QUEBEC CITY, May 12 /CNW/ - EnGlobe Corp. ("EnGlobe" or the "Corporation") (TSX: EG), today announced financial results for the first quarter ended March 31, 2010.
First Quarter Highlights
- $22.7 million in revenues;
- Adjusted EBITDA increased by $1.5 million compared to the same period
last year to reach $2.2 million;
- Gross profit margin of 30.1% compared to 25.8% in the same period
"Due to the seasonality of our business and weather conditions in Canada, United States, France and in the United Kingdom, the first quarter of the calendar year is normally the slowest quarter in terms of generation of revenue," said André Héroux, President and Chief Executive Officer of EnGlobe. "We believe we're off to a good start with our first quarter results, as it demonstrates the strengthening of EnGlobe's financial results," added Mr. Héroux.
First Quarter Results
In the first quarter, EnGlobe generated revenues of $22.7 million compared to $24.8 million for the same period last year, a decrease of $2.1 million. The strengthening of the Canadian dollar against the pound sterling and the euro negatively impacted revenues by a total of $1.4 million. However, this decrease was offset by strong performance by the Corporation's subsidiaries in France and in the UK. The Organic Waste Management ("OWM") division generated $4.1 million in revenues in the first quarter, which represented a $1.1 million decrease over the same period last year. The 2008 initiatives to perform corrective actions in OWM continue to translate into lower revenues, higher margins and reduced risks for the Corporation.
In the first quarter of 2010, adjusted EBITDA was $2.2 million compared to $0.7 million for the quarter ended March 31, 2009, representing an increase of $1.5 million or 214.3%. This was the result of strong performance from the OWM division and the French and Canadian Site Assessment and Remediation ("SAR") divisions. These positive results were partially offset by the appreciation of the Canadian dollar versus the pound sterling and the euro.
The Corporation generated a net loss amounting to $1.1 million in the first quarter of 2010 compared to a net loss of $3.6 million in the quarter ended March 31, 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 first quarter.
Cash provided by operating activities before net change in non cash working capital items for the first quarter was $0.5 million compared to -$0.4 million in the same period last year, an increase of $1.0 million.
"Thanks to the outstanding efforts of our employees, in adhering to our "Culture of Excellence", we were able to deliver solid financial results," commented André Héroux, President and Chief Executive Officer of EnGlobe. "We continue to draw on the positive momentum of our fiscal year 2009 results; we are focused on executing well and delivering on our commitments to customers. We also remain committed to investment in innovation -- to spur future growth in our core and emerging businesses," added Mr. Héroux.
Management's Discussion and Analysis containing a full analysis of financial results and Financial Statements can be accessed at www.sedar.com.
EnGlobe's Board of Directors today declared a dividend on the 10,296,250 outstanding Series 1 Preferred Shares and on the 7,845,745 outstanding Series 2 Preferred Shares in the aggregate amount respectively of $90,092 payable to holders of Series 1 Preferred Shares and $164,761 payable to holders of Series 2 Preferred Shares. The dividend represents all of the accrued dividends payable on the Series 1 Preferred Shares and Series 2 Preferred Shares, respectively, as at March 31, 2010. The cash payment of the dividends on the Series 1 and Series 2 Preferred Shares will be deferred and continue to accrue on the Corporation's balance sheet, as per an agreement with the holders of the securities.
The Corporation's Board of Directors also declared a dividend on the 188,362,000 outstanding Series 3 Preferred Shares. The dividend will be paid through the issuance of 15,181,457 Series 3 Preferred Shares. This dividend represents all of the accrued dividends payable on the Series 3 Preferred Shares as at March 31, 2010. The above mentioned dividends are payable no later than May 31, 2010 to shareholders of record on March 31, 2010.
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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