GUELPH, ON, July 26, 2016 /CNW/ – BIOREM Inc. (TSX-V: BRM) (“Biorem” or “the Company”) today announced its results for the three and six-month periods ended June 30, 2016. Biorem’s complete second quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
Biorem’s revenues for the second quarter were $2.9 million, a 38% decrease over the $4.7 million in revenue recorded in the second quarter of 2015 and $1.2 million below the $4.2 million recorded in the first quarter of 2016. Year to date revenue totaled $7.1 million, a $2.3 million or 24% decrease in revenue over the first six months of 2015. The decrease in revenues in the second quarter were largely related to customer delivery schedules and is not indicative of the Company’s bookings or order backlog.
Gross profit for the quarter was $554,000 or 19% of revenue compared to $1.7 million of gross profit recorded during the second quarter of 2015 and $1.4 million of gross profit or 34% of revenue in the first quarter of 2016. Total operating expenses (net of other income) for the quarter were $572,000. Ebitda for the quarter was nil compared to an ebitda of $862,000 in the second quarter of 2015.
Net loss for the quarter was $113,000, which represents a $0.01 loss per share basic and fully diluted. Year to date earnings were $261,000 or $0.02 per share basic and $0.01 on a fully diluted basis, compared to a net earnings of $1,246,000 or $0.09 per share on a basic and $0.04 on fully diluted basis for the first half of 2015.
“The second quarter of 2016 saw a large number of projects experience construction delays that were beyond the control of the Corporation, indicated Derek S. Webb, President and CEO. The delays reflect the normal fluctuations in our business cycle and do not represent a decline in overall sales or operational performance.”
“Our backlog remains strong at $17 million (as of June 30, 2016), and we have booked just over $4.0 million in new orders during the second quarter. A number of the new orders are from territories historically underrepresented in our product distribution and we are excited at the prospect of gaining traction against our competitors in these areas.”
Unrestricted cash on hand decreased during the quarter to $1.7 million from $2.2 million on March 31, 2016. Operating activities used $382,000 of cash during the quarter and $225,000 of long term debt was repaid during the quarter.
Bookings during the quarter were $4.0 million resulting in an order backlog of $17 million on June 30, 2016.
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 1,000 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.
For further information contact:
Derek Webb, President and Chief Executive Officer
Tel: (519) 767-9100
Douglas Newman, Chief Financial Officer
Tel: (519) 767-9100