GUELPH, ON, May 30, 2012 /PRNewswire/ - BIOREM Inc. (TSXV: BRM) announced today its results for the first quarter of 2012:
| First quarter ended March31, | ||
| Information in table is in thousands except per share data | 2012 | 2011 |
| REVENUE | $3,267 | $3,732 |
| GROSS PROFIT | 380 | 1,366 |
| RESULTS FROM OPERATING ACTIVITIES | (483) | 93 |
| NET EARNINGS (LOSS) | (544) | (19) |
| BASIC EARNINGS PER SHARE | (0.04) | 0.00 |
| DILUTED EARNINGS PER SHARE | (0.04) | 0.00 |
Q1, 2012 revenue was $3,267,000, which is down $465,000 or 12.5% over the comparative period in the prior year. New orders in the quarter were $4.0 million resulting in a backlog increase of 0.7 million to $15.7 million. This compares to $2.8 million in bookings and a period ending backlog of $10.6 million in Q1, 2011.Gross Profit in the quarter was $380,000, or 11.6% of revenues compared to $1,366,000 or 36.6% of revenues in the same period in prior year.
Total Net Loss was $544,000 in the first quarter compared to a loss of $19,000 in the comparative period from last year. Total operating costs for the period were $863,000 compared with an operating cost of $1,272,000 in 2011, for a reduction of $409,000.
“While our results from the quarter have come in near our expectations, our gross profits in Q1 were lower primarily due to the completion of a large, low margin project taken last year in support of developing the biogas market.” said Peter Bruijns, President and CEO. “We have made considerable progress on reduction of costs and continue to focus on cash management, revenue growth as well as gross margin improvement.”
During the quarter, cash and cash equivalents were reduced by $100,000.
Subsequent to the first quarter, the Company announced a proposed private placement of up to 1400 Units at $1,000 per Unit for gross proceeds of $1,400,000, each Unit consisting of 8% debentures and one common share purchase warrant. A total of 535 units were issued on May 4, 2012 for proceeds of $535,000. The Private Placement remains open until June 4, 2012 for additional investment. The Company has successfully renegotiated its existing 12.75% debenture agreement providing for new repayment terms and revised covenants.
About BIOREM Inc.
Biorem is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency biological-based air emissions control systems. These systems are used to eliminate odors, volatile organic compounds (VOCs) and hazardous air pollutants (HAPs), and for the conditioning of biogas renewable energy. With sales and manufacturing offices across the continent, a dedicated research facility, a worldwide sales representative network and more than 700 installed systems worldwide, Biorem not only offers state-of-the-art technology-based products but also peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has neither approved nor disapproved of the contents of this release.
Forward-Looking Statements
This press release contains forward-looking statements based on current expectations. These forward-looking statements contain various risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Risks and uncertainties about the Company’s business are more fully discussed in the disclosure materials, financial statements and MD&A filed with the securities regulatory authorities in Canada on www.sedar.com
Non-IFRS Measures
“Order Bookings” and “Order Backlog” do not have any standardized meaning prescribed by Canadian generally accepted accounting principles (“GAAP”) and may not be comparable to measures presented by other companies. Order Bookings and Order Backlog are non-IFRS measures that the Company uses to evaluate its sales performance. Order Bookings are those binding contracts that the Company enters into with a third party for the delivery of our products or services. As Order Bookings are received, the contract value (before any associated sales taxes) is included in the Order Backlog. The Order Backlog is reduced by the revenue that is recognized on each project and then adjusted for any currency changes.
SOURCE Biorem Inc.