BIOREM Reports Third Quarter 2021 Financial Results
BIOREM today announced its results for the three and nine-month periods ended September 30, 2021. Biorem’s complete third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).
Financial Highlights
| Three-months ended September 30 | Nine-months ended September 30 | |||
| 2021 | 2020 | 2021 | 2020 | |
| Revenue | 4,576 | 3,586 | 13,639 | 16,441 |
| Gross Profit | 1,137 | 629 | 2,531 | 3,364 |
| Operating Expenses | 1,282 | 418 | 2,860 | 2,070 |
| EBITDA | (71) | 167 | (84) | 1,382 |
| Net Earnings | (115) | 155 | (287) | 949 |
| EPS – Basic | (0.003) | 0.004 | (0.007) | 0.025 |
| EPS – Fully Diluted | (0.003) | 0.004 | (0.007) | 0.025 |
Biorem’s revenues for the third quarter were $4.6 million a 19% decrease over the previous quarter but $990,000 or 28% above the revenues reported in the same quarter in 2020. Year to date revenues totalled $13.6 million, a 17% decrease over the $16.4 million reported for the first nine months of 2020. The decrease in revenues for the first nine months of 2021 compared to the prior year is due to some large project delays in North America that are expected to be caught up in the fourth quarter of the year.
Gross profit for the quarter was $1.1 million or 24.8% of revenue compared to $629,000 of gross profit representing 17.5 % of revenue recorded during the third quarter of 2020. Total operating expenses (net of other income) for the quarter were $1.3 million against $418,000 in the same period the prior year. The increase in operating expenses compared to the same period in the prior was primarily due to the value of foreign exchange gains and losses recorded. In the third quarter of 2021 a $269,000 foreign exchange loss was recognized while in the third quarter of 2020 a $246,000 foreign exchange gain was recorded. Ebitda for the quarter was $(71,000) compared to $167,000 of ebitda in the third quarter of 2020.
Net loss for the quarter was $115,000, with year to date loss of $287,000 compared to net earnings of $949,000 for the first months of 2020.
“Third quarter revenues and earnings were below expectations and were again impacted by external non Biorem project delays”, said Derek S. Webb, President and CEO. “These project delays in the first nine months of the year have set up the fourth quarter of 2021 to likely be record breaking in terms of revenues and earnings.”
“New orders have continued to be secured, with approximately $5.4 million being closed in the third quarter. This results in the BIOREM order backlog being $30.0 million on September 30, 2021 which provides a strong foundation for revenue over the next twelve months.”
Cash on hand at September 30, 2021 stood at $9.9 million a small decline from the $10.2 million on hand on June 30, 2021. Earnings from operating activities during the quarter generated $172,000 of cash and this was offset by $760,000 of cash used to fund increases in non-cash working capital particularly inventories and prepaid expenses.
On August 5, 2021 the Company announced an agreement to purchase for cancellation 23,434,121 common shares from TPFG Environment Investment Limited. All regulatory approvals have been received and financing secured. The transaction is expected to close on or about December 1, 2021.