Bennett Environmental Inc. Reports Fourth Quarter 2000 Results

Apr 20, 2001, 01:00 ET from Bennett Environmental Inc.

    OAKVILLE, ON, April 20 /PRNewswire/ - Bennett Environmental Inc.
 announces a loss for the year ending December 31, 2000 of ($2,258,314) or
 ($0.22) per share, on revenues of $7,966,574 compared to net earnings of
 $6,341,224 or $0.62 per share on revenues of $22,052,751 in the corresponding
 period in 1999. For the three months ending December 31, 2000 the company lost
 ($1,078,411) or ($0.11) per share, compared to a net income of $2,036,430 or
 $0.20 in the fourth quarter of 1999. The reason for this loss was the decline
 in treatment revenues, due to stronger competition from Canadian landfills in
 the U.S. market and slower than anticipated market penetration for the
 Company's services in the U.S.
     As previously reported, management has set a new direction for the
 company by building key relationships with leading North American
 environmental service companies. This has led to a significant increase in
 bidding activity and has resulted in the first major contract awarded to us by
 one of our key partners, IT Corporation. The company is on track with its
 plans to move the head office from Vancouver to Toronto in order to better
 serve its major markets in Canada and the US. In addition, the Company
 strengthened its management team through new appointments.
 
     Results of Operations
 
     Bennett Environmental lost ($2,258,314), or ($0.22) fully diluted loss
 per share, for the year ended December 31, 2000, compared to net income of
 $6,341,224 or $0.62 (fully diluted) for the twelve months ended December 31,
 1999. The company generated revenues of $7,966,574 for the year ended December
 31, 2000, a decrease compared to $22,052,751 in the corresponding period in
 1999.
     The Company's operating costs during the year decreased by $7,463,945, or
 60% from $12,347,557 to $4,883,612 compared to the corresponding period in the
 prior year. The majority of this decrease in operating costs can be
 attributable to the lower utilization of the Company's treatment facility due
 to the decline in sales.
     The Company's administrative and business development costs increased by
 $3,140,244 from $1,853,196 for the year ended December 31, 1999 to $4,993,440
 for the year ended December 31, 2000. This majority of these non-recurring
 costs were the result of write-offs of costs for potential acquisitions and
 bad debts ($750,991), provisions made to accrue for the cost of moving its
 corporate head office to Toronto ($280,000) and bonuses paid in respect to
 1999 performance ($403,800). The remaining increase was attributable to the
 significant investment made by the Company to strengthen its management team
 and to increase its sales and marketing efforts.
     Cash and cash equivalents of $3,758,336, was a decrease of $7,533,173 as
 compared with $11,291,509 for the corresponding period of the previous year.
 The Company utilized cash of $6,797,020 for investment purposes during the
 year, compared to cash utilized for investments in the prior year ended
 December 31, 1999 of $1,002,078. Of these investments, $5,925,047 was used for
 capital expenditures during the year. Of the capital expenditures, $4,598,240
 was used to acquire thermal equipment from IT Corp. and $1,086,112 was used
 for improvements at the Company's Quebec treatment facility. In addition, the
 Company incurred $871,973 of costs associated with its permitting activities
 in Kirkland Lake, Ontario. These permitting costs for Kirkland Lake have been
 capitalized and recorded as other assets.
     The Company increased its long-term debt by $3,064,111 (including current
 portion) payable to IT Corp. as part of the consideration for the purchase of
 the thermal treatment equipment. In addition, the Company repurchased 293,200
 common shares at a cost of $1,290,363 through the Toronto Stock Exchange under
 the terms of the Normal Course Issuer Bid. Subsequent to the year ended
 December 31, 2000, the Company repurchased an additional 35,200, shares at a
 cost of $133,140 through the Toronto Stock Exchange under the terms of the
 Normal Course Issuer Bid.
     The Company's net working capital at December 31, 2000 was $5,381,735,
 compared to a net working capital of $11,089,394 at December 31, 1999. The
 Company's net working capital position should be sufficient to meet the
 Company's obligations and capital requirements for the next twelve months. The
 Company has no plans to raise additional equity capital at this time.
 
