation have booked heat exchange and repair work as well as bolting and OSM in conjunction with the continuing valve repair business.

Our operations in France performed an OSM and boring job on a French submarine in the fourth quarter valued at over $200,000. They also performed a pipe cutting and machining job for a sugar mill in the fourth quarter valued at over $250,000. During the fourth quarter of 2007 Germany generated over $1.2 million in the manufacturing and heat exchanges for a chemical company and a major oil refiner. Even though heat exchange work represents a large portion of Germany’s activities in 2007 leak sealing as well as OSM work were also performed during this quarter.

As in Belgium this region relies very heavily on one service and indicates that Germany that is heat exchange manufacturing and repair work. During 2007 we emphasized growing our traditional service business. We invested in machinery and valve repair equipment as well as technicians. In fact, we added 15 to support this emerging field service work.

In Hong Kong and China we have added another sales person and four technicians in our Shanghai office bringing the total to 13 technicians there. We have also imported all the machinery necessary to support our service business. While all this was occurring the region saw hot tapping equipment and sac analyzers to a power plan in China as well as perform several services.

In Malaysia during the fourth quarter our mixed team of British and Malay technicians completed over 20 hot and cold tap tie ins for a six inch to 36 inch pipeline owned by a major gas producer. The value of this project was over $560,000.

The Singapore region has expanded its businesses into neighboring countries namely Vietnam, Thailand, Philippines. To give you an indication of our success in expanding our presence in these three new regions we delivered a large duct service for the power station in Vietnam, sold hot tapping fittings in Thailand and performed a hot tap in the Philippines.

In the fourth quarter of 2007 Australia, New Zealand generated over $500,000 for bolting for a major refiner. In addition the region generated over $690,000 in OSM work for a major oil refiner. I mentioned earlier that a key one of our goals is to expand our services into other industry sectors. As I reported to you in the past we have been increasing our work in Australia in the mining industry. Our quality of service must be appreciated because the first time in its history in Australia a US mine equipment manufacturer allowed us a third party to perform work on one of their huge coal shovels.

I’ve spoken previously about our emphasis on building our US operations through organic growth and through the acquisition in late 2005. Let me tell you about our growth in the US this year and our focus for the future. During 2007 we added 132 technicians bringing our headcount in the US to 766. We added heat treatment to our existing service lines and we added a division manager to our western operation. In my opinion the foundation is set for our expected future growth in the US.

Here are a few examples of what we’ve done to date. In the north this division secured an all service contract with a major power generator. It is for five years and valued at over $5 million. It covers not only fossil fuel but as well as nuclear plants. This region also provided fourth quarter leak sealing services for a major refiner valued at over $500,000.

In the south during the fourth quarter 2007 this region provided bolting, OSM and heat treatment for a major refiner valued at over $1.8 million. Also during this period OSM and heat treatment services were provided to a major utility company generated over $1.4 million. In the west this region provided flange trucking services for a natural gas plant in the fourth quarter that generated over $1 million in revenue.

I hope this view of our operations around the world gives you a clearer picture of the opportunities we have in every region and how effectively we are converting those opportunities to contracts. We are very pleased with what we accomplished this year. However, that was last year. We are now totally focused on 2008 opportunities and our excited by the prospects for the year ahead. John let me turn it back to you.

John Barnes

The reason Mike is walking through a few of these particular contracts is you’ve heard us say many times over the years we don’t normally do large contracts, we do hundreds and thousand and thousands of many many small jobs. Part of our strategy, we’ll continue doing that, but part of our strategy as we get more and more of these bundled services and become a bigger supplier to a lot of the customers our there we will see ourselves moving into larger contracts and longer term contracts. That is definitely part of the strategy going forward.

Let’s go ahead at this time and open it up for questions from the people on the call.

Question-and-Answer Session

Operator

[Operator Instructions] The first question comes from the line of Tyson Bauer from Wealth Monitors Inc.

Tyson Bauer – Wealth Monitors Inc.

John you made some comments in the last conference call that was related to double digit top line growth that was able to flow through ’08 to the bottom line in addition to hopefully achieving double digit operating margins in ’08. Is the environment such that you still believe those general outlook statements are capable of getting achieved?

John Barnes

Yes, that’s an excellent question. Yes, they are. I know one this that’s probably on a lot of peoples mind with what’s going on the economy right now, how do we see that affecting us and it is something we look at very carefully. Quite frankly we have not seen any negative impact from what’s going on in the rest of the economy. We have not seen a change in our pricing at all. I think a lot of that is due to the fact that we are becoming more and more of a partner with our customers as opposed to just trying to sell services. We are playing a bigger role in what they are doing. As it sits right now I don’t see any change from where we said we would be earlier at all.

