BIOREM Reports Strong First Quarter Financial Results and Continued Growth in Order Backlog

GUELPH, ON, May 28, 2024 /PRNewswire/ - BIOREM Inc. (TSXV: BRM) ("BIOREM" or "the Company") today announced results for the three month period ended March 31, 2024. BIOREM's complete 2024 first quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

Financial Summary:

"Bidding activity has remained strong through the first quarter and we expect to report significant new bookings in coming months." said Derek S. Webb, President & CEO. 

"The first quarter is traditionally a slow start to BIOREM's fiscal year in terms of revenues and earnings due to construction and project life cycles", commented Derek Webb, President and CEO. "BIOREM's strong results for the first quarter of 2024 in both revenues, earnings and new bookings are strong indicators of another year of growth for the Company. Our sales funnel continues to grow for both our biological solutions as well as with the new dry scrubber product line introduced last year. The growing order backlog and sales funnel at these levels will ensure the Company's continued growth in revenues and profitability."

Revenues for the quarter totaled $5.9 million, a $2.7 million or 87% increase from revenues of $3.1 million recorded during the first quarter of 2023 and a 51% decrease over the previous quarter. The decrease in revenues reported in the quarter over the immediately preceding quarter was largely seasonal in nature. Biorem typically has lower revenues in the first quarter due to customer scheduling.

Gross profit in the quarter of $1.8 million, represented 30% of revenue, compared to $117,000 and 4% of revenue in the first quarter of 2023. The increase in gross profit during the quarter was due to the higher revenues and to positive cost variances on several projects that were completed during the quarter.

Operating expenses for the quarter were $1.3 million, which was an increase of $458,000 from the $806,000 in operating expenses incurred for the same period ended in the prior year. The increase in operating expenses was largely the result of increased variable sales expenses on the higher revenues recorded in the quarter. The increase in operating expenses also included a $45,000 foreign exchange loss compared to a $171,000 foreign exchange gain in the same period in 2023.

The Company booked new orders totalling $6.1 million in the quarter resulting in a historic backlog of orders at March 31, 2024 of $52.0 million compared to an order backlog of $39 million at March 31, 2023.

During the quarter the Company invested $363,000 in advanced manufacturing equipment to significantly increase its production capacity of its proprietary media. The equipment was installed in Q1 and is expected to be fully operational by the end of the second quarter.

The Company's cash position stood at $5.9 million on March 31, 2024, compared with the $2.3 million held on December 31, 2023. Working capital at the end of the quarter was $7 million up slightly from the $6.7 million held at December 31, 2023 and up $2.9 million from $4.1 million recorded at March 31, 2023.

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 2.000 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.