Biorem Reports Third Quarter Results

GUELPH, ON, Nov. 20, 2014 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced results for the three month and nine month periods ended September 30, 2014.  Biorem's complete 2014 third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

Financial Summary:

*Earnings before interest, taxes and amortization, a non IFRS financial measure

The Company booked new orders totalling $7.1 million in the Quarter which resulted in an order backlog at the end of September 30, 2014 of $14.8 million.

Revenues for the quarter totaled $2,282,000, a 7% decrease over revenues of $2,459,000 recorded during the second quarter of 2014 and a $3,000,000 or 57% decrease over revenues recorded during the third quarter of 2013. Year to date revenues have declined 54% to $6,715,000 compared to $14,476,000 in the same period in the prior year.  

Gross profit for the quarter was 23% of revenue compared to 2.2% for the quarter ended June 30, 2014 and 30.0% for the quarter ended September 30, 2013. Gross profit for the prior quarter was negatively impacted by a one-time provision for loss that was recorded against a project that required remedial work. In the absence of this provision for loss, gross profit for the quarter would have been $656,000 or 23.7 % of revenue which is consistent with the gross profit percentage achieved in previous quarters.

For the nine month period gross profit decreased by $3,258,000, a 78% decrease from the gross profit of $4,164,000 recorded for the nine months ended September 30, 2013.

Operating expenses in the quarter of $705,000 were 39% lower than the $1,155,000 of expenses recorded in the same period in the previous year. For the nine months ended September 30, 2014 operating expenses were $2,186,000, a 32% decrease over operating expenses of $3,228,000 in the comparable period in 2013.  The decrease in operating expenses were largely the result of lower sales commissions earned on the lower revenue recorded, and by lower general and administrative costs and lower expenditures on research and development resulting from cost reductions initiated by the Company.

Net loss for the quarter and nine months ended were $287,000 and $1,653,000 respectively compared to earnings of $282,000 and $505,000 in 2013.  On a loss per share basis the loss for the quarter was $0.02 per share and $0.13 per share for the nine month period ended September 30, 2014.

"With stronger municipal markets in place and high bidding activity over recent months the company booked a significant amount of new orders and increased the backlog to $14.8 million," said Peter Bruijns, President and CEO. "Our focus continues to be on quality systems at competitive pricing with healthy margins as we continue to position the company for anticipated demand globally for clean technology air pollution control systems."

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.