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