GUELPH, ON, Aug. 19 /PRNewswire-FirstCall/ - BIOREM Inc.
(TSX-V: BRM) ("Biorem" or "the Company") today announced its
results for the three-month period ended June 30, 2010. Biorem's complete 2010 second
quarter financial statements and MD&A have been filed on SEDAR
(www.sedar.com).
"We successfully achieved significant new bookings during the
quarter and we continue to grow our order backlog, which reached
$14.1 million in Q2," said
Peter Bruijns, President and CEO. "A
portion of these new orders relate to our Volatile Organic Compound
and Biogas sweetening market initiatives. These results add to our
confidence in building a diversified revenue based business model
and our objective of being a leader in global clean technology air
emissions control."
Bookings in the second quarter of 2010 were $6,200,000, an increase of approximately 20
percent on a sequential basis over the first quarter of 2010 and an
increase of 19% compared to the same period last year. The total
orders received in the first two quarters are $11,500,000 resulting in an order backlog of
$14,100,000 for the second quarter of
2010, up 40 percent from the beginning of 2010.
Financial Summary:
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Three-months Six-months
ended June 30, ended June 30,
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(in thousands of Canadian dollars,
except percent and per share data) 2010 2009 2010 2009
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REVENUE $4,560 $5,678 $7,808 $9,715
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GROSS PROFIT $1,202 $2,326 $2,349 $3,632
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GROSS MARGIN 26% 41% 30% 37%
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EBITDA(1) (excluding gains and
losses on foreign exchange) $(323) $457 $(809) $430
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NET LOSS $(514) $(239) $(1,407) $(664)
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BASIC AND DILUTED LOSS PER SHARE $(0.04) $(0.02) $(0.12) $(0.06)
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THREE MONTHS ENDED JUNE 30,
2010
Revenue in the three-month period ended June 30, 2010 (Q2 2010) was $4,560,000 compared to $5,678,000 over the comparative period in the
prior year. The Company has increased its Backlog by 40%
year-to-date from $10.1 million at
December 31, 2009 due to a strong
first six months of Bookings.
Gross margin decreased to 26% in Q2 2010 versus 41% in Q2 2009.
The Q2 2010 Gross Margin is lower than the previous quarter due to
the effect of lower margins accepted by the Company on two
strategic projects whose implementation converged into the quarter
and constituted more than $1,733,000
of the Q2 revenue as well as the effect of under absorbed overhead
costs. The company expects margins to return to historical levels
over the next two quarters.
Gross profit in Q2 2010 was $1,202,000 down from $2,326,000 in Q2 2009.
Net loss for the Q2 2010 was $514,000 or $0.04
per basic and diluted share, compared to net loss of $239,000, or $0.02
per basic and diluted share in Q2 2009.
Adjusted EBITDA(1) in the second quarter of 2010 totaled a loss
of $323,000, compared to earnings of
$457,000 in the second quarter of
2009. The increase in Q2 2010 net loss and Adjusted EBITDA versus
Q2 2009 is a result of the lower revenue in Q2 2010 versus Q2 2009,
lower gross margin in Q2 2010, and the Company's investment in
developing new innovative products in VOC and biogas sweetening.
The table below reconciles net loss to Adjusted EBITDA.
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Three-months Six-months
ended June 30, ended June 30,
-------------------------------------------------------------------------
(in thousands of Canadian dollars) 2010 2009 2010 2009
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Net Loss $(514) $(239) $(1,407) $(664)
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Amortization of long-term assets 128 121 252 220
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Loss (gain) on foreign exchange (96) 424 30 580
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Accretion of deferred financing
and warrant costs 62 54 121 101
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Interest expense 97 97 195 193
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Adjusted EBITDA $(323) $457 $(809) $430
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As at June 30, 2010, Biorem had
total working capital of $6,080,000,
cash and short-term investments of $1,247,000 and unbilled revenue of $5,366,000, compared to total working capital of
$6,420,000, cash and short-term
investments of $3,092,000 and
unbilled revenue of $4,130,000 as at
March 31, 2010.
BIOREM today also announced that it has withdrawn its previously
announced proposed private placement of up to $3 million due to market conditions. The Company
currently has a strong financial position that will continue to
support its working capital needs and business objectives.
About BIOREM Inc.
Biorem is a leading clean technology company that designs,
manufactures and distributes a comprehensive line of
high-efficiency air emissions control systems used to eliminate
odors, volatile organic compounds (VOCs), and hazardous air
pollutants (HAPs). With sales and manufacturing offices across the
continent, a dedicated research facility, a worldwide sales
representative network and more than 600 installed systems
worldwide, Biorem offers state-of-the-art technology-based products
and peace of mind for municipalities, industrial companies and
their surrounding communities. Additional information on Biorem is
available on our website at www.biorem.biz.
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Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking statements based on
current expectations. These forward-looking statements contain
various risks and uncertainties that could cause actual results to
differ materially from those reflected in the forward-looking
statements. Risks and uncertainties about the Company's business
are more fully discussed in the disclosure materials, financial
statements and MD&A filed with the securities regulatory
authorities in Canada on
www.sedar.com.
Non-GAAP Measures
1. Adjusted EBITDA is a non-GAAP earnings measure, therefore, it
does not have any standardized meaning prescribed by Canadian
generally accepted accounting principles and may not be similar to
measures presented by other companies. Adjusted EBITDA represents
earnings before interest, foreign exchange, income taxes,
depreciation and amortization. This measure is important to
management since it is used by potential lenders to evaluate the
ongoing cash generating capability of the Company and thus the
amounts those lenders are willing to lend to the Company.
"Order Bookings" and "Order Backlog" do not have any
standardized meaning prescribed by Canadian generally accepted
accounting principles ("GAAP") and may not be comparable to
measures presented by other companies.
Order Bookings and Order Backlog are non-GAAP measures that the
Company uses to evaluate its sales performance. Order Bookings are
those binding contracts that the Company enters into with a third
party for the delivery of our products or services. As Order
Bookings are received, the contract value (before any associated
sales taxes) is included in the Order Backlog. The Order Backlog is
reduced by the revenue that is recognized on each project and then
adjusted for any currency changes.
SOURCE Biorem Inc.
Copyright . 19 PR Newswire