Empire Industries Ltd.

Empire Industries Ltd.

May 30, 2012 18:29 ET

Empire Industries Reports First Quarter Results

WINNIPEG, MANITOBA--(Marketwire - May 30, 2012) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its unaudited consolidated financial results for the first quarter ended March 31, 2012. 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.

For the year and quarter ended March 31
Q1 Q1
($ millions except share price and per share amounts) 2012 2011
Financial Results
Revenue 17.1 15.1
Adjusted Gross Margin ($)2 2.2 1.0
Adjusted EBITDA ($)3 0.2 (1.1 )
Net income (loss) from continuing operations 1.1 (1.9 )
Net income (loss) from all operations 1.1 (2.0 )
Financial Position (at December 31)
Total assets 30.8 42.9
Long-term debt 4.2 12.9
Shareholders' equity 8.8 9.8
Basic Per Share Information
Income (loss) per share from continuing operations 0.01 (0.02 )
Income (loss) per share from all operations 0.01 (0.02 )
Diluted Per Share Information
Income (loss) per share from continuing operations 0.01 (0.02 )
Income (loss) per share from all operations 0.01 (0.02 )
1 Prepared in accordance with IFRS.
2 Adjusted Gross Margin takes into account revenues and direct and indirect cost of sales excluding depreciation and amortization. While not an IFRS measure, Adjusted Gross Margin is a key metric used by management to assess the operational performance of the Group.
3 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.

Summary of results

  • Revenues from continuing operations increased by 2.0 million or 13% in the first quarter to $17.1 million.
  • The Group had net income of $1.1 million for the quarter or $0.01 per share, versus a loss $2.0 million ($0.02 per share) in the first quarter of 2011.
  • EBITDA from continuing operations was $0.2 million in the first quarter 2012 versus an EBITDA loss in the first quarter of 2011 of $(1.1).
  • Completed the sale of its KWH Constructors and Somerset engineering division for a net gain of 1.4 million.
  • Long Term debt was reduced to $4.2 million at March 31, 2012 from $10.5 million at December 31, 2011 and $12.9 million at March 31, 2011.
  • Backlog has increased to $92 million at March 31, 2012 from $43.0 million at December 31, 2011 and $25.6 million at March 31, 2011;

"The Company's strategic transformation is largely complete and we are now focusing our attention on performing our record backlog, continually adding to the backlog and delivering the level of profit inherent in our unique, engineered products and differentiated steel fabrications services," said Guy Nelson, CEO of Empire Industries. "We expect profitability to continue to increase and gather momentum throughout 2012 as we manufacture and deliver our specialty engineered products and as our steel fabrication capacity gets fully utilized in Canada and China."

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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