Empire Industries Ltd.

Empire Industries Ltd.

August 26, 2011 16:00 ET

Empire Industries Reports 2011 Second Quarter Results

WINNIPEG, MANITOBA--(Marketwire - Aug. 26, 2011) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its financial results for the quarter ended June 30, 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 $22.1 million, from $18.7 million in the second quarter of 2010;
  • Net loss of $1.6 million ($0.01 loss per share) versus a net loss of $2.6 million ($0.03 loss per share) in the first quarter of 2010;
  • Cash flow used in operations was $0.5 million ($nil per share) compared with cash flow provided by operations of $1.8 million ($0.01 per share) in the first quarter of 2010.
  • An equity private placement of $2.0 million of new capital.

"Our revenues have increased, and our indirect and fixed costs have been reduced," said Guy Nelson, Chief Executive Officer of Empire Industries Ltd. "We are aggressively pursuing additional sales and higher margin jobs needed to return to profitability. We expect additional revenue and profit growth driven by our media attractions business, our First Nations joint venture in the oil sands maintenance business, and our Chinese joint venture. Our steel fabrication and construction business in western Canada is also expected to obtain higher margin jobs as a result of the expected recovery of industrial and infrastructure spending."

In the quarter, the Company completed a 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.

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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