OTTAWA, May 30, 2017 /CNW/
- BluMetric Environmental Inc. (TSXV: BLM), an Ottawa-based cleantech company, announced
sales of $7.2 million and net income
of $90,000 in the unaudited results
for its second quarter ended March 31,
2017.
Financial Highlights
- Year-to-date revenue is $15.5
million, a reduction of 2% compared to $15.9 million for the six months ended
March 31, 2016.
- Revenue for the quarter decreased 9% to $7.2 million compared to $7.9 million for the quarter ended March 31, 2016. Professional Services revenue of
$4.9 million decreased $200,000 quarter over quarter, while Water
Systems revenue of $2.3 million
showed a decrease of $500,000. The
decline in the Water Systems revenue can be mainly attributed to
the length of the sales cycles for new engineered solutions
projects.
- Gross margin decreased slightly to 22% compared to 24%
for the same quarter in fiscal 2016, mostly arising from lower
margins in Water Systems relating to the reduced number of ongoing
engineered solutions projects, offset slightly by an improved
margin in Professional Services. Year-to-date gross
margin is 21%, consistent with the previous year.
- Operating costs remained consistent with the same
quarter in the prior year at $1.4
million.
- Net income for the quarter was $90,000 compared to a net income of $289,000 for the same quarter in fiscal
2016. In the six-month period, net income was $318,000 compared to $304,000 in the previous year.
- EBITDA (see Note 1 definition below) in the quarter
decreased to $353,000 from
$663,000 for the same quarter in
fiscal 2016, and in the six months decreased to $868,000 from $1.0
million in the same period in the previous year.
Operational Highlights
- BluMetric continues to drive business development and research
and innovation to increase sales in its identified target
markets.
Operational Highlights (cont'd)
- BluMetric's Professional Services group:
-
- posted ongoing successes in Canada's North, including the diversification
of work into hazardous substance and chemical reviews as well as
remote community drilling programs;
- successfully completed significant and challenging government
work, proving the utility of several innovative new approaches in
remote environments.
- BluMetric's Water Systems group:
-
- made substantial progress on a mining engineered solutions
contract that expands the Company's product and service
profile;
- implemented an improved project management system to increase
efficiencies through the full life cycle of our projects.
Outlook
Historically, a substantial portion of the business generated by
Professional Services has come from the mining sector, which has
been rebounding for the past three quarters. As a result,
Professional Services has seen increased activity in this
vertical.
Creative collaboration between Professional Services and Water
Systems recently resulted in an order for new technology with an
established client. BluMetric sees opportunities for this type
of business development in the coming quarters in mining, as well
as in other traditional verticals.
The mining sector is also showing increased interest in the
Company's ammonia reduction systems (MARS), which was the core
technology in a recent contract. The patent-pending MARS technology
is also applicable to the Food & Beverage vertical, where the
Company is currently pilot testing the product in different
applications. Pilot tests on landfill leachate have proved the
viability of the product in what has been identified as another
emerging and growing market.
"BluMetric's products and services have been developed to
address specific client needs, which are partially driven by
environmental regulations," said Roger
Woeller, CEO of BluMetric. "The Company has developed
and delivered expertise and technology that reduce its clients'
operating and capital costs, which differentiates BluMetric from
its competitors and is part of the Company's strategy for future
growth. As part of this strategy, BluMetric continues to evaluate
potential partnerships with the suppliers of complementary
technologies, innovative products, and cost-effective services to
add value to our solutions."
Financial Summary
|
Three Months
Ended
March 31, 2017
|
Three Months
Ended
March 31, 2016
|
Six Months
Ended
March 31, 2017
|
Six Months
Ended
March 31, 2016
|
|
($000)
|
($000)
|
($000)
|
($000)
|
Revenue
|
7,219
|
7,920
|
15,507
|
15,857
|
Gross
profit
|
1,604
|
1,913
|
3,300
|
3,389
|
Gross margin
%
|
22%
|
24%
|
21%
|
21%
|
Operating
expenses
|
1,349
|
1,368
|
2,269
|
2,605
|
EBITDA1
|
353
|
663
|
868
|
1,044
|
Adjusted
EBITDA2
|
360
|
505
|
841
|
777
|
Net income
|
90
|
289
|
318
|
304
|
Income per share
–basic
|
0.00
|
0.01
|
0.01
|
0.01
|
Income per share
–diluted
|
0.00
|
0.01
|
0.01
|
0.01
|
|
Note 1: EBITDA is a
non-IFRS measure and is calculated as net income before interest
expense, income taxes, depreciation, and amortization.
|
|
Note 2: Adjusted
EBITDA is a non-IFRS measure and is calculated as EBITDA, gain or
loss on foreign exchange, stock-based compensation, gain or loss on
sale of property plant and equipment, unrealized gains on
investments held for sale, and impairment of goodwill.
|
The full results are available at www.sedar.com.
About BluMetric Environmental Inc.
BluMetric Environmental Inc. is a publicly traded cleantech
company with a portfolio of industry-leading products, processes,
and services in the environment sciences and engineering sectors.
We take pride in our strong record of providing sustainable
solutions to the world's environmental
challenges. Headquartered in Ottawa,
Ontario, BluMetric's award-winning team of industry experts
serves clients in Canada,
the United States, and Central
America.
For more information, visit www.blumetric.ca
Forward-Looking Statements
Some of the statements in this press release, including those
relating to the Company's quarterly and annual results, future
products, opportunities and cost initiatives, strategies and other
statements that are predictive in nature, that depend upon or refer
to future events or conditions, or that include words such as
"expects", "anticipates", "intends", "plans", "believes",
"estimates", or similar expressions, are forward-looking statements
within the meaning of securities laws. Forward-looking statements
include, without limitation, the information concerning possible or
assumed future results of operations of the Company. These
statements are not historical facts but instead represent only the
Company's expectations, estimates, and projections regarding future
events. The Company does not undertake any obligation to update or
release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this presentation
or to reflect the occurrence of unanticipated events, except as
required by law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE BluMetric Environmental Inc.