BluMetric Releases First Quarter Results
Positioning for Profitability and Sales Growth
OTTAWA, Feb. 28, 2014 /CNW/ - BluMetric Environmental Inc. (TSXV: BLM), an Ottawa-based cleantech company, announced its unaudited financial results for the three-month period ended December 31, 2013, the first quarter of fiscal 2014.
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- BluMetric's revenues improved quarter-over-quarter by 20.9%;
- BluMetric turned a slight profit in the quarter, reflecting some internal streamlining, the rebuilding of efficiencies in our divisional core businesses, and a strong focus on business development;
- Gross margins improved by 34.7%; gross margin percent increased slightly to 24% from 22% as business processes have been improved;
- SG&A expenses of $1.7 million are $0.6 million or 55% higher than the similar quarter of the prior year, reflecting the company's increased size and costs resulting from the Seprotech reverse takeover. For context, SG&A expenses are 59% less than the immediately preceding four-month period ending September 30, 2013.
"The results of this quarter are beginning to show the impact of management's focus on cost reduction and business development," said Roger Woeller, co-CEO of BluMetric. "We expect to see further benefits in coming quarters from improvements related to a recently strengthened financial team, better business processes and reporting, and the gradual implementation of a new management information system. Additionally, US and international sales continue to grow, which will help to balance the seasonality BluMetric traditionally experiences."
As a result of the reverse takeover completed on November 16, 2012, results for the interim period ended November 30, 2012 reflect the consolidation of the former Seprotech Systems Incorporated results for the period November 17-to-30, 2012 only. The results for the three months ended December 31, 2013 reflect consolidated results for the entire quarter, which are accordingly not directly comparable with the same interim period in the prior year, and which additionally reflect the Company having changed its year end from August 31 to September 30, so that comparative quarters are one month out of step.
Revenues in the first quarter 2014 were $7.6 million compared with $6.3 million for the prior quarter ended November 30, 2012, an increase of $1.3 million, or 20.3%. The revenue split between the Water and Professional Services Divisions was 35% and 65%, respectively.
Both Divisions benefitted from a strong order book during the first two months of the quarter, with December being subject to the typically shorter billing period attributable to the holiday season. As a result, the consolidated gross margin was at $1,856,536 or 24%, a small improvement from the 22% reported in the comparable prior period. Even though the first quarter included the holiday season, there was an increase in the gross margins, reflecting improvements in operations in both Divisions.
SG&A expenses of $1.70 million incurred during the quarter were $0.6 million higher than the $1.00 million reported for the interim period ended November 30, 2012. Since this quarter only reflected consolidated results from November 18 to November 30, 2012, comparison with the immediately prior interim period may be helpful. Compared with this immediately prior interim period ended September 30, 2013, SG&A expenses dropped from $2.7 million to $1.7 million, a 59% reduction.
The net income for the quarter was $18,000 compared with net income of $176,000 for the comparable prior period. The result reflects stock option expense of $113,000, there having been no issuance of options in the comparable prior period, as well as depreciation and amortization expense of $221,000 ($112,000 for the comparable prior period).
For additional information on the merger and these financial results, please refer to the Company's filings at www.sedar.com.
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BluMetric, a cleantech company, delivers sustainable solutions to complex environmental issues. The Company serves clients in many industrial sectors, and at all levels of government, in Canada and abroad.
BluMetric operates through two divisions:
- Professional Services Division, providing environmental earth sciences and engineering solutions, including contaminated site remediation, water resource management, industrial hygiene, occupational health & safety, and renewable energy. This division also operates under the names "WESA" and "Envir-Eau"
- Water Division, focussed on design-build and pre-engineered product solutions to industrial/commercial water and wastewater treatment needs. This division also operates under the names "WESAtech" and "Seprotech".
More information can be obtained at www.blumetric.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
SOURCE BluMetric Environmental Inc.For further information:
Ian W. Malone, CFO
Tel: (613) 839-4028 x121
Fax: (613) 839-5376
Robin M. Sundstrom
IRonside Investor Relations
Tel: (647) 822- 8111