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Press release from Marketwire

Bennett Environmental Inc. Announces Q3 Results

Monday, November 14, 2011

Bennett Environmental Inc. Announces Q3 Results14:40 EST Monday, November 14, 2011OAKVILLE, ONTARIO--(Marketwire - Nov. 14, 2011) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its results for the three month period ended September 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 $1.7 million and loss per share was $0.04 on a fully diluted basis.Commenting on the results, Mr. Lawrence Haber, President and CEO, stated "Operating costs are controlled and consistent with expectations."As previously announced, the Company has accumulated approximately 20,000 tonnes of untreated soil at the end of September, 2011 and has not recorded any revenue related to this soil in inventory. An additional 24,000 tonnes is expected to be received from various jobs which have been awarded but not shipped. Processing of the above soil is expected to commence during the first quarter of 2012.For each of these contracts awarded, the tonnage amounts are approximate, and in each case there is no commitment on the part of the client with respect to the amount of material that will be shipped under the contract, or the timing of these shipments. Actual amounts shipped may be more or less than the estimated amounts.Regarding corporate strategy, Mr. Haber stated "The Board continues to take a broad view of the strategic opportunities available to the Company, including but not limited to, the environmental sector. The Board seeks to source, structure and complete one or more transformative transactions, designed to create meaningful value for shareholders."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/BEVQ3September302011MDA.pdf and Interim condensed consolidated Financial Statements available on http://media3.marketwire.com/docs/BEVSeptember302011FS.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)September 30,December 31,January 1,201120102010AssetsCurrent assets:Cash and cash equivalents$60,025,814$64,993,643$17,645,459Restricted cash (note 4)210,05410,649865,918Amounts receivable131,971321,90610,215,767Holdbacks receivable--3,029,363Holdback receivable (note 5)300,000--Deferred costs2,586,218661,925-Prepaid expenses and other516,400561,402446,104Assets classified as held for sale (note 5)-2,675,5322,675,53263,770,45769,225,05734,878,143Property, plant and equipment (note 6)8,970,9059,523,50210,290,464Assets under finance lease (note 7)498,840522,237382,500Deferred tax assets--3,915,650$73,240,202$79,270,796$49,466,757Liabilities and Shareholders' EquityCurrent liabilities:Accounts payable and accrued liabilities$1,892,658$2,850,241$5,369,309Current tax liabilities331,500583,9622,087,079Liabilities related to assets held for sale (note 5)242,666618,020475,532Stock compensation liability (note 14)407,113--Deferred revenue (note 1)6,620,8122,445,3697,286,897Provisions (note 10)424,230695,828620,825Current portion of long-term liabilities (note 12)645,5672,230,194285,621Current portion of finance lease obligations (note 11)153,279182,838135,31610,717,8259,606,45116,260,579Long-term liabilities (note 12)697,099741,6332,912,430Long-term portion of finance lease obligations (note 11)47,836155,206229,330Shareholders' equity:Share capital (note 13)96,890,27193,364,04071,949,963Contributed surplus (note 13)4,312,2744,846,3344,244,554Share purchase warrants (note 13)2,721,1312,721,131429,056Accumulated deficit(42,146,234)(32,163,999)(46,559,155)Total equity61,777,44268,767,50630,064,418Subsequent events (notes 1, 10 & 14)$73,240,202$79,270,796$49,466,757These interim condensed consolidated financial statements do not include accompanying notes. A complete set of interim condensed consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BEVSeptember302011FS.pdf.BENNETT ENVIRONMENTAL INC.Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)(Expressed in Canadian dollars)Three months endedNine months endedSeptember 30,September 30,2011201020112010Sales$-$ 10,604,723$-$32,668,014Expenses:Operating costs430,1872,396,6521,141,1787,877,376Administration and business development1,180,9251,626,3264,285,4494,176,400Management/Board restructuring costs (note 15) 13,651 - 2,503,723 -Amortization221,919263,155661,143781,896Loss on disposal of assets held for sale (note 5) - - 16,615 -1,846,6824,286,1338,608,10812,835,672Results from operating activities(1,846,682)6,318,590(8,608,108)19,832,342Finance income201,955129,887721,637223,822Finance costs(21,127)(94,274)(73,158)(665,040)Net finance income (costs)180,82835,613648,479(441,218)Income (loss) before income taxes(1,665,854)6,354,203(7,959,629)19,391,124Income taxes expense (recovery)-(989,677)(228,775)2,080,880Net income (loss) for the period, being comprehensive income (loss)$ (1,665,854)$7,343,880$(7,730,854)$17,310,244Earnings (loss) per share (note 16)Basic (loss) earnings per share$(0.04)$0.20$(0.20)$0.53Diluted (loss) earnings per share(0.04)0.19(0.20)0.50These 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/BEVSeptember302011FS.pdf.BENNETT ENVIRONMENTAL INC.Interim Condensed Consolidated Statement of Changes in Equity(Unaudited)(Expressed in Canadian dollars)For the nine months ended September 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---17,310,24417,310,244Share-based compensation-98,621--98,621Share 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(2,354,916)---(2,354,916)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--2,721,131-2,721,131Balance at September 30, 2010$93,364,040$4,626,981$2,721,131$(29,248,911)$71,463,241These 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/BEVSeptember302011FS.pdf.BENNETT ENVIRONMENTAL INC.Interim Condensed Consolidated Statement of Changes in Equity(Unaudited)(Expressed in Canadian dollars)For the nine months ended September 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---(7,730,854)(7,730,854)Share-based compensation-257,557--257,557Conversion from equity-settled to cash-settled stock option plan (note 14)-(791,617)-(2,251,381)(3,042,998)Share options exercised3,526,231---3,526,231Balance at September 30, 2011$96,890,271$4,312,274$2,721,131$(42,146,234)$61,777,442These interim condensed consolidated financial statements do not include accompanying notes. A complete set of interim condensed consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BEVSeptember302011FS.pdf.BENNETT ENVIRONMENTAL INC.Interim Condensed Consolidated Statements of Cash Flows (Unaudited)(Expressed in Canadian dollars)For the nine months ended September 3020112010Cash flows provided by (used in) operating activities:Net income (loss) for the period$(7,730,854)$17,310,244Adjustments for:Amortization661,143781,896Foreign exchange gains related to U.S. Department of Justice accrual7,012(48,796)Unwinding of discount on provisions19,55248,789Gain on sale of property, plant and equipment(1,671)-Loss on sale of assets held for sale18,286-Share-based compensation402,50298,621Income tax expense (recovery)(228,775)3,915,650Change in non-cash working capital items:Amounts receivable189,9356,338,714Holdbacks receivable(300,000)3,029,363Prepaid expenses and other45,002(344,639)Deferred costs(1,924,293)-Accounts payable and accrued liabilities272,422(1,729,850)Stock compensation liability(407,113)-Liabilities related to assets held for sale (375,354) 103,737Provisions(271,598)(5,048)Deferred revenue4,175,443(6,299,480)Current tax payable(23,687)(1,095,155)Repayment of long-term liabilities(1,655,725)(59,250)Net cash provided by (used in) operating activities(7,127,773)22,044,796Cash 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(87,728)(244,336)Change in restricted cash(199,405)855,301Net cash provided by investing activities1,551,473640,965Cash flows from financing activitiesProceeds from exercise of warrants-885,600Proceeds from exercise of share options745,400142,500Proceeds from shares and warrants due to public offering, net of costs-22,961,859Payment of finance lease liabilities(136,929)(176,497)Net cash provided by financing activities608,47123,813,462Net increase (decrease) in cash and cash equivalents(4,967,829)46,499,223Cash and cash equivalents at beginning of period64,993,64317,645,459Cash and cash equivalents at end of period$60,025,814$64,144,682These 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/BEVSeptember302011FS.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Lawrence HaberBennett Environmental Inc.President and CEO(905) 339-1540 Ext. 202www.bennettenv.com