Profit Margins Continue to Strengthen as Mix of Business Improves
WINNIPEG, August 10, 2017 – 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.