     Bennett Environmental Inc. is listed on the Toronto Stock Exchange
 ("BEV"), and trades on the Frankfurt Stock Exchange ("BEW").
 
 
     On Behalf of the Board of Directors of
     BENNETT ENVIRONMENTAL INC.:
 
 
     "John Bennett"
 
     JOHN BENNETT
     CHIEF EXECUTIVE OFFICER
 
 
     BENNETT ENVIRONMENTAL INC.
     Consolidated Balance Sheets
     (Expressed in Canadian dollars)
 
     December 31, 2000 and 1999
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      2000             1999
     -------------------------------------------------------------------------
     Assets
 
     Current assets:
            Cash and cash equivalents           $3,758,336      $11,291,509
            Accounts receivable                  3,004,914        2,261,532
            Income taxes receivable                355,000                -
            Prepaid expenses and other             278,772           73,434
            ------------------------------------------------------------------
                                                 7,397,022       13,626,475
 
     Future income tax assets                      322,218          318,807
     Deposits and deferred
      acquisition costs                                  -          374,808
     Capital assets                             10,184,194        5,148,778
     Other assets                                1,755,547        1,035,582
     -------------------------------------------------------------------------
 
                                               $19,658,981      $20,504,450
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Liabilities and Shareholders' Equity
 
     Current liabilities:
            Accounts payable and
             accrued liabilities                $1,512,764       $1,926,627
            Income taxes payable                         -          171,067
            Current portion of
             long-term debt                        502,523          439,387
            ------------------------------------------------------------------
                                                 2,015,287        2,537,081
 
     Deferred revenue                               73,345          250,140
 
     Long-term debt                              2,976,027          400,621
 
     Shareholders' equity:
            Share capital                       19,400,912       19,032,443
            Deficit                             (4,806,590)      (1,715,835)
            ------------------------------------------------------------------
                                                14,594,322       17,316,608
     -------------------------------------------------------------------------
 
                                               $19,658,981      $20,504,450
 
 
     BENNETT ENVIRONMENTAL INC.
     Consolidated Statements of Operations and Deficit
     (Expressed in Canadian dollars)
 
     December 31, 2000 and 1999
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
                                                      2000             1999
     -------------------------------------------------------------------------
 
     Sales                                      $7,966,574      $22,052,751
 
     Expenses:
            Operating Costs                      4,883,612       12,347,557
            Administration and
             business development                4,993,440        1,853,196
            Amortization                         1,038,943        1,079,649
            Interest expense                        62,715          210,592
            Foreign exchange                         3,993           97,814
            ------------------------------------------------------------------
                                                10,982,703       15,588,808
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Operating income (loss)                    (3,016,129)       6,463,943
 
     Other income                                  741,242          183,192
     -------------------------------------------------------------------------
 
     Income (loss) before income taxes          (2,274,887)       6,647,135
 
     Income tax expense (recovery):
            Current                                (13,162)         174,078
            Future                                  (3,411)         131,833
            ------------------------------------------------------------------
                                                   (16,573)         305,911
     -------------------------------------------------------------------------
 
     Net income (loss)                          (2,258,314)       6,341,224
 
     Deficit, beginning of year                 (1,715,835)      (7,916,259)
 
     Share purchase in excess
      of assigned value                           (832,441)        (140,800)
     -------------------------------------------------------------------------
 
     Deficit, end of year                       (4,806,590)      (1,715,835)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Basic earnings (loss) per share                 (0.22)            0.69
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Fully diluted earnings (loss) per share         (0.22)            0.62
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     BENNETT ENVIRONMENTAL INC.
     Consolidated Statements of Cash Flows
     (Expressed in Canadian dollars)
 
     December 31, 2000 and 1999
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      2000             1999
     -------------------------------------------------------------------------
 
