Bennett Environmental Inc.
TSX : BEV

Bennett Environmental Inc.

November 10, 2010 12:17 ET

Bennett Environmental Inc. Announces Q3 Results

OAKVILLE, ONTARIO--(Marketwire - Nov. 10, 2010) - Bennett Environmental Inc. (TSX:BEV)(the "Company" or "BEI") today announced its results for the period ending September 30, 2010. Revenue for the quarter was $10.6 million, earnings before income taxes were $6.3 million and net earnings were $7.3 million. Earnings per share were $0.19 on a fully diluted basis.

BEI's policy with respect to announcing future projects has been to announce projects when there is virtual certainty that the material will be received at Saint Ambroise. This is typically well after the Request for Proposal process and after contracts have been awarded. At this time the Company does not have new projects that meet this criteria, other than the one announced on July 8, 2010.

Mr. Christopher Wallace, Chairman of the Board, commented "The Company continues to be committed to completing a significant acquisition or program to support our diversification objectives. We are currently continuing our evaluation of various alternatives. This is, of course, in addition to aggressively pursuing contracts for our current business."

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/BennettMDAQ310.pdf and Interim Consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ310.pdf.

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" and "confident" 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 Balance Sheets  
(Unaudited)  
(Expressed in Canadian dollars)  
         
  September 30, 2010   December 31, 2009  
             
Assets            
Current assets:            
  Cash and cash equivalents $ 64,144,682   $ 17,645,459  
  Restricted cash (note 3)   10,617     865,918  
  Amounts receivable (note 5)   3,877,053     10,215,767  
  Holdbacks receivable (note 6)   -     3,029,363  
  Prepaid expenses and other   790,743     446,104  
  Future income tax asset (note 13)   -     3,915,650  
    68,823,095     36,118,261  
Property, plant and equipment   7,942,359     8,424,518  
Assets under capital leases   505,700     412,074  
Assets held for sale   2,675,532     2,675,532  
  $ 79,946,686   $ 47,630,385  
             
Liabilities and Shareholders' Equity            
             
Current liabilities:            
  Accounts payable and accrued liabilities $ 4,255,235   $ 5,710,496  
  Liabilities related to assets held for sale   579,269     475,532  
  Income taxes payable   991,924     2,087,079  
  Deferred revenue   987,417     7,286,897  
  Current portion of long-term liabilities (note 9)   284,115     565,258  
  Current portion of obligations under capital lease (note 10)   182,310     135,316  
    7,280,270     16,260,578  
Long-term liabilities (note 9)   2,854,679     2,912,430  
Long-term portion of obligations under capital lease (note 10)   201,115     229,330  
             
Shareholders' equity:            
  Share capital (note 11)   93,364,040     71,949,963  
  Contributed surplus (note 11)   4,626,981     4,244,554  
  Share purchase warrants (note 12)   2,721,131     429,056  
  Accumulated deficit   (31,101,530 )   (48,395,526 )
    69,610,622     28,228,047  
             
Continuing operations (note 1)            
Contingencies (note 16)            
  $ 79,946,686   $ 47,630,385  

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/BennettIFSQ310.pdf.

   
BENNETT ENVIRONMENTAL INC.  
Interim Consolidated Statements of Operations and Comprehensive Income  
(Unaudited)  
(Expressed in Canadian dollars)  
   
  Three months ended   Nine months ended  
  September 30, September 30,
  2010   2009   2010   2009  
                         
Sales $ 10,604,723   $ 10,916,688   $ 32,668,014   $ 17,411,462  
                         
Expenses:                        
  Operating costs   2,396,652     3,000,741     7,877,376     7,373,743  
  Administration and business Development   1,642,495     1,183,396     4,225,923     3,585,294  
  Depreciation and amortization   271,551     456,881     795,593     1,356,452  
  Foreign exchange loss (gain)   (1,456 )   4,519     812     7,623  
  Interest   79,561     11,780     608,267     105,777  
    4,388,803     4,657,317     13,507,971     12,428,889  
                         
Earnings before the undernoted   6,215,920     6,259,371     19,160,043     4,982,573  
                         
Other income, including interest   129,887     60,231     214,833     160,200  
                         
Earnings before income taxes   6,345,807     6,319,602     19,374,876     5,142,773  
                         
Income tax expense (recovery)                        
  (note 13)                        
    Current   (1,509,817 )   -     (1,834,770 )   67,684  
    Future   520,140     (2,595,354 )   3,915,650     (2,595,354 )
    (989,677 )   (2,595,354 )   2,080,880     (2,527,670 )
Net earnings and comprehensive income $ 7,335,484   $ 8,914,956   $ 17,293,996   $ 7,670,443  
                         
Net earnings from operations per common share (note 14)                        
  Basic $ 0.20   $ 0.33   $ 0.52   $ 0.28  
  Diluted   0.19     0.32     0.50     0.28  

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/BennettIFSQ310.pdf.

