Empire Industries Ltd.

Empire Industries Ltd.

June 30, 2011 16:30 ET

Empire Industries Reports 2011 First Quarter Results

WINNIPEG, MANITOBA--(Marketwire - June 30, 2011) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its financial results for the quarter ended March 31, 2011. 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.

Summary of results

  • Revenue increased to $19.2 million, from $17.3 million in the first quarter of 2010;
  • OG&A expenses decreased to $2.5 million, from $2.9 million in the first quarter of 2010;
  • Net loss of $2.0 million ($0.02 loss per share) versus a net loss of $1.7 million ($0.02 loss per share) in the first quarter of 2010;
  • Cash flow used in operations was $1.6 million ($0.01 per share) compared with cash flow provided by operations of $0.4 million ($0.01 per share) in the first quarter of 2010.
  • An equity private placement of $2.0 million and a convertible debenture private placement of $0.7 million successfully closed in the quarter.

"Our direct margins are on target, and our revenues have increased," said Guy Nelson, Chief Executive Officer of Empire Industries Ltd. "However, we have not yet achieved the sales volume we need to return to profitability in western Canada. As a consequence, the Company continues to aggressively assess the long term strategic importance of all its operations that face challenges on the competitiveness of their strategic offering in the marketplace. As the economy continues to improve, we expect additional revenue and profit growth driven by our amusement ride manufacturing business, our First Nations joint venture in the oil sands maintenance business, our Chinese joint venture and the recovery of industrial and infrastructure spending for steel fabrication and construction in western Canada."

Subsequent to the quarter-end, the Company completed a further equity private placement resulting in $2.0 million of new capital for the Company. If the warrants from the 2011 private placements are executed, an additional $6.2 million of equity would be raised.

About Empire Industries Ltd.

Empire Industries Ltd. is based primarily in western Canada, providing specialized engineered products and steel fabrication & installation. It also participates in a strategic partnership in the industrial maintenance services sector through its equity stake in ACE Industrial Services, based in Fort McMurray. The Company's business operations are focused on the infrastructure, commercial and industrial construction marketplace of western Canada and select niche markets internationally. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.

Reader Advisory

This 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.

173,239,608 Common Shares

Neither 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.

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