GUELPH, ON, April 2, 2014 /PRNewswire/ - BIOREM Inc. (TSXV: BRM) (“Biorem” or “the Company”) today announced its results for the three and twelve-month periods ended December 31, 2013. Biorem’s complete fiscal 2013 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com).
FINANCIAL HIGHLIGHTS:
| in ‘000’s except earnings per share | |||||
| Three-months ended | Twelve -months ended | ||||
| December 31 | December 31 | ||||
| 2013 | 2012 | 2013 | 2012 | ||
| Revenue | 5,121 | 4,386 | 19,596 | 15,418 | |
| Gross profit | 1,703 | 1,539 | 5,866 | 3,495 | |
| Operating expenses | 1,493 | 1,048 | 4,562 | 3,868 | |
| Ebitda* | 418 | 660 | 1,734 | 157 | |
| Net earnings (loss) | 213 | 316 | 718 | (830) | |
| EPS - basic | 0.02 | 0.02 | 0.06 | (0.07) | |
| EPS - fully diluted | 0.01 | 0.02 | 0.03 | (0.07) | |
| * Earnings before interest, taxes and amortizaton, a non IFRS financial measure | |||||
Revenue for the three month period ended December 31, 2013 was up 16.7% to $5,121,000, compared to $4,386,000 in the same period in the prior year.
Gross profit in Q4 was $1,703,000, a $164,000, or 11%, increase from the $1,539,000 recorded in the fourth quarter of 2012. Total operating expenses (net of other income) for the quarter were $1,493,000 a 42% increase from the operating expenses of $1,048,000 incurred during the fourth quarter of 2012. The increase in operating expenses in the quarter was the result of a write down of accounts receivable during the quarter due to managements concerns over collectability. Ebitda was $418,000 compared to an ebitda of $660,000 for the fourth quarter of 2012.
Net earnings for the quarter were $213,000 or $0.02 per basic share and $0.01 on a fully diluted basis compared to earnings of $316,000 or 0.02 per share on a basic and fully diluted basis in the fourth quarter of 2012.
“We are pleased with the financial results of 2013,” said Peter Bruijns, President & CEO. “The company faces new challenges in 2014 resulting from slowdowns in the municipal odour control market which began in mid-2013. These are now showing signs of improvement. However, some municipalities continue to experience restrictions on capital and therefore are delaying or deferring projects affecting Biorem’s traditional core business. Our technology offering, serving diverse markets, are showing signs of improvement and we have an efficient team able to deliver quality installations for our customers.”
TWELVE MONTHS ENDED DECEMBER 31, 2013
For the twelve months ended December 31, 2013 revenue increased 27% to $19,596,000 from $15,418,000 for the same period in 2012.
Gross profit was $5,866,000 for the year-ended December 31, 2013, a 68% increase from gross profit of $3,495,000 for the year-ended December 31, 2012.
Total operating expenses were $4,562,000 for the year ended December 31, 2013 compared to $3,868,000 for the year ended December 31, 2012. The 18% increase in operating expenses was attributable to higher sales and marketing costs, particularly commissions, on the increased revenues. Net earnings for fiscal 2013 were $718,000 or $0.06 per share basic and $0.03 on a fully diluted share basis, compared to net loss of $830,000 or a loss of ($0.07) per basic and diluted share in 2012.
Net cash generated by operating activities for the year totaled $728,000 compared to $530,000 used by operating activities in 2012. $906,000 of cash was provided by a reduction in inventory and accounts receivable and this was offset by $1,407,000 of cash used to fund reductions of unbilled and unearned revenue. $711,000 of cash was used to reduce accounts payable and accrued liabilities.
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.
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