WINNIPEG, August 26, 2011 – Empire Industries Ltd. (TSX-V: EIL) today reported its financial results for the quarter ended June 30, 2011. 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
- Revenue increased to $22.1 million, from $18.7 million in the second quarter of 2010;
- Net loss of $1.6 million ($0.01 loss per share) versus a net loss of $2.6 million ($0.03 loss per share) in the first quarter of 2010;
- Cash flow used in operations was $0.5 million ($nil per share) compared with cash flow provided by operations of $1.8 million ($0.01 per share) in the first quarter of 2010.
- An equity private placement of $2.0 million of new capital.
“Our revenues have increased, and our indirect and fixed costs have been reduced,” said Guy Nelson, Chief Executive Officer of Empire Industries Ltd. “We are aggressively pursuing additional sales and higher margin jobs needed to return to profitability. We expect additional revenue and profit growth driven by our media attractions business, our First Nations joint venture in the oil sands maintenance business, and our Chinese joint venture. Our steel fabrication and construction business in western Canada is also expected to obtain higher margin jobs as a result of the expected recovery of industrial and infrastructure spending.”
In the quarter, the Company completed a private placement resulting in $2.0 million of new capital for the Company. If the warrants from the 2011 private placements are executed, an additional $6.2 million of equity would be raised.