Date: May 12, 2008
Source: EnGlobe Corp.
EnGlobe Corp. (TSX: EG), a leading international integrated environmental services company, today announced its results for the first quarter ended March 31, 2008.
FIRST QUARTER FINANCIAL HIGHLIGHTS
Total revenues of $24.3 million
EBITDA of ($1.2 million)
Net loss of $3.9 million
OTHER KEY DEVELOPMENTS
Acquisition of UK-based Celtic Technology Ltd on March 25, 2008:
Positioned for further growth in Europe
Improved financial position: New financing - Amended credit facility and improved working capital position
André Héroux recently appointed President and CEO of EnGlobe
New management and team structure within the Organic Waste Management (OWM) business unit to address operational challenges
The past quarter has been significant, both in terms of achieving our objective of continued sustainable growth and also in terms of the challenges we needed to address in our OWM division. "Our recent acquisition of Celtic Technologies contributes to our expanded footprint in the United Kingdom, enabling us to capture new business opportunities in this growing market for the soil remediation services we provide." said Aline Bélanger, Chief Financial Officer of EnGlobe. "With new management now in place in our OWM division, we have undertaken a review and realignment of our operations. The recent financing of our operations will also give us the flexibility we need to execute our business plan."
FIRST QUARTER RESULTS Selected financial information (unaudited) Quarter ended March 31 (In thousands of dollars, except per share amounts) ------------------------------------------------------------------------- First Quarter First Quarter 2008 2007 Condensed Statements of Operations $ $ Revenue 24,281 26,794 EBITDA(1) (1,191) 1,223 Net loss (3,936) (1,899) Net loss per share, basic and diluted (0.05) (0.02) ------------------------------------------------------------------------- (1) EBITDA as referred to in this press release is a non-GAAP measure. See the Management's Discussion and Analysis for the definition and the reconciliation to the consolidated statements of earnings.
RESULTS OF OPERATIONS
Revenue was $24.3 million for the quarter ended March 31, 2008 compared with revenue of $26.8 million for the quarter ended March 31, 2007 a decrease of $2.5 million or 9.3%. The reduction in revenue is largely attributable to the impact of the unusually long winter. For the Site Assessment and Remediation (SAR) business unit, on site projects and the treatment at off site facilities were delayed. Revenue for the OWM division was slightly lower as eco-product sales were less than the same quarter last year. Revenue for the Tank Testing & Calibration division was comparable to the same period in 2007 with no significant difference in the level of activity.
Gross operating profit for the quarter ended March 31, 2008 was $5.4 million compared with $7.9 million for the quarter ended March 31, 2007 a reduction of $2.5 million or 31.6%. Gross operating profit margin for the quarter ended March 31, 2008 was 22.4% compared to 29.7% for the quarter ended March 31, 2007. This reduction in gross operating profit is mainly attributable to the OWM division, where treatment and disposal costs were higher than the same quarter last year.
EBITDA for the quarter ended March 31, 2008 was negative $1.2 million compared with $1.2 million for the quarter ended March 31, 2007, a decrease of $2.4 million or 200%. This decrease in EBITDA is mainly attributable to the reduction in gross operating profit.
Net loss for the quarter ended March 31, 2008 was $3.9 million or negative $0.05 per share compared with a loss of $1.9 million or negative $0.02 per share for the quarter ended March 31, 2007, an increased loss of $2.0 million.
During the quarter, the Company raised a total of $24.7 million in new funds, $3.0 million through the issuance of preferred shares and $21.7 million by way of a net increase in its long-term debt. The funds raised were used mainly for the Celtic acquisition and also to repay the outstanding revolver credit facility. As at March 31, 2008, the Company had $4.2 million in cash compared to $0.9 million in cash and $15.8 million in bank indebtedness as at March 31, 2007.
EnGlobe Corp.'s full unaudited interim consolidated financial statements, notes, and Management's Discussion and Analysis for the three-month period ended March 31, 2008 are available at www.sedar.com.
About EnGlobe Corp.
EnGlobe Corp. is a leading international 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 northeastern United States, the United Kingdom and France through its subsidiaries: Biogénie S.R.D.C. Inc. and Celtic Technologies Ltd. for site assessment and remediation, GSI Environnement 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 statements.
For further information
Investors: Aline Bélanger, Chief Financial Officer, (905) 335-2100 x 5026
Media: Lynne Lagacé, Communications and Marketing Director, (450) 929-4949 x 255