BURLINGTON, ON, Aug. 14 /CNW/ - EnGlobe Corp. (TSX: EG), Canada's leading
integrated environmental services company, today announced continued gains in
revenues, operating income, EBITDA and cash flow during the second quarter,
ended June 30, 2007.
The latest quarter includes the contribution from Biogénie S.R.D.C. Inc.
which was acquired in November 2006.
EnGlobe increased revenues in the second quarter to $42.5 million from
$17.4 million in the same quarter of 2006 earlier, with most of the gain
attributable to the addition of Biogénie to the Company's Site Assessment and
Gross operating profit was $11.4 million in the latest quarter, compared
with $4.6 million a year earlier. Operating margin was approximately 26.9%, up
from the 26.5% reported in the second quarter of 2006.
EnGlobe increased operating income for the second quarter of 2007 to
$1.3 million from $0.8 million in the same quarter of 2006.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased to $4.3 million in the latest quarter from $1.6 million reported in
the second quarter of 2006.
Quarterly earnings were affected by costs associated with restructuring
and other costs totalling $0.7 million. Significant costs were incurred to
upgrade the Company's financial operations.
During the quarter, EnGlobe benefited from an interest rate swap entered
into in late March 2007, locking in approximately half the Company's term loan
debt at favourable rates and resulting in a gain of $357,012. After costs
related to foreign exchange and the disposition of certain property and
equipment during the quarter, the Company reported a net loss from continuing
operations of $178,879 in the second quarter compared with a loss of $19,052 a
The Company generated operating cash flow from continuing operations of
$3.3 million in the second quarter compared with a deficit of $1.7 million in
the same quarter a year earlier.
In addition, the Company increased its revolving credit facility to $20
million from $13 million to take advantage of new growth opportunities and to
support the robust seasonal increase in revenue.
"We realized growth in key metrics, particularly revenue and EBITDA, but
are confident we can do more. Our returns on greatly increased revenues were
negatively affected by higher-than-expected costs in our composting operations
and we are taking action to address that situation," said Tony Busseri,
President and CEO of EnGlobe. "Overall, however, with each quarter EnGlobe is
demonstrating its capacity to deliver long-term value for our shareholders."
For the first six months of 2007, EnGlobe generated revenues of
$69.3 million, compared with $26.9 million a year earlier, which was prior to
the acquisition of Biogénie. Gross operating profit was $19.4 million, or
approximately 28% of revenue, up from $7.1 million, or 26%, in the first half
Operating income for the first six months of this year was a loss of
$215,649, less than half the loss of $569,260 reported a year earlier.
EBITDA was $5.5 million for the first half, compared with $1.2 million
for the first half of 2006.
Year-to-date earnings were impacted by costs associated with
restructuring and other items in the amount of $1.2 million.
EnGlobe reported a net loss from continuing operations of $2.1 million
compared with net income of $1.6 million a year ago.
The Company reported an operating cash flow deficit from continuing
operations of $4.1 million in the first six months of 2007 and a deficit of
$3.0 million in the same period of 2006.
EnGlobe Corp.'s full financial statements, notes, and Management's
Discussion and Analysis for the three months and six months ended June 30,
2007 will be available at www.sedar.com
About EnGlobe Corp.
EnGlobe Corp. 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. Until April, 2007, the Company was named
Environmental Management Solutions Inc.
EnGlobe shares are listed 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
For further information:
For further information: Investors: Tony Busseri, President and Chief
Executive Officer, EnGlobe Corp., (905) 335-2100 ex 5022; Media: John Lute,
Lute & Company, (416) 929-5883 ex 222