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GUELPH, ON, May 6 /CNW/ - BIOREM Inc. (TSXV: BRM) announced today its results for the first quarter ended March 31, 2008, which are summarized in the following table:
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First quarter
ended March 31,
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Information in table is in thousands except
per share data 2008 2007
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REVENUE $3,184 $1,769
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GROSS PROFIT 1,455 618
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EBITDA(1) 236 (336)
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NET EARNINGS 104 (375)
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BASIC EARNINGS PER SHARE 0.01 (0.03)
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DILUTED EARNINGS PER SHARE 0.01 (0.03)
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WEIGHTED AVERAGE COMMON SHARES 11,978 11,978
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First quarter revenue was $3,184,000, which is up $1,415,000 or 80% over the comparative period in the prior year. This also represents an 8.4% increase over revenue in Q4 2007 and a very encouraging trend of four continuous quarters with revenue increases. Strong revenue growth has resulted from the successful implementation of the major sales initiatives adopted in early 2007 to bring special attention separately to the municipal and industrial marketplaces and to build a very strong manufacturing representative network.
New orders in the quarter were $2,150,000 resulting in a current order backlog of $9 million. The backlog is up $1.3 million or 17% from March 31, 2007.
Gross profit in the quarter of $1,455,000 is up $837,000 from last year's comparative quarter resulting from increased revenue as well as improved margins on projects. This improvement has driven the gross margin up to 45.7% compared to Q1 2007 of 34.9%.
Operating Expenses were $1,219,000 which is up $265,000 or a 27.8% increase compared to the comparative quarter of $954,000. The largest increases are as follows:
- Sales and marketing expenses of $620,000 are up $231,000 or 59.4% to
account for higher commissions as well as increased personnel costs.
- Research and development expenses are up $94,000 or 61.8% from 2007
primarily due to activity associated with an ongoing research program
targeting industrial air pollution product development.
- There was an exchange gain of $102,000 in Q1 2008 as compared to an
exchange loss in the comparative period of 2007 of $14,000.
Although Operating Expenses were higher than last year's first quarter, the significant increase in gross margin brought the Company to a positive net earnings of $104,000 compared to a loss of $375,000 in Q1 2007.
The Company's liquidity improved significantly in Q1 2008. Net working capital increased by $337,000 in the three-month period. Total working capital at March 31, 2008 was $4,201,000.
Commenting on the quarterly results, Peter Bruijns, President and CEO said, "The very favourable results confirm the positive direction of the Company's sales restructuring from last year. Not only are the number of orders per quarter increasing, the average deal size is rising as the Company is winning many large orders. It is also encouraging to see a healthy gross margin which is expected to continue throughout 2008."
BIOREM went on to announce that, as part of an internal reorganization, the Director of Operations has departed from the Company. Peter Bruijns will take responsibility for this function in the interim as the Company builds best-practices and determines the most cost effective structure to deliver on the expanding business and new orders from both North America and internationally.
About BIOREM Inc.
BIOREM manufactures Biosorbens(R) biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications, including BIOCUBE(R) modular units and Mytilus(R) biotrickling filters. With over 500 installed systems and over a decade of experience, the Company's products are the technology of choice for odor control at waste water treatment plants across North America. Additional information on BIOREM is also available at our web site at www.biorem.biz.
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(1) 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. EBITDA represents earnings before interest, income
taxes, depreciation and amortization. This measure is important to
management since it is used by potential investors and lenders to
evaluate the ongoing cash generating capability of the Company and
thus the amounts they are willing to invest in the Company.
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 in no way passed upon the merits of the
proposed transaction and 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 www.sedar.com
%SEDAR: 00020304E