Bennett Environmental Inc.
TSX : BEV

Bennett Environmental Inc.

March 13, 2009 15:07 ET

Bennett Environmental Inc. ("BEI") Reports Fourth Quarter and 2008 Year End Results

OAKVILLE, ONTARIO--(Marketwire - March 13, 2009) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its financial results for the year ended December 31, 2008 and the results for the fourth quarter 2008.

In announcing the 2008 year end results Mr. Christopher Wallace, Chairman of the Board, made the following comments. "By the end of 2008 the Company was focused exclusively on its soil treatment business, the historic driver of profitability for the Company. Management had implemented measures which maximized the Company's liquidity, including the previously announced settlement regarding the DCC claim and the sale of subsidiary operations."

"As well the Company had resolved its criminal matters pertaining to the Federal Creosote bidding process and while it pled guilty to a felony charge and was fined it maintained its ability to bid US government work partially due to the high level of co-operation exhibited by the Company throughout the process. These charges and their resolution were previously announced by the Company. No officers or directors currently active with the Company were involved in these matters."

"Subsequent to year end the Company announced that it had in place in an agreement with the successful contractor for the Pottersburg contract to receive the PCB impacted material from this site. This material will begin to arrive at BEI's facility at the end of Q2 with financial impact reflected beginning the Q3 results. As well subsequent to year end the Company announced that it was the subject of a United State's Department of Justice Civil investigation which is at the preliminary stage and for which no conclusion has been forecast. In March the Company announced that it had lost its appeal of the award of indemnification to John Bennett."

"The purpose in recapping these matters here is to reinforce that 2008 was a year that brought closure and focus for the Company. As we look forward to the balance of 2009 we do so with a stronger balance sheet than in recent years, with a renewed commitment and focus on our key operation and a pipeline that is stronger than at any time since I joined the Board in 2006. The Company must continue to strive to secure opportunities beyond those previously announced but it will do so from a position of improved financial strength."

Financial Results

Fourth Quarter 2008

For the fourth quarter the Company had an after tax earnings of $2.2 million ($0.08 per share) compared to an after tax loss of $10.5 million ($0.39 per share) for the same period last year. Revenue for the fourth quarter 2008 was $6.0 million which is consistent with the same period in the prior year. The Adjusted Earnings (Loss) from continuing operations for the fourth quarter 2008 compared to the same period in 2007 is shown below;



---------------------------------------------------------------------
Q4 2008 Q4 2007
---------------------------------------------------------------------
(all figures millions of Cdn $)
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Sales 6.0 6.0
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Earnings (loss) from
continuing operations 2.2 (8.8)
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Recovery (write-off) of long-term
receivable 0.5 (5.0)
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U.S. Department of Justice 0.3 (2.75)
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Total 0.8 (7.75)
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Adjusted earnings (loss) from
continuing operations 1.4 (1.0)
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These items for the fourth quarter 2008 have all been previously announced; the long term receivable (write down) recovery relates to the claim with Defence Construction Canada.

Adjusting for these items it is clear that the Company's underlying operations showed significant improvement in the fourth quarter 2008 compared to the same period in 2007. This improvement is primarily attributable to the increase in selling price as the Company performed multiple small projects in the fourth quarter of 2008 as opposed to primarily relying on a single large project in the fourth quarter of 2007. To some extent this reflects the Company's success in developing multiple relations across the industry that have led to new work.

Year Ended December 31, 2008

For the full year ended December 31, 2008 the Company recorded a net loss of $4.6 million ($0.17 per share) compared to $17.8 million ($0.68 per share) for 2007. Net revenue for 2008 was $8.3 million compared to $11.3 million for 2007. The Adjusted Loss from continuing operations for full year 2008 compared to 2007 is shown below;



