Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

April 22, 2014 07:00 ET

Empire Industries Reports 2013 Profit of $4.4 Million

WINNIPEG, MANITOBA--(Marketwired - April 22, 2014) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its audited consolidated financial results for the year ended December 31, 2013. 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.

Summary of 2013 annual results

  • Revenues increased by $34.1 million, or 41% (to $117.8 million from $83.7 million in 2012)
  • Adjusted EBITDA increased by $4.3 million, or 215% (to $6.3 million from $2.0 million in 2012)
  • Net Income increased by $5.0 million (to $4.4 million from a net loss of $0.6 million in 2012). Net Income was $0.02 per share in 2013 versus Nil in 2012.
  • Backlog of $116 million, up from $73 million at of the Group's third quarter report;
For the quarter and year ended December 31
($ millions except share price and per share amounts) Fiscal
2013
Fiscal
2012
Q4
2013
Q4
2012
Financial Results
Revenue 117.8 83.7 31.5 24.6
Adjusted EBITDA ($)1 6.3 2.0 1.2 -
Adjusted EBIT ($)1 5.2 0.9 1.0 -
Net income from all operations 4.4 (0.6 ) 0.7 (2.4 )
Financial Position (at December 31)
Total assets 52.3 36.3 53.3 36.3
Long-term debt (including current portion) 4.6 3.7 4.6 3.7
Shareholders' equity 15.3 7.2 15.3 7.2
Per Share Information
Income per share (Basic) 0.02 (0.00 ) (0.005 ) (0.01 )
Income per share (Diluted) 0.02 (0.00 ) (0.005 ) (0.01 )
1 Adjusted 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. Adjusted EBIT is the result of the Group's Adjusted EBITDA less depreciation and amortization expenses. While not IFRS measures, Adjusted EBITDA and Adjusted EBIT are used by management, creditors, analysts, investors and other financial stakeholders to assess the Group's performance and management from a financial and operational perspective.

"There are three observations I would like to highlight. First, our return to positive EBITDA is gaining momentum because of the successful transformation of our business in response to market threats and opportunities. Secondly, we have significantly increased our investment in broadening and strengthening our proprietary engineered product line, the benefit of which will come in the months and years ahead. Thirdly, our geographic diversity continues to gather momentum as can be seen in the more than doubling of revenue from exports to Asia and the Middle East aggregating $49 million in 2013," said Guy Nelson, Chief Executive Officer of Empire Industries Ltd. "Since we launched our Dynamic Attractions business unit, the Company has secured contracts in excess of $60 million to design, fabricate and install proprietary, amusement and media-based attractions to the global amusement park market. I expect this trend of increasing bottom line performance by all three of our business segments to continue because the markets we are targeting have a robust outlook of growth ahead of them."

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 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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