Biorem Reports $2.1 million Earnings for Fiscal 2020
GUELPH, ON, March 31, 2021 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced its results for the three and twelve-month periods ended December 31, 2020. Biorem's complete fiscal 2020 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com).
FINANCIAL HIGHLIGHTS:
in '000's except earnings per share |
|||||
Three-months ended |
Twelve-months ended |
||||
December 31 |
December 31 |
||||
2020 |
2019 |
2020 |
2019 |
||
Revenue |
7,934 |
4,376 |
24,375 |
20,649 |
|
Gross profit |
3,653 |
1,183 |
7,017 |
4,864 |
|
Operating expenses |
2,229 |
2,936 |
4,298 |
5,887 |
|
Ebitda* |
1,562 |
(1,995) |
3,042 |
(1,094) |
|
Net earnings (loss) |
1,133 |
(2,123) |
2,089 |
(1,302) |
|
EPS - basic |
0.03 |
(0.06) |
0.05 |
(0.03) |
|
EPS - fully diluted |
0.03 |
(0.06) |
0.05 |
(0.03) |
|
* Earnings before interest, taxes and amortizaton, a non IFRS financial measure |
|||||
TWELVE MONTHS ENDED DECEMBER 31, 2020
For the twelve months ended December 31, 2020 revenue totaled $24.3 million compared to $20.6 million for the same twelve months in 2019. Net earnings for the year were $2.1 million compared to a net loss of $1.3 million in 2019. Earnings per share for the year was $0.05 against a loss per share of $0.03 basic and fully diluted reported in 2019.
Revenues of $24.4 million for the year represented an 18.0% increase over revenues reported the previous year. The increase in revenue was largely the result of the increased order backlog of $31 million on January 1, 2020 compared to an order backlog of $21 million on January 1, 2019. Gross profit for the year was $7.1 million, a 44% increase from gross profit of $4.8 million recorded for the year-ended December 31, 2019.
Total operating expenses for the year were $4.3 million a $1.6 million decrease from operating expenses of $5.9 million reported in 2019. The decrease in operating expenses was largely the result of $1.7 million valuation allowance recorded against accounts receivable in China in 2019 compared to net valuation allowance of $300,000 recorded in 2020.
On December 31, 2020 the Company had cash on hand of $8.9 million and working capital of $10.5 million compared to $6.5 million and $8.6 million respectively in December 31, 2019.
The Company has no long term debt.
Total order bookings for the year were $27 million, an 18% decrease in bookings over the $32.9 million booked in 2019. The Company's order backlog stood at $31.0 million on December 31, 2020 unchanged from $31.0 million on December 31, 2019.
"Management looks forward to the next phase of the Corporation's development" said Derek S. Webb, President and CEO. "A strong backlog; healthy bidding activity and a number of exciting new products ready for market release provides us with the tools necessary to achieve growth in the coming years "
"The organization continues to carefully plan for customer and supply chain disruptions due to on-going pandemic restrictions. While we expect some challenges with project delivery in 2021, a number of new initiatives are underway with results expected to begin to be realized towards the end of the year. All in all, a very exciting period for our company."
Three Months ended December 31, 2020
Revenue in the fourth quarter of 2020 was $7.9 million compared to $3.6 million in the previous quarter and $4.4 million in the fourth quarter of 2019. The significant increase in the 2020 fourth quarter revenues compared to the previous quarters was largely due to differences in project delivery time lines in the quarters and to some project delivery delays in the prior quarters. Orders booked in the quarter totaled $5.1 million.
Gross profit of $3.7 million in the fourth quarter amounted to 46% of revenue, which was significantly higher than the 17.5 % gross profit margin in the previous quarter and the 27% achieved in the same quarter the prior year. The increased margin was the result of the higher revenues recorded in the quarter without any increase in engineering or project management overhead costs.
Total operating expenses (net of other income) for the quarter were $2.2 million a 24% decrease from the operating expenses of $2.9 million incurred during the fourth quarter of 2019. The comparative decrease from the fourth quarter a year ago was due to a $1.0 million reduction in valuation provisions recorded in the quarter offset by an increase in compensation and commission expenses.
Ebitda loss for the quarter was $1.6 million compared to ebitda loss of $2.0 million in the fourth quarter of 2019.
Net earnings for the quarter were $1.1 million compared to a net loss of $2.1 million in the fourth quarter of 2019.
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 worldwide sales representative network and more than 1,400 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.
Derek Webb, President and Chief Executive Officer, [email protected], Tel: (519) 767-9100 ext 240; Douglas Newman, Chief Financial Officer, [email protected], Tel: (519) 767-9100 ext 287
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