BURLINGTON, ON, Feb. 25 /CNW/ - EnGlobe Corp. (TSX: EG), Canada's leading
integrated environmental services company, today announced its results for the
fourth quarter and full year ended December 31, 2007.
In the fourth quarter, revenue was $39.8 million compared with
$25.2 million in the quarter ended December 31, 2006, an increase of 58% that
was primarily a result of the acquisition of Biogénie S.R.D.C. Inc. in late
Gross operating profit in the quarter was $12.2 million compared with
$7.0 million in the quarter ended December 31, 2006. Gross operating profit
margin for the quarter was 31% compared with 28% in the same period of 2006.
The increase in gross operating profit was largely attributable to higher
revenues and gross operating profit from Biogénie's soil assessment and
remediation activities, moderated by reduced margins from the activities of
GSI, the Company's organic waste management segment.
EBITDA (earnings before income tax, depreciation and amortization) for
the quarter was $3.8 million compared with $3.1 million in the quarter ended
December 31, 2006.
A $1.0 million net loss from continuing operations was incurred in the
latest quarter compared with $1.0 million of net income in the quarter ended
December 31, 2006. The decrease was primarily attributable to restructuring
costs of $1.6 million, larger depreciation and amortization expenses as well
as higher interest charges, offset by a higher income tax recovery, mostly
from previously unrecorded future tax benefits relating to the Company's
For the quarter ended December 31, 2007, cash flow from continuing
operations was $1.0 million, with non-cash working capital changes generating
"EnGlobe continued its progression in its fourth quarter to a larger and
more diversified environmental services business with substantial revenue and
EBITDA growth over last year," said Aline Belanger, Interim President and CEO
of EnGlobe. "The management team remains focused on completing the integration
of its operations and pursuing EnGlobe's strategy and key initiatives."
Results for the Year ended December 31, 2007
EnGlobe reported revenue of $149.1 million for the year, compared with
revenue of $69.9 million for the year ended December 31, 2006, an increase of
113%. The increase was primarily the result of 12 months of expanded site
assessment and remediation activities. The Biogénie activities contributed
$89.2 million of revenue in 2007 compared with approximately $6.7 million in
Gross operating profit for the year was $43.9 million compared with
$19.2 million for the year ended December 31, 2006. Gross operating profit
margin for the year was 29% compared with 27% in 2006. The increase in gross
operating profit was largely attributable to higher revenues and gross
operating profit from Biogénie's operations, moderated by reduced margins from
the activities of GSI.
EBITDA for the year ended December 31, 2007 was $14.7 million compared
with $6.6 million for 2006. The increase was attributable to improved gross
margin as a result of the Biogénie acquisition.
During the latest year, the Company incurred $3.7 million in
restructuring and other charges, incurred primarily as a result of the changes
in the offices of the Chief Executive Officer and the Chief Financial Officer,
together with employee recruitment and employee termination costs following
the acquisition of Biogénie.
The Company reported a net loss of $3.0 million net loss from continuing
operations was incurred for the year compared with a $0.2 million net loss in
the year ended December 31, 2006. The decrease was primarily attributable to
the restructuring and other charges, larger depreciation and amortization
expenses as well as higher interest charges, offset by the recognition of
future income tax benefits.
For the year ended December 31, 2007, cash used in continuing operations
was $6.1 million compared with $4.1 million in 2006. Cash used in operating
activities reflects the Company's net loss for the period net of non-cash
charges for depreciation and amortization, stock-based compensation, non-cash
interest charges, loss on disposal of property, plant and equipment, an
unrealized loss on foreign exchange, the future income tax recovery and the
change in our non-cash working capital.
EnGlobe Corp.'s full consolidated financial statements, notes, and
Management's Discussion and Analysis for twelve months ended December 31, 2007
are available at www.sedar.com.
Annual Meeting of Shareholders
EnGlobe Corp. will hold its annual and special meeting of shareholders at
9:00 a.m. ET on April 28, 2008 at the Reimer Tower Conference Room, First
Floor, 5500 North Service Road, Burlington, Ontario. Company Management will
discuss results for 2007 and its outlook for 2008.
About EnGlobe Corp.
EnGlobe Corp. is Canada's leading integrated environmental services
company specializing in the management of organic-based waste streams and
contaminated soils, with an emphasis on beneficial reuse. EnGlobe offers
cost-effective solutions to municipal, commercial and industrial clients in
Canada, the northern United States, England and France through its
subsidiaries: Biogénie S.R.D.C. Inc. for site assessment and remediation, GSI
Environment Inc. for organic waste management, and; Tanknology Canada Inc. for
tank testing and calibration. Until April, 2007, the Company was named
Environmental Management Solutions Inc.
Shares of EnGlobe trade on the Toronto Stock Exchange under the ticker
symbol EG. Additional information is available at www.enGlobecorp.com.
This press release contains certain forward-looking statements. Such
statements relate to, among other things, sales growth, expansion and growth
of the Company's business, future capital expenditures and the Company's
business strategy. Forward-looking statements are subject to inherent
uncertainties and risks including, but not limited to: general industry and
economic conditions, changes in the Company's relationships with its
suppliers, pricing pressures and other competitive factors, the availability
and costs of fuels and utilities, the results of the Company's ongoing efforts
to improve cost effectiveness, changes in regulatory requirements affecting
the Company's business and the availability and terms of financing. Other Risk
Factors are set out and described in the Company's Annual Information Form
which is available at www.sedar.com. Consequently, actual results and events
may vary significantly from those included in, contemplated by or implied by
such forward-looking statements. In evaluating forward-looking statements,
readers should specifically consider the various factors that could cause
actual events or results to differ materially from such forward-looking
For further information:
For further information: Investors: Aline Belanger, Interim President
and Chief Executive Officer, EnGlobe Corp., (905) 335-2100 x 5026; Media: John
Lute, Lute & Company, (416) 929-5883 x 222