Bennett Environmental Inc.
TSX : BEV

Bennett Environmental Inc.

May 20, 2011 11:00 ET

Bennett Environmental Inc. Announces Q1 Results

OAKVILLE, ONTARIO--(Marketwire - May 20, 2011) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its results for the period ending March 31, 2011. There was no revenue for the quarter as the Saint Ambroise facility remained closed in order to accumulate a stockpile of soil inventory. Pre-tax loss was $2.0 million, after-tax loss was $1.8 million and loss per share was $0.05 on a fully diluted basis.

Commenting on the results, Mr. Jack Shaw, President and CEO, stated "Current inventory levels represent approximately two months of processing. We are optimistic that based on outstanding proposals and expected bid opportunities that we will be able to increase this amount prior to commencing processing. Operating costs are controlled and consistent with expectations.

The Company continues to implement its diversification plan within the industrial waste/service sector, identifying potential acquisition opportunities and holding preliminary discussions. Unfortunately the dissident action launched in mid March has hampered this process. While the Company is interested in resolving this matter in the best interest of all shareholders, to date the dissident group has insisted that it will not accept a compromise that includes current directors who are committed to supporting the implementation of the Company's strategic plan of operational diversification within the industrial service sector. This choice of strategic direction was based on internal work by the Company supported by research by industry experts that clearly identified the consolidation opportunity that exists within the space."

The Company also made the following comments on its results, with fuller discussion in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BennettMDAQ111.pdf and Interim Consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ111.pdf.

This report may contain forward-looking information that is subject to risks, uncertainties and assumptions. Such information represents our current views based on information as at the date of issuing this report. We do not intend to update this information and disclaim any legal obligation to the contrary.

Forward Looking Statements

Certain statements contained in this press release and in certain documents incorporated by reference into this press release constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "confident", "plan" and "intends" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. BEI believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of this press release. BEI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Bennett Environmental Inc.

Bennett Environmental Inc. is a North American leader in high temperature treatment services for the treatment of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the U.S. Bennett Environmental's technology provides for the safe, economical and permanent solution to contaminated soil. Independent testing has consistently proven that the technology operates well within the most stringent criteria in North America. For information, please visit the Bennett Environmental website at: www.bennettenv.com.

BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statement of Financial Position
(Unaudited)
(Expressed in Canadian dollars)
March 31,December 31,January 1,
201120102010
Assets
Current assets:
Cash and cash equivalents$63,720,123$64,993,643$17,645,459
Restricted cash (note 4)10,68010,649865,918
Amounts receivable394,472321,90610,215,767
Holdbacks receivable--3,029,363
Deferred costs1,708,897661,925-
Prepaid expenses and other477,781561,402446,104
Assets classified as held for sale (note 5)2,675,5322,675,5322,675,532
68,987,48569,225,05734,878,143
Property, plant and equipment (note 6)9,344,6549,523,50210,290,464
Assets under finance lease (note 7)514,438522,237382,500
Deferred tax assets--3,915,650
$78,846,577$79,270,796$49,466,757
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities$2,228,805$2,850,241$5,369,309
Current tax liabilities571,083583,9622,087,079
Liabilities related to assets held for sale (note 5)675,631618,020475,532
Stock compensation liability (note 14)803,241--
Deferred revenue4,261,8382,445,3697,286,897
Provisions (note 10)412,440695,828620,825
Current portion of long-term liabilities (note 12) 1,648,0762,230,194285,621
Current portion of finance lease obligations (note 11)183,368182,838135,316
10,784,4829,606,45116,260,579
Long-term liabilities (note 12)726,879741,6332,912,430
Long-term portion of finance lease obligations (note 11)109,165155,206229,330
Shareholders' equity:
Share capital (note 13)96,590,70593,364,04071,949,963
Contributed surplus (note 14)4,104,0074,846,3344,244,554
Share purchase warrants (note 15)2,721,1312,721,131429,056
Accumulated deficit(36,189,792)(32,163,999)(46,559,155)
Total equity67,226,05168,767,50630,064,418
Subsequent events (notes 5, 19(e), 20)
$78,846,577$79,270,796$49,466,757
BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31
20112010
Sales$-$11,148,377
Expenses:
Operating costs374,7112,954,764
Administration and business development1,696,9361,358,633
Amortization217,243261,300
2,288,8904,574,697
Results from operating activities(2,288,890)6,573,680
Finance income324,22244,222
Finance costs(38,519)(36,171)
Net finance income285,7038,051
Income (loss) before income taxes(2,003,187)6,581,731
Income taxes expense (recovery)(228,775)1,705,459
Net income (loss) for the period, being comprehensive income (loss)$(1,774,412)$4,876,272
Earnings (loss) per share (note 16)
Basic (loss) earnings per share$(0.05)$0.17
Diluted (loss) earnings per share(0.05)0.17
BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31, 2010
Attributable to equity holders of the Company
Share
capital
Contributed
surplus
Share
purchase
warrants
Accumulated
deficit
Total
equity
Balance at January 1, 2010$71,949,963$4,244,554$429,056$(46,559,155)$30,064,418
Comprehensive loss for the period---4,876,2724,876,272
Share-based compensation-32,513--32,513
Share options exercised199,221(79,121)--120,100
Warrants exercised1,314,656-(429,056)-885,600
Balance at March 31, 2010$73,463,840$4,197,946$-$(41,682,883)$35,978,903
BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statement of Changes in Equity (continued)
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31, 2011
Attributable to equity holders of the Company
Share capitalContributed
surplus
Share
purchase
warrants
Accumulated
deficit
Total
equity
Balance at January 1, 2011$93,364,040$4,846,334$2,721,131$(32,163,999)$68,767,506
Comprehensive loss for the period---(1,774,412)(1,774,412)
Share-based compensation-49,290--49,290
Conversion from equity settled to cash settled stock option plan (note 14)-(791,617)-(2,251,381)(3,042,998)
Share options exercised3,226,665---3,226,665
Balance at March 31, 2011$96,590,705$4,104,007$2,721,131$(36,189,792)$67,226,051
BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31
20112010
Cash flows provided by (used in) operating activities:
Net income (loss) for the period$(1,774,412)$4,876,272
Adjustments for:
Amortization217,243261,301
Foreign exchange gains related to U.S. Department of Justice accrual(54,162)(78,074)
Unwinding of discount on provisions6,5689,942
Gain on sale of property, plant and equipment(1,671)-
Share-based compensation394,69832,513
Income tax expense (recovery)(228,775)1,705,459
Change in amounts receivable(72,566)9,560,250
Change in holdbacks receivable-(2,222,608)
Change in prepaid expenses and other83,62138,279
Change in deferred costs(1,046,972)-
Change in accounts payable and accrued liabilities181,805(2,049,798)
Change in stock compensation liability(803,241)-
Change in liabilities related to assets held for sale57,61134,790
Change in provisions(283,387)(8,078)
Change in deferred revenue1,816,4697,581,858
Change in current tax payable215,896143,832
Repayment of long-term liabilities(549,278)(19,750)
Net cash provided by (used in) operating activities(1,840,553)19,866,188
Cash flows from investing activities
Proceeds from sale of property, plant and equipment4,250-
Acquisition of property, plant and equipment(33,175)(74,963)
Change in restricted cash(31)855,348
Net cash provided by (used in) investing activities(28,956)780,385
Cash flows from financing activities
Proceeds from exercise of warrants-885,600
Proceeds from exercise of share options641,500120,100
Payment of finance lease liabilities(45,511)(33,610)
Net cash provided by financing activities595,989972,090
Net increase (decrease) in cash and cash equivalents(1,273,520)21,618,663
Cash and cash equivalents at beginning of period64,993,64317,645,459
Cash and cash equivalents at end of period$63,720,123$39,264,122

These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ111.pdf.

Contact Information

  • Bennett Environmental Inc.
    Jack Shaw
    (905) 339-1540