Empire Industries Ltd.

Empire Industries Ltd.

November 26, 2013 07:00 ET

Empire Industries Reports Third Quarter Results

WINNIPEG, MANITOBA--(Marketwired - Nov. 26, 2013) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its unaudited consolidated financial results for the third quarter ended September 30, 2013. 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 quarter and year-to-date ended September 30
($ millions except share price and per share amounts) Q3 2013 Q3 2012 YTD 2013 YTD 2012
Financial Results
Revenue 34.1 20.1 86.3 59.1
Adjusted Gross Margin ($)(2) 5.8 2.8 14.6 8.4
Adjusted EBITDA ($)(3) 2.1 0.6 5.1 2.0
Net income from continuing operations 1.6 0.4 3.7 2.5
Net income from all operations 1.6 - 3.7 1.7
Financial Position (at September 30)
Total assets 39.7 35.6
Long-term debt (including current portion) (0.2 ) (1.7 )
Shareholders' equity 13.8 9.5
Basic Per Share Information
Income per share from continuing operations 0.01 - 0.02 0.01
Income per share from all operations 0.01 - 0.02 0.01
Diluted Per Share Information
Income per share from continuing operations 0.01 - 0.01 0.01
Income per share from all operations 0.01 - 0.01 0.01

(1) Prepared in accordance with IFRS.

(2) Adjusted Gross Profit takes into account revenues and direct and indirect cost of sales excluding depreciation and amortization. While not an IFRS measure, Adjusted Gross Profit 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 $27.2 million or 46% in the first nine months of 2013 to $86.3 million.
  • EBITDA from continuing operations increased by $3.1 million or 155% in the first nine months of 2013 to $5.1 million.
  • The Group had net income of $3.7 million for the first nine months of 2013 ($0.02 per share), versus net income of $1.7 million ($0.01 per share) in the first nine months of 2012.
  • Shareholders' Equity was $13.8 million at September 30, 2013, an increase of $4.3 million (45%) over the prior period.

"The financial results highlighted above and our $3 million private placement and our outlook for the future, all combined to help us successfully negotiate and announce a $13.5 million senior lending facility with CIBC just after the third quarter ended," said Guy Nelson, CEO of Empire Industries. "As our shareholders all know, it has been a difficult and challenging time to reposition our Canadian manufacturing and fabrication into a company able to compete in a globally competitive environment. Great strides have been made, as this quarter demonstrates, but much more is to be done and we are looking forward with more optimism and clarity than at any time in our history as a public company. In addition, our income will be shielded from tax by our tax loss carryforwards, which were valued at $21 million as of December 31, 2012."

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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