BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

March 25, 2009 17:00 ET

BioteQ Announces 2008 Year End Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2009) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, today reported financial results for the year ended December 31, 2008. All figures are in Canadian dollars and are in accordance with Canadian GAAP, unless otherwise noted.

2008 operating and financial highlights:

- BioteQ processed more than 9.4 billion liters of contaminated water during 2008, and removed over 3 million pounds of metal contaminants, more than double the quantities in 2007.

- BioteQ's revenues increased to $7.8 million in 2008, compared to $4.6 million in 2007. This increase in revenues is due to contributions from new operations in China, Australia, and Mexico.

- BioteQ continues to maintain working capital of $10.1 million and remains debt free.

- BioteQ reported an overall net loss of $5.2 million in 2008, compared to a loss of $4.2 million in 2007.

- BioteQ successfully applied new SART technology for gold mining operations, improving gold yields while removing metal contaminants from the gold leach process.

- BioteQ successfully piloted its new Sulf-IX™ technology to remove sulphate, proving that the technology can deliver lower capital and operating costs compared to competing technologies.

BioteQ expanded its operating activities during 2008, adding 4 new plants to its operating portfolio. The Company's 2008 financial performance reflects results from 6 operations - water treatment plants at Bisbee, Raglan, Dexing, Mt. Gordon, Lluvia de Oro, and Wellington Oro.

The rapid decline in global commodity markets during the fourth quarter of 2008 significantly impacted BioteQ's financial results, offsetting strong revenue growth in the first three-quarters of the year. While annual revenues are up by 67% to $7.8 million for 2008, revenues for the fourth quarter softened to $1.3 million. Revenues were impacted by falling commodity prices for all metal-based operations, and lower than expected production at the Lluvia de Oro site.

Although commodity prices fell during the fourth quarter, input costs remained high. This contributed to significantly higher than expected plant operating costs. Plant operating costs for 2008 were $8 million, compared to $2.3 million in 2007. This has resulted in a negative cash flow from plant operations of $240,000, compared to a positive cash flow from plant operations of $2.3 million in 2007.

Brad Marchant, BioteQ's CEO stated, "Although BioteQ's operations have performed well technically, they have not generated the financial results that we expected because of the sharp and rapid downturn in the commodity markets. We are responding to this change in market conditions by working to preserve cash, reduce costs all of our operations, and adjust some of our operating contracts to fee-based structures. We are also exploring ways to take our technologies to other markets such as water treatment in the power generation sector, and government infrastructure investments."

BioteQ's annual financial results and the Company's MD&A have been filed on SEDAR, www.sedar.com, and will be available on the BioteQ website at www.bioteq.ca.

A conference call to discuss the financial results is scheduled for Thursday March 26, at 11:00 am Eastern. Participants may call 416-340-2217, or 1-866-696-5910 and enter reference number 4622304. A replay of the call will be available until Friday April 10 by dialing 416-695-5800 or 1-800-408-3053, reference number 6224503. A recording will be available within two days of the call on the BioteQ website at www.bioteq.ca.

BioteQ Corporate Profile

BioteQ is an industrial water treatment company that applies innovative technologies to solve complex water problems, reducing environmental liabilities while generating revenue from wastewater. The Company's commercially proven technologies treat industrial wastewater contaminated with dissolved heavy metals and sulphate, producing saleable by-products and clean water that can be discharged safely to the environment. BioteQ has built 8 plants at sites in Canada, the US, China, Australia and Mexico, with additional projects in design and construction. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to www.bioteq.ca.

On behalf of the Board of Directors

Brad Marchant

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "might" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled "Risks" in the Company's Annual Report for the Year Ended December 31, 2008. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.



BioteQ Environmental Technologies Inc.
Consolidated Balance Sheets
---------------------------------------------------------------------------

2008 2007
$ $
Assets
Current assets
Cash and cash equivalents $ 3,524,777 $ 1,758,744
Short-term investments 5,702,696 23,616,521
Trade receivables 709,362 339,217
Receivable from joint venture partners 1,019 153,318
Taxes recoverable 56,757 146,831
Inventory (note 5) 895,909 49,380
Prepaid expenses 373,858 164,594
Other receivables 852,278 224,180
----------------------------
12,116,656 26,452,785

Loan receivable (note 7) 4,413,191 -
Property, plant and equipment (note 8) 22,170,585 15,832,942
Intangible asset (note 9) 162,598 193,570
----------------------------
$ 38,863,030 $ 42,479,297
----------------------------
----------------------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 2,010,691 $ 3,098,124
----------------------------

