WINNIPEG, April 30, 2012 – Empire Industries Ltd. (TSX-V: EIL) today reported its audited consolidated financial results for the year ended December 31, 2012. The audited 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
- Revenues from continuing operations increased by 54% in the fourth quarter to $12.8 million and increased by 11% to $55.4 million for the year;
- The Company had a fourth quarter 2011 net loss of $0.9 million ($0.01 loss per share) versus a net loss of $3.3 million ($0.04 loss per share) for the fourth quarter of 2010;
- The Company had a net loss of $7.3 million ($0.05 loss per share) versus a net loss of $9.3 million ($0.10 loss per share) for 2010;
- Completed the sale of three steel fabrication facilities plus miscellaneous redundant assets during the year and the sale of a steel erection firm subsequent to year end, with the proceeds used to reduce Funded Debt
- The Company’s Net Funded Debt decreased to $9.6 million at December 31, 2011 compared to $16.7 million at December 31, 2010 and down from $48.2 million at December 31, 2008.
- Raised equity during the year totalling $5.1 million and convertible subordinate debt of $1.1 million
- Commenced the operations of Dynamic Attractions in the fourth quarter of 2011 to sell the Company’s proprietary media-based attractions to the global amusement park market
- The Company’s aboriginal partnership in the oil sands region of Alberta, more than doubled its capacity by acquiring Bartan Machine & Welding in the fall of 2011
- Invested $0.7 million to acquire a 45% equity interest in a Chinese steel fabrication joint venture. This investment was financed by a $0.7 million limited recourse loan.
- Backlog has increased to $43 million at December 31, 2011 from $19.5 million at December 31, 2010;
- Backlog increased significantly in the first quarter of 2012 to $92 million at March 31, 2012
“There are two major achievements that I would like to highlight. First, we have reduced our Funded Debt from $48 million at the end of 2008 to $10 million at the end of 2011. Secondly, the significant investment we have been making in broadening our proprietary engineered product line is starting to show signs that it is working as represented by our record current backlog of $92 million,” said Guy Nelson, Chief Executive Officer of Empire Industries Ltd. “Furthermore, I expect to see this trend of increasing backlog to continue and to translate into increasing profits which have been non-existent since the start of the recession in 2008.”
The Company’s strategic transformation is largely complete now and we are focusing our attention on performing our record backlog, continually adding to the backlog and delivering the type of profit inherent in our product sales. We expect to return to profitability in 2012 because of our specialty engineered products and because our steel fabrication business unit is now much leaner and cost competitive than ever before. The Company plans to embark on a communications program with its shareholders to explain the progress that has been made to align the value of the shares with their trading price.
Re-stated 2011 Interim Statements
Management conducted additional analysis of the transition to IFRS accounting presentation, specifically as it pertains to property, plant & equipment and deferred income taxes. To ensure that the opening equity balances in the interim statements conform with the year-end IFRS audited financial statements, the Company has restated its 1st, 2nd, and 3rd quarter unaudited interim financial statements. These restated financial statements can be viewed at www.sedar.com or at www.empind.com. Changes to balances in property, plant & equipment, deferred tax assets and deferred tax liabilities resulted in a change to the December 31, 2010 opening equity balance from $10.2 million to $9.7 million.