Empire Industries Reports Second Quarter Results

WINNIPEG, August 29, 2012 – Empire Industries Ltd. (TSX-V: EIL) today reported its unaudited consolidated financial results for the second quarter ended June 30, 2012. 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

  • Second quarter Revenues from continuing operations increased by $5.0 million to $22.4 million (29% increase over second quarter Revenue of 2011).
  • The Group had net income of $0.7 million for the second quarter ($0.00 per share), versus a loss of $1.6 million (loss of $0.01 per share) in the second quarter of 2011.
  • EBITDA from continuing operations was $1.0 million in the second quarter 2012 versus an EBITDA in the second quarter of 2011 of $0.0 million.
  • Long Term debt was reduced to $1.7 million at June 30, 2012 from $6.8 million at December 31, 2011 and $7.6 million at June 30, 2011.
  • The Company had Cash of $2.8 million and NIL Bank Advances at June 30, 2012 as compared to Bank Indebtedness of $8.8 million at December 31, 2011 and $8.1 million at June 30, 2011.
  • Backlog has increased to $105 million June 30, 2012 from $92 million at March 31, 2012 and from $43 million at December 31, 2011;

“I am pleased to report that our improved backlog of work is translating into a return to profitable operations concurrent with strengthening our balance sheet,” said Guy Nelson, CEO of Empire Industries. “Moreover, a number of the strategic growth initiatives we have undertaken in the oil sands region of Alberta and in China and building up our own portfolio of unique and proprietary media based attractions, is starting to pay dividends in contract awards which will roll out as profitable contracts over the next twenty four months.”