Shareholders' Equity
Capital stock, warrants and contributed
surplus (note 11) 57,757,637 55,041,322
Deficit (20,905,298) (15,660,149)
----------------------------
36,852,339 39,381,173
----------------------------
$ 38,863,030 $ 42,479,297
----------------------------
----------------------------
Commitments (note 17)
Subsequent Events (note 18)


Approved by the Board of Directors

"P.B. Marchant" "G.W. Poling"
---------------------- ---------------------
P.B Marchant, Director G.W. Poling, Director

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


BioteQ Environmental Technologies Inc.
Consolidated Statement of Operations, Comprehensive Loss and Deficit
---------------------------------------------------------------------------

2008 2007
$ $

Revenue $ 7,762,490 $ 4,630,272
----------------------------

Operating expenses
Plant and other operating costs 8,002,945 2,281,072
General and administrative expenses 2,429,146 2,274,739
Marketing and development costs 935,908 749,493
----------------------------

Operating expenses before amortization and
stock-based compensation 11,367,999 5,305,304

Amortization of property, plant and equipment
(note 8) 814,503 364,599
Amortization of intangible asset (note 9) 30,972 30,971
Stock-based compensation charge (note 11) 1,663,500 1,830,727
Modification of escrowed shares - 2,100,000
----------------------------

Loss before the under noted (6,114,484) (5,001,329)

Interest income 604,385 1,180,679
Other income (expense) 353,995 (22,707)
Deferred financing costs written-off - (32,771)
Foreign exchange loss (921) (291,232)
----------------------------

Loss before income taxes (5,157,025) (4,167,360)

Income taxes (note 12) 88,124 -
----------------------------

Loss and comprehensive loss for the year $ (5,245,149) $ (4,167,360)

Deficit - Beginning of year (15,660,149) (11,492,789)
----------------------------

Deficit - End of year (20,905,298) (15,660,149)
----------------------------

Loss per share - basic and diluted $ (0.09) $ (0.08)
----------------------------

Weighted average number of basic and
diluted shares outstanding 60,477,101 55,010,825
----------------------------

Loss per share and weighted average number
of basic and diluted shares outstanding
excludes performance based escrow shares 4,200,000 6,300,000

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


BioteQ Environmental Technologies Inc.
Consolidated Statement of Cash Flows
---------------------------------------------------------------------------

2008 2007
$ $

Cash flows from (used in) operating activities
Loss for the year $ (5,245,149) $ (4,167,360)
Items not affecting cash:
Amortization of property, plant and equipment 814,503 364,599
Amortization of intangible asset 30,972 30,971
Deferred financing costs written-off - 32,771
Stock based compensation charge 1,663,500 1,830,727
Modification of escrowed shares (note 11) - 2,100,000
----------------------------
(2,736,174) 191,708
Change in non-cash working capital items
(note 13) (979,096) 341,383
----------------------------
(3,715,270) 533,091
----------------------------

Cash flows from (used in) financing activities
Proceeds from exercise of warrants and options 1,052,815 7,275,879
Repayment of bank loan - (398,670)
----------------------------
1,052,815 6,877,209
----------------------------

Cash flows from (used in) investing activities
Purchase of property, plant and equipment (9,072,146) (9,234,949)
Short-term investments 17,913,825 1,669,325
Increase in loan receivable (4,413,191) -
----------------------------
4,428,488 (7,565,624)
----------------------------

Increase (decrease) in cash and cash
equivalents 1,766,033 (155,324)
Cash and cash equivalents - Beginning of year 1,758,744 1,914,068
----------------------------
Cash and cash equivalents - End of year $ 3,524,777 $ 1,758,744
----------------------------
----------------------------

Supplemental cash flow information
Interest paid $ - $ 22,707
Withholding taxes paid and receivable $ 56,757 $ 146,831
Income taxes paid $ 88,124 $ -

Non-cash operating, financing and investing
activities
Increase (decrease) in accounts payable and
accrued liabilities related to purchase of
property, plant and equipment $ (1,920,000) $ 1,920,000

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • BioteQ Environmental Technologies Inc.
    Tanja McQueen
    Corporate Development
    (604) 685-1243 or 1-800-537-3073
    or
    BioteQ Environmental Technologies Inc.
    Caren Holtby
    Investor Relations
    (604) 685-1243 or 1-800-537-3073
    (604) 685-7778 (FAX)
    Email: investor@bioteq.ca
    Website: www.bioteq.ca