Empire Industries Ltd.

Empire Industries Ltd.

May 22, 2014 07:00 ET

Empire Industries Reports First Quarter 2014 Profit of $1.2 million

WINNIPEG, MANITOBA--(Marketwired - May 22, 2014) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its unaudited consolidated financial results for the first quarter ended March 31, 2014. 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 the First Quarter 2014 results

  • Revenues increased by $9.8 million, or 41% (to $33.6 million from $23.8 million in first quarter 2013)
  • Adjusted EBITDA increased by $0.8 million, or 55% (to $2.4 million from $1.5 million in first quarter 2013)
  • Net Income increased by $0.1 million, or 12% (to $1.2 million from $1.1 million in first quarter 2013).
  • Net Income was $0.005 per share, the same as in first quarter 2013.
  • Backlog of $123 million at March 31, 2013, up from $116 million at December 31, 2013;
For the quarter and year ended March 31
($ millions except share price and per share amounts) Q1 2014 Q1 2013
Financial Results
Revenue 33.6 23.8
Adjusted EBITDA ($)1 2.4 1.5
Net income from all operations 1.2 1.0
Financial Position (at March 31)
Total assets 49.3 43.3
Long-term debt (including current portion) 3.5 1.6
Shareholders' equity 16.6 8.3
Per Share Information
Income per share (Basic) $0.005 $0.005
Income per share (Diluted) $0.005 $0.005
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. 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.

"Our Media Based Attractions and Manufactured Products segments showed significant improvement over the prior period's first quarter," said Guy Nelson, Chief Executive Officer of Empire Industries Ltd. "Our Steel Fabrication segment struggled again in the first quarter with a lack of revenue. However, I am pleased to see that the Steel Fabrication segment was awarded a significant volume of work during the first quarter of 2014, so we expect improved results as this backlog is executed."

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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