Bennett Environmental Inc.
TSX : BEV

Bennett Environmental Inc.

August 10, 2011 14:05 ET

Bennett Environmental Inc. Announces Q2 Results

OAKVILLE, ONTARIO--(Marketwire - Aug. 10, 2011) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its results for the three month period ending June 30, 2011. There was no revenue for the quarter as the Saint Ambroise facility remained closed in order to accumulate a stockpile of soil inventory. Net loss was $4.3 million and loss per share was $0.11 on a fully diluted basis. During the quarter the Company incurred expenses of $2.3 million in connection with the proxy contest with Second City Capital. Had these costs not been incurred, the net loss would have been $2.0 million.

Commenting on the results, Mr. Lawrence Haber, President and CEO, stated "Current inventory levels represent approximately two and one-half months of processing. Operating costs are controlled and consistent with expectations.

The Company's Board of Directors is in the process of positioning the Company for the future, and is united in its view to enhance the value of the Company for the benefit of the Company's shareholders and other stakeholders. The transitioning of the Company and its strategic focus has been started and is underway. The Board plans to take a broad view of the opportunities available to the Company, which will include but not be limited to, the environmental sector. The Board and CEO will seek to source, structure and complete one or more transactions, designed to create meaningful value for shareholders.

With respect to its core soil remediation business, Bennett is continuing to concentrate on building sustainable growth and shareholder value through an ongoing focus on cost controls and securing orders for soil treatment by building new relationships with key market players and decision makers in treatment projects."

