WINNIPEG, June 30, 2011 – Empire Industries Ltd. (TSX-V: EIL) today reported its financial results for the quarter ended March 31, 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
- Revenue increased to $19.2 million, from $17.3 million in the first quarter of 2010;
- OG&A expenses decreased to $2.5 million, from $2.9 million in the first quarter of 2010;
- Net loss of $2.0 million ($0.02 loss per share) versus a net loss of $1.7 million ($0.02 loss per share) in the first quarter of 2010;
- Cash flow used in operations was $1.6 million ($0.01 per share) compared with cash flow provided by operations of $0.4 million ($0.01 per share) in the first quarter of 2010.
- An equity private placement of $2.0 million and a convertible debenture private placement of $0.7 million successfully closed in the quarter.
“Our direct margins are on target, and our revenues have increased,” said Guy Nelson, Chief Executive Officer of Empire Industries Ltd. “However, we have not yet achieved the sales volume we need to return to profitability in western Canada. As a consequence, the Company continues to aggressively assess the long term strategic importance of all its operations that face challenges on the competitiveness of their strategic offering in the marketplace. As the economy continues to improve, we expect additional revenue and profit growth driven by our amusement ride manufacturing business, our First Nations joint venture in the oil sands maintenance business, our Chinese joint venture and the recovery of industrial and infrastructure spending for steel fabrication and construction in western Canada.”
Subsequent to the quarter-end, the Company completed a further equity private placement resulting in $2.0 million of new capital for the Company. If the warrants from the 2011 private placements are executed, an additional $6.2 million of equity would be raised.
