GUELPH, ON, May 19, 2021 /CNW/ - BIOREM Inc. (TSXV: BRM)
("Biorem" or "the Company") today announced results for the three
month period ended March 31,
2021. Biorem's complete 2021 first quarter financial
statements and MD&A have been filed on SEDAR
(www.sedar.com).
Financial Summary:
|
Three-months
ended
|
|
March 31,
|
December
31
|
|
( in CDN$'000 except
per share data)
|
2021
|
2020
|
2020
|
|
Revenue
|
3,429
|
6,898
|
7,934
|
|
Gross
profit
|
278
|
1,349
|
3,653
|
|
Ebitda*
|
(175)
|
723
|
1,562
|
|
Net earnings
(loss)
|
(421)
|
463
|
1,133
|
|
Basic earnings (loss)
per share
|
(0.01)
|
0.01
|
0.03
|
|
Diluted earnings
(loss) per share
|
(0.01)
|
0.01
|
0.03
|
|
*Earnings before
interest, taxes and amortization, a non IFRS financial
measure
|
Revenues for the quarter totaled $3.4
million a $3.5 million or 50%
decrease from revenues of $6.9
million recorded during the first quarter of 2020 and a 57%
decrease over the previous quarter. The lower in revenues reported
in the quarter was largely the result of project delays related to
customer scheduling and the impact of COVID-19 restrictions and
shutdowns on key projects and markets. This temporary decline was
not caused by any lack of orders.
Gross profit in the quarter of 278,000, represented 8% of
revenue, compared to $1,349,000 and
19.6% of revenue in the first quarter of 2020. The decreased in
gross profit during the quarter was solely related to the decline
in project deliveries in the quarter.
Operating expenses for the quarter were $836,000, which was an increase of $118,000 from the $718,000 in operating expenses incurred for the
same period ended in the prior year. The company recorded a loss
from foreign exchange in the quarter of $98,000 while in the same period in 2020 the
Company recorded a gain of $283,000.
The Company booked new orders totalling $2.8 million in the quarter resulting in a
backlog of orders at March 31, 2021
of $30.5 million compared to an order
backlog of $31.0 million at
March 31, 2020.
"Both the value of orders booked and revenue recognized in the
first quarter of 2021 were below recent quarterly norms." said
Derek S. Webb, President &
CEO. "Both reductions are related to project delays and are
not indicative of future trends or reduction in activities.
Several tenders that Biorem is well positioned to win were delayed
due to COVID19 –related slowdowns and municipal financing issues.
This slowdown extended to many of the orders currently in hand,
which also experienced construction delays. Both areas are
expected to improve in the latter part of the year."
"Management is encouraged about progress on the exciting R&D
project with the city of New York,
announced in late 2020. BIOREM's equipment has shipped to
site and has been recently installed and commissioned. We
expect to begin generating data regarding bio-aerosol mitigation
within the next several months. Several key objectives of the
study will be to determine whether BIOREM's novel biological
reactors are effective in preventing the transmission of
bioaerosols such as Legionella and Covid from waste water
processing infrastructure. The program has recently been
expanded through a partnership with several municipalities and
research institutes in the Province of Quebec. We are very excited to be
collaborating with these numerous partners and optimistic about the
innovative and relevant application of our technology", said Mr.
Webb.
The Company's cash position stood at $10.2 million on March 31,
2021, compared with the $8.9
million held on December 31,
2020. Working capital at the end of the quarter was
$10.2 million a $300,000 decrease from $10.5 million held at December 31, 2020 and up $800,000 from $9.4
million at March 31, 2020.
About BIOREM Inc.
Biorem is a leading clean technology company that designs,
manufactures and distributes a comprehensive line of
high-efficiency air emissions control systems used to eliminate
odors, volatile organic compounds (VOCs), and hazardous air
pollutants (HAPs). With sales and manufacturing offices across the
continent, a dedicated research facility, a worldwide sales
representative network and more than 1,600 installed systems
worldwide, Biorem offers state-of-the-art technology-based products
and peace of mind for municipalities, industrial companies and
their surrounding communities. Additional information on Biorem is
available on our website at www.biorem.biz.
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SOURCE Biorem Inc.