FFI Reports First Quarter Earnings

INDIANAPOLIS, Nov. 15, 2011 /PRNewswire/ — Fortune Industries, Inc. (NYSE AMEX:
FFI) announced today results for the first quarter ended September 30, 2011.

Highlights

Net income available to common stock shareholders for the first quarter ended
September 30, 2011 was $0.391 million or $0.03 per share fully diluted versus
$0.490 million or $0.03 per share fully diluted, for the fourth quarter fiscal
year ended June 30, 2011, representing a $0.099 million decrease in net income
available to common stock shareholders. However, this represents a $0.900
million increase in net income available to common stock shareholders for the
same three month period in 2010.

Working capital for the first quarter ended September 30, 2011 was $3.1 million,
as compared to working capital at fourth quarter fiscal year ended June 30, 2011
of $2.6 million, representing an increase of $0.500 million.

The Company reported EBITDA of $0.902 million for the first quarter ended
September 30, 2011, as compared to EBITDA of $0.761 million for the fourth
quarter fiscal year ended June 30, 2011, representing a $0.141 million increase
in EBITDA. EBITDA increased $0.233 over this same three month period in 2010.

Revenue for the first quarter ended September 30, 2011 was $15.795 million as
compared to revenue of $16.088 million for the fourth quarter fiscal year ended
June 30, 2011, representing a $0.293 million decrease in revenue. Further
revenue ended September 30, 2011 versus this same three month period 2010
increased $0.224 million.

Total number of worksite employees at September 30, 2011 is 15,141 as compared
to 13,665 at September 30, 2010, representing a net increase of 1,476 worksite
employees.

The dividends on the Series C Preferred Stock increased from $2 per share to $5
per share effective July 1, 2011. This change resulted in an increase of
Preferred Stock Dividend of $0.216 million for the first quarter ended September
30, 2011 as compared to the fourth quarter fiscal year ended June 30, 2011.

“Despite the uncertainty in the marketplace and the sluggish economy, we
continued to post positive earnings each quarter,” stated Tena Mayberry,
President and CEO. “This is no small accomplishment and can largely be
attributed to our constant focus on daily operations to improve efficiencies,
customer service, and ultimately our earnings. Of course new sales growth is a
top priority and especially now that we are entering into our peak selling
season to add new clients for calendar year 2012. We were right on target this
quarter and believe we have a strong foundation to build on this fiscal year.”

About Fortune Industries, Inc.

Fortune Industries, Inc. is focused as a professional employer organization
(PEO) to small and medium-sized businesses in 47 states, including human
resource consulting & management, employee assessment, training, and benefits
administration.

Fortune Industries, Inc. is based in Indianapolis, Indiana and is publicly
traded on the NYSE Amex exchange under the symbol FFI. Additional information
about Fortune Industries, Inc. can be found at www.ffi.net.

This press release and other statements by Fortune Industries, Inc. may contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are typically
identified by words or phrases such as “believe,” “expect,” “estimate,”
“potential,” or future/conditional verbs such as “will,” “should,” and “could”
or the negative of those terms or other variations of them or by comparable
terminology. The absence of such terms, however, does not mean that the
statement is not forward-looking. Any such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties that could
cause actual results to differ materially. Factors that might cause or
contribute to such differences, include, but are not limited to, the risks and
uncertainties that are discussed under the heading “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations” within the Company’s Form 10-K for the year ended June 30, 2011. The
Company undertakes no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise. Readers should carefully review the risk factors disclosed within the
Company’s Form 10-K and other documents filed by the Company with the Securities
and Exchange Commission.

Consolidated Financial Information

Financial highlights are as follows:

Three Month Period Ended
————————
September September
30, 30,
2011 2010
—- —-
(Dollars in thousands,
except per share data)
TOTAL REVENUES $15,795 $15,571

COST OF REVENUES 12,544 12,373
—— ——
GROSS PROFIT 3,198
3,251

OPERATING EXPENSES 2,496 2,727
—– —–

OPERATING INCOME 755 471

OTHER INCOME 9 21
— —

INCOME BEFORE PROVISION FOR
INCOME TAXES 764 492

Provision for income tax
expense 34 35
— —

NET INCOME FROM CONTINUING
OPERATIONS 730 457

DISCONTINUED OPERATIONS
Loss from discontinued
operations 0 (7)
— —

NET INCOME 730 450

Preferred stock dividends 339 148
— —

NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS $391 $302
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BASIC INCOME PER COMMON SHARE $0.03 $0.02
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