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GUELPH, ON, March 28 /CNW/ - BIOREM Inc. (TSXV: BRM) announced today its results for the fourth quarter and the year ended December 31, 2007:
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Quarter Ended Year Ended
December 31 December 31
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Information in table is in
thousands except per share data 2007 2006 2007 2006
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REVENUE $ 2,938 $ 3,213 $ 9,470 $12,008
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GROSS PROFIT 1,244 1,518 3,344 4,132
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EBITDA(1) 77 670 (1,888) (298)
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NET EARNINGS (153) 346 (3,001) (770)
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BASIC EARNINGS PER SHARE (0.01) 0.03 (0.25) (0.07)
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DILUTED EARNINGS PER SHARE (0.01) 0.03 (0.25) (0.07)
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WEIGHTED AVERAGE COMMON SHARES 11,978 11,978 11,978 10,781
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New orders received in the fourth quarter were $3,400,000. The order backlog increased to $10,017,000 from $9,500,000 in the prior quarter. This is the fourth straight quarter of backlog increase. Revenue in the fourth quarter was $2,938,000, up from $2,547,000 in the third quarter as well as up for the third straight quarter.
"We remain focused on building our order backlog, cost reduction and price adjustments to improve our gross margin," said Peter Bruijns, President and CEO. "We are projecting that the sales momentum and backlog increase that has been building for three straight quarters will continue. From the second quarter of 2007, bookings have approached an annualized rate of $15,000,000. Our efforts are well advanced to shift operational and project expenses to the US in order to match the US-based orders and thereby minimize the effects of fluctuations in the US dollar value," added Mr. Bruijns.
Operating expenses in the quarter of $1,168,000 are up $220,000 compared to 2006, primarily due to an increased focus on research and development combined with a lower offset of investment tax credits. In addition, there was a $210,000 swing from a foreign exchange gain in the fourth quarter of 2006 of $132,000 to a foreign exchange loss in the fourth quarter of 2007 of $78,000 but significantly less than the prior quarter. This reflects a decrease in the value of US dollar denominated net working capital assets. Also affecting net income was a non-cash income tax expense of $82,000 in the quarter and $542,000 for the year. This resulted in a net loss of $3,001,000 for 2007.
At the end of the year, the Company had cash and cash equivalents in the amount of $2,261,000 and net working capital of $3,864,000. The cash balance and the unused credit facilities available to the company are considered adequate to fund the future operating requirements of the business.
For detailed financial statements for the year, including Management's Discussion and Analysis please refer to BIOREM's web site at www.biorem.biz or SEDAR at www.sedar.com after April 20, 2008.
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 odour control at Waste Water Treatment plants across North America. Additional information on BIOREM is also available at our web site at www.biorem.biz.
(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 lenders to evaluate the
ongoing cash generating capability of the Company and thus the
amounts those lenders are willing to lend to 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