Ottawa, Ontario--(Newsfile Corp. - May 30, 2018) - BluMetric Environmental Inc. (TSXV: BLM) is pleased to announce revenue of
$7.7 million and net income of $169,000 for the second quarter of fiscal 2018, ended March 31, 2018.
Financial Highlights
- Net income was $169,000, compared to a net income of $90,000 in the same quarter the previous year.
- Revenue for the quarter is $7.7 million, an increase of 7% compared to $7.2 million for the quarter ended March 31,
2017. This is mainly due to an increase in wastewater treatment contracts.
- Gross margin decreased to 21% compared to 22% in the same quarter the previous year.
- Operating costs were consistent year-over-year at $1.3 million.
- EBITDA (see Note 1 definition below) decreased to $325,000 from $353,000 in the same quarter the previous year.
- BluMetric was not in compliance with one of its covenants related to its demand credit facility as at March 31, 2018. This
situation has created a technical cross-default with the Company's five-year term-loan agreement. Although the Company has
received a waiver from its term-loan lender with respect to the cross-default, IFRS nonetheless requires the Company to
re-classify the five-year term loan at March 31, 2018 to current liabilities. As of May 23, 2018, the Company's credit facility
agreement has been amended and the covenant that was in violation as at March 31, 2018 has now been removed.
"BluMetric is generating new business opportunities not only through a refined geographic focus but also through significant
advances in research and innovation designed to take the Company to the next level," said Scott MacFabe, CEO of BluMetric. "Through
the provision of solutions for existing clients that are inventive and dependable, and the use of innovative technology to address
emerging contaminants and to secure new clients moving forward, we are positioning ourselves for strong client-centric growth and
the creation of solid value for shareholders in the longer term."
Operational Highlights
BluMetric made solid operational strides during the quarter in line with a recent push in business development across key
segments and a focus on uncovering and creating new opportunities through research and innovation. The Company is pleased to report
several notable developments this quarter:
- Scott MacFabe was appointed as Chief Executive Officer starting March 1, 2018, contributing an extensive and varied
background in environmental consulting and management.
- To support increasing opportunities for the Company in mining amid the sector's resurgence, BluMetric opened a new office in
Thunder Bay on April 1, 2018 to service existing and future clients in northwestern Ontario. The Company has secured a sizeable
3-year project as a baseline and launching point for further business development and growth in the region.
- BluMetric continued to build on its mining backlog, including the engineering and design of remedial solutions and the care
and maintenance of closed mining facilities.
- Several large projects in the Arctic were carried out involving the deployment of new equipment and cutting edge technology,
enabling the company to target remote and previously underserviced locations - an area in which BluMetric sees great
potential.
- BluMetric completed construction of a trailer mounted pilot system that became operational in the quarter. This pilot was
deployed with one of the largest solid waste disposal companies in North America to provide process ratification on the treatment
of leachate as well as to a small number of mining companies for ammonia removal and cyanide segregation and reduction.
Outlook
Following recent business model enhancements in support of a sector-specific sales strategy, BluMetric continues to strengthen
the Company's activities and presence in its major market segments: Mining, Food & Beverage, Industrial Wastewater, Military,
Government, and Environmental Site Assessment and Remediation. In particular, the Company is positioning itself to participate more
fully in a strong and revitalized mining sector through both geographic growth and the expansion of its service offerings.
In addition, BluMetric is focused on enhancing business development with a renewed emphasis on innovation and meeting long-term
client needs through the creation of holistic solutions designed with the prevention of problems in mind. Leveraging industry
experience and know-how gained off a track record that spans 40+ years, the Company sees this as a notable differentiator in terms
of its value proposition and key to BluMetric's positioning for growth moving forward.
Financial Summary
| |
Three Months
Ended
March 31, 2018 |
Three Months
Ended
March 31, 2017 |
Six Months
Ended
March 31, 2018 |
Six Months
Ended
March 31, 2017 |
| |
($000) |
($000) |
($000) |
($000) |
| Revenue |
7,708 |
7,219 |
15,268 |
15,507 |
| Gross profit |
1,616 |
1,604 |
3,288 |
3,300 |
| Gross margin % |
21% |
22% |
22% |
21% |
| Operating expenses |
1,311 |
1,349 |
2,734 |
2,629 |
| EBITDA1 |
325 |
353 |
625 |
868 |
| Adjusted EBITDA2 |
341 |
360 |
644 |
841 |
| Net earnings |
169 |
90 |
269 |
318 |
| Earnings per share -basic |
0.01 |
0.00 |
0.01 |
0.01 |
| Earnings per share -diluted |
0.01 |
0.00 |
0.01 |
0.01 |
Note 1: EBITDA is a non-IFRS measure and is calculated as net income before interest expense, income taxes, depreciation, and
amortization.
Note 2: Adjusted EBITDA is a non-IFRS measure and is calculated as EBITDA, gain or loss on foreign exchange, stock-based
compensation, gain or loss on sale of property plant and equipment, gain or loss on sale of other assets, gain or loss on debt
conversion, gain or loss on debt extinguishment, gain or loss on investments held for sale, and impairment of goodwill.
The full results are available at www.sedar.com.
About BluMetric Environmental Inc.
BluMetric Environmental Inc. is a publicly traded environmental consulting and engineered treatment systems company with
expertise across disciplines and technologies that allow for the design and delivery of elegant solutions to environmental
challenges. Headquartered in Ottawa, Ontario, BluMetric's team of industry experts serves clients in Canada, the United States, and
Central America.
For more information, visit www.blumetric.ca, or please contact:
Scott MacFabe, CEO
BluMetric Environmental Inc.
Tel: 613.839.3053
Email: smacfabe@blumetric.ca
Vivian Karaiskos, CFO
BluMetric Environmental Inc.
Tel: 613.839.3053
Email: vkaraiskos@blumetric.ca
Forward-Looking Statements
Some of the statements in this press release, including those relating to the Company's quarterly and annual results, future
products, opportunities and cost initiatives, strategies, and other statements that are predictive in nature, that depend upon or
refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates", or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking
statements include, without limitation, the information concerning possible or assumed future results of operations of the Company.
These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections
regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated
events, except as required by law.
Neither the 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.
