Biorem Reports First Quarter 2018 Financial Results

GUELPH, ON, May 15, 2018 /PRNewswire/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced results for the three month period ended March 31, 2018.  Biorem's complete 2018 first quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

Financial Summary:

Revenues for the quarter totaled $3.9 million a 55% decrease over the previous quarter, and $800,000 or 26% increase from revenues of $3.1 million recorded during the first quarter of 2017. The decrease in first quarter revenues was due to delayed client construction schedules, shifting project deliveries into the 2018 second and third quarters.

Gross profit in the quarter of $815,000, represented 21% of revenue, compared to $2.4 million and 28% of revenue in the immediately preceding quarter and $1.1 million and 37% of revenue in the first quarter of 2017. The decrease in gross profit percentage over the prior quarter was due to the mix of projects delivered in the first quarter of 2018 having lower gross margins than the mix in Q4 2017 and the allocation of first quarter 2018 fixed engineering costs over a lower revenue amount. The decrease in gross margin percentage from the same period a year ago was due to, on average lower margins on the projects completed in the first quarter of 2018 compared 2017 and to a $200,000 difference in warranty expense in the periods.

Operating expenses for the quarter were $1.0 million, which was consistent with the operating expenses incurred for the same period ended in the prior year.

The Company booked new orders totalling $6.0 million in the quarter resulting in a backlog of orders at March 31, 2017 of $21.6 million compared to $20.0 million at March 31, 2017.

"The lower Q1 revenues are an example of the quarterly fluctuations we can experience due to project delivery timing, and not a reflection of the robustness of our business or an indication of the financial performance to expect for the rest of the year." said Derek S. Webb, President and CEO.  "Bidding activity and order bookings have been strong in the first four months of 2018, and provide good visibility for the next several quarters. Normal quarterly fluctuations due to construction schedules are expected to create some variability in quarterly revenues for the balance of the year."

The Company's unrestricted cash position stood at $5.8 million on March 31, 2018, compared with the $3.6 million held on December 31, 2017. Working capital at the end of the quarter was $7.2 million unchanged from $7.2 million at December 31, 2017 and up $1.9 million from $5.3 million at March 31, 2017.

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 1,200 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.

SOURCE Biorem Inc.

Related Links

http://www.biorem.biz