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Press release from Marketwire

Bennett Environmental Inc. Announces Q1 Results

Thursday, May 13, 2010

Bennett Environmental Inc. Announces Q1 Results14:32 EDT Thursday, May 13, 2010OAKVILLE, ONTARIO--(Marketwire - May 13, 2010) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its results for the period ending March 31, 2010. Revenue for the quarter was $11.1 million, earnings before income taxes were $6.6 million and net earnings were $4.9 million. Earnings per share were $0.17 on a fully diluted basis.As announced May 7, 2010 the Company completed its bought deal underwriting led by Jennings Capital Inc. and including Cormark Securities Inc. raising gross proceeds of $25 million. Further information can be found in the Company's May 7, 2010 press release.Mr. Christopher Wallace, Chairman of the Board, stated "The Q1 results continue to reflect the strong earnings potential of BEI and justify the confidence displayed by investors in the recent underwriting."Mr. Jack Shaw, President and CEO, has the following comments "Beginning in Q2 of 2009 and gathering momentum over the last three quarters the Company has produced financial results which have considerably strengthened our balance sheet. This, in turn, has supported confidence in the Company's future prospects as demonstrated by the recently completed underwriting. While our remedial activity will continue to exhibit earning swings we fully intend to use our financial capability to diversify the business. We have previously announced this intention and continue to evaluate opportunities. The recent equity issue enhances both our ability and credibility to make a meaningful acquisition.As I have noted previously the operating efficiency of our Saint Ambroise facility measured by throughput and uptime continues to be a testament to the quality of our operating team and the technology. We expect to continue processing inventory with only minor stoppages for required maintenance.Our policy with respect to announcing future projects has been to announce projects when there is virtual certainty that the material will be received at Saint Ambroise. This is typically well after the Request for Proposal process and after contracts have been awarded. At this time the Company does not have new projects that meet this criteria."During the quarter the Company recognized future income tax expense of $1.9 million. At the end of 2009 the Company recognized a future tax asset on its balance sheet. This future tax asset represented the taxes that would otherwise have been payable on the earnings that would be generated in the future by the processing of the soil in inventory on December 31, 2009. The future tax asset was drawn from tax losses that the Company had incurred but which were not previously recognized as it was not clear that the Company would be in a position to utilize them. The future income tax expense incurred in the quarter will reduce the future tax asset. Barring an increase in soil inventories in subsequent periods, additional future income tax expense will be recognized and the future tax asset will be reduced.The Company also made the following comments on its results, with fuller discussion in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BennettMDAQ110.pdf and Interim Consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ110.pdf.The Company recognizes revenue after material has been processed. Amounts and holdbacks receivable pertain to unpaid invoices for processed materials only.Forward Looking StatementsCertain statements contained in this press release and in certain documents incorporated by reference into this press release constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and "confident" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. BEI believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of this press release. BEI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.About Bennett Environmental Inc.Bennett Environmental Inc. is a North American leader in high temperature treatment services for the treatment of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the U.S. Bennett Environmental's technology provides for the safe, economical and permanent solution to contaminated soil. Independent testing has consistently proven that the technology operates well within the most stringent criteria in North America. For information, please visit the Bennett Environmental website at: www.bennettenv.com. BENNETT ENVIRONMENTAL INC. Interim Consolidated Balance Sheets (Unaudited) (Expressed in Canadian dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- March 31, December 31, 2010 2009 ---------------------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 39,264,122 $ 17,645,459 Restricted cash (note 3) 10,570 865,918 Amounts receivable (note 5) 655,517 10,215,767 Holdbacks receivable (note 6) 5,251,971 3,029,363 Prepaid expenses and other 407,825 446,104 Future income tax asset 2,060,238 3,915,650 --------------------------------------------------------------------------- 47,650,243 36,118,261 Property, plant and equipment 8,266,298 8,424,518 Assets under capital leases 391,470 412,074 Assets held for sale (note 4) 2,675,532 2,675,532 ---------------------------------------------------------------------------- $ 58,983,543 $ 47,630,385 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 3,932,258 $ 5,710,496 Liabilities related to assets held for sale (note 4) 510,322 