WINNIPEG, MANITOBA--(Marketwire - Nov. 29, 2012) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its unaudited consolidated financial results for the third quarter ended September 30, 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 September 30 | |
| | Q3 | Q3 | | YTD | YTD | |
| ($ millions except share price and per share amounts) | 2012 | 2011 | | 2012 | 2011 | |
| Financial Results | | | | | | |
| | Revenue | 20.4 | 13.4 | | 59.8 | 42.8 | |
| | Adjusted Gross Margin ($)2 | 2.7 | 1.5 | | 8.3 | 4.7 | |
| | Adjusted EBITDA ($)3 | 0.7 | (0.5 | ) | 1.6 | (1.6 | ) |
| | Net income (loss) from continuing operations | 0.2 | (1.5 | ) | 2.1 | (4.5 | ) |
| | Net income (loss) from all operations | NIL | (2.8 | ) | 1.7 | (6.4 | ) |
| Financial Position (at September 30) | | | | | | |
| | Total assets | 35.6 | 41.8 | | 35.6 | 41.8 | |
| | Long-term funded debt | 1.7 | 7.4 | | 1.7 | 7.4 | |
| | Shareholders' equity | 9.5 | 7.6 | | 9.5 | 7.6 | |
| Basic Per Share Information | | | | | | |
| | Income (loss) per share from continuing operations | 0.0 | (0.01 | ) | 0.01 | (0.03 | ) |
| | Income (loss) per share from all operations | 0.0 | (0.02 | ) | 0.01 | (0.04 | ) |
| Diluted Per Share Information | | | | | | |
| | Income (loss) per share from continuing operations | 0.0 | (0.01 | ) | 0.01 | (0.03 | ) |
| | Income (loss) per share from all operations | 0.0 | (0.02 | ) | 0.01 | (0.04 | ) |
(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 for which the Group does not possess sufficient managerial influence, 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
- Third quarter Revenues from continuing operations increased by $6.9 million to $20.4 million (52% increase over third quarter Revenue of 2011).
- The Group had net income of $NIL million for the third quarter ($0.00 per share), versus a loss of $2.8 million (loss of $0.02 per share) in the third quarter of 2011.
- Adjusted EBITDA from continuing operations was $0.7 million in the third quarter 2012 versus an Adjusted EBITDA loss in the third quarter of 2011 of $0.5 million.
- Long Term debt was reduced to $1.6 million at September 30, 2012 from $6.8 million at December 31, 2011.
- The Company had Cash of $0.8 million and NIL Bank Advances at September 30, 2012 as compared to Bank Indebtedness of $8.8 million at December 31, 2011.
- Backlog has increased to $84 million September 30, 2012 from $43 million at December 31, 2011;
"I am pleased to report that our improved backlog of work continues to translate into a return to profitable operations along with a continuing strengthening of our balance sheet," said Guy Nelson, CEO of Empire Industries. "The strategic growth initiatives we have undertaken in the oil sands region of Alberta and in China and building up our own portfolio of unique and proprietary media based attractions continues to gather momentum and the Company continues to explore ways to leverage its proprietary assets and unique positioning in these growth markets."
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.
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.