ORMI Reports Fiscal 2011 First Quarter Results

TORONTO, Nov. 11 /CNW/ - Organic Resource Management Inc. ("ORMI" or "the Company"), today announced its financial results for the three month period ended September 30, 2010.

• Increased total revenues to $3,593,000, up 5% from $3,430,000 for Q1 2010.
• Increased gross margin to $1,579,000, up 15% from $1,370,000 for Q1 2010.
• Increased net income to $220,000, up 8% from $204,000 for Q1 2010.
• Increased EBITDA to $565,000, up 13% from $501,000 for Q1 2010.
• Increased cash flows from operations to $516,000, up 14% from $452,000 for Q1 2010.

The improvement in gross margin was mainly due to the lower cost of recycling residuals at anaerobic digesters ("AD"s) as compared to composting facilities. 

Total operating expense was $1,359,000 for the quarter, an increase of $188,000 or 16% from $1,171,000 for the same period last year.  This increase was due to higher insurance, communications, investor relations, and amortization expenses, as well as higher salaries following the addition of two senior management positions in May 2010.  The increase in these costs reflects the Company's growth and long-term corporate strategies.

"We are pleased to announce that financial results for the first quarter of fiscal 2011 have continued on the path established in fiscal 2010, with another period of solid improvement," said Charles Buehler, Chairman and Chief Executive Officer of ORMI.  "During the quarter, the second of our AD partners ramped up to full production and as a result, 83% of the processed residuals we collected were used as feedstock by ADs to generate renewable energy," added Mr. Buehler. "We have now reached an important milestone as we begin having greater AD capacity than what is required to process the residuals we collect today. For the first time in the recent history of our company, we have the capacity to aggressively seek new business."

The comparative financial statements for the three months ending September 30, 2010 along with other information may be obtained through the Company's website at www.ormi.com, or on SEDAR at www.sedar.com.

This press release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions.  Investors are asked to visit the investor relations section of the Company's website at www.ormi.com/ir/index.php. Alternatively, investors are asked to e-mail all questions and correspondence to [email protected] where they can also request addition to the Company's investor e-mail list to receive all future press releases and updates directly.

About Organic Resource Management Inc.
Organic Resource Management is Canada's largest provider of vacuum truck services for the collection, processing and recycling of food-related organic residuals. ORMI services in excess of 8,000 regularly scheduled commercial, industrial, institutional and residential customer locations across Canada. Further information about ORMI may be obtained at the Company's web site at www.ormi.com.  

Non-GAAP Measures
The Company reports its financial results in accordance with GAAP. However, this press release contains references to certain non-GAAP financial measures such as "EBITDA" and "Cash Flows from Operations".  Non-GAAP financial measures are used by management to evaluate the performance of the Company.  Non-GAAP financial measures do not have any meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other reporting issuers.  Investors are cautioned that non-GAAP measures, such as those presented herein, should not be construed as an alternative to net income determined in accordance with GAAP as indicators of the Company's performance or to cash flows from operating activities as a measure of liquidity and cash flow.

EBITDA means earnings before income taxes, interest, share based compensation, amortization, the gain on sale of non-core assets, the write-down of property, plant and equipment, the write-down of intangible assets and goodwill, foreign exchange gains and dividends on preferred shares.  Cash Flows from Operations means cash flows from operating activities before changes in non-cash operating assets and liabilities.

Forward Looking Statements

Certain information contained in this press release may be forward-looking and therefore subject to unknown risks or uncertainties. The actual results, performance or achievements of Organic Resource Management Inc. may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.

For further information: