Empire Industries Reports 1Q17 Results and Conference Call Information
May 29 2017 - 7:00AM
Empire Industries Ltd. (TSX-V:EIL) today reported its unaudited
consolidated financial results for the quarter ended March 31,
2017. 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.
“Empire’s adjusted EBITDA doubled to $3.1 million from $1.5
million during the same period last year. This resulted from
a changing mix of business away from first generation media-based
attractions, which had depressed profit margins in prior quarters
towards ride systems and attractions we have built before,” stated
Guy Nelson. “Our strategic focus targets theme park owners with
compelling capital expansion plans that match our Company’s
capability to deliver industry leading quality and innovation
concurrent with leveraging our proprietary media-based attraction
product line.”
Summary of first quarter 2017 consolidated
results
- Revenues increased by $4.7 million (16.7%), to $32.4 million
from $27.8 million. The increase was driven by the Company
being into the production phase on 3 major projects which in the
previous year were still in largely the design phase. This
increase in production has also offset the Company’s decision to
curtail operations in industrial steel fabrication.
- Adjusted EBITDA increased by $1.5 million (100.0%), to $3.1
million. This increase was driven by higher revenue volumes
and improved adjusted gross margins more than offsetting the
increase in selling, general and administrative expenses.
- Contract Backlog as of March 31, 2017 was $114 million, up 4.6%
from $109 million at December 31, 2016. This backlog will be
substantially higher in our 2nd quarter reporting period arising
from the USD $120 million contract awards recently announced in the
Company’s May 19, 2017 news release.
- Total Shareholders’ Equity reduced by $7.1 million, primarily
due to the $8.3 million dividend distribution of the Tornado Global
Hydrovac division to all Empire shareholders.
- Net Income decreased by $5.7 million (97.3%) to $0.2 million
from $5.9 million in 1Q16. This decrease is due to the $5.3
million decrease in fair value changes in derivative financial
instruments used to hedge the Company’s foreign exchange exposure,
plus a $1.0 million restructuring charge relating to the Company’s
previously announced decision to curtail independent steel
fabrication services and deploy those steel fabrication assets into
the Attractions business.
- Long Term Funded Debt increased to $17.2 million from $2.2
million in 1Q16 due to the addition of USD $10 million of
subordinate financing from Export Development Canada used to
strengthen working capital.
Summary of First Quarter 2017 Consolidated Financial
Results
For the
quarter ended March 31 ($ millions except share price and per share
amounts) |
Q1 2017 |
|
|
Q1
2016 |
|
|
|
|
|
|
|
|
Revenue |
32.4 |
|
|
27.8 |
|
|
Adjusted EBITDA
($)1 |
3.1 |
|
|
1.5 |
|
|
Adjusted EBITDA
(%)1 |
9.4 |
% |
|
5.5 |
% |
|
Adjusted EBIT ($)1 |
2.0 |
|
|
1.0 |
|
|
Net
income from all operations |
0.2 |
|
|
3.8 |
|
Financial Position (at March
31) |
|
|
|
|
Total assets |
75.3 |
|
|
72.9 |
|
|
Long Term Funded
Debt |
17.2 |
|
|
2.2 |
|
|
Shareholders’ equity |
20.3 |
|
|
27.5 |
|
Per Share Information |
|
|
|
|
Income per share
(Basic) |
0.002 |
|
|
0.064 |
|
|
Income
per share (Diluted) |
0.002 |
|
|
0.060 |
|
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.
The Company focusses its business on designing, supplying, and
installing premium theme park, media-based attractions and ride
systems for the global entertainment industry. The Company also
uses these same turn-key integration services for special projects
such as large optical telescopes and enclosures. The Company’s
common shares are listed on the TSX Venture Exchange under the
symbol EIL.
For more information about the Company, visit www.empind.com or
contact:
Guy NelsonChief
Executive OfficerPhone: (416) 366-7977Email:
gnelson@empind.com |
|
|
Allan FrancisVice
President – Corporate Affairs and AdministrationPhone: (204)
589-9301Email: afrancis@empind.com |
Conference Call Information
Empire’s management team will be holding an investor/analyst
conference call to discuss the first quarter 2017 results and the
outlook for the company. The call-in details are as
follows:
Time/Date: |
Tuesday, May 30, 2017
at 2:00PM 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 2017
Results Conference Call.
Reader AdvisoryThis 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’’ 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 forward looking
statements are based on current expectations, and are naturally
subject to uncertainty and changes in circumstances that may cause
actual results to differ materially. Readers are cautioned
not to place undue reliance on such forward-looking
statements. Forward-looking information is provided as of the
date of this press release, and Empire assumes no obligation to
update or revise them to reflect new events or circumstances,
except as may be required under applicable securities laws.
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.
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