BURLINGTON, ON, May 7 /CNW/ - EnGlobe Corp. ("EnGlobe" or the
"Corporation") (TSX: EG), today announced financial results for the first
quarter, ended March 31, 2009.
First Quarter Summary
- $24.8 million in revenues
- Adjusted EBITDA of $0.7 million
- Construction of second French soil treatment facility, located
in Lyon, France, on schedule and expected to be operational in
the second quarter of 2009
"EnGlobe had a good first quarter and demonstrated the strength and
positive momentum of the Corporation in the challenging economic environment.
Our first quarter results underline both the success of EnGlobe as it
continues to grow and secure new business opportunities and the positive
benefits of our reorganization plan announced last year" said André Héroux,
CEO of EnGlobe. "Going forward, our priority remains to focus on improving our
operational efficiency, increasing productivity, and aggressively pursuing
growth opportunities in our Site Assessment and Remediation segment. We are
currently completing the construction of our second soil treatment facility in
France, located near Lyon, which is expected to be fully operational by
mid-May 2009. In addition, we have lowered our costs over the past several
quarters and I expect that we will see further benefits from these efforts as
2009 progresses" added Mr. Héroux.
Financial Highlights for the Three Months Ended March 31, 2009
In the first quarter, EnGlobe generated revenue of $24.8 million compared
to $24.3 million for the same period last year, an increase of $0.5 million.
The Corporation's increase in revenue was driven by significant growth in
the Site Assessment and Remediation segment ("SAR"). In particular, robust SAR
activities in Northern Canada and Alberta and the contribution from Celtic
Technologies Limited ("Celtic"), which was acquired in March 2008, led to
higher revenue for the segment. Celtic contributed $4.4 million in revenues in
the first quarter.
However, significant revenue gains from the SAR segment were offset by a
lower revenue contribution from the Organic Waste Management segment ("OWM").
OWM experienced a planned decrease of revenue that totaled $3.6 million in the
first 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 progressive phasing
out of certain contracts and business activities, which has translated into
lower OWM revenues, but higher OWM margins with reduced risk.
The Tank Testing and Calibration segment's revenue was slightly lower
than the revenue generated in the same period in 2008.
Gross operating profit in the first quarter was $6.4 million compared
with $5.4 million in the quarter ended March 31, 2008, an increase of 17.5%.
As a percentage of sales, the gross operating profit margin for the first
quarter was 25.8% compared with 22.4% for the same period in 2008. The gross
operating profit margin improvement was primarily attributable to higher
margins from the SAR segment (from Canadian operations in particular including
the Montreal soil treatment facility), as well as positive margin contribution
from the OWM segment.
Adjusted EBITDA for the first quarter was $0.7 million compared to a loss
of $1.2 million in the quarter ended March 31, 2008. The increase was
principally the result of the contribution from Celtic, the positive
contribution from the OWM segment, higher contribution from the SAR segment
(from the Canadian operations in particular) and a lower cost structure
following the implementation of the reorganizational plan.
Cash provided by operating activities in the first quarter was $2.5
million compared with operating cash flow of $4.7 million in the same period
last year. Excluding the variation in the non cash working capital items,
operating cash flow improved by 2.4 million.
"We are pleased with our first quarter results and believe we are
realizing the benefits from our fall 2008 restructuring plan announced in
2008" said André Héroux, President and CEO. "EnGlobe remains focused on
controlling costs and improving our cash management activities while
strengthening our business execution skills."
Management's Discussion and Analysis and Financial Statements can be
accessed at www.sedar.com.
Annual and Special Meeting of Shareholders
The Corporation announced that it will hold its Annual and Special
Meeting of Shareholders on Friday, May 22, 2009 at 8:30 a.m. (Eastern Time),
located at 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario, Canada
M5L 1B9. At the meeting, the Corporation's management will discuss results for
the fiscal year ended December 31, 2008 and the outlook for 2009.
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: Investors inquiries: Mario Saucier, Chief
Financial Officer, T: (450) 929-4949, ext. 222, firstname.lastname@example.org;
Media inquiries: Marie-Chantal Turcotte, Senior Vice-President, Corp.
Communications, T: (418) 781-0191, ext. 5235, email@example.com