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Press release from CNW Group

BIOREM REPORTS THIRD QUARTER RESULTS AND DIRECTOR APPOINTMENT

Friday, November 19, 2010

BIOREM REPORTS THIRD QUARTER RESULTS AND DIRECTOR APPOINTMENT17:00 EST Friday, November 19, 2010GUELPH, ON, Nov. 19 /CNW/ - BIOREM Inc. (TSX-V: BRM) ("Biorem" or "the Company") today announced its results for the three-month period ended September 30, 2010.  Biorem's complete 2010 third quarter financial statements and MD&A have been filed on SEDAR (www.sedar.com)."In Q3 of 2010, along with a Gross Margin improvement from the previous quarter, the Company generated cash of $232,000," said Peter Bruijns, President and CEO. "We are focusing a great deal of attention on generating positive cash flow from operations but also generating cash from our balance sheet through improvements to project management systems.  This effort is expected to result in reduced Unbilled Revenues and accelerated cash from Accounts Receivable."Bookings year to date of 2010 were $14,500,000, which represents a 23 percent increase from September 30, 2009.  The Company's current backlog is $12,131,000 as of the third quarter of 2010, up 16 percent in comparison to third quarter 2009.Financial Summary: Three-months ended September 30,Nine-months ended September 30,(in thousands of Canadian dollars, except percent and per share data)2010200920102009REVENUE$4,948$4,910$12,756$14,625GROSS PROFIT$1,816$2,348$4,165$5,980GROSS MARGIN37%48%33%41%EBITDA1 (excluding gains and losses on foreign exchange)$152$959$(656)$1,390NET EARNINGS/(LOSS)$(175)$520$(1,581)$(143)BASIC AND DILUTED EARNINGS/(LOSS) PER SHARE$(0.01)$0.04$(0.13)$(0.01)THREE MONTHS ENDED SEPTEMBER 30, 2010The  gross margin was 37% in Q3 2010 compared to 48% in the same period in 2009. Gross profit in Q3 2010 was $1,816,000 down from $2,348,000 in Q3 2009. When adjusted for one time Operations re-organization costs and the installation of a subsidized technology demonstration project, Q3 gross margins would be 39% or 1% below the company's long term average of 40%. Three-months ended September 30,Nine-months ended September 30,(in thousands of Canadian dollars)2010200920102009Net Earnings/(Loss)$(175)$520$(1,581)$(143)Add (deduct)    Amortization of long-term assets136124388344Loss on foreign exchange2816459743Accretion of deferred financing and warrant costs6554186155Interest expense9897292291Adjusted EBITDA$152$959$(656)$1,390As at September 30, 2010, Biorem had total working capital of $6,035,000, including cash and short-term investments of $1,479,000 and unbilled revenue of $4,909,000, compared to total working capital of $6,080,000, cash and short-term investments of $1,247,000 and unbilled revenue of $5,366,000 as at June 31, 2010.The Board of Directors is pleased to announce that Mr. Douglas S. Alexander has joined as a Director of the Corporation.  Mr. Alexander, a resident of Ontario, Canada, is a Chartered Accountant and a Chartered Director, having graduated from the Director's College, a joint venture between McMaster University and the Conference Board of Canada.  Mr. Alexanderjoined the Board of Directors of Hydrogenics Corporation, a TSX and NASDAQ listed company, in May 2006 and has served as Chairman since May 2009. Mr. Alexander is a Director and member of the Audit Committees of Critical Outcome Technologies Inc. and Equitable Life Insurance Company, and prior to that served as the Chief Financial Officer of various Canadian public companies for 15 years. Mr. Alexander was formerly lead director and chair of the Audit Committee of Saxon Financial Inc. Mr. Alexander served as a director of Stuart Energy from 2003 to January 2005. From 1999 to 2004, Mr. Alexander was Executive Vice President and Chief Financial Officer of Trojan Technologies Inc., an international environmental high technology company.About BIOREM Inc. Biorem is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs) and biogas conditioning systems With sales and manufacturing offices across the continent, a dedicated research facility, a worldwide sales representative network and more than 600 installed systems worldwide, Biorem offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz. 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.Forward-Looking Statements This press release contains forward-looking statements based on current expectations. These forward-looking statements contain various risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the disclosure materials, financial statements and MD&A filed with the securities regulatory authorities in Canada on www.sedar.com.Non-GAAP Measures1. Adjusted EBITDA is a non-GAAP earnings measure, therefore, it does not have any standardized meaning prescribed by Canadian generally accepted accounting principles and may not be similar to measures presented by other companies. Adjusted EBITDA represents earnings before interest, foreign exchange, income taxes, depreciation and amortization. This measure is important to management since it is used by potential lenders to evaluate the ongoing cash generating capability of the Company and thus the amounts those lenders are willing to lend to the Company."Order Bookings" and "Order Backlog" do not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to measures presented by other companies.Order Bookings and Order Backlog are non-GAAP measures that the Company uses to evaluate its sales performance. Order Bookings are those binding contracts that the Company enters into with a third party for the delivery of our products or services. As Order Bookings are received, the contract value (before any associated sales taxes) is included in the Order Backlog. The Order Backlog is reduced by the revenue that is recognized on each project and then adjusted for any currency changes.%SEDAR: 00020304EFor further information: Peter Bruijns, Chief Executive Officer BIOREM Technologies Inc.    pbruijns@biorem.biz     Tel:  (519) 767-9100