BIOREM Reports 58% Year Over Year Increase in Revenue and $0.13 EPS

GUELPH, ON, April 4, 2016 /CNW/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three and twelve-month periods ended December 31, 2015. Biorem's complete fiscal 2015 year-end financial statements and MD&A have been filed on SEDAR (


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For the twelve months ended December 31, 2015 revenue increased 58% to $16.9 million from $10.7 million for the same twelve months in 2014. Net earnings for the year were $1.7 million compared to a net loss of $1.7 million in 2014. Earnings per share for the year were $0.13 basic and $0.06 fully diluted against a $0.13 loss per share reported in 2014.

Gross profit was $5,995,000 for the year, a 169% increase from gross profit of $2,231,000 for the year-ended December 31, 2014.

Total operating expenses for the year were $3,797,000 compared to $3,377,000 for the year ended December 31, 2014. The increase in operating expenses was attributable to higher sales and marketing costs, particularly commissions, on increased revenues.

Operating activities for the year provided $2.1 million of cash compared to $445,000 used by operating activities in 2014. A reduction in restricted cash and accounts receivable provided $605,000 of cash.  A decrease in prepaid expenses and accounts payable contributed a further $409,000 in cash from operating activities. These operating sources of cash were offset by cash used to fund an increase in unbilled revenue of $698,000, and a decrease in unearned revenue of $240,000.

In January of 2016 the Company negotiated an amendment to its 12.75% debenture agreement amending the repayment terms and extending the maturity date to December 31, 2016. Under the amended payment terms, principal payments of $75,000 are due at the end of each month until the principal is repaid in November 2016. $770,000 of principal was repaid in 2015.

The Company received $164,000 during the year from the exercise of share purchase warrants and stock options.

"2015 was a turning point for BIOREM as we restructured the company to create value for shareholders and our customers," said Derek S. Webb, President and CEO. "This strategy resulted in a significant amount of new orders across a wide variety of applications and geographical markets. Year-end backlog was at $16.7 million as compared with $14 million at December 31, 2014, which represents a 19.3% increase year over year."

"Our focus on organizational efficiency and new product development has enabled us to stay one step ahead of the competition in a number of our key market segments. In 2015, we saw growth across both our domestic and international markets and expect this trend to continue into 2016. Demand for air emissions abatement is robust across a diverse geographical territory and BIOREM continues to be well positioned for meeting this demand with our range of engineered biological solutions."

Three Months ended December 31, 2015

Revenue for the three month period ended December 31, 2015 was down 20.6% from the previous quarter to $3,311,000 and 16.6% or $657,000 million below revenues reported in the same period in the prior year.

Gross profit in Q4 was $1,300,000, a $208,000, or 13.8%, decrease from the $1,508,000 recorded in the third quarter of 2015 and $26,000 below the gross profit of the 4th quarter of 2014. Total operating expenses (net of other income) for the quarter were $1,062,000 a 10.8% decrease from the operating expenses of $1,191,000 incurred during the fourth quarter of 2014.

Ebitda for the quarter was $266,000 compared to an ebitda of $92,000 for the fourth quarter of 2014.

Net earnings for the quarter were $125,000 compared to a net loss of $69,000 in the fourth quarter of 2014.

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

SOURCE Biorem Inc.

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


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