BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

May 06, 2009 17:00 ET

BioteQ Reports First Quarter Operating and Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2009) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, today reported financial results for the three months ended March 31, 2009. All figures are in Canadian dollars and are in accordance with Canadian GAAP, unless otherwise noted.

First quarter operating and financial results summary:

- BioteQ treated 2 billion litres of water and removed 575,000 pounds of metal contaminants from the environment.

- BioteQ's revenues from water treatment operations were $930,000, compared to $815,000 during the same quarter in 2008. This revenue increase was due to contributions from the new operation in China, partially offset by declines in revenue at existing sites due to lower metal prices and production volumes.

- BioteQ realized a one-time extraordinary item expense of $697,000 due to a write down of reagent and concentrate inventory damaged during flooding at the Mt. Gordon site in Australia.

- BioteQ reported an overall net loss of $2.6 million for the quarter, compared to a net loss of $460,000 in Q1 2008.

- The Company ended the quarter with working capital of $8.2 million, and no debt.

BioteQ's first quarter 2009 financial performance reflects results from 6 operating sources - Bisbee, Raglan, Dexing, Mt. Gordon, Lluvia de Oro, and Wellington Oro. Results were impacted by three inactive operations during the quarter: Raglan (plant operates seasonally from May to October), Mt. Gordon (operations temporarily suspended due to force majeure because of flooding at the mine site), and Lluvia de Oro (operations suspended pending resumption of gold mining operations). Revenues are derived from water treatment fees and the sale of metals recovered, and can be impacted by metal prices, the metal content in the water, and the volume of water processed.

Brad Marchant, BioteQ's CEO stated, "BioteQ has adjusted its operations during the first quarter to reduce costs and preserve capital, in response to market changes in the mining and metallurgy industry. We believe these changes will position BioteQ for profitable operations in the future, and expansion into new markets."

BioteQ's quarterly financial statements 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 May 7 at 11:00 am Eastern. Participants may call 416-695-7806 or 1-888-789-9572 and enter reference number 2461781. A replay of the call will be available until May 21 by calling 416-695-5800 or 1-800-408-3053, reference number 4588485. 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
---------------------------------------------------------------------------

Mar 31 2009 Dec 31 2008
(Unaudited)
$ $
(note 16)
Assets

Current assets
Cash and cash equivalents $ 2,841,775 $ 3,524,777
Short-term investments 4,329,325 5,702,696
Trade receivables 1,131,595 1,560,409
Receivable from joint venture partners 393,973 1,019
Taxes recoverable 58,001 56,757
Inventory (note 6) 254,366 895,909
Prepaid expenses 140,687 373,858
Other receivables 1,231 1,231
------------------------
9,150,953 12,116,656

Loan receivable (note 8) 4,356,101 4,413,191
Property, plant and equipment (note 9) 21,875,393 22,170,585
Intangible asset (note 10) 154,855 162,598
------------------------
$35,537,302 $38,863,030
------------------------
------------------------
Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 948,355 $ 2,010,691
Taxes payable 45,357 -
------------------------
993,712 2,010,691
------------------------
Shareholders' Equity

Capital stock, warrants and contributed surplus
(note 11) 58,050,637 57,757,637
Deficit (23,507,047) (20,905,298)
------------------------
34,543,590 36,852,339
------------------------
$35,537,302 $38,863,030
------------------------
------------------------

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
(Unaudited)
For the three months ended March 31
---------------------------------------------------------------------------

2009 2008
$ $
Revenue $ 930,179 $ 815,187
------------------------
Operating expenses
Plant and other operating costs 1,517,815 436,291
General and administrative expenses 618,198 519,641
Marketing and development costs 158,458 128,339
------------------------

Operating expenses before amortization and
stock-based compensation 2,294,471 1,084,271

Amortization of property, plant and equipment 310,330 93,458
Amortization of intangible asset 7,743 7,743
Stock-based compensation charge 293,000 366,000
------------------------

Loss before the under noted (1,975,365) (736,285)

Interest income 27,682 247,409
Other income 310 -
Foreign exchange gain 80,156 28,464
------------------------

Loss before income taxes (1,867,217) (460,412)

Income taxes (note 12) 37,494 -
------------------------

Loss before extraordinary items (1,904,711) (460,412)

Extraordinary items (note 13) (697,038) -
------------------------

Loss and comprehensive loss for the period (2,601,749) (460,412)

Deficit - Beginning of period (20,905,298) (15,660,149)
------------------------

Deficit - End of period (23,507,047) (16,120,561)
------------------------
------------------------

Loss per share - basic and diluted $ (0.04) $ (0.01)
------------------------
------------------------
Weighted average number of basic and
diluted shares outstanding 61,926,973 59,235,924
------------------------
------------------------
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
(Unaudited)
For the three months ended March 31
---------------------------------------------------------------------------

2009 2008
$ $
Cash flows from (used in) operating activities
Loss for the period $(2,601,749) $ (460,412)
Items not affecting cash:
Amortization of property, plant and equipment 310,330 93,458
Amortization of intangible asset 7,743 7,743
Stock based compensation charge 293,000 366,000
------------------------

(1,990,676) 6,789

Change in non-cash working capital items (note 14) (107,649) (952,354)
------------------------

(2,098,325) (945,565)
------------------------

Cash flows from (used in) financing activities
Proceeds from exercise of warrants and options - 198,646
------------------------

Cash flows from (used in) investing activities

Purchase of property, plant and equipment (15,138) (4,098,066)

Short-term investments 1,373,371 7,408,977
Decrease in loan receivable 57,090 -
------------------------

1,415,323 3,310,911
------------------------


Increase (decrease) in cash and cash equivalents (683,002) 2,563,992

Cash and cash equivalents - Beginning of period 3,524,777 1,758,744
------------------------

Cash and cash equivalents - End of period $ 2,841,775 $ 4,322,736
------------------------
------------------------

Supplemental cash flow information
Withholding taxes paid and receivable 58,001 152,991


Non-cash operating, financing and investing
activities
Increase (decrease) in accounts payable and
accrued liabilities related to purchase of
property, plant and equipment - 110,000

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
    1-800-537-3073 or 604-685-1243
    or
    BioteQ Environmental Technologies Inc.
    Caren Holtby
    Investor Relations
    1-800-537-3073 or 604-685-1243
    604-685-7778 (FAX)
    investor@bioteq.ca
    www.bioteq.ca