The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Bennett Environmental Inc. Announces Q2 Results

Wednesday, August 10, 2011

Bennett Environmental Inc. Announces Q2 Results14:05 EDT Wednesday, August 10, 2011OAKVILLE, ONTARIO--(Marketwire - Aug. 10, 2011) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its results for the three month period ending June 30, 2011. There was no revenue for the quarter as the Saint Ambroise facility remained closed in order to accumulate a stockpile of soil inventory. Net loss was $4.3 million and loss per share was $0.11 on a fully diluted basis. During the quarter the Company incurred expenses of $2.3 million in connection with the proxy contest with Second City Capital. Had these costs not been incurred, the net loss would have been $2.0 million.Commenting on the results, Mr. Lawrence Haber, President and CEO, stated "Current inventory levels represent approximately two and one-half months of processing. Operating costs are controlled and consistent with expectations.The Company's Board of Directors is in the process of positioning the Company for the future, and is united in its view to enhance the value of the Company for the benefit of the Company's shareholders and other stakeholders. The transitioning of the Company and its strategic focus has been started and is underway. The Board plans to take a broad view of the opportunities available to the Company, which will include but not be limited to, the environmental sector. The Board and CEO will seek to source, structure and complete one or more transactions, designed to create meaningful value for shareholders.With respect to its core soil remediation business, Bennett is continuing to concentrate on building sustainable growth and shareholder value through an ongoing focus on cost controls and securing orders for soil treatment by building new relationships with key market players and decision makers in treatment projects."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/BennettMDAQ211.pdf and Interim condensed consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ211.pdf.This report may contain forward-looking information that is subject to risks, uncertainties and assumptions. Such information represents our current views based on information as at the date of issuing this report. We do not intend to update this information and disclaim any legal obligation to the contrary.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", "confident", "plan" and "intends" 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 Condensed Consolidated Statement of Financial Position(Unaudited)(Expressed in Canadian dollars)June 30,December 31,January 1,201120102010AssetsCurrent assets:Cash and cash equivalents$61,797,796$64,993,643$17,645,459Restricted cash (note 4)20,74410,649865,918Amounts receivable328,011321,90610,215,767Holdbacks receivable--3,029,363Holdback receivable (note 5)300,000--Deferred costs1,911,566661,925-Prepaid expenses and other162,358561,402446,104Assets classified as held for sale (note 5)-2,675,5322,675,53264,520,47569,225,05734,878,143Property, plant and equipment (note 6)9,147,9729,523,50210,290,464Assets under finance lease (note 7)506,639522,237382,500Deferred tax assets--3,915,650$74,175,086$79,270,796$49,466,757Liabilities and Shareholders' EquityCurrent liabilities:Accounts payable and accrued liabilities$1,879,406$2,850,241$5,369,309Current tax liabilities488,500583,9622,087,079Liabilities related to assets held for sale (note 5)225,000618,020475,532Stock compensation liability (note 14)564,339--Deferred revenue5,370,1372,445,3697,286,897Provisions (note 10)411,675695,828620,825Current portion of long-term liabilities (note 12)1,120,0752,230,194285,621Current portion of finance lease obligations (note 11)183,900182,838135,31610,243,0329,606,45116,260,579Long-term liabilities (note 12)712,035741,6332,912,430Long-term portion of finance lease obligations (note 11)62,990155,206229,330Shareholders' equity:Share capital (note 13)96,812,27193,364,04071,949,963Contributed surplus (note 13)4,104,0074,846,3344,244,554Share purchase warrants (note 13)2,721,1312,721,131429,056Accumulated deficit(40,480,380)(32,163,999)(46,559,155)Total equity63,157,02968,767,50630,064,418$74,175,086$79,270,796$49,466,757BENNETT ENVIRONMENTAL INC. Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Expressed in Canadian dollar) Three months ended Six months endedJune 30,June 30,2011201020112010Sales$-$10,914,914$-$22,063,291Expenses:Operating costs336,2792,525,960710,9905,480,724Administration and business development1,576,2771,191,4413,104,5232,550,074Management/Board restructuring costs (note 15)2,285,577-2,490,072-Amortization221,981257,441439,224518,741Loss on disposal of assets held for sale(note 5)18,286-18,286-4,438,4003,974,8426,763,0958,549,539Results from operating activities(4,438,400)6,940,072(6,763,095)13,513,752Finance income167,30752,277525,76093,935Finance costs(19,495)(537,158)(56,440)(570,765)Net finance income (costs)147,812(484,881)469,320(476,830)Income (loss) before income taxes(4,290,588)6,455,191(6,293,775)13,036,922Income taxes expense (recovery)-1,365,098(228,775)3,070,557Net income (loss) for the period, being comprehensive income (loss)$(4,290,588)$5,090,093$(6,065,000)$9,966,365Earnings (loss) per share (note 16)Basic (loss) earnings per share$(0.11)$0.15$(0.16)$0.32Diluted (loss) earnings per share(0.11)0.14(0.16)0.31BENNETT ENVIRONMENTAL INC.Interim Condensed Consolidated Statement of Changes in Equity(Unaudited)(Expressed in Canadian dollars)For the six months ended June 30, 2010Attributable to equity holders of the CompanyShare capitalContributedsurplusSharepurchasewarrantsAccumulateddeficitTotalequityBalance at January 1, 2010$71,949,963$4,244,554$429,056$(46,559,155)$30,064,418Comprehensive income for the period---9,966,3669,966,366Share-based compensation-65,386--65,386Share options exercised241,220(98,721)--142,499Warrants exercised1,314,656-(429,056)-885,600Shares issued in connection with public offering closing May 7, 201022,213,117---22,213,117Share-based costs(2,356,506)---(2,356,506)Fair value of compensation options issued in connection with share and warrant offering closing May 7, 2010-483,992--483,992Excess fair value of warrants issued on over-allotment closing May 21, 2010 over consideration received-(110,656)--(110,656)Fair value of compensation options issued in connection with over-allotment closing May 21, 2010-9,191--9,191Warrants issued in connection with public offering closing May 7 and May 21, 2010 net of issue costs--4,713,115-4,713,115Balance at June 30, 2010$93,362,450$4,593,746$4,713,115$(36,592,789)$66,076,522BENNETT ENVIRONMENTAL INC.Interim Condensed Consolidated Statement of Changes in Equity(Unaudited)(Expressed in Canadian dollars)For the six months ended June 30, 2011Attributable to equity holders of the CompanyShare capitalContributedsurplusSharepurchasewarrantsAccumulateddeficitTotalequityBalance at January 1, 2011$93,364,040$4,846,334$2,721,131$(32,163,999)$68,767,506Comprehensive loss for the period---(6,065,000)(6,065,000)Share-based compensation-49,290--49,290Conversion from equity settled to cash settled stock option plan (note 14)-(791,617)-(2,251,381)(3,042,998)Share options exercised3,448,231---3,448,231Balance at June 30, 2011$96,812,271$4,104,007$2,721,131$(40,480,380)$63,157,029BENNETT ENVIRONMENTAL INC.Interim Condensed Consolidated Statements of Cash Flows (Unaudited)(Expressed in Canadian dollars)For the six months ended June 3020112010Cash flows provided by (used in) operating activities:Net income (loss) for the period$(6,065,000)$9,966,364Adjustments for:Amortization439,224518,741Foreign exchange gains related to U.S. Department of Justice accrual(55,117)30,165Unwinding of discount on provisions13,03733,354Gain on sale of property, plant and equipment(1,671)-Loss on sale of assets held for sale18,286-Share-based compensation325,36265,386Income tax expense (recovery)(228,775)3,395,510Change in non-cash working capital items:Amounts receivable(6,105)2,836,829Holdbacks receivable(300,000)2,183,468Prepaid expenses and other399,044191,004Deferred costs(1,249,641)-Accounts payable and accrued liabilities416,395(1,906,994)Stock compensation liability(564,339)-Liabilities related to assets held for sale(393,020)65,584Provisions(284,153)3,121Deferred revenue2,924,768(994,061)Current tax payable133,313325,503Repayment of long-term liabilities(1,097,637)(39,500)Net cash provided by (used in) operating activities(5,576,029)16,674,474Cash flows from investing activitiesProceeds from sale of property, plant and equipment4,25030,000Proceeds from sale of assets held for sale1,834,356-Acquisition of property, plant and equipment(50,675)(183,121)Change in restricted cash(10,095)855,333Net cash provided by investing activities1,777,836702,212Cash flows from financing activitiesProceeds from exercise of warrants-885,600Proceeds from exercise of share options693,500142,500Proceeds from shares and warrants due to public offering, net of costs-22,961,859Payment of finance lease liabilities(91,154)(131,248)Net cash provided by financing activities602,34623,858,711Net increase (decrease) in cash and cash equivalents(3,195,847)41,235,397Cash and cash equivalents at beginning of period64,993,64317,645,459Cash and cash equivalents at end of period$61,797,796$58,880,856These interim condensed consolidated financial statements do not include accompanying notes. A complete set of interim condensed consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ211.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Lawrence HaberBennett Environmental Inc.(905) 339-1540www.bennettenv.com