Bennett Environmental Inc.
TSX : BEV

Bennett Environmental Inc.

November 14, 2011 14:40 ET

Bennett Environmental Inc. Announces Q3 Results

OAKVILLE, ONTARIO--(Marketwire - Nov. 14, 2011) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its results for the three month period ended September 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 $1.7 million and loss per share was $0.04 on a fully diluted basis.

Commenting on the results, Mr. Lawrence Haber, President and CEO, stated "Operating costs are controlled and consistent with expectations."

As previously announced, the Company has accumulated approximately 20,000 tonnes of untreated soil at the end of September, 2011 and has not recorded any revenue related to this soil in inventory. An additional 24,000 tonnes is expected to be received from various jobs which have been awarded but not shipped. Processing of the above soil is expected to commence during the first quarter of 2012.

For each of these contracts awarded, the tonnage amounts are approximate, and in each case there is no commitment on the part of the client with respect to the amount of material that will be shipped under the contract, or the timing of these shipments. Actual amounts shipped may be more or less than the estimated amounts.

Regarding corporate strategy, Mr. Haber stated "The Board continues to take a broad view of the strategic opportunities available to the Company, including but not limited to, the environmental sector. The Board seeks to source, structure and complete one or more transformative transactions, designed to create meaningful value for shareholders."

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/BEVQ3September302011MDA.pdf and Interim condensed consolidated Financial Statements available on http://media3.marketwire.com/docs/BEVSeptember302011FS.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)
September 30, December 31, January 1,
2011 2010 2010
Assets
Current assets:
Cash and cash equivalents $ 60,025,814 $ 64,993,643 $ 17,645,459
Restricted cash (note 4) 210,054 10,649 865,918
Amounts receivable 131,971 321,906 10,215,767
Holdbacks receivable - - 3,029,363
Holdback receivable (note 5) 300,000 - -
Deferred costs 2,586,218 661,925 -
Prepaid expenses and other 516,400 561,402 446,104
Assets classified as held for sale (note 5) - 2,675,532 2,675,532
63,770,457 69,225,057 34,878,143
Property, plant and equipment (note 6) 8,970,905 9,523,502 10,290,464
Assets under finance lease (note 7) 498,840 522,237 382,500
Deferred tax assets - - 3,915,650
$ 73,240,202 $ 79,270,796 $ 49,466,757
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,892,658 $ 2,850,241 $ 5,369,309
Current tax liabilities 331,500 583,962 2,087,079
Liabilities related to assets held for sale (note 5) 242,666 618,020 475,532
Stock compensation liability (note 14) 407,113 - -
Deferred revenue (note 1) 6,620,812 2,445,369 7,286,897
Provisions (note 10) 424,230 695,828 620,825
Current portion of long-term liabilities (note 12) 645,567 2,230,194 285,621
Current portion of finance lease obligations (note 11) 153,279 182,838 135,316
10,717,825 9,606,451 16,260,579
Long-term liabilities (note 12) 697,099 741,633 2,912,430
Long-term portion of finance lease obligations (note 11) 47,836 155,206 229,330
Shareholders' equity:
Share capital (note 13) 96,890,271 93,364,040 71,949,963
Contributed surplus (note 13) 4,312,274 4,846,334 4,244,554
Share purchase warrants (note 13) 2,721,131 2,721,131 429,056
Accumulated deficit (42,146,234 ) (32,163,999 ) (46,559,155 )
Total equity 61,777,442 68,767,506 30,064,418
Subsequent events (notes 1, 10 & 14) $ 73,240,202 $ 79,270,796 $ 49,466,757
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/BEVSeptember302011FS.pdf.
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)
(Expressed in Canadian dollars)
Three months ended Nine months ended
September 30, September 30,
2011 2010 2011 2010
Sales $ - $ 10,604,723 $ - $ 32,668,014
Expenses:
Operating costs 430,187 2,396,652 1,141,178 7,877,376
Administration and business development 1,180,925 1,626,326 4,285,449 4,176,400

Management/Board restructuring costs (note 15)

13,651



-



2,503,723



-

Amortization 221,919 263,155 661,143 781,896

Loss on disposal of assets held for sale (note 5)

