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, | ||||||||
| 2011 | 2010 | 2010 | ||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 63,720,123 | $ | 64,993,643 | $ | 17,645,459 | ||||
| Restricted cash (note 4) | 10,680 | 10,649 | 865,918 | |||||||
| Amounts receivable | 394,472 | 321,906 | 10,215,767 | |||||||
| Holdbacks receivable | - | - | 3,029,363 | |||||||
| Deferred costs | 1,708,897 | 661,925 | - | |||||||
| Prepaid expenses and other | 477,781 | 561,402 | 446,104 | |||||||
| Assets classified as held for sale (note 5) | 2,675,532 | 2,675,532 | 2,675,532 | |||||||
| 68,987,485 | 69,225,057 | 34,878,143 | ||||||||
| Property, plant and equipment (note 6) | 9,344,654 | 9,523,502 | 10,290,464 | |||||||
| Assets under finance lease (note 7) | 514,438 | 522,237 | 382,500 | |||||||
| 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 liabilities | 571,083 | 583,962 | 2,087,079 | |||||||
| Liabilities related to assets held for sale (note 5) | 675,631 | 618,020 | 475,532 | |||||||
| Stock compensation liability (note 14) | 803,241 | - | - | |||||||
| Deferred revenue | 4,261,838 | 2,445,369 | 7,286,897 | |||||||
| Provisions (note 10) | 412,440 | 695,828 | 620,825 | |||||||
| Current portion of long-term liabilities (note 12) | 1,648,076 | 2,230,194 | 285,621 | |||||||
| Current portion of finance lease obligations (note 11) | 183,368 | 182,838 | 135,316 | |||||||
| 10,784,482 | 9,606,451 | 16,260,579 | ||||||||
| Long-term liabilities (note 12) | 726,879 | 741,633 | 2,912,430 | |||||||
| Long-term portion of finance lease obligations (note 11) | 109,165 | 155,206 | 229,330 | |||||||
| Shareholders' equity: | ||||||||||
| Share capital (note 13) | 96,590,705 | 93,364,040 | 71,949,963 | |||||||
| Contributed surplus (note 14) | 4,104,007 | 4,846,334 | 4,244,554 | |||||||
| Share purchase warrants (note 15) | 2,721,131 | 2,721,131 | 429,056 | |||||||
| Accumulated deficit | (36,189,792 | ) | (32,163,999 | ) | (46,559,155 | ) | ||||
| Total equity | 67,226,051 | 68,767,506 | 30,064,418 | |||||||
| 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 |
| 2011 | 2010 | ||||||
| Sales | $ | - | $ | 11,148,377 | |||
| Expenses: | |||||||
| Operating costs | 374,711 | 2,954,764 | |||||
| Administration and business development | 1,696,936 | 1,358,633 | |||||
| Amortization | 217,243 | 261,300 | |||||
| 2,288,890 | 4,574,697 | ||||||
| Results from operating activities | (2,288,890 | ) | 6,573,680 | ||||
| Finance income | 324,222 | 44,222 | |||||
| Finance costs | (38,519 | ) | (36,171 | ) | |||
| Net finance income | 285,703 | 8,051 | |||||
| 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 | - | - | - | 4,876,272 | 4,876,272 | ||||||||
| Share-based compensation | - | 32,513 | - | - | 32,513 | ||||||||
| Share options exercised | 199,221 | (79,121 | ) | - | - | 120,100 | |||||||
| Warrants exercised | 1,314,656 | - | (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 capital | Contributed 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 exercised | 3,226,665 | - | - | - | 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 |
| 2011 | 2010 | |||||||
| Cash flows provided by (used in) operating activities: | ||||||||
| Net income (loss) for the period | $ | (1,774,412 | ) | $ | 4,876,272 | |||
| Adjustments for: | ||||||||
| Amortization | 217,243 | 261,301 | ||||||
| Foreign exchange gains related to U.S. Department of Justice accrual | (54,162 | ) | (78,074 | ) | ||||
| Unwinding of discount on provisions | 6,568 | 9,942 | ||||||
| Gain on sale of property, plant and equipment | (1,671 | ) | - | |||||
| Share-based compensation | 394,698 | 32,513 | ||||||
| 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 other | 83,621 | 38,279 | ||||||
| Change in deferred costs | (1,046,972 | ) | - | |||||
| Change in accounts payable and accrued liabilities | 181,805 | (2,049,798 | ) | |||||
| Change in stock compensation liability | (803,241 | ) | - | |||||
| Change in liabilities related to assets held for sale | 57,611 | 34,790 | ||||||
| Change in provisions | (283,387 | ) | (8,078 | ) | ||||
| Change in deferred revenue | 1,816,469 | 7,581,858 | ||||||
| Change in current tax payable | 215,896 | 143,832 | ||||||
| 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 equipment | 4,250 | - | ||||||
| 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 options | 641,500 | 120,100 | ||||||
| Payment of finance lease liabilities | (45,511 | ) | (33,610 | ) | ||||
| Net cash provided by financing activities | 595,989 | 972,090 | ||||||
| Net increase (decrease) in cash and cash equivalents | (1,273,520 | ) | 21,618,663 | |||||
| Cash and cash equivalents at beginning of period | 64,993,643 | 17,645,459 | ||||||
| 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:
Jack Shaw
(905) 339-1540