WINNIPEG, August 29, 2016 – Empire Industries Ltd. (TSX-V: EIL) (“Empire” or the “Company”) today reported its unaudited consolidated financial results for the quarter ended June 30, 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.
Summary of the Second Quarter 2016 results
- Revenues decreased by $1.1 million, or 1.8% (to $58.1 million from $59.2 million in the second quarter 2015)
- Adjusted EBITDA decreased by $0.5 million, or 35.7% (to $0.9 million from $1.4 million in the second quarter 2015)
- Loss before unrealized foreign exchange gains increase by $0.9 million
- Net Income increased by $2.2 million, or 247% (to $3.0 million from $0.9 million in the second quarter 2015). This was driven by $2.9 million net income from discontinued operations in the quarter associated with the spin-out of the Groups Manufactured Products operating segment (Tornado Hydrovacs).
| For the quarter and six month periods ended June 30 |
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| ($ millions except share price and per share amounts) |
Q2 2016 |
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Q2 2015 |
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YTD 2016 |
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YTD 2015 |
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| Financial Results |
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| Revenue |
30.3 |
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30.6 |
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58.1 |
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59.2 |
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| Adjusted EBITDA ($)1 |
0.9 |
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1.4 |
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0.9 |
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3.0 |
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| Adjusted EBIT ($)1 |
0.2 |
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1.0 |
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0.2 |
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2.3 |
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| Net income from all operations |
3.1 |
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0.9 |
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6.8 |
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0.0 |
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| Financial Position (at June 30) |
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| Total assets |
71.9 |
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76.0 |
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71.9 |
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76.0 |
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| Long-term debt (including current portion) |
5.0 |
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2.5 |
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5.0 |
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2.5 |
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| Shareholders’ equity |
22.2 |
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22.2 |
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22.2 |
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22.2 |
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| Per Share Information |
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| Income per share (Basic) |
0.048 |
0.014 |
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0.106 |
0.001 |
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| Income per share (Diluted) |
0.047 |
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0.013 |
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0.104 |
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0.001 |
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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 are pleased with the results we are reporting today,” said Guy Nelson, CEO of Empire. “Our strategic initiatives are on track. For example, we closed on the Tornado spin-out transaction, which has created significant value for our shareholders. Not only did our shareholders benefit directly by receiving Tornado shares, Empire itself recorded a gain of $3.5 million on the transaction, which is reflected in our second quarter net income. In addition, the award of the $10 million design contract for the Thirty Meter Telescope keeps that project on track. We remain confident that supply and installation contracts for the enclosure will follow as the project develops.”