GUELPH,
ON, Nov. 29, 2023 /CNW/ - BIOREM Inc.
(TSXV: BRM) ("BIOREM" or "The Company") today announced its results
for the three and nine-month periods ended September 30, 2023. BIOREM's complete second
quarter financial statements and MD&A have been filed on SEDAR
(www.sedar.com).
FINANCIAL HIGHLIGHTS:
BIOREM's revenues for the third quarter were $5.5 million, a 29% increase over the previous
quarter but 25 % lower than the $7.3
million of revenues reported in the same quarter in 2022.
Year to date revenues totalled $13
million, a 28% decrease over the $18
million reported for the first nine months of 2022. The
decrease in revenues for the first nine months of 2023 compared to
the prior year continues to be entirely due to delays in customer
project construction schedules that were beyond BIOREM's ability to
influence.
During the quarter the Company booked $8.2 million in new orders resulting in another
record order backlog of $54.5 million
on September 30, 2023 compared to an
order backlog of $51.5 million on
June 30, 2023 and $43 million on September
30, 2022.
The Company expects this record backlog to enable the Company to
deliver a strong fourth quarter of the year in terms of revenues
and earnings.
"While construction schedules across the industry continue to be
impacted by high infrastructure demand, tight labour supplies, and
supply chain delays, BIOREM has successfully managed to minimize
the effect of these challenges on our 2023 earnings and cash flow,"
said Derek S. Webb, President and
CEO. "Our sales funnel, opportunities, bookings and backlog
remain at historic highs with no signs of softening over the near-
to medium-term."
"Unique in the Industry, BIOREM's broadening of the revenue base
through product expansion and diversification, have resulted in
significant achievements over the last several quarters. This
investment in new products and sales initiatives has generated more
than two dozen projects and approximately $25 million in bookings outside of our
traditional sales base. This is a reflection of a strong
market demand for BIOREM's experience and performance in delivering
successful air emission abatement projects."
"In addition to developing new sales initiatives, we've devoted
considerable attention to increasing the resilience and diversity
of our supply chains to ensure that we can mitigate the impacts of
inflationary pressures and ongoing logistics disruptions and
delays. The results from these efforts have been dramatic and are
reflected in our on-time delivery for projects and increasing
profit margins."
Gross profit for the quarter was $1.5
million or 28% of revenue compared to $2.5 million of gross profit representing 34% of
revenue recorded during the third quarter of 2022. Total operating
expenses (net of other income) for the quarter were $806,000 against $1.4
million in the same period the prior year. The decrease in
operating expenses in 2023 was primarily due to lower general and
administrative expenses partially offset by a $90,000 increase in foreign exchange loss. Ebitda
for the quarter was $787,000 compared
to $1.2 million of ebitda in the
third quarter of 2022.
The Company reported net earnings for the quarter of
$503,000 or $0.03 per share. Year to date the Company reports
a loss of $147,000 compared to net
earnings of $825,000 for the first
nine moths of 2022.
Cash on hand on September 30, 2023
increased to $2.4 million. Earnings
from operating activities during the quarter generated $773,000 of cash and net decreases in non-cash
working capital items generated a further $1.7 million of cash reserves. Working capital on
September 30, 2023 increased to
$3.8 million.
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 2000 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.
SOURCE Biorem Inc.