Revenues up 4% resulting in EBITDA of $1.5 million
WINNIPEG – Empire Industries Ltd. (TSX-V: EIL) today reported its unaudited consolidated financial results for the quarter ended March 31, 2018. The unaudited consolidated financial statements and MD&A have been filed on SEDAR and can be viewed at sedar.com or at empind.com.
“We are getting back on track after a disappointing end to 2017,” stated Guy Nelson, Executive Chairman and Chief Executive Officer. “The steps we’ve taken to improve our operations have already begun to positively impact our results, and we expect that to accelerate throughout 2018 and beyond. Our recently announced private placement is scheduled to close in 2Q18. This will ensure we continue to have the financial depth to undertake the major projects we have underway.”
Summary of first quarter 2018 consolidated results
- Contract Backlog as of March 31, 2018 was $214 million, down 7% from $230 million at December 31, 2017. The Company expects its backlog to reach new record levels when the first two ride system contracts are executed under the previously announced strategic cooperation agreement with an Asian theme park owner.
- Revenues increased by $1.3 million (4%), to $33.7 million, from $32.4 million in 1Q17
- Adjusted EBITDA decreased by $1.6 million (52.3%), to $1.5 million from $3.1 million in 1Q17.
- Net loss increased by $1.0 million to $0.8 million from net income of $0.2 million in 1Q17.
Summary of First Quarter 2018 Consolidated Financial Results
| For the quarter ended March 31
($ millions except share price and per share amounts) |
Q1 2018 |
Q1 2017 |
||
| Revenue | 33.7 | 32.4 | ||
| Adjusted EBITDA ($)1 | 1.5 | 3.1 | ||
| Adjusted EBIT ($)1 | 0.0 | 2.0 | ||
| Net income (loss) from all operations | (0.8) | 0.2 | ||
| Financial Position (at March 31, 2018) | ||||
| Total assets | 95.5 | 75.3 | ||
| Shareholders’ equity | 20.1 | 20.3 | ||
| Per Share Information (Basic & Diluted) | ||||
| Income per share – basic & diluted | (0.01) | 0.02 | ||
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 Company’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 Company’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 Company’s performance and management from a financial and operational perspective.
About Empire Industries Ltd.
Empire focuses on designing, supplying, and installing premium theme park, media-based attractions and ride systems for the global entertainment industry. Empire also uses these same turn-key integration services for special projects such as large optical telescopes and enclosures. Through Empire’s execution of its strategy over the years, Empire owns several non-entertainment investments that it seeks to optimize and liquidate at the appropriate time. Empire’s equity holding in Tornado falls into this category. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL.
For more information about the Company, visit 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 |
Conference Call Information
Empire’s management team will be holding an investor/analyst conference call to discuss the first quarter 2018 results and the outlook for the company. The call-in details are as follows:
Time/Date: Tuesday, May 29, 2018 at 11:00AM 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 First Quarter 2018 Results Conference Call. This call will be available for replay on our website (http://empind.com/document_type/presentations/) or on the conference call provider’s website for 30 days:
International Toll (replay): +1-604-638-9010
Canada/USA Toll-free (replay): 1-800-319-6413
Replay Access Code: 2331
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’’, “believes” 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 statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Empire believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include statements with respect to the expected execution of the theme park agreements. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Empire. The forward-looking statements contained in this news release represents empire’s expectations as of the date hereof, and are subject to change after such date. Empire disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
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.