   
BENNETT ENVIRONMENTAL INC.  
Interim Consolidated Statements of Accumulated Deficit  
(Unaudited)  
(Expressed in Canadian dollars)  
   
  Three months ended   Nine months ended  
  September 30,   September 30,  
  2010   2009   2010   2009  
                         
Accumulated deficit, beginning of period $ (38,437,014 ) $ (64,953,443 ) $ (48,395,526 ) $ (63,708,930 )
                         
Net earnings   7,335,484     8,914,956     17,293,996     7,670,443  
                         
Accumulated deficit, end of period $ (31,101,530 ) $ (56,038,487 ) $ (31,101,530 ) $ (56,038,487 )

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/BennettIFSQ310.pdf.

   
BENNETT ENVIRONMENTAL INC.  
Interim Consolidated Statements of Cash Flows  
(Unaudited)  
(Expressed in Canadian dollars)  
   
    Three months ended   Nine months ended  
    September 30,   September 30,  
    2010   2009   2010   2009  
                           
Cash provided by (used in):                          
Operations:                          
  Net earnings   $ 7,335,484   $ 8,914,956   $ 17,293,996   $ 7,670,443  
  Items not involving cash:                          
    Depreciation and amortization     271,551     456,881     795,593     1,356,452  
    Stock-based compensation     33,235     40,486     98,621     224,053  
    Foreign exchange related to U.S. Department of Justice accrual     (78,961 )   (214,337 )   (48,796 )   (342,057 )
    Accretion interest     15,435     20,552     48,789     67,237  
    Future income taxes (recovery)     520,140     (2,595,354 )   3,915,650     (2,595,354 )
    Loss on disposal of property, plant and equipment     -     -     2,552     -  
  Changes in non-cash operating working capital     (2,706,811 )   (5,315,692 )   (2,358 )   (3,178,459 )
  Repayments of long-term liabilities     (19,750 )   (5,319 )   (59,250 )   (512,791 )
                           
  Cash provided by (used for) operating activities     5,370,323     1,302,173     22,044,797     2,689,524  
                           
Financing:                          
  Repayment of lease obligations     (45,249 )   (30,035 )   (176,497 )   (30,035 )
  Issuance of share capital due to exercise of stock options     -     91,200     142,500     91,200  
  Issuance of share capital due to exercise of warrants     -     -     885,600     -  
 
  Issuance of shares and warrants due to public offering, net of costs     -     -     22,961,859     -  
                           
  Cash provided by (used in) financing activities     (45,249 )   61,165     23,813,462     61,165  
                           
Investments:                          
  Change in restricted cash     (32 )   875,339     855,301     923,178  
  Proceeds on disposal of property, plant and equipment     -     -     30,000     -  
  Purchase of property, plant and equipment     (61,216 )   (62,902 )   (244,337 )   (131,907 )
                             
  Cash provided by (used in) investing activities     (61,248 )   812,437     640,964     791,271  
                           
Increase in cash and cash equivalents     5,263,826     2,175,775     46,499,223     3,541,960  
Cash and cash equivalents, beginning of period     58,880,856     3,968,877     17,645,459     2,602,692  
                           
Cash and cash equivalents, end of period   $ 64,144,682   $ 6,144,652   $ 64,144,682   $ 6,144,652  
                           
Supplemental cash flow information:                          
  Interest paid   $ 327,357   $ 3,049   $ 338,152   $ 33,112  
  Interest received     153,632     -     153,632     -  
  Income taxes paid     361,220     13,149     361,220     85,149  
  Income tax refunded     550,590     40,668     700,543     338,926  
                           
Supplemental disclosure of non-cash transactions:                          
  Leases on asset acquisitions     -     -     222,000     397,360  

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/BennettIFSQ310.pdf.

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