Kent, WA - December 4, 2013 - Flow International Corporation (NASDAQ: FLOW), the world's leading developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, today reported results for its fiscal year 2014 second quarter ended October 31, 2013.

Flow reported revenues of $66.3 million for the quarter, compared to year-ago second quarter revenues of $67.0 million.  The Company reported net income for the quarter of $2.1 million or $0.04 per share, compared to net income of $2.1 million or $0.04 per share in the year-ago quarter.

Adjusted EBITDA for the quarter was $6.1 million or 9.2% of sales, compared to $6.0 million or 8.9% of sales for the year-ago quarter.   A reconciliation of Adjusted EBITDA to Net Income is provided in the accompanying financial tables.

"We are pleased to report results that are consistent with the year ago quarter in total revenue and profits," said Charley Brown, President and CEO. "We continue to expect closing the sale of Flow to American Industrial Partners in early 2014."

In light of the pending transaction with American Industrial Partners ("AIP"), the Company will not be holding a conference call to discuss these results.

In addition, the Company is in continued discussions with the U.S. Federal Trade Commission ("FTC") in connection with its proposed transaction with AIP, pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act").  To facilitate those discussions, AIP withdrew its initial notification filing and subsequently refiled with the FTC on November 27, 2013, which started a new 30-day waiting period, and provides the FTC additional time to complete its investigation.    The Company and AIP will continue to work cooperatively with the FTC in connection with its review.  Completion of the transaction remains subject to the approval of Flow's shareholders, regulatory approvals, and other customary closing conditions.

Operations Review for the 2014 Fiscal Second Quarter 

  • Standard segment sales, which include sales of systems that do not require significant custom configuration as well as parts and services for those installed systems, were $57.8 million for  the quarter, down $5.4 million from $63.2 million in the year-ago quarter.

  • Advanced segment sales, which include sales of complex aerospace and application systems requiring specific custom configuration and advanced features, were $8.5 million for the quarter, compared to $3.8 million in the year-ago quarter.  Backlog for the Advanced segment was $14.8 million as of October 31, 2013 and will be realized over the next two to four quarters.

  • Aggregate gross profit margins were 38.8% of sales for the quarter, compared to 37.9% in the year-ago quarter.

  • Total operating expenses for the quarter were $21.7 million, compared to $21.5 million in the prior year period.

Consolidated Statement of Operations >>

About Flow International
Flow International Corporation is a global technology-based manufacturing company committed to providing a world class customer experience. The Company offers technological leadership and exceptional waterjet performance to a wide-ranging customer base, benefiting many cutting and surface preparation applications, delivering profitable waterjet solutions and dynamic business growth opportunities to our customers. For more information, visit www.FlowWaterjet.com.

This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward-looking. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on a number of risk factors, including those set forth in the Company's filings with the U.S. Securities and Exchange Commission. Forward-looking statements in this press release include, without limitation, statements regarding the expectation of closing the sale transaction of Flow to American Industrial Partners in early 2014 and Flow and AIP working cooperatively with the FTC. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.

Flow Investor Relations
Geoffrey Buscher
253-813-3286
investors@flowcorp.com

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