Empire Industries Ltd.

Empire Industries Ltd.

April 30, 2013 16:00 ET

Empire Industries Reports 2012 Year-End Results

WINNIPEG, MANITOBA--(Marketwired - April 30, 2013) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its audited consolidated financial results for the year ended December 31, 2012. The audited 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 December 31
($ millions except share price and per share amounts) Q4 2012 Q4 2011 20121 20111
Financial Results
Revenue 24.6 12.6 83.7 54.1
Adjusted EBITDA2 (0.0 ) (1.4 ) 2.0 (3.3 )
Net income (loss) from continuing operations (1.5 ) (1.6 ) 0.9 (6.2 )
Net loss from all operations (2.4 ) (0.9 ) (0.6 ) (7.3 )
Financial Position (at December 31)
Total assets 36.3 38.9
Net Funded debt 1.6 0.8
Subordinate Debt & limited recourse loan 2.3 3.7
Shareholders' equity 7.2 7.7
Share Information
Income (loss) per share from continuing operations ($) (0.01 ) (0.01 ) 0.01 (0.04 )
Income (loss) per share from all operations ($) (0.01 ) (0.01 ) (0.00 ) (0.05 )

1Prepared in accordance with IFRS.

2Adjusted 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 results

  • Revenues from continuing operations increased by 96% in the fourth quarter to $24.6 million and increased by 55% to $83.7 million for the year;
  • The Company had a fourth quarter 2012 Adjusted EBITDA of $0.0 million versus a net loss of $1.4 million for the fourth quarter of 2011;
  • The Group had annual Adjusted EBITDA of $2.0 million versus an Adjusted EBITDA loss of $3.3 million in 2011.
  • The Group had a net loss of $0.6 million ($0.00 loss per share) versus a net loss of $7.3 million ($0.05 loss per share) for 2011;
  • The Group secured contracts in excess of $70 million to design, fabricate and install amusement and media-based attractions to the global amusement park market.
  • Backlog has increased to $92 million at December 31, 2012 from $43 million at December 31, 2011;

"There are two observations I would like to highlight. First, we have returned to positive EBITDA after years of grinding it out through the recession and transforming our business in response to market threats and opportunities. Secondly, we have more than doubled our backlog year over year and the mix of the backlog is shifting to our higher value added, proprietary engineered products," said Guy Nelson Chief Executive Officer of Empires Industries Ltd. "Furthermore, I expect this trend of increasing bottom line performance and strengthening backlog to continue because the markets we are targeting have a robust outlook of growth ahead. The company is now focusing on strengthening its balance sheet to perform its increasingly international backlog of work."

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.

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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