Shares of Fortress International Group, Inc. (Nasdaq: FIGI) skyrocketed more than 100 percent today on news that the company had been awarded six new contracts totaling nearly $40 million.
The contracts will span all three divisions of the company: technology consulting, construction management and facilities management. Including the new project awards, the company said it has closed $46.5 million in new business since the end of the second quarter.
The majority of the new business comes from four substantial design and construction projects for two of Fortress International's co-location customers totaling $36.4 million. The company said the revenues from these projects will span the next 8 months.
In addition, Fortress was also awarded a $2.7 million facility management contract over a three year period to commission and service multiple containerized data center modules.
"Our private sector project wins are the direct result of the credit markets opening up in our sector," said Chief Executive Officer Thomas P. Rosato in a statement. "Capital spending has been very slow since October of 2008. We are now beginning to see our capacity-constrained data center customers executing their facilities expansion plans to meet pent up demand. The credit markets are responding favorably to this segment and we expect to see increased project spending over the next few quarters."
Additionally, the US Social Security Administration has selected Fortress International to be a part of a professional services team assembled to assist in the development and design of a new data center in Baltimore, MD. The contract, which will be executed by Fortress International’s technology consulting division, is initially for $300,000 but due to the volume and complexity of the project, the company believes additional involvement will evolve from the initial deal.
Fortress International Group, Inc. is a leading provider of consulting and engineering, construction management and 24/7/365 site services for mission-critical facilities. The company’s announcement Monday boosted share prices to an intraday high of 97 cents. More than 2.1 million shares changed hands by 11 a.m. EDT Monday, compared to the stock's 50-day average daily volume of 82,000, according to Nasdaq. Fortress International has a float of 4.5 million shares with a short interest float of only 0.5 percent as of Sept. 25, according to Yahoo. More than 61 percent of the company's shares are held by insiders with another 4.9 percent owned by institutions.