Biorem Reports Second Quarter Results & Record Order Backlog

GUELPH, ON, Aug. 23, 2022 /PRNewswire/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced its results for the three and six-month periods ended June 30, 2022. Biorem's complete second quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

FINANCIAL HIGHLIGHTS:

Biorem's revenues for the second quarter were $6.3 million a 43% increase over the previous quarter and 11% higher than the $5.6 million of revenues reported in the same quarter in 2021. Year to date revenues totalled $10.6 million, a 17% increase over the $9.1 million reported for the first six months of 2021. The increase in revenues for the first six months of 2022 compared to the prior year is largely due to the Company's larger order backlog at the beginning of the year and due to customer construction schedules.

Gross profit for the quarter was $1.5 million or 23.2% of revenue compared to $1.1 million of gross profit representing 19.8% of revenue recorded during the second quarter of 2021. Total operating expenses (net of other income) for the quarter were $1,170,000 against $742,000 in the same period the prior year. The increase in operating expenses in 2022 was primarily due to a foreign exchange loss of $89,000 recorded in the quarter compared to a $137,000 exchange gain recorded in the second quarter of 2021. Ebitda for the quarter was $319,000 compared to $467,000 of ebitda in the second quarter of 2021.

Net earnings for the quarter were $164,000, with year to date earnings of $64,000 compared to a net loss of $151,000 for the first half of 2021.

"We have been actively managing the impact that disruptions to our global supply chain and inflation have posed over the past several months, making BIOREM one of the few companies in our industry that continues to meet delivery schedules, remain on-budget and exceed customer expectations", said Derek S. Webb, President and CEO. "This has allowed us to look past these current challenges and focus on growth initiatives such as our new Dry Scrubber product line and expansion of our Service Group offerings."

"Booking activity within these two growth sectors have been robust- with over $8M year to date in new Dry Scrubber sales and over $3M in new Service orders. Total bookings in the second quarter were $12.5M of new orders resulting in a record backlog of $38M on June 30th, 2022."

"We expect this large backlog to enable the Company to deliver a strong second half of the year in terms of revenues and earnings".

Cash on hand at June 30, 2022 increased to $4.3 million. Earnings from operating activities during the quarter generated $321,000 of cash and net reductions in non-cash working capital items added a further $630,000 to cash reserves.

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 1,600 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.

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SOURCE Biorem Inc.