QUEBEC CITY, Aug. 10 /CNW/ - EnGlobe Corp. ("EnGlobe" or the "Corporation") (TSX: EG), today announced financial results for the second quarter ended June 30, 2010.
Second Quarter 2010 Highlights compared with second quarter 2009
- $30.4 million in revenues;
- Adjusted EBITDA increased by $2.1 million to reach $5.2 million;
- Gross profit margin increased by 22.1% to reach 33.2%.
"Our second quarter was driven by good results across most of our business units. Our employees have demonstrated strong commitment to operational excellence, establishing many operating records in the quarter," said André Héroux, President and Chief Executive Officer of EnGlobe. "None of this could be possible without the tremendous effort of all of our employees and Management team. I want to thank them for their hard work and dedication. It is their efforts that enabled us to deliver these results," added Mr. Héroux.
Second Quarter Results
In the second quarter, EnGlobe generated revenues of $30.4 million compared to $32.2 million for the same period last year, a decrease of $1.8 million. The strengthening of the Canadian dollar against the pound sterling and the euro negatively impacted revenues by a total of $1.9 million. However, this decrease was partially offset by strong performance by the Corporation's soil treatment facilities in Canada. The Organic Waste Management ("OWM") division generated $6.8 million in revenues in the second quarter, which represented a $0.9 million decrease over the same period last year. This decrease in the OWM division's revenues is explained by the difficulties encountered by the pulp and paper industry where some of our clients have been negatively impacted by a reduction in the demand combined with an increase in the energy costs.
In the second quarter of 2010, adjusted EBITDA was $5.2 million compared to $3.1 million for the quarter ended June 30, 2009, representing an increase of $2.1 million or 67.7%. This was the result of strong performance from the OWM division and the Canadian soil treatment facilities. These positive results were partially offset by the appreciation of the Canadian dollar versus the pound sterling and the euro.
The Corporation generated net earnings amounting to $1.1 million in the second quarter of 2010 compared to a net loss of $1.8 million in the quarter ended June 30, 2009. Ongoing commitment to manage the business with strong discipline, a constant focus on improving operational efficiencies and increased productivity explain EnGlobe's improved financial performance during the second quarter.
Cash provided by operating activities before net change in non cash working capital items for the second quarter was $3.6 million compared to $1.7 million in the same period last year, an increase of $1.9 million.
"We are continuing to execute on the strategic plan we developed in 2009. This plan enhances our ability to deliver innovative value-added services and products, increases the geographic diversity of our sales, positions the Corporation well for future growth, and supports our commitment to managing our cash responsibly while operating safely and efficiently," commented André Héroux, President and Chief Executive Officer of EnGlobe.
For the first six months of 2010, EnGlobe generated revenues of $53.0 million, compared to $57.0 million a year earlier, a decrease of $4.0 million or 7.0% largely explained by the strengthening of the Canadian dollar against the pound sterling and the euro.
Adjusted EBITDA for the first six months of the year was significantly higher at $7.4 million compared to $3.8 million for the same period in 2009. This increase was principally the result of the higher gross margins of the OWM and SAR segments, combined with an overall lower cost structure. The strong improvements in gross margin and Adjusted EBITDA demonstrated by all segments of the Corporation's business reflects the fact that EnGlobe is a transformed organization focused on delivering future growth and financial performance.
For the first six months of 2010, EnGlobe reported net earnings of $33 thousand, compared to a net loss of $5.5 million for the same period in 2009. The increase is largely explained by improved operational performance and by increased productivity throughout the organization. Cash generated by operating activities in the first six months of 2010 was $6.7 million compared with $4.3 million in the same period last year, an improvement of $2.4 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 divisions and subsidiaries: Biogénie, Biogénie Europe SAS, Biogénie Site Remediation Limited 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.
SOURCE ENGLOBE CORP.
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