WINNIPEG, MANITOBA--(Marketwired - May 25, 2015) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its unaudited consolidated financial results for the first quarter ended March 31, 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 First Quarter 2015 results
- Revenues decreased by $0.5 million, or 1.5% (to $33.2 million from $33.7 million in first quarter 2014)
- Adjusted EBITDA decreased by $0.9 million, or 36% (to $1.5 million from $2.4 million in first quarter 2014)
- Net Loss, after taking into consideration an unrealized loss on forward foreign exchange contracts of $1.9 million, was $0.9 million, versus net income of $1.2 million in first quarter 2014
- The non-cash unrealized foreign exchange loss of $1.9 million in the quarter compares to a loss of $0.6 million in the comparative period relating to outstanding forward foreign currency instruments. This loss resulted from the significant decline of the Canadian dollar incurred during the period as compared to the rates negotiated in the underlying contracts.
- Net Loss was $0.003 per share, versus net income per share of $0.005 in first quarter 2014
- Backlog of $195 million at March 31, 2015, up from $155 million at December 31, 2014
For the quarter and year ended March 31
| Q1 | Q1 | |||||
| ($millions except share price and per share amounts) | 2015 | 2014 | ||||
| Financial Results | ||||||
| Revenue | 33.2 | 33.7 | ||||
| Adjusted EBITDA ($)1 | 1.5 | 2.4 | ||||
| Net income (loss) from all operations, after unrealized foreign exchange loss of ($1.9 million; $0.6 in 1st quarter 2014) | (0.9 | ) | 1.2 | |||
| Financial Position (at March 31) | ||||||
| Total assets | 74.5 | 49.3 | ||||
| Long-term debt (including current portion) | 2.9 | 3.5 | ||||
| Shareholders' equity | 21.1 | 16.6 | ||||
| Per Share Information | ||||||
| Income per share (Basic) | $ | (0.003 | ) | $ | 0.005 | |
| Income per share (Diluted) | $ | (0.003 | ) | $ | 0.005 | |
| 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. 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. |
"The first quarter was negatively influenced by tighter margins on steel fabrication work and lower sales of hydrovac trucks both of which are reflective of a challenging economic environment in Alberta. The Media Based Attractions had a good quarter, and was similar to the first quarter of 2014," said Guy Nelson, CEO. " I expect our Media Based Attractions to continue to strengthen as we work through our record backlog and to offset the headwinds we expect to continue to feel in our domestic businesses operating in Alberta."
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 manufactures and sells hydrovac trucks and 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.
Contact Information:
Guy Nelson
Executive Chairman & CEO
(416) 366-7977
gnelson@empind.com
Empire Industries Ltd.
Allan Francis
VP Corporate Affairs & Administration
(204) 589-9301
afrancis@empind.com