TORONTO, May 13 /CNW/ - Organic Resource Management Inc. (TSX: ORI)
("ORMI" or "the Company"), today announced the financial results for the three
and nine-month periods ended March 31, 2009.
Q3 2009 Highlights:
- Net loss before taxes of $118,000 compared to a net loss of $207,000
in Q3 2008
- Gross margin of $989,000, 2% greater than $966,000 in Q3 2008
- Excluding non-core business of wholly-owned subsidiary, A&A Anderson
Tank Services Ltd. ("A&A") sold in October 2008, comparative revenue
was 2% less than Q3 2008
- Total revenue of $2,948,000, 23% less than $3,828,000 in Q3 2008
- Paid off the asset-based revolving loan, strengthening the Company's
- Established a new line of credit with the Royal Bank of Canada.
"The net loss for the current quarter reflects a period of transition as
the Company adapts to a lower revenue base following the sale of A&A's
non-core assets and moves towards lower recycling costs through on-farm
anaerobic digestion," said Charles Buehler, Chairman and Chief Executive
Officer of ORMI.
Revenue for the three-months ended March 31, 2009 was $2,948,000, a
decrease of $880,000 compared to $3,828,000 during the third quarter of last
year. The decrease in revenue was due to the sale of A&A's non-core assets in
October 2008. On a comparative basis excluding the non-core business, revenue
for the quarter was 2% less than the same quarter last year.
Although total revenue for the third quarter was 23% less than last year,
total gross margin was $989,000, an increase of 2% or $23,000 from $966,000
last year. As a percentage of revenue, gross margin was 34% for the quarter
compared to 25% for the same quarter last year. During the quarter, the
Company continued to use disposal sites in Ontario and New York that were
sourced earlier in the year, which contributed to higher margins in the
Cash flows from operating activities were $77,000 for the three-months
ended March 31, 2009, compared to $510,000 for the same quarter last year. The
higher cash flows last year were largely a result of the combined effect of a
decrease in accounts receivable and an increase in accounts payable.
During the quarter:
1. The Company terminated its relationship with Textron Financial
Canada Ltd., paid off the balance owing on its revolving loan and
established a new line of credit with the Royal Bank of Canada.
The Company has not drawn on the new credit facility.
2. The Company was successful in obtaining new grease trap customer
accounts that is expected to generate annual revenues of between
$1 and $1.5 million.
3. The Ontario government announced the intent to pass the Green
Energy Act in the legislature by midyear. This act positions
Ontario as the North American leader in renewable energy policy.
If passed, it will stimulate Ontario anaerobic digestion
Net income before taxes for the nine-month period ended March 31, 2009
was $1,700,000, an increase of $1,610,000 from $90,000 for the same period
last year. The increase was due to the gain of $1,708,000 on the sale of A&A's
non-core assets. This gain was partially offset by approximately $250,000 in
one-time costs related to the sale and rebranding of ORMI's remaining assets
in British Columbia from A&A to ORMI, as well as the relocation to a new
Total revenue for the current nine-month period was $10,213,000, a
decrease of $1,138,000 compared to $11,351,000 for the same period last year.
Total gross margin for the nine-month period ended March 31, 2009 was
$3,544,000, an increase of $116,000 compared to $3,428,000 for the same period
last year. Gross margin as a percentage of revenue was 35% for the current
period compared to 30% during the same nine-month period last year.
The comparative financial statements for the three and nine-months ending
March 31, 2009 along with other information may be obtained through the
Company's website at www.ormi.com, or on SEDAR at www.sedar.com.
This press release is available on the Company's official on-line
investor relations site for investor commentary, feedback and questions.
Investors are asked to visit the investor relations section of the Company's
website at http://www.ormi.com/ORMI_Investor.asp. Alternatively, investors are
asked to e-mail all questions and correspondence to email@example.com where they
can also request addition to the Company's investor e-mail list to receive all
future press releases and updates directly.
About Organic Resource Management Inc.
Organic Resource Management is Canada's largest provider of vacuum truck
services for the collection, processing and recycling of food-related organic
residuals. ORMI services in excess of 6,000 commercial, industrial,
institutional and residential customers in Ontario, Quebec and British
Columbia. Further information about ORMI may be obtained at the Company's web
site at www.ormi.com.
Note: Certain information contained in this press release may be
forward-looking and therefore subject to unknown risks or uncertainties. The
actual results, performance or achievements of Organic Resource Management
Inc. may differ materially from the results, performance or achievements of
the Company expressed or implied by such forward-looking statements.
For further information:
For further information: Organic Resource Management Inc., Charles
Buehler, Chairman and CEO, Tel: (416) 580-8574, Email: firstname.lastname@example.org,
Website: www.ormi.com; The Equicom Group, Glen Williams, Investor Relations,
Tel: (416) 815-0700 ext. 272, Email: email@example.com