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EIL.v ERILF Empire Industries Reports 1Q17 Results....

INNIPEG, May 29, 2017 – 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.

http://empind.com/empire-industries-reports-1q17-results-conference-call-information/