     Cash provided by (used in):
 
       Net earnings (loss)                     $(2,258,314)      $6,341,224
       Items not involving cash:
            Accretion of convertible
             debentures                                  -           39,209
            Amortization                         1,038,943        1,079,649
            Write-off of deferred
             acquisition costs                     374,808                -
            Loss on disposal of assets               2,696            1,989
            Future income taxes                     (3,411)         131,833
            Deferred revenue                      (176,795)        (618,299)
       -----------------------------------------------------------------------
                                                (1,022,073)       6,975,605
 
     Changes in non-cash working capital:
            Accounts receivable                   (743,382)         526,558
            Income taxes receivable               (355,000)               -
            Prepaid expenses and other            (205,338)          81,784
            Accounts payable and
             accrued liabilities                  (413,863)         172,980
            Income taxes payable                  (171,067)         171,067
            ------------------------------------------------------------------
                                                (1,888,650)         952,389
     Investments:
            Deposits and deferred
             acquisition costs                           -         (220,418)
            Purchase of capital assets          (5,925,047)        (696,732)
            Increase in deferred charges          (871,973)         (84,928)
            ------------------------------------------------------------------
                                                (6,797,020)      (1,002,078)
 
     Financing:
            Restricted cash                              -        1,149,975
            Increase in long-term debt           3,064,111          351,438
            Repayments of long-term debt          (425,569)      (1,010,738)
            Share capital, issued for cash         826,390        3,560,630
            Share issue costs                            -         (259,696)
            Repurchase of share capital         (1,290,362)        (347,065)
            ------------------------------------------------------------------
                                                 2,174,570        3,444,544
     -------------------------------------------------------------------------
 
     Increase (decrease) in cash
      and cash equivalents                      (7,533,173)      10,370,460
 
     Cash and cash equivalents,
      beginning of year                         11,291,509          921,049
     -------------------------------------------------------------------------
 
     Cash and cash equivalents,
      end of year                               $3,758,336      $11,291,509
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 

SOURCE Bennett Environmental Inc.
    OAKVILLE, ON, April 20 /PRNewswire/ - Bennett Environmental Inc.
 announces a loss for the year ending December 31, 2000 of ($2,258,314) or
 ($0.22) per share, on revenues of $7,966,574 compared to net earnings of
 $6,341,224 or $0.62 per share on revenues of $22,052,751 in the corresponding
 period in 1999. For the three months ending December 31, 2000 the company lost
 ($1,078,411) or ($0.11) per share, compared to a net income of $2,036,430 or
 $0.20 in the fourth quarter of 1999. The reason for this loss was the decline
 in treatment revenues, due to stronger competition from Canadian landfills in
 the U.S. market and slower than anticipated market penetration for the
 Company's services in the U.S.
     As previously reported, management has set a new direction for the
 company by building key relationships with leading North American
 environmental service companies. This has led to a significant increase in
 bidding activity and has resulted in the first major contract awarded to us by
 one of our key partners, IT Corporation. The company is on track with its
 plans to move the head office from Vancouver to Toronto in order to better
 serve its major markets in Canada and the US. In addition, the Company
 strengthened its management team through new appointments.
 
