Biorem Reports First Quarter Financial Results

GUELPH, ON, May 20, 2022 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced results for the three month period ended March 31, 2022.  Biorem's complete 2022 first quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com).

Financial Summary:

	Three-months March 31		ended December 31
( in CDN$'000 except per share data)	2022	2021	2021
Revenue	4,381	3,429	10,839
Gross profit	879	278	3,705
Ebitda*	18	(175)	2,524
Net earnings (loss)	(101)	(421)	1,567
Basic earnings (loss)  per share	(0.01)	(0.01)	0.05
Diluted earnings (loss)  per share	(0.01)	(0.01)	0.05

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

Revenues for the quarter totaled $4.38 million, a $952,000 or 28% increase from revenues of $3.43 million recorded during the first quarter of 2021 and a 60% decrease over the previous quarter. The lower 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 $879,000, represented 20% of revenue, compared to $278,000 and 8 % of revenue in the first quarter of 2021. The increase in gross profit during the quarter was related to the increase in project revenues and type of equipment shipped during the quarter.

Operating expenses for the quarter were $942,000, which was an increase of $106,000 from the $836,000 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 company recorded a loss from foreign exchange in the quarter of $1,000 while in the same period in 2021 the Company recorded a loss of $98,000.

The Company booked new orders totalling $10.8 million in the quarter resulting in a backlog of orders at March 31, 2022 of $31.1 million compared to an order backlog of $30.5 million at March 31, 2021.

"Booking activity has remained elevated through the first quarter and year to date which is helping to replenish the order backlog depletion from the strong Q4 revenue delivery." said Derek S. Webb, President & CEO.  "Maintaining an order backlog at these levels has ensured the Company's steady growth in revenues and profitability."

"This continuing positive trend is a reflection of government and industry selecting a reliable option for emissions abatement.  With urban encroachment on infrastructure posing challenges to their safe operation, efficient solutions with small carbon footprints are being chosen for those high profile applications.  BIOREM's suite of advanced air pollution control solutions are well positioned to provide a reliable choice for remediation.", said Mr. Webb. 

The Company's cash position stood at $3.6 million on March 31, 2022, compared with the $4.5 million held on December 31, 2021. Working capital at the end of the quarter was $2.9 million consistent with the $2.9 million held at December 31, 2021 and down $6.6 million from $10.2 million recorded at March 31, 2021.  The large decrease in working capital year over year was the result of the share buy back the Company completed on December 2, 2021 that reduced the number of outstanding common shares from 38,911,558 to 15,477,437.

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 1,800 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.

Derek Webb, President and Chief Executive Officer, [email protected], Tel: [phone] ext 240; Douglas Newman, Chief Financial Officer, [email protected], Tel: [phone] ext 287