BluMetric Announces Profitable Third Quarter in FY2017

OTTAWA, Aug. 29, 2017 /CNW/ - BluMetric Environmental Inc. (TSXV: BLM), an Ottawa-based cleantech company, announced revenue of $7.4 million and net income of $70,000 in the unaudited results for its third quarter ended June 30, 2017.

Financial Highlights

    --  Year-to-date revenue is $22.9 million, a reduction of 5% compared to
        $24.2 million for the nine months ended June 30, 2016.
    --  Revenue for the quarter decreased 11% to $7.4 million compared to $8.4
        million for the quarter ended June 30, 2016. Professional Services
        revenue of $5.2 million decreased $400,000 quarter over quarter, while
        Water Systems revenue of $2.2 million showed a decrease of $600,000. The
        decline in the Water Systems revenue can be mainly attributed to the
        length of the sales cycles for new engineered solutions projects, while
        Professional Services faced some project and program delays.
    --  Gross margin decreased slightly to 19% compared to 22% for the same
        quarter in fiscal 2016, mostly arising from lower margins in
        Professional Services, offset slightly by improved margins in Water
        Systems.  Year-to-date gross margin is 21%, slightly lower than 22% for
        the prior year.
    --  Operating costs were down slightly to $1.2M from the same quarter in the
        prior year at $1.3 million.
    --  Net income for the quarter was $70,000 compared to a net income of
        $371,000 for the same quarter in fiscal 2016.  In the nine-month period,
        net income was $388,000 compared to $675,000 in the previous year.
    --  EBITDA (see Note 1 definition below) in the quarter decreased to
        $337,000 from $698,000 for the same quarter in fiscal 2016, and in the
        nine months decreased to $1.2 million from $1.7 million in the same
        period in the previous year.

Operational Highlights and Outlook

    --  The Company made significant progress in implementing operational
        improvements, specifically in business lead identification, project
        management and execution, and market-driven research and innovation.
    --  Business development activity in both Water Systems and Professional
        Services has been significant in all our major target areas:  Military;
        Food, Beverage, & Agriculture; Mining; and Development, with new signed
        contracts both in Q3 and post quarter end.
    --  We have aligned our research and innovation and commercialization
        efforts to ammonia reduction processes and the development of products
        that address our clients' dynamic economic and regulatory environments.
    --  Subsequent to the end of Q3, BluMetric won two new contracts in excess
        of $1.0 million in Central America, demonstrating the strength and
        adaptability of our products in a wide range of environments.

Financial Summary




               Three Months Ended   Three Months Ended    Nine Months Ended      Nine Months Ended
                 June 30, 2017        June 30, 2016         June 30, 2017          June 30, 2016
                 -------------        -------------         -------------          -------------

                             ($000)               ($000)                ($000)                 ($000)
                              -----                 -----                  -----                   -----

    Revenue                   7,434                 8,378                 22,942                  24,235
    -------                   -----                 -----                 ------                  ------

    Gross
     profit                   1,445                 1,871                  4,745                   5,260
    -------                   -----                 -----                  -----                   -----

    Gross
     margin %                 19%                  22%                   21%                    22%
    ---------                   ---                   ---                    ---                     ---

    Operating
     expenses                 1,205                 1,269                  3,833                   3,874
    ---------                 -----                 -----                  -----                   -----

    EBITDA(1)                   337                   698                  1,205                   1,742
    --------                    ---                   ---                  -----                   -----

    Adjusted
     EBITDA(2)                  419                   769                  1,259                   1,546
    ----------                  ---                   ---                  -----                   -----

    Net income                   70                   371                    388                     675
    ----------                  ---                   ---                    ---                     ---

    Income per
     share
     -basic                    0.00                  0.01                   0.01                    0.02
    ----------                 ----                  ----                   ----                    ----

    Income per
     share
     -diluted                  0.00                  0.01                   0.01                    0.02
    ----------                 ----                  ----                   ----                    ----

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.