BIOREM Technologies Inc.
TSX VENTURE : BRM

BIOREM Technologies Inc.

November 09, 2007 17:00 ET

BIOREM Reports Third Quarter Financial Results

GUELPH, ONTARIO--(Marketwire - Nov. 9, 2007) - BIOREM Inc. (TSX VENTURE:BRM) ("BIOREM" or "the Company") announced today its results for the three month and nine month periods ending September 30, 2007, which are summarized in the following table:



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Information in table is in
thousands CD $ except per
share data Three-Month Period Nine-Month Period
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Period ended Sept 30 2007 2006 2007 2006
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Revenue $2,547 $ 2,798 $6,532 $ 8,795
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Gross Profit 755 1,122 2,100 2,614
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EBITDA(1) (834) (178) (1,965) (968)
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Net (Loss) Earnings (1,737) (320) (2,849) (1,116)
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Basic and Diluted Loss per Share (0.15) (0.03) (0.24) (0.11)
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Weighted Average Common Shares 11,978 10,581 11,978 10,378
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New orders received in the third quarter were $3,600,000. The order backlog after adjusting for changes in the foreign exchange rate increased to $9,500,000 from $9,000,000 in the prior quarter and the second straight quarter of backlog increase. Revenue in the third quarter was $2,547,000 up from $2,215,000 in the prior quarter and is also up for the second straight quarter.

"We remain focused on building our order backlog, cost reduction and price adjustments to improve our gross margin, said Peter Bruijns, President & CEO. "We are projecting that the sales momentum and backlog increase that has been building for two straight quarters will continue. Since March 1 we have been bringing in orders at an annualized rate well exceeding $14,000,000. To offset the significant decrease in the value of the US $, the Company has been shifting operational and project expenses to the US in order to match the US based orders." added Mr. Bruijns.

Total operating expenses in the quarter of $1,589,000 was up $290,000 or 22% compared to the prior year. The variance is primarily attributable to $227,000 foreign exchange loss, which is reflective of the decrease in the value of US $ denominated net working capital assets. Affecting net income was a non cash income tax expense of $760,000 and $460,000 in the three and nine month period respectively.

At the end of the period, the Company had cash and cash equivalents in the amount of $1,938,000 and net working capital of $3,833,000. The cash balance and the unused credit facilities available to the Company are considered adequate to fund the future operating requirements of the business.

Greg Flanagan, Chief Financial Officer, has submitted his resignation as of November 23, 2007 to return to work in a buy out opportunity in the Home and Garden sector with the same team he had worked with for thirteen years prior to joining BIOREM. BIOREM has begun the process to identify and select a new Chief Financial Officer.

About BIOREM®

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 Waste Water Treatment plants across North America.

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.

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.

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.

Contact Information

  • BIOREM Technologies Inc.
    Greg Flanagan
    Chief Financial Officer
    (519) 767-9100 x275
    Email: gflanagan@biorem.biz