GUELPH, ON, May 18, 2017 /PRNewswire/ - BIOREM Inc. (TSXV: BRM)
("Biorem" or "the Company") today announced results for the three month period ended March 31,
2017. Biorem's complete 2017 first quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
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Financial Summary:
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Three-months ended
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March 31,
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December 31
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( in CDN$'000 except per share data)
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2017
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2016
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2016
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Revenue
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3,083
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4,192
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4,759
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Gross profit
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1,144
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1,443
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1,090
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Ebitda*
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21
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490
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73
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Net earnings
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17
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378
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61
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Basic earnings per share
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0.00
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0.02
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0.00
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Diluted earnings per share
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0.00
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0.01
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0.00
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*Earnings before interest, taxes and amortization, a non IFRS financial
measure
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Revenues for the quarter totaled $3.1 million a 35% decrease over the previous quarter, and
$1.1 million or 26% decrease from revenues of $4.1 million recorded
during the first quarter of 2016. The decrease in first quarter revenues was due to delayed client construction schedules,
shifting project deliveries into the 2017 second and third quarters.
Gross profit in the quarter of $1.1 million, representing 37% of revenue, was consistent with
the previous quarter and $299,000 below the amount recorded in the same period in the preceding
year.
Operating expenses for the quarter were $1.1 million, a $164,000
increase over the operating expenses incurred for the same period ended in the prior year. The increase in operating expenses for
the quarter were primarily due to one time expenses associated with the acquisition of the Company's securities by TPFG
Environment Investment Limited in January 2017.
The Company booked new orders totalling $5.3 million in the quarter resulting in a backlog of
orders at March 31, 2017 of $20.0 million compared to $16.0 million at March 31, 2016.
"The lower Q1 revenues are an example of the quarterly fluctuations we can experience due to project delivery timing, and not
a reflection of the robustness of our business or an indication of the financial performance to expect for the rest of the year,"
said Derek S. Webb, President and CEO. "Bidding activity and order bookings has been strong
in the first four months of 2017. With an order backlog of $20 million, we expect strong quarters
for the balance of the year."
During the quarter, all of the Company's convertible debentures were converted into common shares resulting in the issuance of
17,203,304 shares. At the end of the quarter, the Company had no long-term debt.
In January 2017 5,710,320 share purchase warrants were exercised resulting in net cash proceeds
to the Company of $707,377 and the issuance of 5,710,320 common shares.
The Company's unrestricted cash position stood at $4.3 million on March
31, 2017, compared with the $1.1 million held on December 31,
2016. Working capital at the end of the quarter was $5.3 million compared to $2.3 million at December 31, 2016 and working capital of $2.2 million at March 31, 2016.
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 1,100 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.