BIOREM’s revenues for the third quarter were $5.5 million, a 29% increase over the previous quarter but 25 % lower than the $7.3 million of revenues reported in the same quarter in 2022. Year to date revenues totalled $13 million, a 28% decrease over the $18 million reported for the first nine months of 2022. The decrease in revenues for the first nine months of 2023 compared to the prior year continues to be entirely due to delays in customer project construction schedules that were beyond BIOREM’s ability to influence.

During the quarter the Company booked $8.2 million in new orders resulting in another record order backlog of $54.5 million on September 30, 2023 compared to an order backlog of $51.5 million on June 30, 2023 and $43 million on September 30, 2022. The Company expects this record backlog to enable the Company to deliver a strong fourth quarter of the year in terms of revenues and earnings.

“While construction schedules across the industry continue to be impacted by high infrastructure demand, tight labour supplies, and supply chain delays, BIOREM has successfully managed to minimize the effect of these challenges on our 2023 earnings and cash flow,” said Derek S. Webb, President and CEO. “Our sales funnel, opportunities, bookings and backlog remain at historic highs with no signs of softening over the near- to medium-term.”

“Unique in the Industry, BIOREM’s broadening of the revenue base through product expansion and diversification, have resulted in significant achievements over the last several quarters. This investment in new products and sales initiatives has generated more than two dozen projects and approximately $25 million in bookings outside of our traditional sales base. This is a reflection of a strong market demand for BIOREM’s experience and performance in delivering successful air emission abatement projects.”

“In addition to developing new sales initiatives, we’ve devoted considerable attention to increasing the resilience and diversity of our supply chains to ensure that we can mitigate the impacts of inflationary pressures and ongoing logistics disruptions and delays. The results from these efforts have been dramatic and are reflected in our on-time delivery for projects and increasing profit margins.”

Gross profit for the quarter was $1.5 million or 28% of revenue compared to $2.5 million of gross profit representing 34% of revenue recorded during the third quarter of 2022. Total operating expenses (net of other income) for the quarter were $806,000 against $1.4 million in the same period the prior year. The decrease in operating expenses in 2023 was primarily due to lower general and administrative expenses partially offset by a $90,000 increase in foreign exchange loss. Ebitda for the quarter was $787,000 compared to $1.2 million of ebitda in the third quarter of 2022.

The Company reported net earnings for the quarter of $503,000 or $0.03 per share. Year to date the Company reports a loss of $147,000 compared to net earnings of $825,000 for the first nine moths of 2022.

Cash on hand on September 30, 2023 increased to $2.4 million. Earnings from operating activities during the quarter generated $773,000 of cash and net decreases in non-cash working capital items generated a further $1.7 million of cash reserves. Working capital on September 30, 2023 increased to $3.8 million.

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 2000 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
Douglas Newman, Chief Financial Officer
dnewman@biorem.biz
Tel: (519) 767-9100