Tyson Bauer – Wealth Monitors Inc.

One follow up to that, the growth outlook and how things are going. Because of your tax situation, by reference it is more or less like a crap shoot any given quarter. Can you give us any kind of better color regarding what you expect US growth versus international growth where we may start being able to use some more of those NOL’s and seeing what effect that will happen with the taxes?

John Barnes

The US, my guess is, certainly from the focus of retention we are putting growth all over the world but the US has so many opportunities for us that we are going to see a major part of this growth coming in the United States. It will be a bigger and bigger player in our business mix compared to everywhere else around the world. We see tremendous opportunities over in the Middle East, we see them certainly in China, we see them in several other places in the Far East but we have really just barely scratched the surface. That’s the kind of discussion we have with our people here. There are tremendous opportunities for us to do so much more in our opinion here in the US than what has historically been the case. It’s going to be a big driver going forward.

Tyson Bauer – Wealth Monitors Inc.

Howard a couple bookkeeping questions. What was your cash flow from operations this year and what do you expect the range of your tax rate to be in ’08?

Howard Wadsworth

The cash flow from operations are net cash provided by operating activities was a little under $17 million for this year. That compares with a negative number last year, as you recall, of about $6 million. We substantially improved that. The tax rate is a real hard one because it depends on where you get your growth and it depends on the tax rate in the country in which you grow. It’s such a difficult one to estimate. If you look at the range of tax rates, it runs anywhere from some countries 12% all the way up to 30%. It’s where your growth is going to come and quarter by quarter it comes from different places in the mix just really is difficult to estimate.

John Barnes

Howard is exactly right, generally when we are looking at this thing I generally expect to see taxes on our foreign basis on a consolidate form at 25% to 30% range and what we are generating. Nothing in the US until we consume significant amount of NOL. It depends on the mix in that particular quarter, it depends on the currencies because you may see it a little heavier, or a little lighter. It’s hard to predict what the total mix will be. For your purposes if you think of the overseas being in the 25% to 30% and then nothing in the US.

Operator

The next question comes from line of Mike Carney from Coker & Palmer.

Mike Carney – Coker & Palmer

Several questions here. First, I think Mike you had mentioned the techs in the US, what was the tech count overall for the quarter?

Mike Rose

The tech count for the year we increased our technicians by over 200 for the year.

John Barnes

Those are full time techs; we also from time to time can have several hundred temporaries.

Mike Carney – Coker & Palmer

Did you mention that in the US you increased it by 132 techs?

Mike Rose

That is correct.

Mike Carney – Coker & Palmer

When I look at your operating costs and figure out a gross profit basis, basically your gross margins were significantly up year on year and basically higher than ever before. The revenue growth was obviously lower than it’s been. In all your comments Mike, I didn’t really get the gist that there was a big shift in business mix. Why is that gross profit level, gross margin level so much higher than it’s been?

John Barnes

You’ve got to keep in mind when you are looking at this that you get these pretty wild adjustments in currencies around the world. That has a big impact on that. The actual revenue level was a little bit less in the fourth quarter than we saw in the second and third and we still see some seasonality in this business. When you go from Thanksgiving right on through the end of the year remember this is a people business.

You’ve got a lot of people on vacations, you get a lot of customers not wanting to do major projects during the holidays. It’s primary emergency type work. I think we’ll always have lighter fourth quarters. Quite frankly, lighter first quarters than we see in the second and third. The actual revenue level is pretty much in line with what we thought it would be, probably a little bit better than what we were originally thinking. Believe it or not the currency fluctuations can affect those margins.

Our margins are overall if you look at it, it will vary a little bit quarter to quarter they are pretty steady year on year we are seeing a little bit of an improvement there. I think that’s more due to operating efficiencies the way we structure this than it is anything else.

Mike Carney – Coker & Palmer

When I look at a gross margin level over 38% in the fourth quarter this year was 33% last year. That was pretty healthy gain. Were there any one time changes there or any credit or payroll taxes or something like that that would have led to anything or simply what you had mentioned about the primarily the change in geographic mix?

John Barnes

Its just a combination of the things, I think the 38% is higher than what you’ll see going forward but again its not something negative is going to happen here. You get a lot of quirks that come in and out of there. We think we can improve on the 33% we had last year but 38% is a bit stiff for this environment right now.

