Biorem Reports Increased Revenues and Earnings for First Quarter

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Jun 01, 2015, 04:00 ET

GUELPH, ON, June 1, 2015 /PRNewswire/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced results for the three month period ended March 31, 2015. Biorem's complete 2015 first quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

Financial Summary:

	Three-months ended March 31,
(in CDN$'000 except per share data)	2015	2014
Revenue	4,689	1,974
Gross profit	1,531	329
Ebitda*	720	(318)
Net earnings (loss)	528	(531)
Basic earnings (loss) per share Diluted earnings (loss) per share	0.04 0.02	(0.04) (0.04)

*Earnings before interest, taxes and amortization, a non IFRS financial measure

Revenues for the quarter totaled $4.7 million an 18 % increase over the previous quarter, and $2.7 million or a 138% increase from revenues of $1.9 million recorded during the first quarter of 2014. The increase in 2015 first quarter revenues was a result of the substantially higher order backlog at December 31, 2014.

Gross profit increased by $156,000 from the previous quarter to $1.5 million, representing 32.7 % of revenue, compared to $329,000 of gross profit achieved in the first three months of 2014 representing 16.7 % of revenue. This increase in gross profit was the result of the increased volume of business and the 16% increase in gross profit percentage was due to the fixed costs of engineering and operations that remained consistent with the previous corresponding quarter, representing a lower percentage of cost of goods sold.

Operating expenses in the quarter of $834,000 were $100,000 higher than in the same period in the previous year; the increase was largely the result of higher sales commissions earned on the higher revenue recorded.

The Company's unrestricted cash position stood at $1.3 million on March 31, 2015, compared to $1.2 million held on December 31, 2014. Working capital stood at $1.4 million compared to $584,000 at December 31, 2014 and a working capital deficit of $86,000 at March 31, 2014. During the quarter the Company repaid $200,000 of long-term debt.

The Company booked new orders totalling $4.5 million in the quarter resulting in a backlog of orders at March 31, 2015 of $14.7 million compared to $8.6 million at March 31, 2014.

"Booking activity in late 2014 and the first quarter of 2015 has been strong, helping to provide a healthy backlog for the rest of the year." said Derek S. Webb, President and CEO. "This continuing positive trend is a reflection of municipalities selecting a reliable option for odor control.

Two consecutive quarters of increased bookings, revenue, working capital and reduced expenses, have improved the financial health of the Company, placing it in a stronger condition. With urban encroachment on infrastructure posing challenges to the operation of wastewater facilities; safe, efficient solutions with small carbon footprints are being chosen for those high profile applications. Biorem's engineered media and innovative designs are well positioned to take advantage of these needs".

Subsequent to March 31, 2015 the holders of $659,000 of convertible debentures agreed to extend the maturity date of the debentures from May 5, 2015 to August 16, 2016.

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 900 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.