WOODBRIDGE, ON, Sept. 25 /CNW/ - Organic Resource Management Inc. ("ORMI"
or "Company") is pleased to announce its annual results for the year ended
June 30, 2008.
During the past year, and in particular the last few months, the Company
progressed on a number of fronts. Management substantially completed the
restructuring program started in 2007 to simplify the Company's balance sheet
and organizational structure, strengthen its management team and secure
ownership of its vital proprietary assets. However, the most significant
accomplishment this year was successfully demonstrating that ORMI can process
the organic residuals it collects into a valuable high-energy feedstock for
the production of biogas renewable energy. This has allowed the Company to
secure long-term, exclusive, organic residuals supply agreements with three
farm-based anaerobic digesters in Ontario. Their acknowledgement of the energy
value of ORMI's processed residuals confirms that the Company's recycling
costs with anaerobic digestion will be significantly reduced, and will provide
the economic stimulus for more anaerobic digester projects to proceed, thus
providing a fundamental increase in recycling capacity.
For the year ended June 30, 2008, revenue from the Company's core
business of grease interceptor servicing increased 16% over the prior year,
largely on the strength of higher volumes. This increase was offset by the
termination of the compactor rental business and a 29% decrease in revenues
from industrial organics because of lack of disposal capacity. Total revenues
for 2008 were $15,206,000, a decrease of $212,000 or 1% from $15,418,000 in
Total gross margin was $4,731,000 for the year, an increase of $81,000 or
2% from $4,650,000 last year. As a percentage of revenue, gross margin was
31.1% in 2008, up from 30.2% in 2007. Lower residuals management costs
contributed to the improvement in gross margin.
The Company continued to have large non-cash expenses in 2008 of
$2,278,000 compared to $2,023,000 in 2007. $1,383,000 of this expense resulted
from an impairment loss of 100% of the remaining goodwill relating to the
acquisition of A&A in 2002. In 2007 preferred share dividends and intangible
asset amortization, including the write-down of patents, accounted for
$2,216,000 of non-cash expenses.
The net loss for the year was $1,229,000, a decrease of $15,000 or 1%
from $1,244,000 in 2007. The future income tax recovery for 2008 was $104,000.
Cash flows from operating activities decreased by $466,000 or 47%, from
$998,000 in 2007 to $532,000 in 2008. This decrease was mainly due to the
payment of liabilities accrued at June 30, 2007 and a reduction in trade
The Company will be holding its annual general meeting on October 23,
2008, at 4:00 pm at the office of McMillan LLP, Suite 4400, BCE Place, Bay
Wellington Tower, 181 Bay Street, Toronto, Ontario.
This press release is available on the investor relations section of the
Company's website www.ormi.com/ir/index.php where there is also investor
commentary, feedback and questions. Alternatively, investors are asked to
e-mail all questions and correspondence to email@example.com where they can also
request addition to the Organic Resource investor e-mail list to receive all
future press releases and updates directly.
About Organic Resource Management Inc.
Organic Resource Management (TSX Symbol: ORI) is Canada's largest
provider of vacuum truck services for the collection, treatment and disposal
of organic and other non-hazardous liquid waste. ORMI services in excess of
8,000 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: www.ormi.com
Cautionary Note: Certain information contained in this press release is
forward-looking and therefore subject to unknown risks or uncertainties. The
AD expansion, and thereby the resulting cost savings announced herein, are
reliant on many factors that are not under the Company's control, including
but not limited to various regulatory requirements and technical factors. 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: Corporate Inquiries: Charles H. Buehler,
Chairman & Chief Executive Officer, firstname.lastname@example.org, (905) 264-7700 Ext. 112