------------------------------------------------------------------------
2008 2007
------------------------------------------------------------------------
(all figures millions of Cdn $)
------------------------------------------------------------------------
Sales 8.3 11.3
------------------------------------------------------------------------
Loss for the year from continuing
operations (4.3) (15.6)
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Impairment charge (0.7) -
------------------------------------------------------------------------
Recovery (write-off) of long-term
receivable 0.7 (5.0)
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U.S. Department of Justice 0.3 (2.75)
------------------------------------------------------------------------
Total 0.3 (7.75)
------------------------------------------------------------------------
Adjusted loss from continuing
operations (4.6) (7.9)
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The "Fourth Quarter 2008" and "Year Ended December 31, 2008" utilize the term "Adjusted Loss" which is a non-GAAP measure. Securities regulations require that corporations caution readers that these terms do not have standardized meanings under GAAP and are unlikely to be comparable to similar measures used by other companies. Adjusted Loss from continuing operations is defined as earnings from continuing operations before the impairment charge, the recovery (write-off) of long-term receivable and the U.S. Department of Justice charge.

Adjusted Loss from continuing operations should not be construed as a substitute for net earnings or cash flows from operations (each as determined in accordance with generally accepted accounting principles) for the purpose of analyzing the Company's operating performance, financial position or cash flows. The Company believes that, in addition to cash flow from operations and net earnings, Adjusted Loss from continuing operations is a useful financial performance measurement for assessing operating performance as it provides investors with an additional basis to evaluate the Company.

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" 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.
Consolidated Balance Sheets
(Expressed in Canadian dollars)
December 31, 2008 and 2007
(with comparative figures as at December 31, 2007)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
December 31, December 31,
2008 2007
----------------------------------------------------------------------------

Assets
Current assets:
Cash and cash equivalents $ 2,602,692 $ 3,909,836
Restricted cash 1,793,708 888,316
Amounts receivable 7,414,973 4,108,876
Deferred transportation costs 110,283 722,415
Prepaid expenses and other 701,976 539,264
Assets of discontinued operations - 997,333
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12,623,632 11,166,040
Property, plant and equipment 9,664,407 15,237,127
Assets of discontinued operations - 1,720,000
Assets held for sale 3,007,284 -
Other assets - 3,293,802
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$ 25,295,323 $ 31,416,969
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----------------------------------------------------------------------------

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 4,185,212 $ 6,211,507
Liabilities related to assets held for sale 1,551,500 -
Income taxes payable 2,363,981 1,071,032
Deferred revenue 175,496 968,545
Liabilities of discontinued operations - 1,811,290
Current portion of long-term liabilities 1,019,244 2,196,890
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9,295,433 12,259,264
Long-term liabilities 3,460,152 1,945,773
Liabilities of discontinued operations - 126,415

Shareholders' equity:
Share capital 71,733,963 71,733,963
Contributed surplus 4,085,649 3,999,179
Share purchase warrants 429,056 429,056
Accumulated deficit (63,708,930) (59,076,681)
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12,539,738 17,085,517
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$ 25,295,323 $ 31,416,969
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BENNETT ENVIRONMENTAL INC.
Consolidated Statements of Operations and Comprehensive Earnings (Loss)
(Expressed in Canadian dollars, except per share amounts)
For the three and twelve month periods ended December 31, 2008
(with comparative figures for December 31, 2007)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007
----------------------------------------------------------------------------
(Unaudited)
Sales $ 5,973,416 $ 6,042,020 $ 8,289,104 $ 11,287,736

Expenses:
Operating costs 2,446,333 4,367,148 5,243,498 8,945,516
Administration
and business
development 1,744,958 2,116,404 5,469,809 7,655,228
Depreciation and
amortization 482,918 673,685 2,177,512 2,694,742
Foreign exchange (29,376) (1,007) 8,204 315,732
Write-down for
assets held for
sale - - 723,903 -
Write-off (recovery)
of long-term
receivable (520,833) 5,037,611 (700,197) 5,037,611
Interest 127,183 (31,374) 280,630 27,772
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4,251,183 12,162,467 13,203,359 24,676,601
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Earnings (loss)
before the
undernoted 1,722,233 (6,120,447) (4,914,255) (13,388,865)

Gain on investment - 75,000 - 108,249

U.S. Department of
Justice 332,468 (2,750,000) 332,468 (2,750,000)

Other income,
including interest 194,739 (35,789) 362,044 374,465
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Earnings (loss)
before income taxes 2,249,440 (8,831,236) (4,219,743) (15,656,151)

