BURLINGTON, ON, Nov. 12 /CNW/ - EnGlobe Corp. (TSX: EG), Canada's leading
integrated environmental services company, today announced growth in its
revenues, earnings before income tax, depreciation and amortization (EBITDA)
and operating income during the third quarter and nine months ended
September 30, 2007. The Company also added to its operations with the opening
of its 10th soil treatment facility (STF) in Colnbrook, U.K.
In the third quarter, EnGlobe more than doubled revenue to $40.0 million
from $17.8 million in the same period of 2006, an increase of 124%, primarily
as a result of the acquisition of Biogénie S.R.D.C. Inc. in the fourth quarter
The Company also increased gross operating profit significantly to
$12.2 million, from $5.1 million in the third quarter of 2006. Operating
margin for the quarter was 30.6% compared with 28.8% for the same period in
2006. The increase in operating margin was largely attributable to higher
revenues and gross operating profit from Biogénie's site assessment and
remediation business, but was somewhat offset by lower margins from GSI's
organic waste management activities.
Operating income for the quarter was $2.1 million, significantly higher
than operating income in the third quarter of 2006, when it was $1.3 million.
EBITDA (earnings before income tax, depreciation and amortization) for
the quarter was $5.4 million compared with $2.3 million for the same period in
Quarterly earnings were affected by interest and bank charges of
$1.4 million compared with $0.4 million for the quarter ended September 30,
2006. The increase in interest expense was the result of additional debt used
in the acquisition of Biogénie and was offset by a reduction in expense
resulting from the March 31, 2006 refinancing.
In the quarter, EnGlobe generated cash from operations of $2.2 million
before changes in non-cash working capital, compared with $1.7 million in the
third quarter of 2006. After the changes in non-cash working capital, the
Company used $2.1 million compared with cash provided of $0.7 million in the
same quarter a year earlier. This reflects the investment in the Company's
On October 9, EnGlobe opened its second STF in the United Kingdom.
Located in Colnbrook, west of London, the plant will treat up to 50,000 metric
tons of contaminated soil per year and is the only solid treatment facility
licensed to accept hazardous soil in the most attractive geographical market
in the UK. This 1.5-hectare facility has received all necessary regulatory
permits to operate until 2010.
"The key measures of our success at this stage are EBITDA and working
capital and we are pleased to report improvement in these metrics. We continue
to make significant gains in these as well as other operating results such as
revenue. At the same time, we are investing in EnGlobe to ensure it is
positioned to maximize the significant potential of its market," said Tony
Busseri, President and CEO of EnGlobe. "During the quarter, our organic waste
management business unit was challenged by tight margins and we continued to
restructure and improve our team. The investments that we are making in
people, technology and securing permits will support our goal of delivering
sustainable long-term value to our shareholders."
For the first nine months of 2007, EnGlobe generated revenue of
$109.2 million, compared with revenue of $44.8 million during the first nine
months of 2006, an increase of 144%. The increase was primarily a result of
the acquisition of Biogénie.
Operating income for the year-to-date was $1.9 million, more than double
the $0.7 million generated in the nine months ended September 30, 2006.
EBITDA for the first nine months of the year was also significantly
higher at $10.9 million compared with $3.5 million for the same period of
Year-to-date earnings were affected by $2.1 million in restructuring and
other charges, including $1.0 million in severance and recruitment costs,
$1.0 million in legal and professional fees and $0.1 million of other costs.
The restructuring costs were incurred primarily as a result of the changes in
the office of the Chief Financial Officer, employee recruitment, and employee
termination costs related to redundant management roles as a result of the
acquisition of Biogénie.
For the nine months ended September 30, 2007, EnGlobe generated cash
before changes in non-cash working capital of $3.3 million compared with
$1.5 million a year earlier. After changes in non-cash working capital, the
Company used $6.1 million compared with $2.3 million used in the first nine
months of 2006. Cash was primarily used to fund operations, pay for capital
expenditures, pay the balance of the purchase price relating to Biogénie's
acquisition and to repay long-term debt and other long-term obligations.
EnGlobe Corp.'s full financial statements, notes, and Management's
Discussion and Analysis for the three months and nine months ended
September 30, 2007 are available at www.sedar.com.
Management Conference Call and Webcast: November 12, 2007
EnGlobe invites investors, analysts, portfolio managers and the media to
participate in a conference call later today with Tony Busseri, President and
Chief Executive Officer, EnGlobe. The call and webcast will take place this
morning, November 12, 2007 at 10:00 a.m.
Details of the Conference Call and Webcast:
Date: November 12, 2007
Time: 10:00 a.m. ET
Call in number: 1-800-731-6941
Or to view slides with audio, go to www.englobecorp.com and select
the link to Investor Update - Third Quarter
The webcast will be archived on the company website and an audio
recording of the call will be available until November 19, 2007:
Recording call-in number: 416-640-1917 or 877-289-8525
Reservation Number: 21252297 followed by the number sign
About EnGlobe Corp.
EnGlobe Corp., formerly Environmental Management Solutions Inc., is
Canada's leading integrated environmental services company specializing in the
management of organic-based waste streams and contaminated soils, with an
emphasis on beneficial reuse. EnGlobe offers cost-effective solutions to
municipal, commercial and industrial clients in Canada, the northern United
States, England and France through its subsidiaries: Biogénie S.R.D.C. Inc.
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 Company's business, future capital expenditures and the Company'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 Company's relationships with its
suppliers, pricing pressures and other competitive factors, the availability
and costs of fuels and utilities, the results of the Company's ongoing efforts
to improve cost effectiveness, changes in regulatory requirements affecting
the Company's business and the availability and terms of financing. Other Risk
Factors are set out and described in the Company'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
Readers are also cautioned that EBITDA should not be confused with cash
flow from operating activities. The most comparable GAAP financial measure is
operating income, which is described in the Company's third quarter Management
Discussion & Analysis Results from Operations section.
For further information:
For further information: Investors: Tony Busseri, President and Chief
Executive Officer, EnGlobe Corp., (905) 335-2100 x 5022; Media: John Lute,
Lute & Company, (416) 929-5883 x 222