GUELPH, ON, May 28, 2014 /PRNewswire/ - BIOREM Inc. (TSXV: BRM) (“Biorem” or “the Company”) today announced results for the three month period ended March 31, 2014. Biorem’s complete 2014 first quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
Financial Summary:
| Three-months ended March 31, | ||
| ( in CDN$'000 except per share data) | 2014 | 2013 |
| Revenue | 1,974 | 4,185 |
| Gross profit | 329 | 1,100 |
| Ebitda* | (318) | 233 |
| Net earnings (loss) | (531) | 31 |
| Basic earnings (loss) per share Diluted earnings (loss) per share | (0.04) (0.04) | (0.00) (0.00) |
*Earnings before interest, taxes and amortization, a non IFRS financial measure
Revenues for the quarter totaled $1,974,000 a 53 % decrease over revenues of $4,185,000 recorded during the first quarter of 2013. The decrease in 2014 first quarter revenues was a result of the lower order backlog at December 31, 2013.
Gross profit decreased by $771,000 to $329,000 for the quarter, representing 16.7 % of revenue compared to $1,100,000 of gross profit achieved in the first three months of 2013 representing 26.3% of revenue. This decrease in gross profit was the result of the decreased volume of business and the 9.6% decrease in gross profit percentage was due to the fixed costs of engineering and operations that remained consistent with the previous corresponding quarter, representing a higher percentage of cost of goods sold.
Operating expenses in the quarter of $733,000 were $252,000 lower than in the same period in the previous year and were largely the result of lower sales commissions earned on the lower revenue recorded
The Company’s unrestricted cash position stood at $1.6 million on March 31, 2014, compared to $2.5 million held on December 31, 2013.
The Company booked new orders totalling $2.2 million in the Quarter with a resulting backlog of orders at March 31, 2014 of $8.6 million.
“With the lower amount of order bookings in the back half of 2013, we had anticipated a weak beginning to 2014. We were further disappointed when some of the anticipated project bookings were delayed by customers resulting in the first quarter revenues and earnings to be quite soft,” said Peter Bruijns, President & CEO. “The weaker results will continue into the next quarter, however, we are now experiencing a significant increase in project bidding which bodes well for a healthy new order rate in coming months. Over the past three weeks the company has won five new orders totalling $2.7 million which will help to rebuild our backlog.”
The new orders are for projects in the United States, Canada and the Middle East and are all municipal odour control systems.
Subsequent to March 31, 2014 the holders of $659,000 of convertible debentures agreed to extend the maturity date of the debentures from May 4, 2014 to May 5, 2015.
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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