QUEBEC CITY, Feb. 17 /CNW/ - EnGlobe Corp. ("EnGlobe" or the "Corporation") (TSX: EG), today announced financial results for the fourth quarter ended December 31, 2009 and full year 2009 results.
FOURTH QUARTER AND FULL YEAR 2009 HIGHLIGHTS
- Strong financial performance with net earnings reaching $4.9 million;
- $131.6 million in revenues;
- Adjusted EBITDA increased by $11.4 million to reach $16.5 million;
- Q4 $35.4 million in revenues;
- Q4 Adjusted EBITDA reached $6.6 million;
- Q4 Net earnings increased by $10.8 million to reach $8.5 million.
"I am pleased to report that we exceeded our initial expectations," commented André Héroux, President and CEO of EnGlobe. "In the challenging economic environment, EnGlobe delivered a very solid quarter and strong financial results for the year," continued André Héroux.
"While economic conditions presented challenges this year, we maintained our focus on cost improvements, on disciplined execution and delivering customer satisfaction. Our ongoing transformation program, which was launched in mid-2008, is now completed. We have reduced complexity in the company, and our transformed organization is now fully operational", added André Héroux. "EnGlobe today is a leaner company that is both agile and more resilient to market fluctuations. EnGlobe's Management team has created a powerful platform for future performance. We're seeing a new way of working within EnGlobe, with increased empowerment and accountability from our employees," said André Héroux, President and CEO of the Corporation.
Fourth Quarter Results
In the fourth quarter, EnGlobe generated revenues of $35.4 million compared to $41.0 million for the same period last year, a decrease of $5.6 million. The Site Assessment and Remediation ("SAR") UK and USA divisions have seen a decrease of activities of $5.8 million versus the fourth quarter of 2008 mostly explained by the sluggish economy in these countries. However this was partially offset by excellent performance in France.
In the fourth quarter of 2009, adjusted EBITDA was $6.6 million compared to $3.9 million in the quarter ended December 31, 2008, representing an increase of $2.7 million or 69.2%. The implementation of the reorganization plan that started in Q3 2008 has continued to generate positive results.
In the fourth quarter of 2009, the Company's results also recorded an income tax recovery of $7.1 million compared to an expense of $0.3 million for the same quarter in 2008. During the quarter, after reviewing a variety of facts, and because of the completion of a corporate reorganization that gave rise to forecasted taxable income, Management concluded that it was in a position to reverse a portion of its valuation allowance against future income tax assets.
As a result of the foregoing, net earnings amounted to $8.5 million in the fourth quarter of 2009 compared to a net loss of $2.3 million in the quarter ended December 31, 2008, leading to the best quarter of net earnings in the history of the Corporation. Efficient execution of the restructuring plan, ongoing commitment to manage the business with strong discipline, a constant focus on improving operational efficiencies and increased productivity also added to the strong financial performance of the fourth quarter.
Cash provided by operating activities for the fourth quarter was $8.3 million compared with $4.1 million in the same period last year, an increase of $4.2 million.
Full Year 2009 Financial Results
For the year ended December 31, 2009, EnGlobe generated revenues of $131.6 million, compared to $149.2 million a year earlier, a decrease of $17.6 million or 11.8%. The Organic Waste Management ("OWM") division experienced a planned decrease of revenue that totaled $15.9 million for the year. As part of the Corporation's previously communicated reorganization plan, OWM is now concentrating on activities that generate a 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.
Adjusted EBITDA for the year was significantly higher at $16.5 million compared to $5.1 million for 2008. This increase was principally the result of the higher contribution of the OWM and SAR segments, combined with an overall lower cost structure.
For the year ended December 31, 2009, EnGlobe reported net earnings of $4.9 million, compared to a net loss of $28.7 million for year ended December 31, 2008. The increase is largely explained by improved operational performance and the non-repetition of the non-cash charges that were incurred in the second quarter of 2008 related to the OWM segment reorganization. Cash generated by operating activities in 2009 was $9.5 million compared with cash used of $1.1 million last year, an improvement of $10.6 million.
EnGlobe Corp.'s full consolidated financial statements, notes, and Management's Discussion and Analysis can be accessed at www.sedar.com.
ANNUAL AND SPECIAL SHAREHOLDERS MEETING
EnGlobe will hold its annual and special meeting of shareholders at 2:30 p.m. ET on May 12, 2010 at 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario, Canada. The Corporation's Management will discuss results for 2009 and its outlook for 2010.
About EnGlobe Corp.
EnGlobe is an integrated environmental services company specializing in the management of contaminated soils and organic-based waste streams, with an emphasis on beneficial re-use. EnGlobe offers cost-effective solutions to municipal, commercial and industrial clients in Canada, the northern United States, England and France through its divisions Biogénie and Solution and its subsidiaries Biogénie Corporation (USA), Biogénie Europe SAS (France) Biogénie Site Remediation Ltd. and Celtic Technologies Ltd. (UK). The Corporation conducts environmental site assessments and remediation of contaminated soil and groundwater in Canada, the United States, the United Kingdom and France. EnGlobe provides additional environmental services including direct land application, composting of organic wastes, degrades sites remediation and biomass cogeneration in Quebec and Ontario. As well, EnGlobe, through its division Tanknology, provides storage tank precision leak testing and statistical inventory reconciliation, compliance testing, and facility compliance and tank system audits across Canada.
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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