Empire Industries Ltd.

Empire Industries Ltd.

November 29, 2011 16:00 ET

Empire Industries Reports Third Quarter Results

WINNIPEG, MANITOBA--(Marketwire - Nov. 29, 2011) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its financial results for the quarter ended September 30, 2011. 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 results

  • Year-to-date revenue increased by 4.1% to $54.7 million, from $52.5 million as of the third quarter of 2010;
  • Backlog increased to $39.2 million at September 30, 2011 from $19.5 million at December 31, 2010;
  • Year-to-date net loss of $6.4 million ($0.04 loss per share) versus a net loss of $6.0 million ($0.07 loss per share) as of the third quarter of 2010;
  • Cash flow used in continuing operations in the quarter was $2.0 million ($0.01 per share) versus $0.6 million ($nil per share) in the third quarter of 2010.

"While our revenues and backlog continue to increase and our focus on engineered products gathers momentum and success, our losses were negatively impacted by a $1.2 million loss on a single steel fabrication contract in the quarter," said Guy Nelson, Chief Executive Officer of Empire Industries Ltd.

The Company continues to look at all its options as it relates to accelerating its focus on engineered products and reducing its investment in domestic steel fabrication capacity. The Company's transformation will continue throughout the balance of 2011 and expects to return to profitability in 2012 through redeploying its capital towards the specialty engineered products market, the Fort McMurray industrial maintenance services market, and the Chinese steel fabrication market.

About Empire Industries Ltd.

Empire Industries Ltd. manufactures specialized engineered products and sells these products domestically and in select international export markets. The company also provides steel fabrication and 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.

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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