Biorem First Quarter Sales Rise 14.9%

Jun 23, 2011, 10:47 ET from Biorem Inc.

GUELPH, ON, June 23, 2011 /PRNewswire/ - BIOREM Inc. (TSXV: BRM) announced today its results for the first quarter of 2011:

First quarter ended March 31,

Information in table is in thousands except per share data





















Q1, 2011 revenue was $3,732,000, which is up $484,000 or 14.9% over the comparative period in the prior year. New orders in the quarter were over $2.8 million resulting in a current backlog of $10.6 million. This compares to $5.2 million in bookings in Q1, 2010. The Q1, 2011 decrease is attributable to the timing of certain larger projects which have been delayed to subsequent quarters this year.

Gross Profit in the quarter was $1,366,000, which has increased $229,000 or 20.1% over the comparative period in the prior year. The first quarter gross margin percentage is up as during the quarter the Company recognized revenue from two large contracts which had higher associated gross margins. Also as a result of earning higher revenue in the quarter, the Company absorbed the fixed Operations Department costs which further contributed to the higher gross profit in Q1, 2011 versus Q1, 2010.

Total Net Loss was $19,000 in the first quarter compared to a loss of $817,000 in the comparative period from last year. The improvement in Q1, 2011 is due to the increase in gross margin as described above plus a reduction in operating expenditures. In addition, a foreign exchange loss of $133,000 was realized in Q1, 2010 as opposed to a $66,000 loss in Q1, 2011, which represents a swing in foreign exchange gains and losses of $67,000.

"The year has started out well and we remain optimistic about 2011" said Peter Bruijns, President and CEO. "We continue to focus on revenue growth in addition to our cost structures and finding internal efficiencies to improve our financial results. Furthermore, we are anticipating significant bookings in the remainder of the year keeping us in line with our 2011 targets."

At the end of the quarter, the Company generated cash flows of $752,000 from operations and has substantial cash liquidity in its $4.6 million of working capital. Working capital has improved by $1.2 million from December 31st, 2010. The improved working capital position is considered adequate to fund the future operating requirements of the business for the foreseeable future.

Subsequent to the first quarter, the Company announced on June 2nd, 2011 that it had reached an agreement with Wellington Financial to amend the maturity date of the outstanding $2,000,000 debenture from October 31, 2011 to May 31, 2013. As consideration for the extension and the reduction of certain financial covenants, Biorem agreed to provide Wellington Financial 250,000 shares in the company subject to TSX Venture approval.

About BIOREM Inc.
Biorem is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency biological-based air emissions control systems. These systems are used to eliminate odors, volatile organic compounds (VOCs) and hazardous air pollutants (HAPs), and for the conditioning of biogas renewable energy. 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 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

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has neither approved nor disapproved of the contents 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

Non-IFRS Measures

"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.