Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

August 29, 2016 17:07 ET

Empire Industries Reports Second Quarter 2016 Results

WINNIPEG, MANITOBA--(Marketwired - Aug. 29, 2016) - Empire Industries Ltd. (TSX VENTURE:EIL) ("Empire" or the "Company") today reported its unaudited consolidated financial results for the quarter ended June 30, 2016. 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 2016 results

  • Revenues decreased by $1.1 million, or 1.8% (to $58.1 million from $59.2 million in the second quarter 2015)
  • Adjusted EBITDA decreased by $0.5 million, or 35.7% (to $0.9 million from $1.4 million in the second quarter 2015)
  • Loss before unrealized foreign exchange gains increase by $0.9 million
  • Net Income increased by $2.2 million, or 247% (to $3.0 million from $0.9 million in the second quarter 2015). This was driven by $2.9 million net income from discontinued operations in the quarter associated with the spin-out of the Groups Manufactured Products operating segment (Tornado Hydrovacs).
For the quarter and six month periods ended June 30
($ millions except share price and per share amounts) Q2 2016 Q2 2015 YTD 2016 YTD 2015
Financial Results
Revenue 30.3 30.6 58.1 59.2
Adjusted EBITDA ($)1 0.9 1.4 0.9 3.0
Adjusted EBIT ($)1 0.2 1.0 0.2 2.3
Net income from all operations 3.1 0.9 6.8 0.0
Financial Position (at June 30)
Total assets 71.9 76.0 71.9 76.0
Long-term debt (including current portion) 5.0 2.5 5.0 2.5
Shareholders' equity 22.2 22.2 22.2 22.2
Per Share Information
Income per share (Basic) 0.048 0.014 0.106 0.001
Income per share (Diluted) 0.047 0.013 0.104 0.001
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.

"We are pleased with the results we are reporting today," said Guy Nelson, CEO of Empire. "Our strategic initiatives are on track. For example, we closed on the Tornado spin-out transaction, which has created significant value for our shareholders. Not only did our shareholders benefit directly by receiving Tornado shares, Empire itself recorded a gain of $3.5 million on the transaction, which is reflected in our second quarter net income. In addition, the award of the $10 million design contract for the Thirty Meter Telescope keeps that project on track. We remain confident that supply and installation contracts for the enclosure will follow as the project develops."

About Empire Industries Ltd.

Empire Industries manufactures specialized engineered products and sells these products domestically and internationally. The company has designed and engineered precision equipment for two highly specialized international markets; media based attractions and very large astronomical telescopes and enclosures. In addition, the company provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company 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.

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