Press release from Marketwire
Empire Industries Reports Second Quarter Results
Wednesday, August 29, 2012
Empire Industries Reports Second Quarter Results16:00 EDT Wednesday, August 29, 2012WINNIPEG, MANITOBA--(Marketwire - Aug. 29, 2012) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its unaudited consolidated financial results for the second quarter ended June 30, 2012. The unaudited consolidated financial statements and MD&A have been filed on SEDAR and can be viewed at www.sedar.com or at www.empind.com.For the year and quarter ended June 30($ millions except share price and per share amounts)Q2 2012Q2 2011YTD 2012YTD 2011Financial ResultsRevenue22.417.439.532.5Adjusted Gross Margin ($)188.8.131.52.1Adjusted EBITDA ($)31.00.01.2(1.0)Net income (loss) from continuing operations0.8(1.1)1.8(3.0)Net income (loss) from all operations0.7(1.6)1.7(3.6)Financial Position (at June 30)Total assets35.643.3Long-term debt (including current portion, net of cash)(1.0)7.6Shareholders' equity9.510.4Basic Per Share InformationIncome (loss) per share from continuing operations0.0(0.01)0.01(0.02)Income (loss) per share from all operations0.0(0.01)0.01(0.03)Diluted Per Share InformationIncome (loss) per share from continuing operations0.0(0.01)0.01(0.02)Income (loss) per share from all operations0.0(0.01)0.01(0.03)1Prepared in accordance with IFRS.2Adjusted Gross Margin takes into account revenues and direct and indirect cost of sales excluding depreciation and amortization. While not an IFRS measure, Adjusted Gross Margin is a key metric used by management to assess the operational performance of the Group. 3Adjusted earnings (loss) before interest, tax, depreciation and amortization (Adjusted EBITDA) is not defined by IFRS The definition of Adjusted EBITDA does not take into account the Group's share of profit of an associate investment, gains and losses on the disposal of assets, fair value changes in foreign currency forward contracts and non-cash components of stock based compensation. While not IFRS measures, Adjusted EBITDA is used by management, creditors, analysts, investors and other financial stakeholders to assess the Group's performance and management from a financial and operational perspective.Summary of resultsSecond quarter Revenues from continuing operations increased by $5.0 million to $22.4 million (29% increase over second quarter Revenue of 2011). The Group had net income of $0.7 million for the second quarter ($0.00 per share), versus a loss of $1.6 million (loss of $0.01 per share) in the second quarter of 2011. EBITDA from continuing operations was $1.0 million in the second quarter 2012 versus an EBITDA in the second quarter of 2011 of $0.0 million. Long Term debt was reduced to $1.7 million at June 30, 2012 from $6.8 million at December 31, 2011 and $7.6 million at June 30, 2011. The Company had Cash of $2.8 million and NIL Bank Advances at June 30, 2012 as compared to Bank Indebtedness of $8.8 million at December 31, 2011 and $8.1 million at June 30, 2011. Backlog has increased to $105 million June 30, 2012 from $92 million at March 31, 2012 and from $43 million at December 31, 2011; "I am pleased to report that our improved backlog of work is translating into a return to profitable operations concurrent with strengthening our balance sheet," said Guy Nelson, CEO of Empire Industries. "Moreover, a number of the strategic growth initiatives we have undertaken in the oil sands region of Alberta and in China and building up our own portfolio of unique and proprietary media based attractions, is starting to pay dividends in contract awards which will roll out as profitable contracts over the next twenty four months." About Empire Industries Ltd.Empire Industries Ltd. manufactures specialized engineered products and sells these products domestically and in select international export markets. The company has developed, designed and engineered products for the rapidly growing, global, media based attractions market. The company also provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company also has two key strategic equity partnerships; a 49% ownership of ACE Industrial Services that operates in the oil sands industrial maintenance services market, and a 45% ownership of a Chinese joint venture company in the steel fabrication market in Asia. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL. For more information about the Company, visit www.empind.com. Reader AdvisoryThis news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Guy NelsonEmpire Industries Ltd.Chief Executive Officer(416) firstname.lastname@example.orgORAllan FrancisEmpire Industries Ltd.Vice President - Corporate Affairs and Administration(204) email@example.comNeither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.