EnGlobe Reports 4Q Loss of $1 million from Restructuring Costs

Date: February 25, 2008

Source: EnGlobe Corp.

EnGlobe reports fourth-quarter loss of $1 million over restructuring costs

EnGlobe Corp. (TSX:EG), a Burlington, Ont.-based environmental services company, reported Monday a fourth-quarter net loss of $1 million, compared with $1 million in net income in the year-earlier period.

The former Environmental Management Solutions Inc. attributed the loss to restructuring costs of $1.6 million, larger depreciation and amortization expenses, and higher interest charges.

For the year as a whole, EnGlobe reported a net loss of $3 million due to restructuring costs, compared with a $200,000 net loss in 2006.

The company, which concentrates on organic waste and contaminated soil, said revenue for the fourth quarter rose 58 per cent to $39.8 million compared with $25.2 million, primarily due to the acquisition of Biogenie S.R.D.C. Inc. in late 2006.

Gross operating profit in the quarter was $12.2 million compared with $7 million in the year-earlier quarter, on higher revenues and gross operating profit from Biogenie's soil assessment and remediation activities, moderated by reduced margins at GSI, the company's organic waste management segment.

"EnGlobe continued its progression in its fourth quarter to a larger and more diversified environmental services business with substantial revenue and EBITDA growth over last year," said Aline Belanger, interim president and CEO.

"The management team remains focused on completing the integration of its operations and pursuing EnGlobe's strategy and key initiatives."

For the year, EnGlobe reported that revenue rose 113 per cent to $149.1 million from $69.9 million, due to expanded site assessment and remediation activities and the addition of Biogenie.

The year included $3.7 million in restructuring and other charges.

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