WINNIPEG, May 31, 2010 – Empire Industries Ltd. (TSX-V: EIL) today reported its financial results for the first quarter of 2010. The consolidated financial statements and MD&A for the first quarter of 2010 have been filed on SEDAR and can be viewed at www.sedar.com or at www.empind.com.
Highlights
Gross profit was $2.9 million in the first quarter of 2010 (14% of revenue) which was down from $3.9 million (9% of revenue)in the first quarter of 2009,
Revenue decreased to by $21.4 million to $20.6 million;
OG&A expenses of $3.3 million decreased by $1.8 million or 35% over the same quarter last year;
EBITDA loss of $42,000 improved by $1.1 million over the EBITDA loss in the same quarter last year;
Cash used by operations in the first quarter of 2010 improved by $0.8 million to $0.7 million;
Net loss was $1.6 million, or $0.02 loss per share, compared with net loss of $1.6 million or $0.02 loss per share for the three months ended March 31, 2009. Excluding a valuation allowance of $0.6 million in the current quarter regarding the value of future tax assets, the loss would have been $1.0 million, and the loss per share would have been $0.01;
Funded debt reduced to $21.2 million from $41.8 million (decrease of 49%). Net funded debt to total capitalization improved to 39% from 51% at March 31, 2009.
The Company’s liquidity position strengthened in the quarter due to the re-financing transaction with Canadian Western Bank on March 4, 2010. The current ratio improved to 1.27 times at March 31, 2010 compared to 1.09 times at December 31, 2009.
“We’ve been successful at driving fixed costs out of our business, which is largely responsible for the improvement compared to last year. However, given the lower sales activity, we continue to make adjustments to our cost structure to ensure it is in line with our expected sales activity,” said Guy Nelson, Chairman and CEO of Empire Industries Ltd. “The company continues to focus on strengthening its backlog and revenue throughput. We expect our ongoing efforts to improve revenues and further reduce our expenses and enhance our shop efficiencies, will accelerate our return to profitability.”