     Results of Operations
 
     Bennett Environmental lost ($2,258,314), or ($0.22) fully diluted loss
 per share, for the year ended December 31, 2000, compared to net income of
 $6,341,224 or $0.62 (fully diluted) for the twelve months ended December 31,
 1999. The company generated revenues of $7,966,574 for the year ended December
 31, 2000, a decrease compared to $22,052,751 in the corresponding period in
 1999.
     The Company's operating costs during the year decreased by $7,463,945, or
 60% from $12,347,557 to $4,883,612 compared to the corresponding period in the
 prior year. The majority of this decrease in operating costs can be
 attributable to the lower utilization of the Company's treatment facility due
 to the decline in sales.
     The Company's administrative and business development costs increased by
 $3,140,244 from $1,853,196 for the year ended December 31, 1999 to $4,993,440
 for the year ended December 31, 2000. This majority of these non-recurring
 costs were the result of write-offs of costs for potential acquisitions and
 bad debts ($750,991), provisions made to accrue for the cost of moving its
 corporate head office to Toronto ($280,000) and bonuses paid in respect to
 1999 performance ($403,800). The remaining increase was attributable to the
 significant investment made by the Company to strengthen its management team
 and to increase its sales and marketing efforts.
     Cash and cash equivalents of $3,758,336, was a decrease of $7,533,173 as
 compared with $11,291,509 for the corresponding period of the previous year.
 The Company utilized cash of $6,797,020 for investment purposes during the
 year, compared to cash utilized for investments in the prior year ended
 December 31, 1999 of $1,002,078. Of these investments, $5,925,047 was used for
 capital expenditures during the year. Of the capital expenditures, $4,598,240
 was used to acquire thermal equipment from IT Corp. and $1,086,112 was used
 for improvements at the Company's Quebec treatment facility. In addition, the
 Company incurred $871,973 of costs associated with its permitting activities
 in Kirkland Lake, Ontario. These permitting costs for Kirkland Lake have been
 capitalized and recorded as other assets.
     The Company increased its long-term debt by $3,064,111 (including current
 portion) payable to IT Corp. as part of the consideration for the purchase of
 the thermal treatment equipment. In addition, the Company repurchased 293,200
 common shares at a cost of $1,290,363 through the Toronto Stock Exchange under
 the terms of the Normal Course Issuer Bid. Subsequent to the year ended
 December 31, 2000, the Company repurchased an additional 35,200, shares at a
 cost of $133,140 through the Toronto Stock Exchange under the terms of the
 Normal Course Issuer Bid.
     The Company's net working capital at December 31, 2000 was $5,381,735,
 compared to a net working capital of $11,089,394 at December 31, 1999. The
 Company's net working capital position should be sufficient to meet the
 Company's obligations and capital requirements for the next twelve months. The
 Company has no plans to raise additional equity capital at this time.
 
     Bennett Environmental Inc. is listed on the Toronto Stock Exchange
 ("BEV"), and trades on the Frankfurt Stock Exchange ("BEW").
 
 
     On Behalf of the Board of Directors of
     BENNETT ENVIRONMENTAL INC.:
 
 
     "John Bennett"
 
     JOHN BENNETT
     CHIEF EXECUTIVE OFFICER
 
 
     BENNETT ENVIRONMENTAL INC.
     Consolidated Balance Sheets
     (Expressed in Canadian dollars)
 
     December 31, 2000 and 1999
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      2000             1999
     -------------------------------------------------------------------------
     Assets
 
     Current assets:
            Cash and cash equivalents           $3,758,336      $11,291,509
            Accounts receivable                  3,004,914        2,261,532
            Income taxes receivable                355,000                -
            Prepaid expenses and other             278,772           73,434
            ------------------------------------------------------------------
                                                 7,397,022       13,626,475
 
     Future income tax assets                      322,218          318,807
     Deposits and deferred
      acquisition costs                                  -          374,808
     Capital assets                             10,184,194        5,148,778
     Other assets                                1,755,547        1,035,582
     -------------------------------------------------------------------------
 
                                               $19,658,981      $20,504,450
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Liabilities and Shareholders' Equity
 
     Current liabilities:
            Accounts payable and
             accrued liabilities                $1,512,764       $1,926,627
            Income taxes payable                         -          171,067
            Current portion of
             long-term debt                        502,523          439,387
            ------------------------------------------------------------------
                                                 2,015,287        2,537,081
 
     Deferred revenue                               73,345          250,140
 
     Long-term debt                              2,976,027          400,621
 
     Shareholders' equity:
            Share capital                       19,400,912       19,032,443
            Deficit                             (4,806,590)      (1,715,835)
            ------------------------------------------------------------------
                                                14,594,322       17,316,608
     -------------------------------------------------------------------------
 
