Positioning for Profitability and Sales Growth
OTTAWA, Feb. 28, 2014 /CNW/ - BluMetric Environmental Inc. (TSXV: BLM), an Ottawa-based cleantech company, announced its unaudited
financial results for the three-month period ended December 31, 2013,
the first quarter of fiscal 2014.
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Three Months Ended
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December 31
2013
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November 30
2012
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$000
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$000
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Revenue
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7,625
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6,309
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Gross Margin
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1,857
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1,379
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Net Income
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18
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176
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Income per share
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0.00
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0.01
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HIGHLIGHTS:
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BluMetric's revenues improved quarter-over-quarter by 20.9%;
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BluMetric turned a slight profit in the quarter, reflecting some
internal streamlining, the rebuilding of efficiencies in our divisional
core businesses, and a strong focus on business development;
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Gross margins improved by 34.7%; gross margin percent increased
slightly to 24% from 22% as business processes have been improved;
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SG&A expenses of $1.7 million are $0.6 million or 55% higher than the
similar quarter of the prior year, reflecting the company's increased
size and costs resulting from the Seprotech reverse takeover. For
context, SG&A expenses are 59% less than the immediately preceding
four-month period ending September 30, 2013.
"The results of this quarter are beginning to show the impact of
management's focus on cost reduction and business development," said
Roger Woeller, co-CEO of BluMetric. "We expect to see further benefits
in coming quarters from improvements related to a recently strengthened
financial team, better business processes and reporting, and the
gradual implementation of a new management information system.
Additionally, US and international sales continue to grow, which will
help to balance the seasonality BluMetric traditionally experiences."
As a result of the reverse takeover completed on November 16, 2012,
results for the interim period ended November 30, 2012 reflect the
consolidation of the former Seprotech Systems Incorporated results for
the period November 17-to-30, 2012 only. The results for the three
months ended December 31, 2013 reflect consolidated results for the
entire quarter, which are accordingly not directly comparable with the
same interim period in the prior year, and which additionally reflect
the Company having changed its year end from August 31 to September 30,
so that comparative quarters are one month out of step.
Revenues in the first quarter 2014 were $7.6 million compared with $6.3
million for the prior quarter ended November 30, 2012, an increase of
$1.3 million, or 20.3%. The revenue split between the Water and
Professional Services Divisions was 35% and 65%, respectively.
Both Divisions benefitted from a strong order book during the first two
months of the quarter, with December being subject to the typically
shorter billing period attributable to the holiday season. As a result,
the consolidated gross margin was at $1,856,536 or 24%, a small
improvement from the 22% reported in the comparable prior period. Even
though the first quarter included the holiday season, there was an
increase in the gross margins, reflecting improvements in operations in
both Divisions.
SG&A expenses of $1.70 million incurred during the quarter were $0.6
million higher than the $1.00 million reported for the interim period
ended November 30, 2012. Since this quarter only reflected consolidated
results from November 18 to November 30, 2012, comparison with the
immediately prior interim period may be helpful. Compared with this
immediately prior interim period ended September 30, 2013, SG&A
expenses dropped from $2.7 million to $1.7 million, a 59% reduction.
The net income for the quarter was $18,000 compared with net income of
$176,000 for the comparable prior period. The result reflects stock
option expense of $113,000, there having been no issuance of options in
the comparable prior period, as well as depreciation and amortization
expense of $221,000 ($112,000 for the comparable prior period).
For additional information on the merger and these financial results,
please refer to the Company's filings at www.sedar.com.
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About BluMetric
BluMetric, a cleantech company, delivers sustainable solutions to
complex environmental issues. The Company serves clients in many
industrial sectors, and at all levels of government, in Canada and
abroad.
BluMetric operates through two divisions:
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Professional Services Division, providing environmental earth sciences
and engineering solutions, including contaminated site remediation,
water resource management, industrial hygiene, occupational health &
safety, and renewable energy. This division also operates under the
names "WESA" and "Envir-Eau"
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Water Division, focussed on design-build and pre-engineered product
solutions to industrial/commercial water and wastewater treatment
needs. This division also operates under the names "WESAtech" and
"Seprotech".
More information can be obtained at www.blumetric.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein.
SOURCE BluMetric Environmental Inc.
