BluMetric Announces Profitable Results for FY2017
OTTAWA, Jan. 29, 2018 /CNW/ - BluMetric Environmental Inc. (TSXV: BLM) is pleased to announce revenue of $30.5 million and net income of $334,000 for the year ended September 30, 2017, marking its third consecutive profitable year.
Financial Highlights
-- Revenue for the year is $30.5 million, a decrease of 3% compared to
$31.5 million for the year ended September 30, 2016. Revenue for the
fourth quarter is $7.6 million, an increase of 5% over the same quarter
of fiscal 2016.
-- Gross margin increased slightly to 21% compared to 20% in the previous
year. In the fourth quarter of fiscal 2017, gross margin improved to 22%
from 15% in the previous year. The Company delivered on new contracts
for wastewater treatment systems in fiscal year 2017, whereas in the
prior year, there was a drop off in activity for these types of
projects.
-- Operating costs increased to $5.4 million from $4.9 million in the prior
year, and in the fourth quarter increased to $1.6 million from $1.1
million. Fiscal year 2016 included a gain on a property sale, as well as
a reversal of an impairment loss on an investment, whereas fiscal year
2017 includes a loss on a property sale. The increase in the fourth
quarter is driven largely by an increase in the bad-debt provision in Q4
2017, as well as increased consulting and professional fees.
-- Net income was $334,000, compared to a net income of $588,000 in the
previous year. In the fourth quarter, net loss was ($54,000), a slight
improvement over the previous year, which posted a net loss of ($87,000)
in the quarter.
-- EBITDA (see Note 1 definition below) decreased to $1.4 million from $1.9
million in the previous year. In the fourth quarter, EBITDA increased to
$198,000 from $134,000 in the previous year.
-- The Company was not in compliance with the fixed charge coverage ratio
covenant related to its demand credit facility as at September 30, 2017.
This non-compliance was triggered by its mortgage on its office building
at 3108 Carp Road coming due on July 16, 2018 and therefore being
classified as a current liability as at September 30, 2017. The Company
is arranging alternative financing with respect to this mortgage and
expects to have a new agreement in place shortly. This situation has
created a cross-default with the Company's term loan agreement. Although
the Company has received a waiver from its term loan lender with respect
to this cross-default, the Company is required to re-classify the five
year term loan at September 30, 2017 to current liabilities under IFRS.
Operational Highlights and Outlook
BluMetric's key-market focus and client-centred-service approach continue to strengthen the Company's presence in its major segments: Mining, Food & Beverage, Industrial Wastewater, Military, Government (North), and Environmental Site Assessment (ESA).
-- Reflecting the increasingly active mining industry, BluMetric's business
within the mining sector continued to grow in strength, both in revenue
generation and the complexity of the Company's engineering solutions, as
it moves beyond the assessment of problems to the development and
implementation of remedial strategies. In 2017, the Company's services
and solutions to the mining sector covered almost all practice areas,
from site characterization and problem definition, to remedial
assessment and design, to mine wastewater treatment system design and
construction. BluMetric is seeing synergies between all its offerings to
the mining sector.
-- BluMetric continues to serve all tiers of government, primarily through
long-standing contract mechanisms and vendor agreements, at all levels
of government. In particular for projects in the North, the Company is
seen as a leading provider of consulting services ranging through
hydrogeology, geomatics, industrial hygiene, and large-scale site
remediation in a region differentiated by logistical and resource
constraints.
-- BluMetric is seeing new opportunities in waste management, as it was
contracted by one of the largest waste management companies in North
America to design and construct a landfill leachate pilot system for one
of their landfills in eastern Ontario. The pilot system has been
constructed and will be commissioned in spring of 2018.
-- BluMetric will continue to refine its sales targeting in response to
shifts in its clients' needs, including sensitivity to regional
requirements.
"Our sales efforts will focus on North and Central America, which represent the geographic regions with the largest growth potential for BluMetric," said Dan Scroggins, Interim CEO of BluMetric. "Our sector-specific sales focus has begun to show its effectiveness, and we will stay the course with that while we continue to build on the cost-containment and administrative improvements we have made in the past years. Our goal is not just to stabilize our business, but to focus on value-added solutions for our clients and build investor value for the future."
Financial Summary
Three Months Ended September 30, Three Months Ended September 30, Twelve Months Ended September Twelve Months Ended September
2017 2016 30, 2017 30, 2016
-------------------------------- -------------------------------- ------------------------------ ------------------------------
($000) ($000) ($000) ($000)
----- ----- ----- -----
Revenue 7,587 7,258 30,528 31,494
------- ----- ----- ------ ------
Gross
profit 1,694 1,089 6,439 6,348
------- ----- ----- ----- -----
Gross
margin % 22% 15% 21% 20%
--------- --- --- --- ---
Operating
expenses 1,580 1,053 5,413 4,927
--------- ----- ----- ----- -----
EBITDA(1) 198 134 1,404 1,876
-------- --- --- ----- -----
Adjusted
EBITDA(2) 196 188 1,456 1,742
---------- --- --- ----- -----
Net
earnings
(loss) (54) (87) 334 588
--------- --- --- --- ---
Earnings
per share
-basic (0.00) (0.00) 0.01 0.02
---------- ----- ----- ---- ----
Earnings
per share
-diluted (0.00) (0.00) 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 before 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 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.
