BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

November 14, 2008 17:03 ET

BioteQ Reports Third Quarter Operating and Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2008) - BioteQ Environmental Technologies, Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, today reported financial results for the third quarter and the nine-months ended September 30, 2008. All figures are in Canadian dollars and are in accordance with Canadian GAAP, unless otherwise noted.

Third quarter operating and financial highlights:

- BioteQ processed more than 3 billion litres of water during the quarter, with 7.1 billion litres processed in the year-to-date.

- BioteQ's revenues from water treatment operations tripled during Q3 to $4.1 million, compared to $1.3 million during the same quarter in 2007. This revenue increase is due to contributions from new operations in China, Australia, and Mexico.

- BioteQ turned an overall net profit before taxes of $110,000 during the quarter.

- The net loss for the quarter was $71,000, compared to $2.5 million in Q3 2007.

- Plant operations generated positive cash flow of $1.5 million for Q3, and close to $2.5 million for the year-to-date.

- The Company ended the quarter with working capital of $18.3 million, and no debt.

BioteQ's third quarter 2008 financial performance reflects results from 5 operations - water treatment plants at Bisbee, Raglan, Dexing, Mt. Gordon, and Lluvia de Oro. Revenue for the year-to-date grew to close to $6.5 million compared to $3.5 million in the first nine months of 2007, with revenue from the new operations at Dexing, Mt. Gordon, and Lluvia offsetting slight declines at Bisbee and Raglan. Revenues are derived from water treatment fees and 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's third quarter results reflect the Company's recent investments in new plants that have come online to contribute to revenue growth. In the coming months, the Company will focus on reducing operating costs and securing new projects to drive future growth. We continue to have a strong balance sheet, with cash to finance new plant investments, and no debt."

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 Monday November 17, at 11:00 am Eastern. Participants may call 416-695-7806 or 1-888-789-9572 and enter reference number 3275082#. A replay of the call will be available until November 30 by dialing 416-695-5800 or 1-800-408-3053, reference number 3275082. A recording will be available within two days of the call on the BioteQ website at www.bioteq.ca.

BioteQ Corporate Profile

BioteQ builds, owns and operates industrial water treatment plants, reducing environmental liabilities while generating revenue from waste water. The Company's commercially proven technology treats acid mine drainage and other metal-laden industrial waste water by sequentially removing metals and sulphate, producing saleable metal 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 7 more projects in design and construction. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, 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, 2007. 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

Sept 30 Dec 31
2008 2007
(Unaudited)
$ $
-----------------------

Assets
Current assets
Cash and cash equivalents 2,685,690 1,758,744
Short-term investments 10,541,634 23,616,521
Trade receivables 860,762 339,217
Receivable from joint venture partners 472,686 153,318
Loan receivable (note 6) 4,132,801 -
Taxes recoverable 689,380 146,831
Inventory (note 7) 825,412 49,380
Prepaid expenses 128,314 164,594
Other receivables 49,572 224,180
-----------------------
20,386,251 26,452,785

Property, plant and equipment (note 8) 21,862,553 15,832,942
Intangible asset (note 9) 170,341 193,570
-----------------------
42,419,145 42,479,297
-----------------------
-----------------------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 1,890,186 3,098,124
Taxes payable 180,823 -
-----------------------
2,071,009 3,098,124
-----------------------

Shareholders' Equity
Capital stock, warrants and contributed
surplus (note 10) 57,287,337 55,041,322
Deficit (16,939,201) (15,660,149)
-----------------------
40,348,136 39,381,173
-----------------------
42,419,145 42,479,297
-----------------------
-----------------------

Commitments (note 15)
Subsequent Event (note 16)


Approved by the Board of Directors

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)
--------------------------------------------------------------------------

3 months ended Sept 30 9 months ended Sept 30
----------------------- -----------------------
2008 2007 2008 2007

Revenue 4,171,093 1,304,298 6,493,064 3,492,915
----------------------- -----------------------

Operating expenses
Plant and other
operating costs 2,664,787 464,121 4,015,065 1,717,625
General and
administrative
expenses 615,256 526,504 1,727,832 1,667,141
Marketing and
development costs 318,313 197,125 739,350 504,906
----------------------- -----------------------

