BIOREM announces strong first quarter revenues

    GUELPH, ON, May 11 /CNW/ - BIOREM Inc. (TSXV: BRM) announced today its
results for the first quarter of 2009:

                                                First quarter ended March 31,
    Information in table is in thousands
    except per share data                                     2009      2008
    REVENUE                                                 $4,038    $3,184
    GROSS PROFIT                                             1,306     1,455
    EBITDA(1)                                                 (182)      234
    NET EARNINGS                                              (425)      104
    BASIC EARNINGS PER SHARE                                 (0.04)     0.01
    DILUTED EARNINGS PER SHARE                               (0.04)     0.01
    WEIGHTED AVERAGE COMMON SHARES                          11,978    11,978

    Q1 revenue was $4,038,000, which is up $853,000 or 27% over the
comparative period in the prior year. New orders in the quarter were over $2
million resulting in a current backlog of $12.8 million. The backlog is up
$3.8 million or 42% from March 31, 2008.
    Gross profit in the quarter was $1,306,000, which is down $150,000 or 10%
over the comparative period in the prior year. The first quarter gross margin
percentage is down from the prior year margin primarily due to strategic
marketing reasons associated with a few specific projects. Therefore, we see
this decrease in gross margin as a one-time occurrence for this specific
    EBITDA was a loss of $182,000 in the first quarter compared to a gain of
$234,000 in the comparative period from last year. The main reasons for this
loss are the decline in gross margin as described above, which we anticipate
to be non-reoccurring. Secondly, a significant foreign exchange loss of
$155,000 was realized as opposed to a $102,000 gain in 2008, which represents
a swing in foreign exchange gains and losses of $257,000.
    "The year has started out well as we are significantly ahead of the first
quarter of 2008." said Peter Bruijns, President and CEO. "Our outlook
continues to be very positive since we have a strong balance sheet and an
increasing sales pipeline as a result of the various global economic stimulus
packages and our advances into China. Furthermore, we are anticipating
significant bookings in the remainder of the year keeping us in line with our
2009 targets."
    At the end of the quarter, the Company generated cash flows of $160,000
from operations and has substantial cash liquidity in its $6.6 million of
working capital. This strong working capital position is considered adequate
to fund the future operating requirements of the business for the foreseeable

    About BIOREM Inc.

    BIOREM manufactures Biosorbens(R) biofilter media and is a leading
supplier of biofilters and biotrickling for air pollution control in municipal
and industrial applications, including BIOCUBE(R) modular units and Mytilus(R)
biotrickling filters. With over 600 installed systems and over a decade of
experience, the Company's products are the technology of choice for odor
control at wastewater treatment plants across North America. Additional
information on BIOREM is also available at our web site at

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release. The TSX
    Venture Exchange Inc. has neither approved nor disapproved of the
    contents of this release.

    Forward-Looking Statements

    This press release contains forward-looking statements based on current
expectations. These forward-looking statements contain various risks and
uncertainties that could cause actual results to differ materially from those
reflected in the forward-looking statements. Risks and uncertainties about the
Company's business are more fully discussed in the disclosure materials,
financial statements and MD&A filed with the securities regulatory authorities
in Canada on

    Non-GAAP Measures

    (1). EBITDA is a non-GAAP earnings measure, therefore, it does not have
any standardized meaning prescribed by Canadian generally accepted accounting
principles and may not be similar to measures presented by other companies.
EBITDA represents earnings before interest, income taxes, depreciation and
amortization. This measure is important to management since it is used by
potential lenders to evaluate the ongoing cash generating capability of the
Company and thus the amounts those lenders are willing to lend to the Company.

    "Order Bookings" and "Order Backlog" do not have any standardized meaning
prescribed by Canadian generally accepted accounting principles ("GAAP") and
may not be comparable to measures presented by other companies. Order Bookings
and Order Backlog are non-GAAP measures that the Company uses to evaluate its
sales performance. Order Bookings are those binding contracts that the Company
enters into with a third party for the delivery of our products or services.
As Order Bookings are received, the contract value (before any associated
sales taxes) is included in the Order Backlog. The Order Backlog is reduced by
the revenue that is recognized on each project and then adjusted for any
currency changes.

    %SEDAR: 00020304E

For further information:

For further information: Ed Corbett, Chief Financial Officer, BIOREM
Technologies Inc.,, Tel: (519) 767-9100 x275

Organization Profile


More on this organization

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