-



-



16,615



-

1,846,682 4,286,133 8,608,108 12,835,672
Results from operating activities (1,846,682 ) 6,318,590 (8,608,108 ) 19,832,342
Finance income 201,955 129,887 721,637 223,822
Finance costs (21,127 ) (94,274 ) (73,158 ) (665,040 )
Net finance income (costs) 180,828 35,613 648,479 (441,218 )
Income (loss) before income taxes (1,665,854 ) 6,354,203 (7,959,629 ) 19,391,124
Income taxes expense (recovery) - (989,677 ) (228,775 ) 2,080,880
Net income (loss) for the period, being comprehensive income (loss) $ (1,665,854 ) $ 7,343,880 $ (7,730,854 ) $ 17,310,244
Earnings (loss) per share (note 16)
Basic (loss) earnings per share $ (0.04 ) $ 0.20 $ (0.20 ) $ 0.53
Diluted (loss) earnings per share (0.04 ) 0.19 (0.20 ) 0.50
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/BEVSeptember302011FS.pdf.
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the nine months ended September 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 - - - 17,310,244 17,310,244
Share-based compensation - 98,621 - - 98,621
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 (2,354,916 ) - - - (2,354,916 )
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 - - 2,721,131 - 2,721,131
Balance at September 30, 2010 $ 93,364,040 $ 4,626,981 $ 2,721,131 $ (29,248,911 ) $ 71,463,241
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/BEVSeptember302011FS.pdf.
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the nine months ended September 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 - - - (7,730,854 ) (7,730,854 )
Share-based compensation - 257,557 - - 257,557
Conversion from equity-settled to cash-settled stock option plan (note 14) - (791,617 ) - (2,251,381 ) (3,042,998 )
Share options exercised 3,526,231 - - - 3,526,231
Balance at September 30, 2011 $ 96,890,271 $ 4,312,274 $ 2,721,131 $ (42,146,234 ) $ 61,777,442
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/BEVSeptember302011FS.pdf.
BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statements of Cash Flows (Unaudited)
(Expressed in Canadian dollars)
For the nine months ended September 30
2011 2010
Cash flows provided by (used in) operating activities:
Net income (loss) for the period $ (7,730,854 ) $ 17,310,244
Adjustments for:
Amortization 661,143 781,896
Foreign exchange gains related to U.S. Department of Justice accrual 7,012 (48,796 )
Unwinding of discount on provisions 19,552 48,789
Gain on sale of property, plant and equipment (1,671 ) -
Loss on sale of assets held for sale 18,286 -
Share-based compensation 402,502 98,621
Income tax expense (recovery) (228,775 ) 3,915,650
Change in non-cash working capital items:
Amounts receivable 189,935 6,338,714
Holdbacks receivable (300,000 ) 3,029,363
Prepaid expenses and other 45,002 (344,639 )
Deferred costs (1,924,293 ) -
Accounts payable and accrued liabilities 272,422 (1,729,850 )
Stock compensation liability (407,113 ) -
Liabilities related to assets held
for sale

(375,354
)
103,737
Provisions (271,598 ) (5,048 )
Deferred revenue 4,175,443 (6,299,480 )
Current tax payable (23,687 ) (1,095,155 )
Repayment of long-term liabilities (1,655,725 ) (59,250 )
Net cash provided by (used in) operating activities (7,127,773 ) 22,044,796
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 (87,728 ) (244,336 )
Change in restricted cash (199,405 ) 855,301
Net cash provided by investing activities 1,551,473 640,965
Cash flows from financing activities
Proceeds from exercise of warrants - 885,600
Proceeds from exercise of share options 745,400 142,500
Proceeds from shares and warrants due to public offering, net of costs - 22,961,859
Payment of finance lease liabilities (136,929 ) (176,497 )
Net cash provided by financing activities 608,471 23,813,462
Net increase (decrease) in cash and cash equivalents (4,967,829 ) 46,499,223
Cash and cash equivalents at beginning of period 64,993,643 17,645,459
Cash and cash equivalents at end of period $ 60,025,814 $ 64,144,682
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/BEVSeptember302011FS.pdf.

Contact Information

  • Bennett Environmental Inc.
    Lawrence Haber
    President and CEO
    (905) 339-1540 Ext. 202
    www.bennettenv.com