Bennett Environmental Inc.
TSX : BEV

Bennett Environmental Inc.

March 28, 2011 18:25 ET

Bennett Environmental Inc. ("BEI") Reports Fourth Quarter and 2010 Year End Results

OAKVILLE, ONTARIO--(Marketwire - March 28, 2011) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its financial results for the year ended December 31, 2010 and the results for the fourth quarter 2010. Revenue for the year was $32.7 million, pre-tax income was $16.6 million, after-tax income was $14.4 million and earnings per share was $0.41 on a fully diluted basis. There was no revenue for the quarter, pre-tax loss was $2.7 million, after-tax loss was $2.9 million and loss per share was $0.08 on a fully diluted basis.

Commenting on the results, Mr. Jack Shaw, President and CEO, stated "The 2010 results are consistent with expectations. The operating question in front of us now is the sourcing of new volume for 2011. We currently have approximately 16,000 tonnes of soil in storage, have been notified that we are the preferred supplier for a couple of projects in the United States (less than 5,000 tonnes each) and expect to bid on a significant PCB project at the end of the summer (in excess of 20,000 tonnes). We will announce these and any other projects at the point we become reasonably certain of the timing and the volume.

It is with regret that we announce the departure of Mr. Christopher Wallace from the Bennett Board. Chris joined the Board in 2006 and has been Chairman since 2007. Under Chris' guidance the Board developed strategy that was successfully implemented. From the perspective of today's healthy balance sheet it is difficult to remember that the Company successfully managed significant financial issues during 2007 and 2008 and Chris' steady leadership and firm vision was instrumental in guiding the Company to its current position. All of the directors join with me in wishing Chris every success in the future."

Mr. Shaw went on to say "As we have previously announced, a Special Committee of the Board will be making recommendations to the Board with respect to Second City Capital Partners I, Limited Partnership's ("SCC") requisition for a special meeting. While the actions of SCC are distracting we remain committed to appropriately diversifying the Company's operating business. We are confident that the strategy that the majority of the Board has endorsed is the correct one for the Company and will be validated by the shareholders. We were disappointed to not have reached a mutually acceptable conclusion with our last opportunity, however, we gained valuable industry insight and have identified suitable candidates, some of which we are currently in preliminary discussions with."

The Company has implemented mechanisms to facilitate the exercise of options in order to minimize the impact on the market price of the shares as options are exercised, provide the Company with certainty regarding required tax withholdings and provide the option holder with greater certainty regarding the impact of exercising options. 

A fuller discussion is available in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BennettMDAQ410.pdf and Audited Consolidated Financial Statements for the years ended December 31, 2010 and 2009 available on http://media3.marketwire.com/docs/BennettACFSYE10.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.
Consolidated Balance Sheet
(Expressed in Canadian dollars) 
(Unaudited)
  December 31, 2010   December 31, 2009  
             
Assets            
Current assets:            
  Cash and cash equivalents $ 64,993,643   $ 17,645,459  
  Restricted cash   10,649     865,918  
  Amounts receivable   321,906     10,215,767  
  Holdbacks receivable   -     3,029,363  
  Deferred costs   661,925     -  
  Prepaid expenses and other   561,401     446,104  
  Future income tax asset   -     3,915,650  
    66,549,524     36,118,261  
Property, plant and equipment   7,734,783     8,424,518  
Assets under capital leases   479,547     412,074  
Assets held for sale   2,675,532     2,675,532  
   
  $ 77,439,386   $ 47,630,385  
Liabilities and Shareholders' Equity            
Current liabilities:            
  Accounts payable and accrued liabilities $ 3,546,068   $ 5,710,496  
  Liabilities related to assets held for sale   618,020     475,532  
  Income taxes payable   583,962     2,087,079  
  Deferred revenue   2,445,369     7,286,897  
  Current portion of long-term liabilities   2,230,194     565,258  
  Current portion of lease obligations   182,838     135,316  
    9,606,451     16,260,578  
Long-term liabilities   741,633     2,912,430  
Long-term portion of lease obligations   155,206     229,330  
   
Shareholders' equity:            
  Share capital   93,364,040     71,949,963  
  Contributed surplus   4,846,334     4,244,554  
  Share purchase warrants   2,721,131     429,056  
  Accumulated deficit   (33,995,409 )   (48,395,526 )
    66,936,096     28,228,047  
   
  $ 77,439,386   $ 47,630,385  
 
 
BENNETT ENVIRONMENTAL INC.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Expressed in Canadian dollars) 
(Unaudited)
  Three months ended   Twelve months ended  
  December 31,    December 31,  
    2010     2009     2010     2009  
                   
