OTTAWA, Jan. 30, 2017 /CNW/ - BluMetric
Environmental Inc. (TSXV: BLM), an Ottawa-based cleantech company, announces the
following results, unaudited for the fourth quarter of 2016, and
audited for the fiscal year ended September
30, 2016. In the fourth quarter, the Company posted a small
loss of $0.1 million on revenue of
$7.3 million, while the year's
results showed a profit of $0.6
million on revenue of $31.5
million.
"BluMetric's Professional Services group has performed well,
increasing revenues and profitability in spite of challenges faced
in some of its markets. Within our Water Systems group, we
experienced a decline in revenues, mainly related to timing of
engineered solutions projects" said Roger
Woeller, CEO of BluMetric. "With anticipated growth, revenue
from this area will be less susceptible to swings. I am pleased
with the leadership and efforts shown by our people this past
year."
Financial Highlights
- BluMetric's banking and credit facilities were significantly
improved with the conclusion of new financing arrangements
during the last month of the fiscal year. The Company has a new
banking facility, as well as a secured five year term loan that
provides approximately $1.0 million
in funds that will be used to maximize growth. The Company has
positive working capital and is in compliance with all financial
covenants.
- Net income for the year was $0.6
million compared to a net income of $1.0 million for the prior year. In the fourth
quarter, the Company had a loss of $0.1
million compared with net income of $0.3 million the same quarter of the prior
year.
- Revenue for the year decreased $2.0 million to $31.5
million for the year ended September
30, 2016 compared to $33.5
million for the year ended September
30, 2015. Revenue in the fourth quarter of fiscal 2016
decreased 21% to $7.3 million from
$9.2 million for the same quarter of
fiscal 2015. Results reflected the growth of our Professional
Services business year over year. However, engineered solutions
projects within the Water Systems group declined year over
year.
- Yearly revenue was split $21.8
million from Professional Services and $9.7 million from Water Systems, compared to
$20.3 million from Professional
Services and $13.2 million from Water
Systems for the previous year.
- Gross margin declined year-over-year from 22% to 20%,
and from 22% to 15% quarter-over-quarter. The decreased margin is
attributable to a decrease in revenue from engineered solutions
projects within the Water Systems projects.
- Operating costs decreased from $5.6 million for the prior year to $4.9 million in the current year, and from
$1.5 million in Q4 of fiscal 2015 to
$1.1 million in the same quarter of
the current year. This significant decrease reflects the continued
positive impact of the Company's cost-reduction measures associated
with staff and occupancy costs.
- EBITDA (see Note 1 definition below) declined to
$0.1 million and $1.9 million, respectively, for the three and
twelve months ended September 30,
2016 compared to $0.7 million
and $2.6 million for the same periods
in the prior year.
Operational Highlights of the Year
- BluMetric's sector-specific growth strategy has resulted in
several large new contracts with both public and private sector
clients in Northern Ontario and
the High Arctic, as well as continued high performance on existing
programs with the armed forces.
- We have expanded and diversified our engineering capabilities,
further strengthening our ability to develop, sell and deliver new
product.
- Our focus on innovation has enabled us to develop industry
leading products that are well differentiated in the marketplace in
our target markets. Fiscal 2016 saw the introduction of five new
products that are currently being commercialized. The first of
these products was installed in fiscal 2016 on the strength of its
competitive capital cost and operating expense to the customer. All
of our current research and innovation activities are based on
demands from the market, which are driven by regulations and
economics.
Outlook
BluMetric is in a strong position to take advantage of growth
opportunities in its target sectors and drive profitability, having
significantly improved its financial position with new financing
arrangements. The growth is anticipated in all parts of our
business. The Company will continue to build its strengths in its
primary geographical regions, North
America and Central
America, as well as its special skills relating to the North
and remote and challenging environments. The Company is an
innovator and an integrator, and will continue to identify, develop
and commercialize new product and service solutions and identify
disruptive technologies to service our clients.
Financial Summary
|
Three Months Ended
September 30,
2016
|
Three Months
Ended September
30, 2015
|
Twelve
Months Ended September 30,
2016
|
Twelve Months
Ended September
30, 2015
|
|
($000)
|
($000)
|
($000)
|
($000)
|
Revenue
|
7,258
|
9,243
|
31,494
|
33,479
|
Gross
profit
|
1,089
|
2,059
|
6,348
|
7,379
|
Gross margin
%
|
15%
|
22%
|
20%
|
22%
|
Operating
expenses
|
1,053
|
1,518
|
4,927
|
5,604
|
Loss (gain) on
disposal of property plant and equipment
|
0
|
10
|
(588)
|
(237)
|
EBITDA1
|
134
|
717
|
1,876
|
2,554
|
Adjusted
EBITDA2
|
188
|
702
|
1,742
|
2,364
|
Net income
(loss)
|
(87)
|
334
|
588
|
1,016
|
Income (loss) per
share –basic
|
(0.00)
|
0.01
|
0.02
|
0.04
|
Income (loss) per
share –diluted
|
(0.00)
|
0.01
|
0.02
|
0.04
|
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.
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 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.
For more information, visit www.blumetric.ca
SOURCE BluMetric Environmental Inc.