WINNIPEG, MANITOBA--(Marketwired - Aug. 26, 2015) - Empire Industries Ltd. (TSX VENTURE:EIL) ("Empire" or the "Company") today reported its unaudited consolidated financial results for the quarter ended June 30, 2015. 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 Second Quarter 2015 results
- Revenues increased by $2.4 million, or 6.8% (to $37.3 million from $34.9 million in the second quarter 2014)
- Adjusted EBITDA decreased by $0.04 million, or 2.5% (to $1.48 million from $1.52 million in the second quarter 2014)
- Net Income decreased by $0.8 million, or 46% (to $0.9 million from $1.6 million in the second quarter 2014)
| For the quarter and six month periods ended June 30 ($ millions except share price and per share amounts) |
Q2 2015 | Q2 2014 | YTD 2015 | YTD 2014 | |
| Financial Results | |||||
| Revenue | 37.3 | 34.9 | 70.5 | 68.5 | |
| Adjusted EBITDA ($)1 | 1.5 | 1.5 | 3.0 | 3.9 | |
| Adjusted EBIT ($)1 | 1.1 | 1.2 | 2.2 | 3.2 | |
| Net income from all operations | 0.9 | 1.6 | 0.0 | 2.9 | |
| Financial Position (at June 30) | |||||
| Total assets | 75.4 | 59.6 | 75.4 | 59.6 | |
| Long-term debt (including current portion) | 2.3 | 3.3 | 2.3 | 3.3 | |
| Shareholders' equity | 21.6 | 18.3 | 21.6 | 18.3 | |
| Per Share Information | |||||
| Income per share (Basic) | 0.003 | 0.005 | 0.000 | 0.010 | |
| Income per share (Diluted) | 0.003 | 0.005 | 0.000 | 0.010 | |
| (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. |
"Our Media Based Attractions segment continues to grow. In addition to higher revenues, we also saw our backlog grow to $180 million, in part through a $24 million contract to a repeat customer in South Asia. In addition, the Honourable James Moore, Minister of Industry for Canada, announced that Empire will receive up to $70 million to build the precision-steel enclosure of the Thirty Meter Telescope, the world's largest telescope," said Guy Nelson, Empire's Chief Executive Officer. "However, we are still facing the ramifications of the challenging economic conditions in western Canada in both our steel fabrication business and our hydrovac truck business. Nevertheless, our strategy to reposition the company in highly engineered, manufactured product market niches with higher margins and higher growth is paying off, and we expect our balance sheet to continue to strengthen through continued earnings generation and debt repayment."
Earnings are impacted by unrealized foreign exchange gains (losses) on mark-to-market forward contracts outstanding. The impact of settling the forward contracts is recognized through sales revenue at the time of settlement. The resulting impact of settling the outstanding "out of the money" hedges while being reflected in future financial results will be included with additional US dollar denominated revenues at exchange rates that are more reflective of current market rates.
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" or similar expressions and includes suggestions of future outcomes. 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.
Contact Information:
Guy Nelson
Chief Executive Officer
(416) 366-7977
gnelson@empind.com
Empire Industries Ltd.
Allan Francis
Vice President - Corporate Affairs and Administration
(204) 589-9301
afrancis@empind.com