Empire Industries Reports 2Q17 Results and Conference Call Information Profit Margins Continue to Strengthen as Mix of Business Improves
Print August 10, 2017 07:00ET | Source: Empire Industries
WINNIPEG, Manitoba, Aug. 10, 2017 (GLOBE NEWSWIRE) -- Empire Industries Ltd. (TSX-V:EIL) today reported its unaudited consolidated financial results for the quarter ended June 30, 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 was $2.7 million, up from $0.9 million during the same period last year. Like Q1 2017, this resulted from a changing mix of business away from first generation media-based attractions, which had depressed profit margins in the prior quarters of 2016 and 2015, towards more profitable ride systems and attractions we have built before,” stated Guy Nelson. “The increased backlog bodes well for future profit visibility and it also reinforces that some of the company’s strategic initiatives are meeting market acceptance.”
Summary of second quarter 2017 consolidated results
Contract Backlog as of June 30, 2017 was $260 million, up 128% from $114 million at the Company’s March 31, 2017 report. Revenues increased by $1.5 million (4.9%), to $31.8 million from $30.3 million in Q2 2016. This increase in production has more than offset the revenue decline arising from the Company’s decision to curtail operations in industrial steel fabrication. Adjusted EBITDA increased by $1.8 million (207%), to $2.7 million from $0.9 million in Q2 2016. This increase was driven by higher revenue and improved adjusted gross margins more than offsetting the increase in selling, general and administrative expenses. Net Income in Q2 2017 was $1.8 million compared to $0 in Q2 2016. The Comprehensive net income for year to date 2016 of $6.8 million was heavily influenced by a $5.6 million FOREX gain and a $2.5 million gain on the sale of Tornado. Long Term Funded Debt increased to $15.5 million in 2Q17 from $5.0 million in 2Q16 due to the addition of USD $10 million of subordinate financing from Export Development Canada used to strengthen working capital.
Summary of Q2 2017 Segmented Financial Results For the quarter and year ended June 30 ($ millions) Q2 2017 Q2 2016 YTD 2017 YTD 2016 Revenue 31.8 30.3 64.3 58.1 Adjusted EBITDA ($)1 2.7 0.9 5.7 2.4 Adjusted EBIT ($)1 1.8 0.2 3.8 1.2 Net income from all operations 1.3 3.1 1.4 6.8
Financial Position (at June 30) Total assets 81.4 71.9 Total long term financial liabilities 9.8 4.9 Shareholders’ equity 21.8 22.2
Per Share Information (Basic & Diluted) Income per share – continuing operations 0.02 0.00 0.02 0.07 Income per share – discontinued operations 0.00 0.04 0.02 0.04
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 www.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 2017 results and the outlook for the company. The call-in details are as follows: Time/Date: Wednesday, August 16, 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 Second Quarter 2017 Results Conference Call.
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’’ 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.
BGM.v BGM Intersects 14.03 g/t Au Over 10.55 Metres at Shaft Zone by @newswire on August 29, 2017 NEW FOOTWALL EXTENSION GRADES 48.07 G/T AU OVER 4.10 METRES
TORONTO, Aug. 29, 2017 /CNW/ - Barkerville Gold Mines Ltd. (TSXV: BGM) (the "Company" or "Barkerville") is very pleased to announce that additional drilling results from the ongoing 130,000 metre Phase II Island Mountain exploration drilling program at the Company's flagship Cariboo Gold Project have confirmed short range continuity of the vein systems and expanded a veining corridor at depth in the Shaft Zone. The Company is currently exploring and delineating the Valley and Shaft Zones with eight drill rigs, while a ninth drill rig is testing a broad gold in soil anomaly on Barkerville Mountain. Drill ten is currently expanding the known mineralization on the BC Vein. Detailed drilling results, a drill hole location plan map, vertical section and longitudinal section are presented at the end of this release.
