World Leading Attractions Company: Expanding...

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World Leading Attractions Company: Expanding Opportunities Annual Shareholder Meeting September 12, 2016

Transcript of World Leading Attractions Company: Expanding...

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World Leading Attractions Company: Expanding Opportunities Annual Shareholder Meeting September 12, 2016

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This presenta,on contains forward-looking statements, within the meaning of applicable securi,es legisla,on, concerning Empire's business and affairs. In certain cases, forward-looking statements can be iden,fied by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "es,mates", "forecasts", "intends", "an,cipates" or varia,ons of such words and phrases or state that certain ac,ons, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expecta,ons, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cau,oned not to place undue reliance on such forward-looking statements. Forward-looking informa,on is provided as of the date of this presenta,on, and Empire assumes no obliga,on to update or revise them to reflect new events or circumstances, except as may be required under applicable securi,es laws. Neither the TSX Venture Exchange nor its Regula,on Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presenta,on.

ReaderAdvisory

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Ø  Con$nuedtransforma$onintoaMedia-BasedA4rac$onscompany

Ø  Empire’stwobusinesssegmentshavelong,successfultrackrecordsinengineeringandindustrialservices:²  Media-BasedA4rac$ons(since2000)²  SteelFabrica$on(since1926)

Ø  Award-winningcompaniesrecognizedasthe‘world’sbest’intwonichemarketssuchasmedia-baseda4rac$ons(DynamicA4rac$ons)andtelescopes(DynamicStructures)

Ø  Excep$onal,longtermgrowthexpectedinthemedia-baseda4rac$ons

market

Ø  Publicsince2006onTSXV.

WhoWeAre

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Ø  Focusedasaleaderintherapidlygrowing,globala4rac$onsindustry,byexpandingrevenues,margins,andprofitabilityinitsMedia-BasedA4rac$onssegment

Ø  Recentlyspun-outitsHydrovacbusiness,sharpeningtheCompany’sfocusonMedia-BasedA4rac$onsanditsabilitytodesignandbuild,specialized,complexequipment

Ø  Significantpoten$alforstockpriceapprecia$onthroughmul$pleexpansionandthroughunlockinghiddenvaluethroughstrategicini$a$ves

Ø  Con$nuetohavesignificantstrategicinvestmentsinDynamicStructuresanddevelopmentprogramsinthisgloballeader

MarketGrowth&FinancialPerformance

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Ø StockPrice:52weekhigh/low…………………………….…$0.49/$0.24Ø NumberofShares…………………………………………….……65millionØ AverageDailyTradingVolume(lastthreemonths)..52,208(adjustedforconsolida$on)Ø MarketCap(September9,2016)…………………………..$26million($0.40/share) Ø AnnualRevenues(TTMJune30,2016)………………….$130millionØ AnnualEBITDA(TTMJune30,2016)……………………..$7.5millionØ LongTermFundedDebt(June30,2016)……………….$5.0million

CapitalMarketsInformaPon

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FinancialHighlights

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Q12016Unrealizedgainonderiva$vefinancialinstrumentsof$5,279Q22016GainonsaleofTornadoof$2,868

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SegmentedFinancialInformaPon

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LearningCurveEffectMedia-BasedAVracPons“Normalized”removes1stFlyingTheatre&1stSFXCoasterprojectsandothernon-recurringitems

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12 months ended December 31 Actual Normalized Variance($000) 2014 2014 2014

Segment Revenues 67,754 58,434 (9,320) Adjusted EBITDA 6,350 7,403 1,053 Adjusted EBITDA % 9.4% 12.7% 3.3%

12 months ended December 31 Actual Normalized Variance($000) 2015 2015 2015

Segement Revenues 102,961 93,739 (9,222) Adjusted EBITDA 11,365 12,462 1,097 Adjusted EBITDA % 11.0% 13.3% 2.3%

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TransformaPonofBusinessMix5YearComparisonofSegmentsbyRevenue

9TotalRevenue=$131.2millionTotalRevenue=$50.0million

2010

2015

Media-BasedAVracPons

Media-BasedAVracPonsAll

OtherCon$nuingOpera$ons

AllOtherCon$nuingOpera$ons

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Media-BasedAVracPons

DynamicAVracPons

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Ø  Turn-key,precisionmanufacturerandintegratorofpremium,media-baseda4rac$ons.

Ø  ProprietaryproductsincludeiconicDarkRides(i.e.Robo$ctrackedvehiclesandtracklessvehiclea4rac$onsandSpecialEffectsIndoorRollerCoasters)andarangeofTheatreproductsandselfpropelled,trackedracevehicles.

Ø  FreshlylaunchedUnlimitedServicesTMheadquarteredinourOrlandooffice,

broadensourofferingbeyondtheridesystemandintotheming,story,mediaproduc$on,andotherservicesrequiredforacompletea4rac$on.Thisincreasesourshareofthecustomer’soverallbudgetforeacha4rac$on.

