QUEBEC CITY, Aug. 14 /CNW/ - EnGlobe Corp. ("EnGlobe" or the
"Corporation") (TSX: EG), today announced financial results for the second
quarter ended June 30, 2009.
Second Quarter Highlights
- $32.2 million in revenues;
- Adjusted EBITDA increased by $6.8 million to reach $3.1 million;
- Gross profit increased by 99.3% to reach $8.6 million;
- Successful startup of second French soil treatment facility in Lyon on
schedule and fully operational in May 2009.
"The second quarter was marked by an efficient execution of our
restructuring plan announced in the fall of 2008 and reflects our ongoing
commitment to manage our business with strong discipline. I'm encouraged by
our operating results for this quarter and the first half of the year. While
delivering on prior commitments, we are mindful of challenges that may still
lie ahead, such as a difficult economic environment and uncertainty in the UK
market. We remain focused on improving our operational efficiency and
increasing productivity", commented Mr. André Héroux, President and CEO of
EnGlobe. "We have also continued to prepare for future growth opportunities
and eventual market improvement, with the completion of the construction of
our second soil treatment facility in France, located near Lyon that became
fully operational in mid-May 2009. In addition, while continuing to lower our
cost structure, we have secured new business projects in France, Alberta,
Québec and Northern Canada. I expect that we will see further benefits from
these efforts as 2009 progresses" added Mr. Héroux.
Second Quarter Results
In the second quarter, EnGlobe generated revenues of $32.2 million
compared to $38.2 million for the same period last year, a decrease of $6.0
million. Organic Waste Management ("OWM") experienced a planned decrease of
revenue that totaled $7.4 million in the second quarter. As part of the
Corporation's previously communicated reorganization plan, OWM is now
concentrating on activities that generate positive financial contribution.
This has resulted in the phase out of certain unprofitable contracts and
business activities, which has translated into lower OWM revenues but higher
OWM margins with reduced risk.
The Site Assessment and Remediation ("SAR") division generated $23.6
million in revenue in the second quarter, which represented a $1.3 million
increase over the same period last year. In particular, robust SAR activities
in Northern Canada, Alberta, Québec and France more than offset difficult
market conditions in the UK.
In the second quarter of 2009, adjusted EBITDA was $3.1 million compared
to a loss of $3.7 million in the quarter ended June 30, 2008. The increase was
principally the result of the improved contribution from the OWM segment,
higher contribution from the SAR segment (from the Canadian and France
operations in particular) and a lower cost structure following the
implementation of the reorganization plan. Gross profit increased by 99.3% to
reach $8.6 million.
A $1.8 million net loss from continuing operations was incurred in the
second quarter of 2009 compared to a net loss of $22.5 million in the quarter
ended June 30, 2008. The significant improvement was largely due to the
one-time non-cash charges that were incurred in the second quarter of 2008
related to the OWM segment, combined with overall better operational
performance as explained above.
Cash generated by operating activities in the second quarter was $2.0
million compared with cash used of $9.1 million in the same period last year,
an improvement of $11.1 million.
"While we are not immune to the effects of the economy, we remain focused
on our efforts to manage expenses responsibly and on investing in technical
innovation to drive growth in our core and new businesses. I am confident, we
will emerge as an even stronger industry leader than we are today. I believe
that we are well-positioned to continue delivering long-term value to our
customers and our stockholders", said André Héroux, President and CEO of
For the first six months of 2009, EnGlobe generated revenues of $57.0
million, compared to $62.5 million a year earlier, a decrease of $5.5 million
or 8.8%. This decrease was primarily due to the restructuring plan that took
place in the OWM segment as explained above.
Adjusted EBITDA for the first six months of the year was significantly
higher at $3.8 million compared to a loss of $4.9 million for the same period
in 2008. This increase was principally the result of the higher contribution
of the OWM segment and higher contribution of the SAR segment, combined with
an overall lower cost structure.
For the first six months of 2009, EnGlobe reported a net loss of $5.5
million, compared to a net loss of $26.5 million for the same period in 2008.
As explained above, the increase was largely due to the one-time non-cash
charges that were incurred in the second quarter of 2008 related to the OWM
segment, combined with overall better operational performance. Cash generated
by operating activities in the first six months of 2009 was $4.4 million
compared with cash used of $4.4 million in the same period last year, an
improvement of $8.8 million.
Management's Discussion and Analysis containing a full analysis of
financial results and Financial Statements can be accessed at www.sedar.com.
About EnGlobe Corp.
EnGlobe Corp. is a leading international integrated environmental
services company specializing in the management of contaminated soils and
organic based waste streams, with an emphasis on beneficial reuse. EnGlobe
offers cost-effective solutions to municipal, commercial and industrial
clients in Canada, the north-eastern United States, the United Kingdom and
France through its subsidiaries: Biogénie and Celtic Technologies Limited for
site assessment and remediation, GSI Environment Inc. for organic waste
management, and Tanknology Canada Inc. for tank testing and calibration.
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 Corporation's business, future capital expenditures and the
Corporation'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 Corporation's relationships
with its suppliers, pricing pressures and other competitive factors, the
availability and costs of fuels and utilities, the results of the
Corporation's ongoing efforts to improve cost effectiveness, changes in
regulatory requirements affecting the Corporation's business and the
availability and terms of financing. Other Risk Factors are set out and
described in the Corporation'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 statements.
For further information:
For further information: Mario Saucier, Investor Relations, T: (450)
929-4949, ext. 222, email@example.com; Marie-Chantal Turcotte,
Corporate Communications, T: (418) 781-0191, ext. 5235,