475,532 Income taxes payable 2,080,958 2,087,079 Deferred revenue 14,868,755 7,286,897 Current portion of long-term liabilities (note 9) 259,322 565,258 Current portion of lease obligations 135,905 135,316 --------------------------------------------------------------------------- 21,787,520 16,260,578 Long-term liabilities (note 9) 2,850,847 2,912,430 Long-term portion of lease obligations 195,131 229,330 Shareholders' equity: Share capital (note 11) 73,463,840 71,949,963 Contributed surplus 4,197,946 4,244,554 Share purchase warrants (note 12) - 429,056 Accumulated deficit (43,511,741) (48,395,526) --------------------------------------------------------------------------- 34,150,045 28,228,047 Future operations (note 1) Contingencies (note 16) Subsequent events (note 18) ---------------------------------------------------------------------------- $ 58,983,543 $ 47,630,385 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ110.pdf. BENNETT ENVIRONMENTAL INC. Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Expressed in Canadian dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months ended March 31, 2010 2009 ---------------------------------------------------------------------------- Sales $ 11,148,377 $ 437,185 Expenses: Operating costs 2,954,764 903,975 Administration and business development 1,368,575 1,340,291 Depreciation and amortization 253,787 439,314 Foreign exchange (1,686) (12,107) Interest 26,229 41,315 --------------------------------------------------------------------------- 4,601,669 2,712,788 ---------------------------------------------------------------------------- Earnings (loss) before the undernoted 6,546,708 (2,275,603) Other income, including interest 42,536 19,267 ---------------------------------------------------------------------------- Earnings (loss) before income taxes 6,589,244 (2,256,336) ---------------------------------------------------------------------------- Income taxes (recovery): Current (149,953) 67,684 Future 1,855,412 - ---------------------------------------------------------------------------- 1,705,459 67,684 ---------------------------------------------------------------------------- Net earnings (loss) for the period, being comprehensive income (loss) $ 4,883,785 $ (2,324,020) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings (loss) from operations per common share (note 14) Basic $ 0.17 $ (0.09) Diluted 0.17 (0.09) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ110.pdf. BENNETT ENVIRONMENTAL INC. Interim Consolidated Statements of Accumulated Deficit and Other Comprehensive Loss (Unaudited) (Expressed in Canadian dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months ended March 31, 2010 2009 ---------------------------------------------------------------------------- Accumulated deficit and other comprehensive loss, beginning of period $ (48,395,526) $ (63,708,930) Net earnings (loss) for the period 4,883,785 (2,324,020) ---------------------------------------------------------------------------- Accumulated deficit and other comprehensive loss, end of period $ (43,511,741) $ (66,032,950) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ110.pdf. BENNETT ENVIRONMENTAL INC. Interim Consolidated Statements of Cash Flows (Unaudited) (Expressed in Canadian dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months ended March 31, 2010 2009 ---------------------------------------------------------------------------- Cash provided by (used in): Operations: Net earnings (loss) from continuing operations $ 4,883,785 $ (2,324,020) Items not involving cash: Depreciation and amortization 253,787 439,314 Stock-based compensation 32,513 155,589 Foreign exchange related to U.S. Department of Justice accrual (78,074) 100,550 Future income tax expense 1,855,412 - Accretion interest 9,942 - Changes in non-cash operating working capital 12,928,573 5,566,100 Repayment of long-term liabilities (19,750) - --------------------------------------------------------------------------- Cash provided by operating activities 19,866,188 3,937,533 ---------------------------------------------------------------------------- Financing: Cash provided by (used for) financing activities Repayment of lease obligations (33,610) - Issuance of share capital due to exercise of stock options 120,100 - Issuance of share capital due to exercise of warrants 885,600 - -------------------------------------------------------------------------- Cash provided by financing activities 972,090 - ---------------------------------------------------------------------------- Investments: Cash provided by (used for) investing activities Change in restricted cash 855,348 (39,120) Purchase of property, plant and equipment (74,963) (26,382) -------------------------------------------------------------------------- Cash provided by (used in) investing activities 780,385 (65,502) ---------------------------------------------------------------------------- Increase in cash and cash equivalents 21,618,663 3,872,031 Cash and cash equivalents, beginning of period 17,645,459 2,602,692 ---------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 39,264,122 $ 6,474,723 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Supplemental cash flow information: Interest paid $ 7,705 $ 7,688 Income taxes paid - 22,676 Income tax refund 149,953 168,862 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ110.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Bennett Environmental Inc. Jack Shaw (905) 339-1540