TORONTO, Nov. 10 /CNW/ - Organic Resource Management Inc. (TSX: ORI) ("ORMI" or "the Company"), today reported its financial results for the three-month period ended September 30, 2009.
Q1 2010 Highlights:
- Net income increased 17% to $204,000 from $175,000 in Q1 2009
- Comparative core business revenues increased 10% from Q1 2009
- Total revenue was $3,430,000 million compared to $4,048,000 million
in Q1 2009
- Gross Margin as a percentage of revenue was 40% compared to 37% in Q1
"We are pleased to report on a successful first quarter, despite continued challenging economic conditions" said Charles Buehler, Chairman and Chief Executive Officer of ORMI. "During the quarter, we also made considerable progress in developing our "Leftovers to Lights(R)" promotional campaign. This initiative is designed to help our customers gain recognition for choosing to partner with ORMI to convert their leftovers into renewable energy, which in turn will elevate the profile of the ORMI brand. We anticipate launching our new brand early in 2010."
Net income for the first quarter of 2010 was $204,000, an increase of 17% over the $175,000 reported for the comparative quarter in the prior year.
Total revenue for the three months ended September 30, 2009 was $3,430,000, a decrease of 15% or $618,000 when compared to revenue of $4,048,000 for the three months ended September 30, 2009. The decrease in revenue was due to the previously announced sale of A&A Anderson Tank Service Ltd. "non-core assets" in October 2008. On a comparative basis excluding the non-core business, revenue for the first quarter of 2010 was up 10% over the same quarter in the prior year.
Total gross margin for the first quarter of 2010 was $1,370,000, a decrease of 10% or $147,000 from $1,517,000 in the first quarter of fiscal 2009. This decrease is attributable to the aforementioned sale of non-core assets. However as a percentage of revenue, gross margin for the quarter was 40% compared to 37% last year. This increase is partially attributable to the focus on core services and increased amounts of organic residuals converted to anaerobic digester feedstock in the quarter.
Total operating expenses in the first quarter of 2010 were $1,171,000, a decrease of 6% or $69,000 from $1,240,000 in the first quarter of 2009.
Cash flows from operating activities totaled $66,000, compared to $382,000 for the same period last year. The reduction in cash flows was mainly due to an increase in accounts receivable because of a temporary processing delay at a major customer. As of today, more than half of the overdue amount has been paid with the balance in process.
As at September 30, 2009, the Company had cash and cash equivalents of $750,000 and net working capital of $1,755,000, compared to cash and cash equivalents of $575,000 and net working capital of $1,204,000 as at June 30, 2009.
The comparative financial statements for the three months ending September 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 email@example.com 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 regular scheduled 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.
Note: 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: firstname.lastname@example.org, Website: www.ormi.com; The Equicom Group, Glen Williams, Investor Relations, Tel: (416) 815-0700 ext. 272, Email: email@example.com