Mike Carney – Coker & Palmer

In terms of pricing, I’m assuming are your price increases still running at the same levels you’ve had the past quarters?

John Barnes

One of the things we have focused on the last year is we found that we had quite a few contracts in different parts of the world that had not been adjusted in some time. We’ve gone in and renegotiated those. That has improved it somewhat. I think probably I would venture to guess over the next several years if this heavy work growth continues like it is around the world for this kind of business you are going to see supply of people struggling to keep up with the demand and I think you are probably going to see some upward pricing pressures as a result of that. There is going to be more and more competition at least for highly skilled and technicians.

Mike Carney – Coker & Palmer

One other thing, can you give us the operating income by the three regions?

John Barnes

Please keep in mind; I hope they can correct it in ’08. We throw, as you know we run this entire corporation out of the US, in terms of the top level and all of that is still being charged against the US as opposed to spread around the world where the actual work and effort is done. You get a distortion there. The US is performing very well.

Howard Wadsworth

Europe was $19 million, Asia was $7 million and the balance which was a negative number and as John got through saying includes all of the overhead, etcetera was a negative $5 million.

John Barnes

I’m hoping in ’08, correct me if I’m wrong, we are going to be able to adjust that going forward to get a true picture of what it really is. The US is doing very, very well, highly profitable.

Mike Carney – Coker & Palmer

Is there any effort, I know you eliminated some of the difference between headquarters and corporate expenses that you have. Is there a way to take it, for a tax advantage, to get some of those costs into regions where you are generating profit anyway so you can take advantage of some NOL’s.

Howard Wadsworth

You have to follow the transfer pricing and rules of all of the different countries. Yes, we do it to the greatest extent that we can but it’s pretty difficult in some jurisdictions to be able to do that.

John Barnes

It is done compared to the accounting which shows that all of the US is currently some of this cost and the appropriate costs are charged out from a tax standpoint.

Howard Wadsworth

That is correct.

Mike Carney – Coker & Palmer

When you had the other businesses, if you add up the headquarters expense from Furmanite and the corporate expenses total has there been a decline in those dollars outside of extra compensation or whatever that’s typical of growing the business?

John Barnes

There are two pieces to that. If you take the parent company there has been no change in the GMA in two or three years, it runs about $4 million. About half of that has nothing to do with people its just insurance and FCC fees and NYSD fees and all the other kinds of stuff, that’s been flat, it hasn’t changed. In what we call the Furmanite Worldwide which is where a lot of the main part of the management and the IT and all of this is done, accounting. We’ve done some realignment there, I don’t think it’s really grown in total its probably shifted, more in how we are grouping it, is that a fair statement.

Mike Rose

That’s a fair statement.

John Barnes

We are spending some money in the IT area to upgrade significantly our accounting and finance systems; we’ve been working on that for a couple of years. Some of that will start converting this year which will give us much better information, much faster information which will be very helpful to those using it. That’s all showing up in there too.

Operator

The next question comes from the line of Beth Lilly with Gabelli.

Beth Lilly – Gabelli

I wanted to ask, to dig in a little bit in terms of your revenue outlook for ’08 and the double digits that you are talking about. The function of the slower growth this quarter, is that just a seasonal issue, can you shed a little light on that?

John Barnes

That’s what I was saying earlier, the fourth quarter always has seasonality in it because of the holidays. Not only are people out on holidays, they take a lot of their vacations then and you have a lot of customers that don’t want to do major projects during that time frame. As I said earlier we are not seeing anything right now in the economy that if affecting our outlook for ’08 in terms of our ability to continue growing our revenues. Our target is to shoot for double digit growth in our revenues and as we continue growing the business we expect some time to come to see some efficiencies and economies to scale and improve the portion of those revenues that will go all the way through to the bottom line.

Beth Lilly – Gabelli

Can you give me sense, is it mid double digit, is it higher double digit, can you give us a sense of magnitude?

John Barnes

We’ve always had a practice here of not going into forecasting and for very good reason. Number one it’s a guess at this time. Certainly we know inside what we are shooting for and what our plans and our strategies are calling for but we don’t want to get into the guessing and the forecasting business.

Beth Lilly – Gabelli

The second question is thank you for providing the breakdown by region. Can you give us the revenue levels by region for the year?

Howard Wadsworth

For the United States it was $126 million, $131 million for Europe and $31 million for Asia/Pacific.

