GUELPH, ON, Nov. 25, 2020 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced its results for the three and nine-month periods ended September 30, 2020. Biorem's complete third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
FINANCIAL HIGHLIGHTS:
in Canadian dollars, '000's except earnings per share |
||||
Three-months ended |
Nine -months ended |
|||
September 30 |
September 30 |
|||
2020 |
2019 |
2020 |
2019 |
|
Revenue |
3,586 |
6,266 |
16,441 |
16,273 |
Gross profit |
629 |
1,731 |
3,364 |
3,769 |
Operating expenses |
418 |
1,048 |
2,070 |
2,950 |
Ebitda* |
167 |
703 |
1,382 |
901 |
Net earnings |
155 |
682 |
949 |
821 |
EPS - basic |
0.004 |
0.020 |
0.025 |
0.020 |
EPS - fully diluted |
0.004 |
0.020 |
0.025 |
0.020 |
* Earnings before interest, taxes and amortizaton, a non IFRS financial measure |
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Biorem reported revenues for the third quarter of $3.6 million a 40% decrease over the previous quarter and $2.7 million below the $6.3 million of revenues reported in the same quarter in 2019. Year to date revenues totalled $16.4 million, a 1% increase over the $16.3 million reported for the first nine months of 2020. The decrease in revenues for the third quarter are largely the result of delays in deliveries from suppliers and delays in customer's construction schedules.
Order booking during the quarter totaled $8.7 million and the Company's order back log on September 30 stood at a record $34 million.
Gross profit for the quarter was $629,000 or 17.5% of revenue compared to $1.4 million of gross profit representing 23.9 % of revenue recorded during the third quarter of 2019. The decrease in gross profit during the quarter is directly related to the decrease in revenue in the quarter. Total operating expenses (net of other income) for the quarter were $418,000 against $1,048,000 in the same period the prior year. The decrease in operating expenses was primarily due to the receipt of $295,000 in CEWS wage subsidy received in the quarter from the federal government and the collection of $256,000 in accounts receivable in China that had previously had a valuation allowance recorded against them.
Ebitda for the quarter was $167,000 compared to $703,000 of ebitda in the third quarter of 2019. Year to date ebitda totaled $1.4 million
Net earnings for the quarter were $155,000, with year to date earnings totalling $949,000 compared to net earnings of $821,000 for the first nine months of 2019.
"Disruptions in our supply chain and delays to customer's constructions schedules due to the COVID pandemic impacted our third quarter results and were expected" said Derek Webb, President and CEO. "Use of our diversified supply chain, innovative application of technology and resourceful employees ensured that we were able to continue business development and complete startups and commissioning during the quarter."
"We continue to be cautious regarding potential future disruptions in our supply chain and construction schedules due to the resurgence of the virus, but the outlook for the rest of our fiscal year looks positive with strong revenues and ebitda in the fourth quarter. The Company's record backlog of $34 million provides a strong foundation for revenue and earnings over the next twelve months."
Cash on hand increased during the quarter to $9.4 million from $8.0 million on June 30, 2020. Earnings from operating activities generated $170,000 of cash and a reduction in net non-cash working capital added a further $1,662,000 of cash.
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 1,500 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 S. Webb, President and Chief Executive Officer, [email protected], Tel: (519) 767-9100 or Douglas Newman, Chief Financial Officer, [email protected], Tel: (519) 767-9100
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