BIOREM Reports Second Quarter 2018 Financial Results
GUELPH, ON, Aug. 28, 2018 /PRNewswire/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three and six-month periods ended June 30, 2018. Biorem's complete second quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
Biorem's revenues for the second quarter were $5.2 million a 46% increase over the previous quarter and 8.5 % or $800,000 below revenues reported in the same quarter in 2017. Year-to-date revenues totaled $9.1 million, comparable to the $8.8 million reported for the first six months of 2017. The increase in revenues in the second quarter was due to a higher order backlog at the beginning of the period.
Gross profit for the quarter was $1.1 million or 21.6% of revenue compared to $1.2 million of gross profit representing 22.2 % of revenue recorded during the second quarter of 2017. Total operating expenses (net of other income) for the quarter were $856,000 against $1,329,000 in the same period the prior year. The decrease in operating expenses was primarily due to a $282,000 foreign exchange loss recorded the second quarter of 2017 while in the second quarter of 2018 a $156,000 foreign exchange gain was recognized. Ebitda for the quarter was $279,000 compared to a $58,000 ebitda loss in the second quarter of 2017.
Net earnings for the quarter were $267,000, with year-to-date earnings totalling $99,000 compared to a net loss of $50,000 for the first half of 2017.
"Financial performance for the second quarter was in line with management expectations and consistent with the same quarter a year ago", said Derek S. Webb, President and CEO. "Of particular interest is the $6.3 million in order bookings in the quarter bringing total orders booked in the first half of 2018 to $12.3 million and an order backlog of $22.5 million at June 30, 2018. Included in the $6.3 million of second quarter bookings was $2 million of orders booked for projects in China. Orders received subsequent to June 30, 2018 have increased the order backlog to $26 million. Order opportunities and booking rates continue to be high."
Cash on hand decreased during the quarter to $3.6 million from $5.8 million on March 31, 2018. Earnings from operating activities generated $306,000 of cash but increased operating activities during the quarter resulted in $2.5 million of cash being invested in non-cash working capital particularly accounts receivable and unbilled revenue.
Bookings during the quarter were $6.3 million resulting in an order backlog of $22.5 million on June 30, 2018.
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 1,200 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.