Biorem today announced its results for the three and twelve-month periods ended December 31, 2022. Biorem’s complete fiscal 2022 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com).
“The year 2022 was challenging, but overall, very positive for the Company”, said Derek S. Webb, President and CEO. “A number of unique factors converged for a second year in a row to put pressure on cost control measures and delivery schedules. Ultimately, our engineering and operations teams were able to address these factors and ensure that our customers’ requirements were met or exceeded.”
“The introduction of new dry scrubber systems technology in regional test markets last year resulted in setting several historic corporate records throughout the year. With $9 million in orders for dry scrubbers and strong demand for our other products and services, the Company ended the year with a record $38.9 million dollar backlog. Even while building this backlog, the core business was able to deliver strong financial performance with a record $29 million in revenue and a corresponding ebitda of $2.8 million.”
“The Company was also successful in negotiating a settlement for a legacy legal issue relating to a contractual dispute in Hawaii from 2010. We are pleased at being able to allocate the additional bandwidth to the core activities of the business and the several growth initiatives underway. 2023 will see further expansion of the dry scrubber product line, both in terms of standard system offerings as well as expanded geographical coverage. Management is excited at our prospects for the coming year as we continue to execute on our strategic plan to accelerate growth and liquidity.”
TWELVE MONTHS ENDED DECEMBER 31, 2022
For the twelve months ended December 31, 2022 revenue totaled $28.9 million compared to $24.5 million for the same twelve months in 2021. Net earnings for the year were $1.6 million compared to net earnings of $1.3 million in 2020. Earnings per share for the year doubled to $0.10 per share against earnings per share of $0.04 basic and fully diluted reported in 2021.
Gross profit for the year was $8.8 million, a 29% increase from gross profit of $6.2 million recorded for the year-ended December 31, 2021.
Total operating expenses for the year were $6.2 million compared to $4.2 million of operating expenses in 2021. The increase in operating expenses were due to one time legal and settlement expenses of approximately $700,000 related to the settlement of a long standing lawsuit and an increase in commission expenses on the increased revenues.
On December 31, 2022 the Company had cash on hand of $3.8 million and working capital of $4.9 million compared to $4.5 million and $2.9 million respectively in December 31, 2021. The decrease in cash on hand was largely due to increases in non-cash working capital at year end and the repayment of $499,000 of long term debt during the year.
Total order bookings for the year were $37.7 million, a 121% increase in bookings over the $17 million booked in 2021. The Company’s order backlog stood at $38.0 million on December 31, 2022 compared to $24.9 million on December 31, 2021.
Three Months ended December 31, 2022
Revenue in the fourth quarter of 2022 was $10.9 million compared to $7.3 million in the previous quarter and $10.8 million in the fourth quarter of 2021. Orders booked in the quarter totaled $6.4 million.
Gross profit of $4.8 million in the fourth quarter amounted to 44% of revenue, which was higher than the 34.4% gross profit margin in the previous quarter and the 34% achieved in the same quarter the prior year. The increased gross margin was the result of higher contractual margins in the Company’s order backlog at the beginning of the quarter.
Total operating expenses (net of other income) for the quarter were $2.6 million, a 100% increase from the operating expenses of $1.3 million incurred during the fourth quarter of 2021. The comparative increase from the fourth quarter a year ago was due to $700,000 of legal and settlement expenses and a $200,000 expected credit loss provisions recorded in the quarter.
Ebitda for the quarter was $1.3 million compared to ebitda of $2.4 million in the fourth quarter of 2021.
Net earnings for the quarter were $789,000 compared to net earnings of $1.6 million in the fourth quarter of 2021.
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 1,800 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.
For further information contact:
Derek Webb, President and Chief Executive Officer
Tel: (519) 767-9100 ext 240
Douglas Newman, Chief Financial Officer
Tel: (519) 767-9100 ext 287