Income taxes
(recovery):
Current - - 69,473 -
Future - (40,043) - (32,708)
----------------------------------------------------------------------------
- (40,043) 69,473 (32,708)
----------------------------------------------------------------------------

Net earnings (loss)
from continuing
operations 2,249,440 (8,791,193) (4,289,216) (15,623,443)

Net loss from
discontinued
operations (17,323) (1,737,841) (343,033) (2,140,363)
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Net earnings (loss)
for the period,
being comprehensive
loss $ 2,232,117 $ (10,529,034) $ (4,632,249) $ (17,763,806)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings (loss)
from continuing
operations
per common share -
basic and diluted $ 0.08 $ (0.33) $ (0.16) $ (0.60)
Net earnings (loss)
from discontinued
operations per
common share -
basic and diluted $ - $ (0.06) $ (0.01) $ (0.08)
Net earnings (loss)
per common share -
basic and diluted $ 0.08 $ (0.39) $ (0.17) $ (0.68)
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BENNETT ENVIRONMENTAL INC.
Consolidated Statements of Accumulated Deficit
(Expressed in Canadian dollars, except per share amounts)
For the three and twelve month periods ended December 31, 2008
(with comparative figures for December 31, 2007)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007
----------------------------------------------------------------------------
(Unaudited)

Accumulated
deficit, beginning
of period $(65,941,047) $ (48,547,647) $(59,076,681) $(41,312,875)

Net earnings (loss)
for the period,
being other
comprehensive loss 2,232,117 (10,529,034) (4,632,249) (17,763,806)

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Accumulated
deficit, end of
period $(63,708,930) $ (59,076,681) $(63,708,930) $(59,076,681)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



BENNETT ENVIRONMENTAL INC.
Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
For the three and twelve month periods ended December 31, 2008
(with comparative figures for December 31, 2007)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007
----------------------------------------------------------------------------
(Unaudited)
Cash provided by
(used in):
Operations:
Net earnings
(loss) from
continuing
operations $ 2,249,440 $ (8,791,193) $ (4,289,216) $ (15,623,443)
Items not
involving cash:
Depreciation and
amortization 482,918 673,685 2,177,512 2,694,742
Stock-based
compensation 12,006 10,754 86,470 305,293
Write-off of
long-term
receivable - 5,037,611 - 5,037,611
U.S. Department
of Justice 61,234 2,750,000 263,468 2,750,000
Gain on disposal
of property,
plant and
equipment - - - 1,278
Loss from
impairment
of long-lived
assets - - 723,903 -
Gain on sale of
investment (88,704) - (88,704) (108,249)
Future income
taxes - (40,043) - (32,708)
Accretion expense 146,363 30,723 146,363 30,723
Increase of
tenure liability 186,956 - 186,956 -
Changes in
non-cash working
capital (3,178,680) 795,118 88,365 2,926,857
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Cash provided by
(used) for
continuing
operations (128,467) 466,655 (704,883) (2,017,896)
Cash provided by
(used) for
discontinued
operations 144,401 (64,304) 153,030 (357,460)
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Cash provided by
(used) for
operating
activities 15,934 402,351 (551,853) (2,375,356)

Financing:
Issuance of share
capital, net of
share issue costs - - - 3,917,982

Investments:
Change in
restricted cash (837,163) (176,007) (905,392) (888,316)
Decrease in note
receivable - - - 181,909
Proceeds on
disposal of
investment 154,678 - 154,678 33,249
Proceeds on
disposal of
property, plant
and equipment - - - 1,750
Purchase of
property, plant
and equipment - - (4,577) (8,904)
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Cash provided by
(used in) investing
activities (682,485) (176,007) (755,291) (680,312)
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Increase (decrease)
in cash and cash
equivalents (666,551) 226,344 (1,307,144) 862,314
Cash and cash
equivalents,
beginning of year 3,269,243 3,683,492 3,909,836 3,047,522
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Cash and cash
equivalents, end
of year $ 2,602,692 $ 3,909,836 $ 2,602,692 $ 3,909,836

Supplemental cash
flow information:
Interest paid $ 2,898 $ 7,271 $ 77,522 $ 23,563
Income tax refund - - 1,060,300 3,492,264
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