Beth Lilly – Gabelli

Its interesting, I want to follow up, one of the problems I think with investors trying to understand Furmanite is that the operating loss that you show in the US, which as Howard has explained it is because you lump all your costs into the US, you run the entire business from the US. It’s interesting because the US business shows a greater loss this year than last year. Last year you lost $3.6 million and this year you lost $5 million. Yet, you are telling us that the US business is doing really well. Can you help us understand if you better allocated the costs across the different regions what your US business should be generating on an operating basis?

Howard Wadsworth

Looking at the operating income for the US last year was a loss of $18 million and this year was $5 million. I think you have the wrong numbers there.

Beth Lilly – Gabelli

I’m looking at year ended December 31, 2006, this is out of your 10-K.

Howard Wadsworth

I’ll get back to you.

John Barnes

There has been huge improvement in the operating.

Beth Lilly – Gabelli

Having said all that, can you explain to us, if you better allocated the costs what should be the operating margin or the operating income level out of the US you should be generating, it continues to be masked?

John Barnes

If I knew that I would already had made the accountant split that out. We will be able, they tell me, to do it in ’08. We are going to be guessing on that. As you know you can allocate, I can find you 20 different methodologies none of which are exactly right, to determine what is the most realistic for us. We are not begging the question but I don’t like it being shown that way, I’ve been fussing about it for a long time and if I knew what that number was I’d be more than happy to share it with you. We will be able to start doing that starting with first quarter. Right Howard?

Howard Wadsworth

Yes, we are going to do that.

Beth Lilly – Gabelli

My last question is, you’ve spoken about getting to double digit operating margins and I think in the past we’ve spoken about a 12% or 13% operating margin. Are you still comfortable with that number?

John Barnes

Don’t tie me down to exact percents. Double digits is what we are shooting for and let’s leave it at that. That’s a huge improvement from where we are.

Beth Lilly – Gabelli

You are only willing to say double digits but you are not willing to say where in the double digits?

John Barnes

Right. Only because whatever I say is probably going to be wrong. I am comfortable with double digits. Obviously we want it to be as high as we can get it and that’s what we are going to be striving for. I don’t want to say anything that I can’t deliver on and I don’t want to pin it on to a box trying to deliver on something I said. We are just going to shoot for the highest we can get. We know for a fact as we continue moving and growing this that’s going to get better and better.

That’s the beauty of the company where its at right now in its growth cycle is every dollar of revenue we put up there in the service lines we are in its going to generate better profits falling through than the previous dollar. That will be that way for quite some time.

Operator

The next question comes form the line of Craig Swan with [Brozel] Capital.

Craig Swan – [Brozel] Capital

A quick question on the operating margins, a follow up there as well. Right at around the 8% level the last three quarters, as you look out you talk about double digit operating margins is there a time frame there, what type of improvement should we look for this year and as we go out through the last three quarters it has been a little bit flat there on operating margin?

John Barnes

You see this same kind of plateau and then jump. There’s not going to be a linear movement in something like that. We certainly are targeted as to see it improve again next year. I don’t have a projection as to when it would go from 8% to 10%.

Craig Swan – [Brozel] Capital

What would cause not so much of a linear but more of a jump? What’s the difference there?

John Barnes

You hit different plateaus in there. For example, as I said we’ve done a lot of ratcheting up this year and a lot of the IT costs and what have you that get put in there to get ready for this major conversion. You see that stuff come in fits and starts. Its not just revenue that’s a lot of the expenses that aren’t directly related to the service we are performing out in the field.

Craig Swan – [Brozel] Capital

As far as SG&A about 28% this quarter kind of looking forward any guidance there as far as what type of SG&A we should expect more towards the 25% level we saw earlier in the year?

John Barnes

Our goal is not to be increasing our G&A but we do have a goal of increasing our S. In fact, we did invest money in the later half of the year primarily in the fourth quarter where we started increasing our sales staff around the world. That will be going on continuously for the next two or three years the way our plans are right now. We want to get more sales people out there. There are just a lot of opportunities we have not taken advantage of the way we want to going forward.

Operator

We have no further questions.

John Barnes

Ladies and gentlemen again we appreciate you taking the time to be with us this morning. We are very happy with what took place in ’07 and as Mike said, that’s last year. Now we are focused on this year and we are really looking forward to ’08. We hope to talk to you again in the first quarter.

Operator

This concludes the presentation for today ladies and gentlemen. You may now disconnect. Have a wonderful weekend.

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Source: Furmanite Corporation Q4 2007 Earnings Call Transcript

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