Biorem Reports Third Quarter Results and Net Earnings of $0.02 per share

GUELPH, ON, Nov. 14, 2016 /CNW/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three and nine-month periods ended September 30, 2016. Biorem's complete third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

FINANCIAL HIGHLIGHTS:

in '000's except earnings per share
	Three-months ended		Nine -months ended
	September 30		September 30
	2016	2015	2016	2015
Revenue	4,003	4,171	11,137	13,568
Gross profit	1,019	1,508	3,017	4,695
Operating expenses	741	1,084	2,281	2,735
Ebitda*	284	466	760	2,048
Net earnings (loss)	225	318	486	1,564
EPS - basic	0.02	0.02	0.03	0.12
EPS - fully diluted	0.01	0.01	0.02	0.05
* Earnings before interest, taxes and amortization, a non IFRS financial measure

Biorem's revenue for the third quarter was $4.0 million, a $1.1 million or 36% increase over the previous quarter and on par with the $4.2 million in revenue recorded in the third quarter of 2015. Year to date revenue totaled $11.1 million, a $2.4 million or 18 % decrease in revenue over the first nine months of 2015. The decrease in revenue for the first nine months of 2016 compared to 2015 is largely related to customer delivery schedules and is not indicative of the Company's bookings or order backlog.

Gross profit for the quarter was $1.0 million or 26% of revenue compared to $1.5 million of gross profit recorded during the third quarter of 2015. Total operating expenses (net of other income) for the quarter were $741,000. Ebitda for the quarter was $284,000 compared to an ebitda of $466,000 in the third quarter of 2015.

Net earnings for the quarter were $225,000, which represent earnings of $0.02 per share basic and $0.01 fully diluted. Year to date net earnings were $486,000 or $0.03 per share basic and $0.02 on a fully diluted basis, compared to net earnings of $1,564,000 or $0.12 per share on a basic and $0.05 on fully diluted basis for the first nine months of 2015.

"The third quarter saw a significant improvement in revenues over the preceding quarter.  This was due in large part to the resumption of construction schedules that had been delayed on several projects in North America". said Derek S. Webb, President & CEO.  "Our backlog, currently at $16 million, remains healthy and provides a great foundation for the next several quarters, allowing our management team to direct effort on developing new market segments for long term sustainable growth."

Unrestricted cash on hand decreased during the quarter to $1.2 million from $1.7 million on June 30, 2016. Operating activities used $489,000 of cash during the quarter and $225,000 of long term debt was repaid during the quarter.

Bookings during the quarter were $3.2 million resulting in an order backlog of $16 million on September 30, 2016.

On August 5, 2016, the holders of the series 1 and series 2 2012 convertible debentures agreed to extend the maturity date of the debentures to November 16, 2016.  On November 10, 2016 the holders of the series 1 and series 2 2012 convertible debentures agreed to a further extension of the maturity dates of the debentures to December 16, 2016. All other terms of the convertible debentures remain the same.

The Company further reports that Mr. Anthony Ennis has been appointed to the Board of Directors effective November 10, 2016. Mr. Ennis is President of Round Oak Management Ltd., a strategic advisory firm. He has been active in many industries including real estate, transportation, energy and professional services. His current activities include advising shareholders, management teams and financiers. He was a board member of Contrans ( TSE listed company ) for many years, West Park Health Care Centre and Chair of West Park  Foundation.  He is currently on the board of a number of private companies.      

Commensurate with the appointment of Mr. Ennis, the Company announces the retirement from the Board of Mr. Robert Nally. Mr. Nally was a founding board member of Biorem and has provided over 25 years of dedicated service to the Company. His unrelenting efforts have been instrumental in shaping and expanding the company into the multinational leader in air pollution control of today. The board and management express sincere appreciation for his enthusiastic and collegial contributions.

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 1,000 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.

Derek Webb, President and Chief Executive Officer, [email protected], Tel: [phone]; Or Douglas Newman, Chief Financial Officer, [email protected], Tel: [phone]