Organic Resource Management Inc.

Organic Resource Management Inc.

December 14, 2011 09:07 ET

ORMI Reports Fiscal 2012 First Quarter Results

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2011) - Organic Resource Management Inc. (TSX VENTURE:ORI) ("ORMI" or "the Company"), today announced its financial results for the three month period ended September 30, 2011.

  • Total revenues of $3,573,000, a decrease of $20,000 or 1% from $3,593,000 for Q1 2011.
  • Total gross margin of $1,352,000 or 38% of revenue, a decrease of $227,000 or 14% from $1,579,000 or 44% of revenue for Q1 2011.
  • Net loss of $43,000, a decrease of $207,000 from net income of $164,000 for Q1 2011.
  • Loss per share of $0.01 compared to net income per share of $0.04 for Q1 2011.
  • EBITDA of $357,000, a decrease of $208,000 or 37% from $565,000 for Q1 2011.

"During the latter half of fiscal 2011, we implemented a number of measures in order to offset the impact of lower revenues stemming from the actions of two national account customers, and higher costs related to a number of strategic initiatives implemented earlier in the year," said Charles Buehler, Chairman and Chief Executive Officer of ORMI. "We are now starting to see the benefits of those measures as both EBITDA and cash flows from operating activities have shown significant improvement compared to the last two quarters."

Although total revenues were down 1% from Q1 2011, residuals collected from customers were 4% higher, largely on the strength of a 38% increase in ORRS (Organic Residuals Recovery System) services. The decrease in gross margin was mainly due to higher waste treatment costs related to the City of Toronto's wastewater discharge fees and higher truck operating costs due to a significant increase in feedstock volumes shipped to anaerobic digesters (ADs).

Total operating expense was $1,331,000 for the quarter, a decrease of $24,000 or 2% from $1,355,000 for the same period last year. Interest expense was $65,000, an increase of $16,000 or 32% from $49,000 for the same period last year.

The comparative financial statements for the three months ending September 30, 2011 along with other information may be obtained through the Company's website at, or on SEDAR at

This press release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit the investor relations section of the Company's website at Alternatively, investors are asked to e-mail all questions and correspondence to where they can also request addition to the Company's investor e-mail list to receive all future press releases and updates directly.

About Organic Resource Management Inc.

Organic Resource Management is Canada's largest provider of vacuum truck services for the collection, processing and recycling of food-related organic residuals. ORMI services in excess of 10,000 grease interceptors for industrial, commercial and institutional food industry customers across Canada on a regularly-scheduled basis. Further information about ORMI may be obtained at the Company's web site at

Non-IFRS Measures

The Company reports its financial results in accordance with IFRS. However, this press release contains references to certain non-IFRS financial measures such as "EBITDA" and "EBITDA margin". Non-IFRS financial measures are used by management to evaluate the performance of the Company. Non-IFRS financial measures do not have any meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. Investors are cautioned that non-IFRS measures, such as those presented herein, should not be construed as an alternative to net income determined in accordance with IFRS as indicators of the Company's performance or to cash flows from operating activities as a measure of liquidity and cash flow.

EBITDA means net income or loss before income taxes, interest, amortization, share based compensation and gains or losses on disposal of property, plant and equipment and intangible assets. In effect, EBITDA is equal to cash flows from operating activities before changes in non-cash operating assets and liabilities.

Forward Looking Statements

Certain information contained in this press release may be forward-looking and therefore subject to unknown risks or uncertainties. The actual results, performance or achievements of Organic Resource Management Inc. may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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