GUELPH, ON, May 28, 2014 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or
"the Company") today announced results for the three month period ended
March 31, 2014. Biorem's complete 2014 first quarter financial
statements and MD&A have been filed on SEDAR (www.sedar.com).
Financial Summary:
|
|
Three-months ended
March 31,
|
|
( in CDN$'000 except per share data)
|
2014
|
2013
|
|
Revenue
|
1,974
|
4,185
|
|
Gross profit
|
329
|
1,100
|
|
Ebitda*
|
(318)
|
233
|
|
Net earnings (loss)
|
(531)
|
31
|
Basic earnings (loss) per share
Diluted earnings (loss) per share
|
(0.04)
(0.04)
|
(0.00)
(0.00)
|
*Earnings before interest, taxes and amortization, a non IFRS financial
measure
Revenues for the quarter totaled $1,974,000 a 53 % decrease over
revenues of $4,185,000 recorded during the first quarter of 2013. The
decrease in 2014 first quarter revenues was a result of the lower order
backlog at December 31, 2013.
Gross profit decreased by $771,000 to $329,000 for the quarter,
representing 16.7 % of revenue compared to $1,100,000 of gross profit
achieved in the first three months of 2013 representing 26.3% of
revenue. This decrease in gross profit was the result of the decreased
volume of business and the 9.6% decrease in gross profit percentage was
due to the fixed costs of engineering and operations that remained
consistent with the previous corresponding quarter, representing a
higher percentage of cost of goods sold.
Operating expenses in the quarter of $733,000 were $252,000 lower than
in the same period in the previous year and were largely the result of
lower sales commissions earned on the lower revenue recorded
The Company's unrestricted cash position stood at $1.6 million on March
31, 2014, compared to $2.5 million held on December 31, 2013.
The Company booked new orders totalling $2.2 million in the Quarter with
a resulting backlog of orders at March 31, 2014 of $8.6 million.
"With the lower amount of order bookings in the back half of 2013, we
had anticipated a weak beginning to 2014. We were further disappointed
when some of the anticipated project bookings were delayed by customers
resulting in the first quarter revenues and earnings to be quite soft,"
said Peter Bruijns, President & CEO. "The weaker results will continue
into the next quarter, however, we are now experiencing a significant
increase in project bidding which bodes well for a healthy new order
rate in coming months. Over the past three weeks the company has won
five new orders totalling $2.7 million which will help to rebuild our
backlog."
The new orders are for projects in the United States, Canada and the
Middle East and are all municipal odour control systems.
Subsequent to March 31, 2014 the holders of $659,000 of convertible
debentures agreed to extend the maturity date of the debentures from
May 4, 2014 to May 5, 2015.
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 800
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.