Drillhole IM-17-132 has extended the shallow footwall extents of the vein-hosting sandstone package through the intersection of new veining grading 48.07 g/t Au over 4.10 metres at a vertical depth of 90 metres below surface. This new intersection represents the up-dip extension of mineralization intersected by previously reported Phase II drillhole IM-17-101 which discovered two significant veining corridors grading 13.31 g/t Au over 11.00 metres and 7.60 g/t Au over 11.75 metres at vertical depths of 180 metres and 250 metres respectively. This footwall portion of the Shaft Zone is sparsely drilled and is open for expansion in all directions.
Infill Drilling Discovers New Veining
Averaging 14.03 g/t Au over 10.55 metres at a vertical depth of 150 metres in the Shaft Zone, Phase II infill drillhole IM-17-128 intersected new veining in an area that was formerly believed to be closed off by Phase I drilling. At an average vertical depth of 410 metres below surface, infill drillhole IM-17-130 intersected three veining corridors grading 12.39 g/t Au over 8.85 metres, 6.54 g/t Au over 8.50 metres followed by 10.38 g/t over 9.50 metres. These new occurrences are situated 20 metres southwest along vein strike of previously reported drillhole IM-17-104 which intersected 11.93 g/t Au over 7.15 metres. The lack of drilling below these intersections allows for downdip expansion.
"Drilling on Island Mountain again identifies new vein corridors and extensions to previously discovered mineralized zones," noted Chris Lodder, President and CEO of BGM. "With the large number of mineralized occurrences identified to date, the Exploration team is now working with our Operations and Environmental Departments on a development plan and permitting to gain new underground access to Island Mountain, the Valley Zone and Cow Mountain. This access will be advanced over the next few years and allow for more efficient exploration, assist with feasibility level work requirements and reduce surface disturbances. In the meantime, drilling from surface will continue at a rate of at least 120,000 m per year."
Qualified Persons
Exploration activities at the Cariboo Gold Project are administered on site by the Company's Exploration Manager, Maggie Layman, P.Geo. As per National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Vice President Exploration, is the Qualified Person for the Company and has prepared, validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its exploration activities on the Cariboo Gold Project.
Quality Assurance – Quality Control
Once received from the drill and processed, all drill core samples are sawn in half, labelled and bagged. The remaining drill core is subsequently stored on site at the Company's secure facility in Wells, BC. Numbered security tags are applied to lab shipments for chain of custody requirements. The Company inserts quality control (QC) samples at regular intervals in the sample stream, including blanks and reference materials with all sample shipments to monitor laboratory performance. The QAQC program was designed and approved by Lynda Bloom, P.Geo. of Analytical Solutions Ltd., and is overseen by the Company's Qualified Person, Paul Geddes, P.Geo, Vice President Exploration.
Drill core samples are submitted to ALS Geochemistry's analytical facility in North Vancouver, British Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed and 250 grams is pulverized. Analysis for gold is by 50g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and upper limit of 100 ppm. Samples with gold assays greater than 100 ppm are re-analyzed using a 1,000g screen metallic fire assay. A selected number of samples are also analyzed using a 48 multi-elemental geochemical package by a 4-acid digestion, followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) and Inductively Coupled Plasma Mass Spectroscopy (ICP-MS).
About Barkerville Gold Mines Ltd.
The Company is focused on developing its extensive land package located in the historical Cariboo Mining District of central British Columbia. Barkerville's mineral tenures cover 2,110 square kilometres along a strike length of 67 kilometres which includes several past producing hard rock mines of the historic Barkerville Gold Mining Camp near the town of Wells, British Columbia. The QR Project, located approximately 110 kilometres by highway and all weather road from Wells was acquired by Barkerville in 2010 and boasts a fully permitted 900 tonne/day gold milling and tailings facility. Test mining of the Bonanza Ledge open pit was completed in March of 2015 with 91,489 tonnes of material milled producing 25,464 ounces of gold. The Company has completed several drilling and exploration programs over the past 20 years and has compiled this data with all historical information in order develop geologic models which are assisting management in defining new deposits in the Cariboo Gold Project. An extensive drill program is currently underway with the goal of delineating additional high grade gold mineralization.
Cautionary Statement on Forward -Looking Information
Neither the TSX Venture Exchange ('TSXV') nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Table 1: Length weighted gold composites for Phase II drillholes:
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