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BIOREM reports record second quarter revenues

^{Published on 2009-08-20 12:24:00, Last Modified on 2009-08-20 12:24:01 - Market Wire}
 

 GUELPH, ON, Aug. 20 /CNW/ - BIOREM Inc. ("Biorem" or "the Company") (TSX-V: BRM) announced today its results for the three and six-month periods ended June 30, 2009. Biorem's complete fiscal 2009 second quarter financial statements and MD&A are filed on SEDAR ([ www.sedar.com ]). "We are pleased with the exceptional revenue growth we had in the quarter, reporting record second quarter revenue, as well as strong gross profit and gross margin," said Peter Bruijns, President and CEO of Biorem. "Our gross margins have recovered to the 40% level as expected. This is also the second consecutive quarter that we have generated positive cash flows from operations, which were supported by strong new order numbers." Financial Summary: ---------------------------------------------- Three-months ended Six-months ended June 30, June 30, ------------------------------------------------------------------------- (Information in table is in thousands, except per share data) 2009 2008 2009 2008 ------------------------------------------------------------------------- REVENUE $5,678 $2,472 $9,715 $5,657 ------------------------------------------------------------------------- GROSS PROFIT 2,326 807 3,632 2,262 ------------------------------------------------------------------------- EBITDA(1) 32 (741) (150) (505) ------------------------------------------------------------------------- NET EARNINGS (239) (870) (664) (767) ------------------------------------------------------------------------- BASIC EARNINGS PER SHARE (0.02) (0.07) (0.06) (0.06) ------------------------------------------------------------------------- DILUTED EARNINGS PER SHARE (0.02) (0.07) (0.06) (0.06) ------------------------------------------------------------------------- WEIGHTED AVERAGE COMMON SHARES 11,978 11,978 11,978 11,978 ------------------------------------------------------------------------- Revenue in the three-month period ended June 30, 2009 (Q2 2009) increased 130% to $5.7 million from $3.2 million over the comparative period in the prior year. New orders in the second quarter of 2009 totaled $5.2 million, resulting in a current order backlog of $11.1 million. The order backlog as at June 30, 2009 was down from an order backlog of $14.6 million as at June 30, 2008 and $12.8 million as at March 31, 2009. Gross profit in Q2 2009 increased 188% to $2.3 million, or 41% of revenue, from $0.8 million, or 33% in the same quarter a year ago. Gross margin is back to historical levels of over 40%, after a decrease in Q1 of 2009. EBITDA(1) in the second quarter of 2009 totaled $32,000, compared to a loss of $741,000 in the second quarter of 2008. EBITDA(1) in Q2 2009 was impacted by a significant foreign exchange loss of $425,000, versus a $31,000 loss in the second quarter of 2008. In the second quarter of 2009, cash flows from operations totaled $0.3 million, compared to negative $1.1 million in the second quarter a year ago. As at June 30, 2009, Biorem had total working capital of $6.6 million, cash and short-term investments of $2.5 million and unbilled revenue of $2.6 million, compared to total working capital of $6.9 million, cash and short-term investments of $2.2 million and unbilled revenue of $3.8 million as at December 31, 2008. Subsequent to the end of the second quarter, the Company agreed to pay $30,000 to its lender in connection with waiving compliance by Biorem of certain Bookings covenants as set out in the loan agreements between the parties. Payment shall be completed by issuing 78,947 common shares at a price of $0.38 per share. The shares for debt agreement is subject to acceptance by the TSX Venture Exchange. About BIOREM Inc. BIOREM manufactures Biosorbens(R) biofilter media and is a leading supplier of biofilters and biotrickling for air pollution control in municipal and industrial applications, including BIOCUBE(R) modular units and Mytilus(R) biotrickling filters. With over 600 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 ]. ------------------------------------------------------------------------- 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 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 (1). EBITDA is a non-GAAP earnings measure, therefore, it does not have any standardized meaning prescribed by Canadian generally accepted accounting principles and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation and amortization. This measure is important to management since it is used by potential lenders to evaluate the ongoing cash generating capability of the Company and thus the amounts those lenders are willing to lend to the Company. "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. 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 and then adjusted for any currency changes. %SEDAR: 00020304E 

For further information: Ed Corbett, Chief Financial Officer, BIOREM Technologies Inc., [ ecorbett@biorem.biz ], Tel: (519) 767-9100 x275