Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

November 29, 2007 09:00 ET

Empire Industries Ltd. Reports Financial Results for the Period Ended September 30, 2007

WINNIPEG, MANITOBA--(Marketwire - Nov. 29, 2007) - Empire Industries Ltd.("Empire") (TSX VENTURE:EIL), one of Western Canada's fastest growing steel fabrication and construction service providers, today announced that it has filed its interim financial statements and MD&A for the third quarter ending September 30, 2007. The financial statements and MD&A may be accessed at www.sedar.com and www.empind.com.

Highlights:

- Third quarter of 2007 compared to the third quarter of 2006:

-- Revenue up 64% to $27.5 million from $16.8 million

-- Gross profit up 100% to $5.2 million from $2.6 million

-- Operating Income up 125% to $2.7 million from $1.2 million

- First nine months of 2007 compared to the first nine months of 2006:

-- Revenue up 45% to $81.6 million from $56.2 million

-- Gross profit up 137% to $14.9 million from $6.3 million

-- Operating Income up 218% to $7.0 million from $2.2 million

- Announced the conditional acquisition of Tornado Technologies on September 18, 2007 for $17.2 million. This transaction has been approved by the Tornado shareholders and is scheduled to close November 30, 2007.

- Subsequent to the third quarter end, announced a letter of intent on October 16, 2007 to acquire Parr Metal Fabricators for $1.0 million.

For the third quarter ending September 30th, 2007, Empire generated consolidated revenue of $27.5 million, gross profit of $5.2 million, operating income of $2.7 million and earnings after tax from continuing operations of $0.7 million. This compares very favorably to the prior year's third quarter revenue of $16.8 million, gross profit of $2.6 million, operating income of $1.2 million and earnings after tax from continuing operations of $0.4 million. Fully diluted earnings per share from continuing operations were $0.01 for the third quarter of 2007 compared to $0.01 per share for the same quarter of 2006.

For the first nine months ending September 30th, 2007, Empire generated consolidated revenue of $81.6 million, gross profit of $14.9 million, operating income of $7.0 million and earnings after tax from continuing operations of $2.4 million. This compares very favorably to the prior year's first nine months of revenue of $56.2 million, gross profit of $6.3 million, operating income of $2.2 million and earnings after tax from continuing operations of $0.7 million. Fully diluted earnings per share from continuing operations were $0.04 for the first nine months of 2007 compared to $0.01 for the same period of 2006.

"The third quarter results showed increased profit momentum, in line with our expectations. Our operating income margin was 10% and is trending upwards as expected. The company is focusing more of our attention on integration of the recent acquisitions and on developing business to utilize our significantly expanded capacity." stated Guy Nelson, Chairman and CEO of Empire.

Empire had $7.9 million of working capital and $23.4 million of fixed assets compared to December 31st, 2006 when it had $6.5 million of working capital and $8.9 million of fixed assets. These assets were financed with $22.6 million in shareholders' equity, $12.4 million of long term debt and $2.8 million in notes and shareholder loans payable. This compares to December 31, 2006 when the Company had $16.6 million in shareholders' equity, $1.5 million of long term debt and $2.2 million in notes and shareholder loans payable.

Outlook

"The next big impact on Empire's balance sheet will be the effect of the proposed acquisition of Tornado Technologies scheduled to close November 30, 2007. This strategic acquisition will significantly broaden our fabricating capabilities in Alberta as well as strengthen our balance sheet and increase our debt service," stated Mr. Nelson. "Our current backlog remains healthy at $73 million and we continue to see a broad range of bid and negotiated opportunities in all of our operating units."

About Empire Industries Ltd.

Empire Industries Ltd. ("Empire") is a public company that was formed in July 2006 in a reverse takeover of Empire Iron Works Ltd., a Western Canadian steel fabricator and construction services provider that commenced operations in 1958. Empire is one of Western Canada's fastest growing steel fabrication and construction service providers. Empire's mission is to increase shareholder value by adding value to steel. Empire realizes its mission by growing profits organically and through strategic acquisitions in the burgeoning industrial, commercial and institutional construction marketplace of Western Canada. Empire trades on the TSX Venture Exchange under the trading symbol EIL.

This press release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. These statements are identifiable by their use of verbs such as "expect", as well as by the use of future or conditional tenses. 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. Empire assumes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated future events, except as may be required under applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information