BIOREM Reports Increased Revenues and Earnings for First Quarter

GUELPH, ON, May 19, 2016 /CNW/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced results for the three month period ended March 31, 2016.  Biorem's complete 2016 first quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

Financial Summary:


Three-months ended


March 31,

December 31

(in CDN$'000 except per share data)

2016

2015

2015

Revenue

4,192

4,689

3,311

Gross profit

1,443

1,531

1,300

Ebitda*

490

720

266

Net earnings

374

528

125

Basic earnings  per share

0.02

0.04

0.02

Diluted earnings  per share

0.01

0.02

0.01

*Earnings before interest, taxes and amortization, a non IFRS financial measure

 

Revenues for the quarter totaled $4.1 million, a 27% increase over the previous quarter, and $497,000 or 11% decrease from revenues of $4.7 million recorded during the first quarter of 2015. The decrease in first quarter revenues is a reflection of delayed client construction schedules, shifting projects out into the 2016 second and third quarters.

Gross profit increased by $143,000 from the previous quarter to $1.4 million, representing 34.4% of revenue.  This increase in gross profit was the result of the increased volume of business. The fixed costs of engineering and operations remained consistent with the previous corresponding quarter.  First quarter results for 2016 are slightly down compared with the $1.5 million of gross profit achieved in the first three months of 2015 representing 32.7% of revenue, primarily due to the lower volume of business.

Operating expenses of $968,000 in the quarter were consistent with prior quarters except for foreign exchange losses of $152,000 reported on financial assets held in US dollars (resulting from the increase in the value of the Canadian dollar compared against the US dollar).

The Company's unrestricted cash position stood at $2.2 million on March 31, 2016, compared with the $2.7 million held on December 31, 2015. Working capital stood at $2.2 million compared to $1.8 million at December 31, 2015 and working capital of $1.4 million at March 31, 2015. During the quarter the Company repaid $225,000 of long-term debt.

The Company booked new orders totaling $3.6 million in the quarter resulting in a backlog of orders at March 31, 2016 of $16.0 million compared to $14.7 million at March 31, 2015.

"We are pleased with the bidding activity observed during the first quarter," said Derek S. Webb, President and CEO.  "It appears that the robust infrastructure spending in 2015 has continued into early 2016 and we are seeing an increased number of large municipal air and gas emissions abatement projects. While competition remains entrenched, our rigorous approach to supply chain management combined with the introduction of a new product development process has ensured that we are able to position innovative solutions at very competitive prices."

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 1000 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.

For further information: Derek Webb, President and Chief Executive Officer, dwebb@biorem.biz, Tel: (519) 767-9100 ext. 240; Douglas Newman, Chief Financial Officer, dnewman@biorem.biz, Tel: (519) 767-9100 ext. 287

RELATED LINKS
http://www.biorem.biz

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