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  • Guelph, Ontario, (December 18, 2008).  BIOREM Inc. (TSXV:BRM) announced today the receipt of an industrial air pollution treatment contract in Canada for approximately $700,000.  [More...]
  • Guelph, Ontario, (November 17, 2008). Biorem Inc. (TSXV: BRM) announced today its results for the third quarter ended September 30, 2008 [More...]
PROFITABLE Q3 ACHIEVED ON 61% INCREASE IN REVENUE OVER Q3 2007 Print



Guelph, Ontario, (November 17, 2008). Biorem Inc. (TSXV: BRM) announced today its results for the third quarter ended September 30, 2008, which are summarized in the following table:

  Third quarter ended Sept. 30 Year-to-date ended Sept.30
Information in table is in thousands except per share data 2008 2007 2008 2007
REVENUE $4,105 $2,547 $9,761 $6,532
GROSS PROFIT 1,753 755 4,015 2,100
EBITDA 287 (834) (218) (1,965)
NET EARNINGS (LOSS) 144 (1,737) (623) (2,849)
BASIC EARNINGS (LOSS) PER SHARE 0.01 (0.15) (0.05) (0.24)
DILUTED EARNINGS PER SHARE 0.01 (0.15) (0.05) (0.24)
WEIGHTED AVERAGE COMMON SHARES 11,978 11,978 11,978 11,97

Consolidated revenue for the quarter was $4,105,000, which is up $1,558,000 or 61% over the comparative period in the prior year. Consolidated revenue for the year-to-date was $9,761,000 which is up $3,229,000 or 49% over the prior year.

New orders in the quarter were $3,017,000 resulting in a current order backlog of $13.2 million. The backlog is up $3.7 million or 38% from September 30, 2007. Of the new Q3 bookings, over 50% were international orders from China, South Africa, Mexico, Jordan and Peru. These covered the entire range of product solutions.

Gross profit in the quarter was $1,753,000, which is up $998,000 or 132% over the comparative period in the prior year. The gross margin percentage for the quarter of 43% is up 13% compared to prior year of 30%. The year-to-date gross margin for 2008 is 41%, which is 9% greater than last year’s comparable period of 32%.

Operating expenses in the quarter were $1,466,000, which were $123,000 or 8% lower than in the comparative period in the prior year.

Total working capital at September 30, 2008 was $3,874,000, which is an increase of $10,000 since the start of the year. Cash used in operating activities during the quarter was $8,000 and for the year-to-date was $1,938,000. Offsetting the reduction in cash is the increase in Unbilled Revenue at the end of Q3 2008 to $3,847,000 from $128,000 at December 31, 2007. This represents revenue that has been recognized but not yet invoiced. This timing difference is due to future scheduled sales invoicing according to contract terms. Unbilled Revenue is a contractual obligation of our customers and will be turned into cash over the short term. This high level of unbilled revenue is a result of increased project activity and larger sized contracts.

Commenting on the quarterly results, Peter Bruijns, President and CEO said, “Given that the business fluctuates on a quarter-over-quarter basis, we remain encouraged by our order flow and expect to see similar results in the coming quarters. Strong core technology, expanding industrial, municipal and international market opportunities and continued municipal business support our positive outlook.”


About BIOREM Inc.
BIOREM® manufactures Biosorbens® biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications, including BIOCUBE® modular units and Mytilus® biotrickling filters. With over 500 installed systems and over a decade of experience, the Company's products are the technology of choice for odor control at wastewater treatment plants across North America. Additional information on BIOREM® is also available at our web site at www.biorem.biz.

For further information, please contact:
Ed Corbett, Chief Financial Officer
BIOREM Inc.
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Tel:  (519) 767-9100 x275


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 in no way passed upon the merits of the proposed transaction and 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-GAAP Measures
“EBITDA”, “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.

EBITDA is used to denote earnings (loss) from operations and represents earnings before interest, income taxes, depreciation and amortization. EBITDA should not be construed as a substitute for net income determined in accordance with GAAP. This measure is important to the Company since it is used by potential investors and lenders to evaluate the ongoing cash generating capability of the Company and thus the amounts they are willing to invest and lend to the Company.

Order Bookings and Order Backlog are non-GAAP 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.