Operating expenses
before amortization
and stock-based
compensation 3,598,356 1,187,750 6,482,247 3,889,672

Amortization of
property, plant and
equipment (note 8) 238,414 89,127 565,909 270,260
Amortization of
intangible asset
(note 9) 7,743 7,742 23,229 23,228
Stock-based compensation
charge (note 10) 387,200 562,835 1,193,200 1,242,035
Modification of escrowed
shares - 2,100,000 - 2,100,000
----------------------- -----------------------

Loss before the under
noted (60,620) (2,643,156) (1,771,521) (4,032,280)
Interest income 232,941 306,266 673,451 891,624
Interest expense - (5,585) - (17,569)
Deferred financing costs
written-off - - - (32,771)
Foreign exchange loss (62,798) (158,757) (159) (293,014)
----------------------- -----------------------

Income (loss) before
income taxes 109,523 (2,501,232) (1,098,229) (3,484,010)

Income taxes (note 11) 180,823 - 180,823 -
----------------------- -----------------------

Loss and comprehensive
loss for the period (71,300) (2,501,232) (1,279,052) (3,484,010)

Deficit - Beginning
of period (16,867,901) (12,475,567) (15,660,149) (11,492,789)
----------------------- -----------------------

Deficit - End of
period (16,939,201) (14,976,799) (16,939,201) (14,976,799)
----------------------- -----------------------
----------------------- -----------------------

Loss per share
- basic and
diluted - (0.05) (0.02) (0.06)
----------------------- -----------------------
----------------------- -----------------------

Weighted average
number of shares
outstanding 59,587,130 55,324,675 59,990,282 54,818,663
----------------------- -----------------------
----------------------- -----------------------

Loss per share
and weighted average
number of shares
outstanding excludes
performance based
escrow shares 4,200,000 7,000,000 4,200,000 7,000,000

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)

3 months ended Sept 30 9 months ended Sept 30
----------------------- -----------------------
2008 2007 2008 2007

Cash flows from
(used in) operating
activities
Loss for the period (71,300) (2,501,232) (1,279,052) (3,484,010)
Items not affecting cash
Amortization of
property, plant and
equipment 238,414 89,127 565,909 270,260
Amortization of
intangible asset 7,743 7,742 23,229 23,228
Deferred financing
costs written-off - - - 32,771
Stock based
compensation charge 387,200 562,835 1,193,200 1,242,035
Modification of
escrowed shares - 2,100,000 - 2,100,000
----------------------- -----------------------
562,057 258,472 503,286 184,284
Change in non-cash
working capital items (585,025) 582,572 (2,975,721) 1,229,322
----------------------- -----------------------
(22,968) 841,044 (2,472,435) 1,413,606
----------------------- -----------------------

Cash flows from (used in)
financing activities
Proceeds from exercise
of warrants and options 29,933 667,280 1,052,815 3,589,125
Repayment of bank loan - (46,702) - (137,917)
----------------------- -----------------------
29,933 620,578 1,052,815 3,451,208
----------------------- -----------------------

Cash flows from (used in)
investing activities
Purchase of property,
plant and equipment (859,845) (3,380,826) (6,595,520) (5,776,555)
Short-term investments 4,475,491 10,333,601 13,074,887 10,939,438
Increase in loan
receivable (2,471,563) - (4,132,801) -
----------------------- -----------------------
1,144,083 6,952,775 2,346,566 5,162,883
----------------------- -----------------------

Increase in cash and
cash equivalents 1,151,048 8,414,397 926,946 10,027,697
Cash and cash
equivalents
- Beginning of
period 1,534,642 3,527,368 1,758,744 1,914,068
----------------------- -----------------------
Cash and cash
equivalents - End
of period 2,685,690 11,941,765 2,685,690 11,941,765
----------------------- -----------------------
----------------------- -----------------------

Supplemental cash
flow information
Interest paid - 5,585 - 17,569
Withholding taxes
paid and receivable 155,234 205,766 155,234 342,200
Income taxes paid - - - -

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