   
Sales $ -   $ 10,712,316   $ 32,668,014   $ 28,058,146  
Expenses:                        
  Operating costs   618,264     2,795,997     8,495,640     10,104,108  
  Administration and business development   1,885,885     1,001,744     6,111,809     4,587,038  
  Amortization   267,484     498,598     1,063,077     1,855,050  
  Foreign exchange   1,467     (21,018 )   2,278     (13,395 )
  Gain on sale of investment             -      (79,910    -      (79,910
  Impairment of long-lived assets   -     331,752     -     331,752  
  Interest   269,513     1,957     877,781     107,734  
    3,042,613     4,529,120     16,550,585     16,892,377  
   
(Loss) earnings before the undernoted   (3,042,613 )   6,183,196     16,117,429     11,165,769  
Other income, including interest   298,078     139,469     512,912     299,669  
   
(Loss) earnings before income taxes (2,744,535 )   6,322,665     16,630,341     11,465,438  
Income taxes expense (recovery):                        
  Current   149,344     -     (1,685,426 )   67,684  
  Future   -     (1,320,296 )   3,915,650     (3,915,650 )
    149,344     (1,320,296 )   2,230,224     (3,847,966 )
   
Net (loss) earnings and comprehensive income (loss) for the period $ (2,893,879 ) $ 7,642,961   $ 14,400,117   $ 15,313,404  
   
   
(Loss) earnings per common share                        
  Basic $ (0.08 ) $ 0.28   $ 0.42   $ 0.56  
  Diluted   (0.08 )   0.28     0.41     0.55  
 
 
BENNETT ENVIRONMENTAL INC.
Consolidated Statements of Accumulated Deficit and Other Comprehensive Income
(Expressed in Canadian dollars) 
(Unaudited)
  Three months ended   Twelve months ended  
      December 31,       December 31,  
  2010   2009   2010   2009  
             
   
Accumulated deficit and other comprehensive income, beginning of period $ (31,101,530 ) $ (56,038,487 ) $ (48,395,526 ) $ (63,708,930 )
   
Net (loss) earnings for the period   (2,893,879 )   7,642,961     14,400,117     15,313,404  
   
Accumulated deficit and other comprehensive income, end of period $ (33,995,409 ) $ (48,395,526 ) $ (33,995,409 ) $ (48,395,526 )

BENNETT ENVIRONMENTAL INC.

Consolidated Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited) 

    Three months ended December 31,   Twelve months ended December 31,
    2010   2009   2010   2009
             
Cash provided by (used in):                
Operations:                
  Net (loss) earnings from continuing operations $ (2,893,879) $ 7,642,961 $ 14,400,117 $ 15,313,404
  Items not involving cash:                
    Amortization   267,484   498,598   1,063,077   1,855,050
    Stock-based compensation   219,353   35,652   317,974   259,705
    Foreign exchange related to U.S. Department of Justice accrual   (75,083)   (41,350)   (124,613)   (383,407)
    Impairment of long-lived assets   -   331,752   -   331,752
    Gain on sale of investment   -   (79,910)   -   (79,910)
    Gain on sale of property, plant and equipment   (26,934)   -   (24,382)   (56,438)
    Future income taxes (recovery)   -   (1,320,296)   3,915,650   (3,915,650)
    Accretion   129,066   6,936   178,589   74,173
  Changes in non-cash operating working capital   3,502,138   5,082,035   3,499,780   1,903,575
 
  Cash provided by operating activities   1,122,145   12,156,378   23,226,192   15,302,254
 
Financing:                
  Cash provided by (used for) financing activities                
    Repayment of lease obligations   (45,381)   (32,359)   (221,878)   (62,394)
    Repayment of long-term liabilities   (220,950)   (183,536)   (280,200)   (696,326)
    Issuance of share capital due to exercise of stock options   -   24,000   142,500   115,200
    Issuance of share capital due to exercise of warrants   -   -   885,600   -
    Issuance of share capital and warrants due to public offering, net of costs   -   -   22,961,859   -
 
  Cash provided by (used in) financing activities   (266,331)   (191,895)   23,487,881   (643,520)
Investments:                
  Cash provided by (used for) investing activities              
    Change in restricted cash   (32)   4,612   855,269   927,790
    Proceeds on disposal of property, plant and equipment   -   -   30,000   -
    Purchase of property, plant and equipment   (6,821)   (468,288)   (251,158)   (543,757)
 
  Cash provided by (used in) investing activities   (6,853)   (463,676)   634,111   384,033
 
Increase in cash and cash equivalents   848,961   11,500,807   47,348,184   15,042,767
Cash and cash equivalents, beginning of period   64,144,682   6,144,652   17,645,459   2,602,692
 
Cash and cash equivalents, end of period $ 64,993,643 $ 17,645,459 $ 64,993,643 $ 17,645,459
 
Supplemental cash flow information:                
  Interest paid $ 403,977 $ 15,026 $ 742,129 $ 48,138
  Income tax refund   -   -   550,590   338,926
  Income taxes paid   395,088   -   756,308   85,149
 
Non-cash transactions:                
  Assets acquired by capital leases $ - $ 60,500 $ 222,000 $ 457,860

Contact Information

  • Bennett Environmental Inc.
    Jack Shaw
    (905) 339-1540