                                               $19,658,981      $20,504,450
 
 
     BENNETT ENVIRONMENTAL INC.
     Consolidated Statements of Operations and Deficit
     (Expressed in Canadian dollars)
 
     December 31, 2000 and 1999
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
                                                      2000             1999
     -------------------------------------------------------------------------
 
     Sales                                      $7,966,574      $22,052,751
 
     Expenses:
            Operating Costs                      4,883,612       12,347,557
            Administration and
             business development                4,993,440        1,853,196
            Amortization                         1,038,943        1,079,649
            Interest expense                        62,715          210,592
            Foreign exchange                         3,993           97,814
            ------------------------------------------------------------------
                                                10,982,703       15,588,808
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Operating income (loss)                    (3,016,129)       6,463,943
 
     Other income                                  741,242          183,192
     -------------------------------------------------------------------------
 
     Income (loss) before income taxes          (2,274,887)       6,647,135
 
     Income tax expense (recovery):
            Current                                (13,162)         174,078
            Future                                  (3,411)         131,833
            ------------------------------------------------------------------
                                                   (16,573)         305,911
     -------------------------------------------------------------------------
 
     Net income (loss)                          (2,258,314)       6,341,224
 
     Deficit, beginning of year                 (1,715,835)      (7,916,259)
 
     Share purchase in excess
      of assigned value                           (832,441)        (140,800)
     -------------------------------------------------------------------------
 
     Deficit, end of year                       (4,806,590)      (1,715,835)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Basic earnings (loss) per share                 (0.22)            0.69
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     Fully diluted earnings (loss) per share         (0.22)            0.62
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     BENNETT ENVIRONMENTAL INC.
     Consolidated Statements of Cash Flows
     (Expressed in Canadian dollars)
 
     December 31, 2000 and 1999
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      2000             1999
     -------------------------------------------------------------------------
 
     Cash provided by (used in):
 
       Net earnings (loss)                     $(2,258,314)      $6,341,224
       Items not involving cash:
            Accretion of convertible
             debentures                                  -           39,209
            Amortization                         1,038,943        1,079,649
            Write-off of deferred
             acquisition costs                     374,808                -
            Loss on disposal of assets               2,696            1,989
            Future income taxes                     (3,411)         131,833
            Deferred revenue                      (176,795)        (618,299)
       -----------------------------------------------------------------------
                                                (1,022,073)       6,975,605
 
     Changes in non-cash working capital:
            Accounts receivable                   (743,382)         526,558
            Income taxes receivable               (355,000)               -
            Prepaid expenses and other            (205,338)          81,784
            Accounts payable and
             accrued liabilities                  (413,863)         172,980
            Income taxes payable                  (171,067)         171,067
            ------------------------------------------------------------------
                                                (1,888,650)         952,389
     Investments:
            Deposits and deferred
             acquisition costs                           -         (220,418)
            Purchase of capital assets          (5,925,047)        (696,732)
            Increase in deferred charges          (871,973)         (84,928)
            ------------------------------------------------------------------
                                                (6,797,020)      (1,002,078)
 
     Financing:
            Restricted cash                              -        1,149,975
            Increase in long-term debt           3,064,111          351,438
            Repayments of long-term debt          (425,569)      (1,010,738)
            Share capital, issued for cash         826,390        3,560,630
            Share issue costs                            -         (259,696)
            Repurchase of share capital         (1,290,362)        (347,065)
            ------------------------------------------------------------------
                                                 2,174,570        3,444,544
     -------------------------------------------------------------------------
 
     Increase (decrease) in cash
      and cash equivalents                      (7,533,173)      10,370,460
 
     Cash and cash equivalents,
      beginning of year                         11,291,509          921,049
     -------------------------------------------------------------------------
 
     Cash and cash equivalents,
      end of year                               $3,758,336      $11,291,509
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 SOURCE Bennett Environmental Inc.