BIOREM reports 2012 year-end results

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Apr 22, 2013, 06:00 ET

GUELPH, ON, April 22, 2013 /PRNewswire/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three and twelve-month periods ended December 31, 2012. Biorem's complete fiscal 2012 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com).

"The first two quarters in 2012 were challenging and required the company to undertake a number of re-organization and re-capitalization measures which were implemented successfully. In parallel, our sales and marketing team benefited from new product innovation in growth markets such as biogas conditioning and industrial solutions which enabled the company to build strong sales at healthy margins into a backlog of $17.7 million entering 2013" said Peter Bruijns, CEO. "With new orders exceeding $18 million in 2012, improved margins and a stronger, leaner organization, we have significantly strengthened the position of the company for fiscal 2013."

FINANCIAL HIGHLIGHTS:

in '000's except earnings per share
	Three-months ended		Twelve-months ended
	December, 31		December, 31
	2012	2011	2012	2011

Revenue	4,386	3,448	15,418	12,045
Gross profit	1,539	533	3,726	2,869
Operating expenses	1,048	1,664	4,099	5,736
Ebitda*	660	(1,004)	93	(2,367)
Net earnings (loss)	316	(1,196)	(830)	(3,369)
Earnings( loss) per share	0.02	(0.11)	(0.07)	(0.28)
* Earnings before interest, taxes and amortizaton, a non IFRS financial measure

Revenues for the three-month period ended December 31, 2012 were $4,386,000 compared to $3,448,000 in the same period in the prior year representing an increase of $939,000 (27.2%).

Gross profit in Q4 was $1,539,000, a $1,006,000 (188%) increase from the $533,000 recorded in the fourth quarter of 2011. Total operating expenses (net of other income) for the quarter were $1,048,000 a 29% reduction from the operating expenses of $1,664,000 incurred during the fourth quarter of 2011. Ebitda was $660,000 compared to a negative ebitda of $1,004,000 for the fourth quarter of 2011.

Net earnings for the quarter were $316,000 or $0.02 per basic share and $0.01 on a diluted basis compared to loss of $1,196,000 or 0.11 per share on a basic and diluted basis.

TWELVE MONTHS ENDED DECEMBER 31, 2012

For the twelve months ended December 31, 2012 revenue increased 28% to $15,418,000 from $12,045,000 for the same period in 2011.

Gross profit was $3,726,000 for the year ended December 31, 2012 a 30% increase from gross profit of $2,869,000 for the year-ended December 31, 2011.

Total operating expenses were $4,099,000 for the year ended December 31, 2012 compared to $5,736,000 for the year ended December 31, 2011. The 28.5% decrease was attributable to the Company taking deliberate actions in 2011 and 2012 to reduce the cost structure of the Company in all functional areas.

Net loss for fiscal 2012 was $830,000 or a loss of ($0.07) per basic and diluted share, compared to net loss of $3,369,000 or a loss of ($0.28) per basic and diluted share in 2011.

Net cash used by operating activities for the year totaled $530,000 compared to $1,558,000 generated by operating activities in 2011. $733,000 of cash was provided by a reduction in accounts receivable and unbilled revenue and this was offset by cash used to fund a reduction of accounts payables and accrued liabilities by $951,000 and $340,000 to fund an increase in inventory.

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 700 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.