Co-venture slated for Pigeon Forge, Tennessee
WINNIPEG, Manitoba, Nov. 29, 2018 (GLOBE NEWSWIRE) — Empire Industries Ltd. (TSX‐V: EIL) today reported its unaudited consolidated financial results for the quarter ended September 30, 2018. The unaudited consolidated financial statements and MD&A have been filed on SEDAR and can be viewed at sedar.com or at empind.com.
“I am really pleased to announce that we are moving forward with our first co-venture partnership in the sixth most popular amusement park in the USA, laying the foundation for recurring revenue and profit by leveraging our proprietary intellectual property,” said Guy Nelson, Executive Chairman and Chief Executive Officer. “We were pleased with our strong revenue performance this quarter, which reflects our success in quickly working through our low margin first generation projects. While this suppressed our margins somewhat in the quarter, it gets us that much closer to putting them behind us.” Guy Nelson went on to say “We will be realizing an increasing proportion of second generation, more profitable work in future quarters.”
Summary of third quarter 2018 consolidated results
- Contract Backlog as of September 30, 2018 was $248 million, down 11% from $280 million at the Company’s June 30, 2018 report. This decrease is driven by the high volume of work the Company has executed in the quarter.
- Revenues increased by $10.7 million (24.8%), to $53.8 million from $43.1 million in 3Q17. This increase is driven by an increase in the number of projects that the Company has secured.
- Adjusted EBITDA in 3Q18 was $1.3 compared to $4.3 million in 3Q17. This decrease is driven by the absence of margin recognized on the first generation projects in accordance with the new IFRS revenue recognition standards.
- Net Income in 3Q18 was $0.2 million compared to $2.1 million in 3Q17. This decrease is largely driven by the factors described above.
| Summary of Q3 2018 Financial Results | ||||||
| For the quarter and year ended September 30, 2018 | ||||||
| Q3 2018 |
Q3 2017 |
YTD 2018 |
YTD 2017 |
|||
| Revenue | 53.8 | 43.1 | 120.9 | 104.7 | ||
| Adjusted EBITDA ($)1 | 1.3 | 4.3 | 2.6 | 7.3 | ||
| Adjusted EBIT ($)1 | (0.8 | ) | 2.7 | (3.3 | ) | 2.7 |
| Net income from all operations | 0.2 | 2.1 | (2.0 | ) | 1.5 | |
| Financial Position (at September 30) | ||||||
| Total assets | – | – | 105.3 | 77.9 | ||
| Shareholders’ equity | – | – | 22.1 | 12.2 | ||
| Per-Share Information (Basic & Diluted) | ||||||
| Income per share – basic and diluted | 0.00 | 0.03 | (0.02 | ) | 0.02 | |
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.
Tennessee Co-venture
Empire announced that it has partnered with Bob and Clay McManus for a Flying Theatre co-venture to be located at The Island in Pigeon Forge in Tennessee. Located adjacent to the Great Smoky Mountains National Park, which draws over 11 million annual visitors, the Island is the premier tourist destination in the region. “As experienced operators in one of the largest tourist markets in the country, we are excited to partner with Empire to bring another world class attraction to the Island in Pigeon Forge,” said Bob McManus. “The Dynamic Flying Theatre will offer our guests an absolutely amazing entertainment experience.”
Empire’s subsidiary, Dynamic Entertainment Group Ltd. (DEGL), has signed a Memorandum of Understanding with Tennessee Flyers LLC., calling for the creation of a 50/50 owned entity to lease land and construct a purpose-built facility to house the attraction at the Island in Pigeon Forge, Tennessee, a very popular theme park in the Great Smoky Mountains. The partnership will have DEGL design and supply the very popular Dynamic Flying Theatre Attraction. Its local partner will operate the attraction on behalf of the partnership. The parties expect to have the lease signed in early 2019, with the co-venture attraction opening to guests in early 2020.
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, such as its equity holding in Tornado Global Hydrovacs Ltd. Empire’s common shares are listed on the TSX Venture Exchange under the symbol EIL.
For more information about the Company, visit 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 third quarter 2018 results and the outlook for the company. The call‐in details are as follows:
| Time/Date: | Monday, December 3, 2018 at 10:00AM 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 Third Quarter 2018 Results Conference Call. This call will be available for replay on our website (empind.com/document_type/presentations/) or on the conference call provider’s website for 30 days:
| International Toll (replay): | 1‐604‐638‐9010 | |
| Canada/USA Toll‐free (replay): | 1‐800‐319‐6413 | |
| Replay Access Code: | 2831 |
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’’, “believes” 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 statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. Although Empire believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this news release should not be unduly relied upon. Such statements include statements with respect to (i) consummation of the co-venture enterprise, and (ii) timely and cost-effective completion of the first generation projects, Actual results could differ materially from those anticipated in these forward‐looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Empire. The forward‐looking statements contained in this news release represents Empire’s expectations as of the date hereof, and are subject to change after such date. Empire disclaims any intention or obligation to update or revise any forward‐looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
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.