Value Microcaps Motherboard

[Bobwins]

EIL.v/ERILF -.025 to C$.125

Empire had it's first qtrly loss in the past two or three years due to hedging losses on the Canadian dollar. 1.9million currency paper loss lead to .9million net loss. Expect some reversal this qtr. C$ dropped from .86 to .80 during Q1. So far in Q2, C$ is up to .812 and has been as high as .83.

Still Empire got hurt by lower drilling activity as steel fabrication suffered from tighter margins. Also their popular Hydrovac units didn't sell as well.

Going forward, Empire still has a higher backlog to work thru on their amusement rides and that's where most of the revs come from. Q4 was above average at .007eps vs typical .005 and now Q1 is below. Anxious to see what happens to their margins when they participate in the profits from their rides instead of just building them.

WINNIPEG, MANITOBA--(Marketwired - May 25, 2015) - Empire Industries Ltd. (TSX VENTURE:EIL) today reported its unaudited consolidated financial results for the first quarter ended March 31, 2015. 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 First Quarter 2015 results

Revenues decreased by $0.5 million, or 1.5% (to $33.2 million from $33.7 million in first quarter 2014)
Adjusted EBITDA decreased by $0.9 million, or 36% (to $1.5 million from $2.4 million in first quarter 2014)
Net Loss, after taking into consideration an unrealized loss on forward foreign exchange contracts of $1.9 million, was $0.9 million, versus net income of $1.2 million in first quarter 2014
The non-cash unrealized foreign exchange loss of $1.9 million in the quarter compares to a loss of $0.6 million in the comparative period relating to outstanding forward foreign currency instruments. This loss resulted from the significant decline of the Canadian dollar incurred during the period as compared to the rates negotiated in the underlying contracts.
Net Loss was $0.003 per share, versus net income per share of $0.005 in first quarter 2014
Backlog of $195 million at March 31, 2015, up from $155 million at December 31, 2014
For the quarter and year ended March 31

Q1 Q1
($millions except share price and per share amounts) 2015 2014
Financial Results
Revenue 33.2 33.7
Adjusted EBITDA ($)1 1.5 2.4
Net income (loss) from all operations, after unrealized foreign exchange loss of ($1.9 million; $0.6 in 1st quarter 2014) (0.9 ) 1.2
Financial Position (at March 31)
Total assets 74.5 49.3
Long-term debt (including current portion) 2.9 3.5
Shareholders' equity 21.1 16.6
Per Share Information
Income per share (Basic) $ (0.003 ) $ 0.005
Income per share (Diluted) $ (0.003 ) $ 0.005
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. While not IFRS measures, Adjusted EBITDA is used by management, creditors, analysts, investors and other financial stakeholders to assess the Group's performance and management from a financial and operational perspective.
"The first quarter was negatively influenced by tighter margins on steel fabrication work and lower sales of hydrovac trucks both of which are reflective of a challenging economic environment in Alberta. The Media Based Attractions had a good quarter, and was similar to the first quarter of 2014," said Guy Nelson, CEO. " I expect our Media Based Attractions to continue to strengthen as we work through our record backlog and to offset the headwinds we expect to continue to feel in our domestic businesses operating in Alberta."

About Empire Industries Ltd.

Empire Industries Ltd. manufactures specialized engineered products and sells these products domestically and in select international export markets. The company has developed, designed and engineered products for the rapidly growing, global, media based attractions market. The company also manufactures and sells hydrovac trucks and provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company also has two key strategic equity partnerships; a 49% ownership of ACE Industrial Services that operates in the oil sands industrial maintenance services market, and a 45% ownership of a Chinese joint venture company in the steel fabrication market in Asia. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.

For more information about the Company, visit www.empind.com.