TORONTO, Sept. 28 /CNW/ - Organic Resource Management Inc. ("ORMI" or "the Company"), today announced the financial results for the three and twelve-month periods ended June 30, 2009.
Q4 2009 Highlights:
- Total revenues of $3,281,000 compared to $3,855,000 in Q4 2008
- Gross margin of $1,306,000 compared to $1,303,000 in Q4 2008
- Net income of $28,000 compared to a net loss of $1,286,000 in Q4 2008
"We are pleased with our performance during fiscal 2009, as we continued to position ORMI to benefit from the emergence of anaerobic digesters ("ADs") as an environmentally responsible way to dispose of organic residuals and generate renewable energy for Canadian consumers," said Charles Buehler, Chairman and Chief Executive Officer of ORMI. "We currently have long-term agreements in place with four farm-based ADs. By April 2010, these ADs should have the capacity to generate approximately two megawatts of electricity - enough to power 1600 Canadian homes."
"The passing of Ontario's Green Energy Act has sent a clear signal that renewable energy is a priority for Canadian governments, businesses and consumers, and we have worked diligently to position ORMI as a leader in the field," continued Mr. Buehler. "During fiscal 2009, we also signed an exclusive contract with Loblaws Inc., a Canadian leader in sustainability practices, to convert food residuals from certain Loblaw stores into biogas renewable energy. We are excited for the year ahead, as we will continue to build our AD capacity and maintain our focus on recycling organics for the production of renewable energy."
"Beginning this fall, we will increase our marketing efforts, primarily through the introduction of our "From Leftovers to Lights(R)" promotional campaign," added Mr. Buehler. "This initiative is designed to elevate the profile of the ORMI brand, while helping our customers to gain recognition for choosing to ensure their organic residuals are processed in an environmentally-responsible manner."
Total revenues for the fourth quarter of 2009 were $3,281,000 compared to $3,855,000 for the same period last year. This decrease was due to the sale of ORMI's non-core business assets during the second quarter of 2009. Excluding the non-core business, comparative revenues for the quarter were 6% higher than last year.
Net income for the fourth quarter of fiscal 2009 was $28,000 compared to a net loss of $1,286,000 for the fourth quarter of 2008. Last year's net loss included an impairment charge of $1,383,000 relating to the write-off of goodwill.
Total gross margin for the quarter ended June 30, 2009 was $1,306,000, approximately equal to total gross margin of $1,303,000 for the fourth quarter of fiscal 2008. Gross margin as a percentage of revenue was 40% during the quarter, compared to 34% during the same quarter last year. The improvement in gross margin was mainly due to lower truck repair and maintenance costs and a reduction in disposal costs following the successful increase in the Fepro Farms AD's recycling capacity.
Cash flows from operating activities were $318,000 during the fourth quarter of fiscal 2009, an increase of $235,000 from $83,000 for the three-months ended June 30, 2009. The increase was mainly due to the payment of liabilities during the fourth quarter of fiscal 2008.
For the year ended June 30, 2009, total revenues were $13,494,000 compared to $15,206,000 for the year ended June 30, 2008. The decrease was due to the sale of ORMI's non-core assets during the second quarter of fiscal 2009. Net income for the year ended June 30, 2009 was $1,517,000 compared to a net loss of $1,229,000 during fiscal 2008. Net income for the current year includes a $1,708,000 gain on the sale of non-core assets recorded in the second quarter. As noted above, in the fourth quarter of fiscal 2008, the Company recognized an impairment charge of $1,383,000 relating to the write-off of goodwill. Total gross margin for fiscal 2009 was $4,850,000, an increase of $119,000 or 3% from $4,731,000 for fiscal 2008. As a percentage of revenue, gross margin was 36% for the year ended June 30, 2009, compared to 31% for fiscal 2008. Cash flows from operating activities were $1,115,000 in fiscal 2009 compared to $532,000 in fiscal 2008, an increase of $583,000 or 110%.
Annual general meeting
The Company will be holding its annual general meeting on November 10, 2009, at 4:00 pm at the office of McMillan LLP, Suite 4400, BCE Place, Bay Wellington Tower, 181 Bay Street, Toronto, Ontario.
The comparative financial statements for the three and twelve months ending June 30, 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 www.ormi.com/ir/index.php. Alternatively, investors are asked to e-mail all questions and correspondence to firstname.lastname@example.org 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.
Forward looking statements
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.
SOURCE Organic Resource Management Inc.
For further information: For further information: Organic Resource Management Inc., Charles Buehler, Chairman and CEO, Tel: (416) 580-8574, Email: email@example.com, Website: www.ormi.com; The Equicom Group, Glen Williams, Investor Relations, Tel: (416) 815-0700 ext. 272, Email: firstname.lastname@example.org