WINNIPEG, November 15, 2017 – Empire Industries Ltd. (TSX-V: EIL) (“Empire” or the “Company”) today reported its unaudited consolidated financial results for the quarter ended September 30, 2017. 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 Third Quarter 2017 Performance
- Contract Backlog was $235 million CAD as of September 30, 2017 which represents a strong volume base moving forward. The Group has successfully positioned itself to be a globally competitive leader in the higher margin, rapidly growing, media-based attractions market niche that is expected to grow rapidly for many years to come.
- Year-to-date revenues increased by $15.3 million, or 16.9 % (to $105.8 million from $90.5 million in the 3rd quarter 2016). This increase in revenues compared to 2016 was due to the Group being into the production phase on 5 major projects which in the previous year were still in largely the design phase. This increase in production has also offset the Group’s decision to reduce operations in the industrial steel fabrication.
- Year-to-date Adjusted EBITDA increased by $4.0 million, or 91% to $8.4 million compared to the same period in 2016, with the increase all attributed to higher revenue volumes and improved adjusted gross margins.
- Net Income (Loss) decreased by $4.2 million, or 35.3% (to $2.3 million from $6.5 million in the third quarter 2016). 2016 had income from discontinued operations of $2.5 million and positive fair value changes in derivative financial instruments of $5.0 million that increased the net income figure.
| For the three and nine month periods ended Sept 30: | ||||||||
| ($ millions except per share amounts) | YTD 2017 | YTD 2016 | Q3 2017 | Q3 2016 | ||||
| Financial Results | ||||||||
| Revenue | 105.8 | 90.5 | 41.5 | 32.3 | ||||
| Adjusted EBITDA ($)1 | 8.4 | 4.4 | 2.7 | 2.0 | ||||
| Adjusted EBIT ($)1 | 5.4 | 2.6 | 1.6 | 1.4 | ||||
| Net income (loss) from all operations | 2.3 | 6.5 | 0.9 | (0.3) | ||||
| Financial Position (at Sept 30) | ||||||||
| Total assets | 89.5 | 76.4 | – | – | ||||
| Long-term debt (including current portion) | 13.4 | 6.7 | – | – | ||||
| Shareholders’ equity | 23.8 | 22.4 | – | – | ||||
| Per Share Information (Basic) | ||||||||
| Income per share – continuing operations | 0.035 | 0.064 | 0.013 | (0.004) | ||||
| Income per share – discontinued operations | 0.033 | 0.056 | 0.000 | (0.000) | ||||
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. Adjusted EBIT is the result of the Group’s Adjusted EBITDA less depreciation and amortization expenses. While not IFRS measures, Adjusted EBITDA and Adjusted EBIT are used by management, creditors, analysts, investors and other financial stakeholders to assess the Group’s performance and management from a financial and operational perspective.
“We made significant progress this quarter towards firmly establishing Empire as the go-to company for industry leading, technologically advanced rides” said Guy Nelson, Empire’s Executive Chairman and CEO. “Our year-to-date results reflect a movement towards higher margin activities in 2017.”
The company has successfully positioned itself to become a globally competitive leader in the higher margin, rapidly growing, media-based attractions market niche. The company expects to benefit from its strategic focus on a market niche that is expected to grow rapidly for many years to come as it works to convert its record high pipeline of outstanding proposals into a backlog of contracts.
The company’s previously announced $31 million financing of its Co-venture initiative is proceeding on schedule. The subscription receipt transaction has closed, with the funds held in escrow pending the funding of Dynamic Entertainment Group Ltd., and the rights offering to the company’s shareholders in currently underway, closing on November 27, 2017. Shareholders are reminded that they may need to instruct their brokers at least several days in advance, so the brokers can complete their instructions prior to the closing date.
Conference Call Information
Empire’s management team will be holding an investor/analyst conference call to discuss the third quarter results and the outlook for the company. The call-in details are as follows:
Time/Date: November 22, 2017 at 10:00AM Eastern Time
Dial-in Number: 1-800-319-4610 (Canada/USA toll-free)
1-416-915-3239 (Toronto)
Callers should dial in 5 – 10 minutes prior to the scheduled start time and ask to join the Empire Industries Third Quarter 2017 Results Conference Call.
About Empire Industries Ltd.
Empire Industries manufactures specialized engineered products and sells these products domestically and internationally. The company has designed and engineered precision equipment for two highly specialized international markets: media based attractions and very large astronomical telescopes and enclosures. In addition, the company provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company also has several equity investments that complement its operating businesses. 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 or contact:
| Guy Nelson
Chief Executive Officer Phone: (416) 366-7977 Email: gnelson@empind.com |
Allan Francis
Vice President – Corporate Affairs and Administration Phone: (204) 589-9301 Email: afrancis@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.
