GUELPH, ON, Nov. 25, 2020
GUELPH, ON, Nov. 25, 2020/CNW/ – BIOREM Inc. (TSXV: BRM) (“Biorem” or “the Company”) today announced its results for the three and nine-month periods ended September 30, 2020. Biorem’s complete third-quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
in Canadian dollars, ‘000’s except earnings per share
Nine -months ended
EPS – basic
EPS – fully diluted
* Earnings before interest, taxes, and amortization, a non-IFRS financial measure
Biorem reported revenues for the third quarter of a $3.6 million 40% decrease over the previous quarter and$2.7 million below the$6.3 million of revenues reported in the same quarter in 2019. Year-to-date revenues totaled $16.4 million, a 1% increase over the$16.3 million reported for the first nine months of 2020. The decrease in revenues for the third quarter is largely the result of delays in deliveries from suppliers and delays in customer’s construction schedules.
Order booking during the quarter totaled$8.7 million and the Company’s order backlog on September 30stood at a record$34 million.
Gross profit for the quarter was$629,000or 17.5% of revenue compared to$1.4 million of gross profit representing 23.9 % of revenue recorded during the third quarter of 2019. The decrease in gross profit during the quarter is directly related to the decrease in revenue in the quarter. Total operating expenses (net of other income) for the quarter were$418,000against$1,048,000in the same period the prior year. The decrease in operating expenses was primarily due to the receipt of$295,000in CEWS wage subsidy received in the quarter from the federal government and the collection of$256,000in accounts receivable in china that had previously had a valuation allowance recorded against them.
Ebitda for the quarter was$167,000compared to$703,000of EBITDA in the third quarter of 2019. Year-to-date EBITDA totaled$1.4 million net earnings for the quarter were$155,000, with year-to-date earnings totaling $949,000compared to net earnings of$821,000for the first nine months of 2019.”
Disruptions in our supply chain and delays to customer’s construction schedules due to the COVID pandemic impacted our third-quarter results and were expected” said Derek Webb, President, and CEO. “Use of our diversified supply chain, innovative application of technology, and resourceful employees ensured that we were able to continue business development and complete startups and commissioning during the quarter.”
“We continue to be cautious regarding potential future disruptions in our supply chain and construction schedules due to the resurgence of the virus, but the outlook for the rest of our fiscal year looks positive with strong revenues and EBITDA in the fourth quarter. The Company’s record backlog of$34 million provides a strong foundation for revenue and earnings over the next twelve months.”
Cash on hand increased during the quarter to$9.4 millionfrom$8.0 million on June 30, 2020. Earnings from operating activities generated$170,000of cash and a reduction in net non-cash working capital added a further$1,662,000of cash.
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 1,500 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 atwww.biorem.biz.
SOURCE Biorem Inc.View original content:http://www.newswire.ca/en/releases/archive/November2020/25/c1520.html