BIOREM Reports Second Quarter Financial Results & Record Order Backlog

BIOREM today announced its results for the three and six-month periods ended June 30, 2022. BIOREM’s complete second quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

FINANCIAL HIGHLIGHTS:

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

Biorem’s
revenues for the second quarter were $6.3 million a 43% increase over the
previous quarter and 11% higher than the $5.6 million of revenues reported in
the same quarter in 2021. Year to date revenues totalled $10.6 million, a 17%
increase over the $9.1 million reported for the first six months of 2021. The increase
in revenues for the first six months of 2022 compared to the prior year is largely
due to the Company’s larger order backlog at the beginning of the year and due
to customer construction schedules.

Gross profit for
the quarter was $1.5 million or 23.2% of revenue compared to $1.1 million of
gross profit representing 19.8% of revenue recorded during the second quarter
of 2021. Total operating expenses (net of other income) for the quarter were
$1,170,000 against $742,000 in the same period the prior year. The increase in
operating expenses in 2022 was primarily due to a foreign exchange loss of
$89,000 recorded in the quarter compared to a $137,000 exchange gain recorded
in the second quarter of 2021. Ebitda for the quarter was $319,000 compared to
$467,000 of ebitda in the second quarter of 2021.

Net earnings
for the quarter were $164,000, with year to date earnings of $64,000 compared
to a net loss of $151,000 for the first half of 2021.

“We have been
actively managing the impact that disruptions to our global supply chain and
inflation have posed over the past several months, making BIOREM one of the few
companies in our industry that continues to meet delivery schedules, remain
on-budget and exceed customer expectations”, said Derek S. Webb, President and
CEO. “This has allowed us to look past these current challenges and focus on
growth initiatives such as our new Dry Scrubber product line and expansion of
our Service Group offerings.”

“Booking
activity within these two growth sectors have been robust- with over $8M year
to date in new Dry Scrubber sales and over $3M in new Service orders.  Total bookings in the second quarter were
$12.5M of new orders resulting in a record backlog of $38M on June 30^th,
2022.”

“We expect this
large backlog to enable the Company to deliver a strong second half of the year
in terms of revenues and earnings”.

Cash on hand at
June 30, 2022 increased to $4.3 million. Earnings from operating activities
during the quarter generated $321,000 of cash and net reductions in non-cash
working capital items added a further $630,000 to cash reserves.

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 1,600 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.

For further information contact:
Derek S. Webb, President
and Chief Executive Officer
dwebb@biorem.biz
Tel:  (519) 767-9100

or

Douglas Newman, Chief Financial
Officer

dnewman@biorem.biz

 Tel: 
(519) 767-9100