WINNIPEG, May 30, 2016 – Empire Industries Ltd. (TSX-V: EIL) today reported its unaudited consolidated financial results for the first quarter ended March 31st, 2016. 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.
“I am pleased to report that Empire’s overall strategy is progressing as planned and that the strategic initiatives we are working through will propel our Company forward in an exciting, profitable and growing manner,” said Guy Nelson, CEO. “The first quarter had challenges on three fronts. Our media-based attractions group was incredibly busy, progressing on 22 active projects, adding some very interesting business development initiatives, and fitting up our Orlando facility. In contrast, our steel fabrication segment shrank its operations to match what we see as a very difficult construction environment in Alberta. Our spin-out of Tornado Hydrovac Trucks were very active preparing for the launch of a more aggressive business plan deploying $10 million of fresh capital and this division consumed corporate resources to position us for an Empire shareholder vote June 21st.”
Summary of the First Quarter 2016 results
- Revenues from continuing operations decreased by $0.8 million, or 2.8% (to $27.8 million from $28.6 million in first quarter 2016)
- Adjusted EBITDA from continuing operations decreased by $0.1 million, or 7.3% (to $1.5 million from $1.6 million in first quarter 2016)
- The unrealized gain on derivative financial instruments of $5.3 million in the quarter compares to a loss of $1.9 million in the comparative period relating to outstanding forward foreign currency instruments. This gain is the result of strengthening of the Canadian dollar incurred during the period as compared to the rates negotiated in the underlying contracts.
- Net income from continuing operations was $4.1 million ($0.016 per share), vs net loss of $0.7 million ($0.003 per share) in first quarter 2015
- Backlog of $105 million at March 31, 2016.
Summary of First Quarter 2016 Segmented Financial Results
| For the quarter ended March 31 ($ millions) |
Q1 |
Q1 |
||
| Media Based Attractions | ||||
| Revenue |
24.9 |
19.0 |
||
| Adjusted EBITDA ($)1 |
2.3 |
2.1 |
||
| Adjusted EBITDA %1 |
9.2% |
11.3% |
||
| Steel Fabrication | ||||
| Revenue |
2.9 |
9.6 |
||
| Adjusted EBITDA ($)1 |
(0.2) |
0.1 |
||
| Adjusted EBITDA %1 |
(6.0%) |
0.8% |
||
| Corporate | ||||
| Revenue |
0.1 |
0.0 |
||
| Adjusted EBITDA ($)1 |
(0.6) |
(0.6) |
||
Summary of First Quarter 2016 Consolidated Financial Results
| For the quarter ended March 31 ($ millions except share price and per share amounts) |
Q1 |
Q1 |
||
| Income From All Operations | ||||
| Revenue |
27.8 |
28.6 |
||
| Adjusted EBITDA ($)1 |
1.5 |
1.6 |
||
| Adjusted EBIT ($)1 |
1.0 |
1.3 |
||
| Net income from all operations |
3.8 |
(0.9) |
||
| Financial Position (at March 31) | ||||
| Total assets |
72.9 |
80.1 |
||
| Total long term financial liabilities |
3.6 |
4.5 |
||
| Shareholders’ equity |
27.5 |
21.1 |
||
| Per Share Information | ||||
| Income per share (Basic) |
0.015 |
(0.003) |
||
| Income per share (Diluted) |
0.015 |
(0.003) |
||
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.