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/BennettMDAQ211.pdf and Interim condensed consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ211.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 Condensed Consolidated Statement of Financial Position
(Unaudited)
(Expressed in Canadian dollars)
June 30, December 31, January 1,
2011 2010 2010
Assets
Current assets:
Cash and cash equivalents $ 61,797,796 $ 64,993,643 $ 17,645,459
Restricted cash (note 4) 20,744 10,649 865,918
Amounts receivable 328,011 321,906 10,215,767
Holdbacks receivable - - 3,029,363
Holdback receivable (note 5) 300,000 - -
Deferred costs 1,911,566 661,925 -
Prepaid expenses and other 162,358 561,402 446,104
Assets classified as held for sale (note 5) - 2,675,532 2,675,532
64,520,475 69,225,057 34,878,143
Property, plant and equipment (note 6) 9,147,972 9,523,502 10,290,464
Assets under finance lease (note 7) 506,639 522,237 382,500
Deferred tax assets - - 3,915,650
$ 74,175,086 $ 79,270,796 $ 49,466,757
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,879,406 $ 2,850,241 $ 5,369,309
Current tax liabilities 488,500 583,962 2,087,079
Liabilities related to assets held for sale (note 5) 225,000 618,020 475,532
Stock compensation liability (note 14) 564,339 - -
Deferred revenue 5,370,137 2,445,369 7,286,897
Provisions (note 10) 411,675 695,828 620,825
Current portion of long-term liabilities (note 12) 1,120,075 2,230,194 285,621
Current portion of finance lease obligations (note 11) 183,900 182,838 135,316
10,243,032 9,606,451 16,260,579
Long-term liabilities (note 12) 712,035 741,633 2,912,430
Long-term portion of finance lease obligations (note 11) 62,990 155,206 229,330
Shareholders' equity:
Share capital (note 13) 96,812,271 93,364,040 71,949,963
Contributed surplus (note 13) 4,104,007 4,846,334 4,244,554
Share purchase warrants
(note 13)
2,721,131 2,721,131 429,056
Accumulated deficit (40,480,380 ) (32,163,999 ) (46,559,155 )
Total equity 63,157,029 68,767,506 30,064,418
$ 74,175,086 $ 79,270,796 $ 49,466,757
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(Expressed in Canadian dollar)
Three months ended Six months ended
June 30, June 30,
2011 2010 2011 2010
Sales $ - $ 10,914,914 $ - $ 22,063,291
Expenses:
Operating costs 336,279 2,525,960 710,990 5,480,724
Administration and business development 1,576,277 1,191,441 3,104,523 2,550,074
Management/Board restructuring costs (note 15) 2,285,577 - 2,490,072 -
Amortization 221,981 257,441 439,224 518,741
Loss on disposal of assets held for sale(note 5) 18,286 - 18,286 -
4,438,400 3,974,842 6,763,095 8,549,539
Results from operating activities (4,438,400 ) 6,940,072 (6,763,095 ) 13,513,752
Finance income 167,307 52,277 525,760 93,935
Finance costs (19,495 ) (537,158 ) (56,440 ) (570,765 )
Net finance income (costs) 147,812 (484,881 ) 469,320 (476,830 )
Income (loss) before income taxes (4,290,588 ) 6,455,191 (6,293,775 ) 13,036,922
Income taxes expense (recovery) - 1,365,098 (228,775 ) 3,070,557
Net income (loss) for the period, being comprehensive income (loss) $ (4,290,588 ) $ 5,090,093 $ (6,065,000 ) $ 9,966,365
Earnings (loss) per share (note 16)
Basic (loss) earnings per share $ (0.11 ) $ 0.15 $ (0.16 ) $ 0.32
Diluted (loss) earnings per share (0.11 ) 0.14 (0.16 ) 0.31
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the six months ended June 30, 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 income for the period - - - 9,966,366 9,966,366
Share-based compensation - 65,386 - - 65,386
Share options exercised 241,220 (98,721 ) - - 142,499
Warrants exercised 1,314,656 - (429,056 ) - 885,600
Shares issued in connection with public offering closing May 7, 2010 22,213,117 - - - 22,213,117
Share-based costs (2,356,506 ) - - - (2,356,506 )
Fair value of compensation options issued in connection with share and warrant offering closing May 7, 2010 - 483,992 - - 483,992
Excess fair value of warrants issued on over-allotment closing May 21, 2010 over consideration received - (110,656 ) - - (110,656 )
Fair value of compensation options issued in connection with over-allotment closing May 21, 2010 - 9,191 - - 9,191
Warrants issued in connection with public offering closing May 7 and May 21, 2010 net of issue costs - - 4,713,115 - 4,713,115
Balance at June 30, 2010 $ 93,362,450 $ 4,593,746 $ 4,713,115 $ (36,592,789 ) $ 66,076,522
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the six months ended June 30, 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 - - - (6,065,000 ) (6,065,000 )
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 3,448,231 - - - 3,448,231
Balance at June 30, 2011 $ 96,812,271 $ 4,104,007 $ 2,721,131 $ (40,480,380 ) $ 63,157,029
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statements of Cash Flows (Unaudited)
(Expressed in Canadian dollars)
For the six months ended June 30
2011 2010
Cash flows provided by (used in) operating activities:
Net income (loss) for the period $ (6,065,000 ) $ 9,966,364
Adjustments for:
Amortization 439,224 518,741
Foreign exchange gains related to U.S. Department of Justice accrual (55,117 ) 30,165
Unwinding of discount on provisions 13,037 33,354
Gain on sale of property, plant and equipment (1,671 ) -
Loss on sale of assets held for sale 18,286 -
Share-based compensation 325,362 65,386
Income tax expense (recovery) (228,775 ) 3,395,510
Change in non-cash working capital items:
Amounts receivable (6,105 ) 2,836,829
Holdbacks receivable (300,000 ) 2,183,468
Prepaid expenses and other 399,044 191,004
Deferred costs (1,249,641 ) -
Accounts payable and accrued liabilities 416,395 (1,906,994 )
Stock compensation liability (564,339 ) -
Liabilities related to assets held for sale (393,020 ) 65,584
Provisions (284,153 ) 3,121
Deferred revenue 2,924,768 (994,061 )
Current tax payable 133,313 325,503
Repayment of long-term liabilities (1,097,637 ) (39,500 )
Net cash provided by (used in) operating activities (5,576,029 ) 16,674,474
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 4,250 30,000
Proceeds from sale of assets held for sale 1,834,356 -
Acquisition of property, plant and equipment (50,675 ) (183,121 )
Change in restricted cash (10,095 ) 855,333
Net cash provided by investing activities 1,777,836 702,212
Cash flows from financing activities
Proceeds from exercise of warrants - 885,600
Proceeds from exercise of share options 693,500 142,500
Proceeds from shares and warrants due to public offering, net of costs - 22,961,859
Payment of finance lease liabilities (91,154 ) (131,248 )
Net cash provided by financing activities 602,346 23,858,711
Net increase (decrease) in cash and cash equivalents (3,195,847 ) 41,235,397
Cash and cash equivalents at beginning of period 64,993,643 17,645,459
Cash and cash equivalents at end of period $ 61,797,796 $ 58,880,856

These interim condensed consolidated financial statements do not include accompanying notes. A complete set of interim condensed consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ211.pdf.

Contact Information