WINNIPEG, August 26, 2015 – Empire Industries Ltd. (TSX-V: EIL) (“Empire” or the “Company”) today reported its unaudited consolidated financial results for the quarter ended June 30, 2015. 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 Second Quarter 2015 results
- Revenues increased by $2.4 million, or 6.8% (to $37.3 million from $34.9 million in the second quarter 2014)
- Adjusted EBITDA decreased by $0.04 million, or 2.5% (to $1.48 million from $1.52 million in the second quarter 2014)
- Net Income decreased by $0.8 million, or 46% (to $0.9 million from $1.6 million in the second quarter 2014)
“Our Media Based Attractions segment continues to grow. In addition to higher revenues, we also saw our backlog grow to $180 million, in part through a $24 million contract to a repeat customer in South Asia. In addition, the Honourable James Moore, Minister of Industry for Canada, announced that Empire will receive up to $70 million to build the precision-steel enclosure of the Thirty Meter Telescope, the world’s largest telescope,” said Guy Nelson, Empire’s Chief Executive Officer. “However, we are still facing the ramifications of the challenging economic conditions in western Canada in both our steel fabrication business and our hydrovac truck business. Nevertheless, our strategy to reposition the company in highly engineered, manufactured product market niches with higher margins and higher growth is paying off, and we expect our balance sheet to continue to strengthen through continued earnings generation and debt repayment.”
Earnings are impacted by unrealized foreign exchange gains (losses) on mark-to-market forward contracts outstanding. The impact of settling the forward contracts is recognized through sales revenue at the time of settlement. The resulting impact of settling the outstanding “out of the money” hedges while being reflected in future financial results will be included with additional US dollar denominated revenues at exchange rates that are more reflective of current market rates.