Ø  Increasingaker-salesserviceofferingglobally

Ø  Empire’sbiggestandmostprofitabledivision,withacurrentcontractbacklogof$107million.

Ø  Pipelineofcontractpossibili$esover$500million.

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UnlimitedAVracPons’ServicesarebeingnoPced

SpacePark

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Ø  DynamicA4rac$onsrecentlysignedastrategiccoopera$onagreementMOUwithAltair(Shanghai)SpaceTechnologyCompany.

Ø  Iftheprojectmovesforward,Dynamicwilldesign,develop,co-ownandoperateaspacethemeparkinHangzhou,China.

Ø  Dynamic’sthemeparkplanningandengineeringteamswillbeinvolvedinthemasterplanandprovisionofthesixiconica4rac$onsinSpacePark.

Ø  TheTransac$onissubjecttoseveralkeyapprovalsandlandbiddingprocess.

Ø  Empire’splantoexpandbeyondridesystemscon$nuestoresonateinthea4rac$onsmarketplace

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Media-BasedAVracPons

CatalystsforGrowth

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Ø  ExternalForces²  “Gotosupplier”oficonica4rac$onstoUniversalStudios,Disneyandseveralofthe

topglobalthemeparkowners,whoareallundertakingsignificantthemeparkcapitalexpansionprogramsworldwide

²  Themeparkconstruc$onisgrowingfast,par$cularlyinAsiaandMiddleEastandthereisagrowingdemandfordifferen$ated,proprietary,integrated,iconica4rac$ons

²  StrongUSdollarposi$velyimpactsprofitmarginsbecausethesecontractsaresoldpredominantlyinUSdollars

Ø  InternalForces²  Wehaveunrivalledtechnicalandcrea$veknowledgetodelivericonicmediabased

a4rac$onsglobally²  NewlylaunchedUnlimitedServicesTM,willgenerateanewrevenuestream²  Increasingrecurringrevenuethroughaker-sales,partsandservice²  “Learningcurve”ofhighercostsforfirstgenera$oniconicproductswillsee

decreasedcostsonsecondgenera$onsalesandproduc$on

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Ø  Hasdesignedandsuccessfullybuiltoverhalfoftheworld’slargestobservatory

telescopes.Ø  NamedbytheGovernmentofCanadaasthecompanytobuildtheenclosurefor

theThirtyMeterTelescope(TMT),aspartofCanada’scontribu$ontothisinterna$onalmegaproject.²  TMTwillbetheworld’slargestop$caltelescope²  Plannedtobedesigned,manufacturedandinstalledoverthenextfewyears²  Consor$umofna$onalgovernmentsanduniversi$es²  Awarded$10millionDetailedDesigncontractinAugust2016²  Fabrica$oncontract,expectedin2017,toapproximate$60million²  Installa$oncontractwillbedeterminedbaseduponfinalsiteselec$on

Ø  Con$nuingtodevelopproprietary,mirror-polishingtechnologywithpoten$altoradicallyreshapetheobservatorytelescopeindustry.

DynamicStructures

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Ø  Steelfabrica$onwasthelaunchingpadwhereEmpiregotitsstart.Thissegmenthasstrategicvaluebecauseofthenaturalconnec$ontoEmpire’sa4rac$onbusinessasakeysupplierofsteelintensivecomponents.

Ø  Con$nuetointegratethehighquality,highcapacityfabrica$on

capabili$esofitsChinesefabrica$onopera$ontoacceleratecosteffec$vegrowthofourproprietary,media-baseda4rac$onproducts.

Ø  Weareinpursuitofunlockinghiddenvalueinoursteelfabrica$onbusinessbyintegra$ngourNorthAmericanexper$sewithourincreasedfabricatedsteelsupplycapabili$esinChinatherebycrea$ngagloballycompe$$ve,fabricatedsteelsupplychain.

SteelFabricaPonServices

EmpireIronWorks

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CanadianContractorComparablesinBlueAllEmpireIndustriesvaluaPonmulPplescompareveryfavorably

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WhyInvestinEmpire?

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Ø  Empire’sbusinessisfocusedoncapitalizingontheglobalphenomenonofaccelera$nggrowthinleisureandentertainmentcapitalspending.

Ø  Empireisthe‘go-to’supplierformanyoftheworld’sleadingentertainmentcompanieswhichseekatechnologically-advanced,differen$ateda4rac$onproductline.

Ø  Movingbeyondasupplierofridesystemsintoasupplierofturnkeya4rac$ons.Seekingandfindingopportuni$esinhighvalueadded,recurringrevenueservicessuchasparkplanning,managementandownership.

Ø  GroundFloorOpportunity:Currentlowsharepricevalua$onrela$vetocomparablepubliccompanyvalua$onsprovidesopportunityforgainsasthemarketrealizesEmpire’spoten$al.

Ø  Empirehasagoodbalancesheetandthefinancialresourcestocapitalizeonitsexcep$onalpipelineofopportuni$es.

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Thank you