Biorem Reports Results for Fourth Quarter 2014 and Year Ended December 31, 2014

GUELPH, ON, April 29, 2015 /CNW/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three and twelve-month periods ended December 31, 2014. Biorem's complete fiscal 2014 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com).

FINANCIAL HIGHLIGHTS:



2014

2013

2014

2013







Revenue


3,968

5,121

10,683

19,596

Gross profit


1,326

1,703

2,231

5,866

Operating  expenses

1,191

1,493

3,377

4,562

Ebitda*


92

418

(874)

1,734

Net earnings (loss)

(69)

213

(1,722)

718

EPS - basic


0.00

0.02

(0.13)

0.06

EPS - fully diluted


0.00

0.01

(0.13)

0.03

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


Revenue for the three month period ended December 31, 2014 was up 73.9% from the previous quarter to $3,968,000 but 22.5% or $1.2 million below revenues reported in the same period in the prior year.

Gross profit in Q4 was $1,326,000, an $805,000, or 155%, increase from the $521,000 recorded in the third quarter of 2014 and $377,000 below the gross profit of the 4th quarter of 2013. Total operating expenses (net of other income) for the quarter were $1,191,000 a 20.2% decrease from the operating expenses of $1,493,000 incurred during the fourth quarter of 2013. Ebitda for the quarter was $92,000 compared to an ebitda of $418,000 for the fourth quarter of 2013.

Net loss for the quarter was $69,000 compared to earnings of $213,000 or $0.02 per share on a basic and $0.01 on a fully diluted basis in the fourth quarter of 2013.

"With recent management restructuring, the company has focused our resources on activities that increase value for our shareholders and municipal and industrial customers." said Derek S. Webb, President and CEO.  "This change in operating strategy has resulted in a significant amount of new orders, creating a positive trend from the beginning of the year.  Year-end backlog was at $14 million as compared with $9.9 million at December 31st, 2013, which represents a 40% increase year over year"

"Our current organizational structure allows for the efficient delivery of customer oriented solutions, and provides a platform to capitalize on the increased bidding activity across all of our market segments.  The global demand for high efficiency air emission abatement systems is growing as urban encroachment on industry and infrastructure continues at a fast pace.  Biorem is well positioned to take advantage of these opportunities with our range of engineered biological solutions."

TWELVE MONTHS ENDED DECEMBER 31, 2014

For the twelve months ended December 31, 2014 revenue decreased 45.5% to $10,683,000 from $19,596,000 for the same twelve months in 2013.

Gross profit was $2,231,000 for the year-ended December 31, 2014, a 62.0% decrease from gross profit of $5,866,000 for the year-ended December 31, 2013.

Total operating expenses for the year were $3,377,000 compared to $4,562,000 for the year ended December 31, 2013. The decrease in operating expenses was attributable to lower sales and marketing costs, particularly commissions, on decreased revenues as well as decreased general and administration expenses as a result of lower staffing levels and reduced write of off bad debts. The net loss for fiscal 2014 was $1,722,000 or ($0.13) per share basic and ($0.13) on a fully diluted share basis, compared to net earnings of $1,564,000  of $0.06 per share basic and $0.03 on a fully diluted basis in 2013.

Operating activities for the year used $446,000 of cash compared to $733,000 generated by operating activities in 2013. $992,000 of cash was provided by a reduction in accounts receivable and unbilled revenue and this was offset by $592,000 of cash used to fund reductions of accounts payable and accrued liabilities. An increase in unearned revenue provided $440,000 of cash.

In March of 2015 the Company negotiated an amendment to its 12.75% debenture agreement amending the repayment terms and extending the maturity date to December 31, 2015. Under the amended payment terms, principal payments of $200,000 are due on March 31 and July 31, 2015 and $50,000 principal payments are due on each of August 31, September 30, October 31, and November 30 2015. The $200,000 payment due on March 31 2015 has been paid.

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 900 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, BIOREM Inc., dwebb@biorem.biz, Tel: (519) 767-9100

RELATED LINKS
http://www.biorem.biz

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890