Biorem Reports Second Quarter Results
GUELPH, ON, Aug. 30, 2011 /PRNewswire/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three-month period ended June 30, 2011. Biorem's complete 2011 second quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
Three-months ended June 30,
Six-months ended June 30,
|(in thousands of Canadian dollars, except percent and per share data)||
|RESULTS FROM OPERATING ACTIVITIES||$(172)||$(383)||$(78)||$(1,043)|
|BASIC AND DILUTED EARNINGS/(LOSS) PER SHARE||$(0.02)||$(0.04)||$(0.02)||$(0.11)|
Revenue year to date for the Company is $7,877,000 or a 1% increase from prior the year results. This increase is a result of the Company earning more large scale project revenue in 2011 in comparison to 2010. Bookings for the first 6 months of 2011 total $9,757,000 which is a 12% decrease compared to 2010. Backlog at the end of the quarter is $12,086,000 or a 14% decrease from the prior year. The decrease in the Company's Bookings to the end of Q2 is due to abnormally high Bookings in Q1 2010. Biorem continues to experience very soft markets in the United States and Canada. During the first six months of 2011 bookings from United States and Canadian Municipal Odour Markets were $4,022,000 down from an average of $7,500,000 in 2010 (six month average). Bookings in new markets including International, Industrial, Biogas and China have risen from $2,441,000 in 2010 (six month average) to $5,949,000 in the first six months of 2011.
Gross margin for the Company increased 3 percent points year to date as the Company had a strong first quarter of 2011 and the gross margin results of Q2 2010 were impacted by the lower gross margin taken on strategic projects.
Net loss for the year is $272,000 which is an improvement of 80% compared to one year ago. Contributing to decreases in losses is the increased gross margins in 2011 and the Company reducing its overhead in 2011 to improve financial results from the previous year.
Subsequent to the end of the quarter Biorem completed the installation of its VOC technology scale up and is now in the process of starting up the system in order to finalize the commercialization performance of the systems. The system treats 6,000cfm of industrial air emissions from a surface coatings operation within the plant. Other commercialization activities are being initiated in parallel to the technology validation.
During the second quarter the Company generated cash flow from operations in the amount of $264,000 and has working capital of $5.4 million. This is an increase in working capital of $800,000 from March 31, 2011. The current working capital is considered adequate to fund the future requirements of the business for the foreseeable future.
"The second quarter focus for us as a company was to increase bookings and reduce our costs to improve the 2011 financial results" said Peter Bruijns, President and CEO. "for the remainder of the year, while continuing to focus on orders and reducing costs, we will also be working to improve the liquidity of the Company and strengthen the cash position for the business. By focusing on these three aspects of the business we are anticipating finishing 2011 with better results than the prior year."
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 over 700 installed systems worldwide, Biorem not only offers state-of-the-art technology-based products but also peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz.
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.
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.
"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-IFRS 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.