ReleaseInt'l Bio Recovery reduces Q1 loss to $617,468
International Bio Recovery Corp
IBRShares issued 24,622,062
Nov 27.close $0.45
Fri 28 Nov 2003 News
Release
Mr. Elmer Friesen reports INTERNATIONAL BIO RECOVERY CORPORATION ANNOUNCES FISCAL 2004 FIRST QUARTER FINANCIAL RESULTS
International Bio Recovery has provided fiscal 2004 first quarter financial results for the three-month period ended Sept. 30, 2003.
First quarter revenue was $17,891 compared with $58,932 in the first quarter of fiscal 2003. The company's net loss for the period was $617,468 compared with a net loss of $1,105,575 in the first quarter of fiscal 2003 and a $77,000 full-year profit reported for the year ended June 30, 2003.
This reduction in net loss is due to IBR's continuing focus on cost control and reflects efforts the company has made in the past year to reduce its expense base. Management recognizes that anticipated expansion of new business in fiscal 2004 may require increased expenditures as marketing staff is added and higher demands are placed on management and outside services.
In addition, during fiscal 2004, IBR will expand the scope of its marketing program to help bring end product organic fertilizers to market, while R&D efforts will focus on continually increasing the efficiency of the technology process. However, higher revenues from technology sales would be expected to offset such increased expenditures. "Financial results were in-line with management's expectations as no new technology licence sales were recognized during the first quarter. Given the size of a typical licence contract, revenue flows for IBR's quarters can be classified as 'lumpy' with high revenue totals in those quarters that a licence sale is made," said Elmer B. Friesen, president and chief executive officer of IBR. "For the current fiscal year, we expect that our sales pipeline will continue to expand and that several of these opportunities will translate into new contracts. Fiscal 2004 is shaping up to be a crucial and crucial and exciting year in the history of our company. Construction on a waste management processing plant that will utilize IBR's technology is well underway in Baotou City, China, while construction of a similar plant by IBR in the New York City area is expected to begin in January, 2004."
At Sept. 30, 2003, the company had negative working capital of $62,540 compared with positive working capital at June 30, 2003, of $477,802.This change in working capital position was primarily due to the collection of a significant account receivable and partially offset by the elimination of a mortgage payable. IBR has further reduced its outstanding debt from $404,930 at June 30, 2003, to $220,000 at Sept. 30, 2003.
Complete financial statements have been filed on SEDAR. Subsequent event Subsequent to the end of the first quarter, IBR entered into a strategic partnership agreement with International Paper Industries Ltd. of North Vancouver, B.C., to jointly enter into projects in the organic waste management sector. As part of the agreement, IPI has the right to purchase 2.4 million common shares of IBR from treasury: 800,000 on Oct. 24, 2003, at 50 cents per share; with an option to acquire another 800,000 on Nov. 14, 2003, at 55 cents per share; and another 800,000 on Nov. 28, 2003, at 60 cents per share. Subsequently the TSX Venture Exchange reduced the number of shares in the third tranche to 676,923 shares at 60 cents.
All shares are subject to a four-month hold period. IPI did not exercise its right to acquire 800,000 shares on Nov. 14, 2003, at 55 cents per share.
"We are very pleased to join with IPI to broaden our Canadian target customer base and expand our level of contacts at both the city and municipal level," added Mr. Friesen. "The relationship has provided IBR with new working capital, but more importantly, together IBR and IPI will be able to offer a broad range of end-to-end products and services, thus providing potential customers the benefits of one-stop shopping for their waste management solutions."
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