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Press release from CNW Group

/C O R R E C T I O N from Source -- Biorem Inc./

Tuesday, May 01, 2012

/C O R R E C T I O N from Source -- Biorem Inc./10:35 EDT Tuesday, May 01, 2012In c2585 transmitted on Monday, April 30, 2012, errors occurred in the "FINANCIAL HIGHLIGHTS" table. All figures under "BASIC AND DILUTED EARNINGS (LOSS) PER SHARE" have changed. An error also occurred in the fourth paragraph of the "TWELVE MONTHS ENDED DECEMBER 31, 2011" section. The sentence should read "Net loss for fiscal 2011 was $3,369,000, or a loss of $0.28 per basic..." and not "Net loss for fiscal 2011 was $3,369,000, or a loss of $0.27 per basic..."Corrected copy follows:Biorem Reports 2011 Year End ResultsGUELPH, ON, April 30, 2012 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced its results for the three and twelve-month periods ended December 31, 2011. Biorem's complete fiscal 2011 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com). "Biorem continues to work through a difficult set of economic circumstances in its core business industry," said Peter Bruijns, President  & CEO. "During the year we continued to lower our internal operating costs and to streamline operational systems to deliver projects more efficiently."FINANCIAL HIGHLIGHTS:  Three months ended December 31,%Change Twelve months ended December 31, % Change (in thousands of Canadian dollars, except percent and per share data)2011201020112010REVENUE3,448,0004,603,000(25.1%)12,045,00017,360,000(30.6%)GROSS PROFIT533,000919,000(42.0%)2,869,0005,044,000(43.1%)GROSS MARGIN15%20%(22.6%)24%29%(18.0%)EBITDA1 (including gains and losses on foreign exchange)(1,004,000)(754,000)(33.0%)2,356,0001,488,000(58.3%)NET INCOME (LOSS)(1,196,000)(1,587,000)(24.6%)(3,369,000)(3,063,000)(10.0%)BASIC AND DILUTED EARNINGS (LOSS) PER SHARE(0.11)(0.13)(15.4%)(0.28)(0.26)(3.8%)Revenue for the three-month period ended December 31, 2011 (Q4 2011) was $3,448,000, compared to $4,603,000 in the comparative period in the prior year. Gross profit in Q4 2011 was $533,000 down $386,000 from $919,000 recorded in Q4 2010. The Gross Margin decrease in Q4 of 2011 was due to lower revenues in Q4 2011 compared to Q4 2010 and to approximately a 4% decrease in gross margin percentage achieved. Total operating expenses ( net of other income) in Q4 2011 were $1,774,000 compared to $2,204,713 in Q4 2010. In Q4 2011 Adjusted EBITDA was $(1,004,000), down from $(754,000) in the same period a year ago.The net loss for the fourth quarter of 2011 was $1,196,000, or a loss of $0.11 per basic and diluted share, compared to net loss of $1,526,000, or $0.13 per basic and diluted share in the fourth quarter of 2010. The net loss in Q4 2011 was caused by lower revenues and gross margins and by an increase in the allowance for bad debts and the accelerated depreciation of certain pilot plants.TWELVE MONTHS ENDED DECEMBER 31, 2011For the twelve months ended December 31, 2011, revenue decreased 30.6% to $12,045,000, from $17,360,000 for the same period in 2010. The decrease in revenue in 2011 was due to lower overall bookings in 2011 compared to 2010 and to the Company's efforts to realign its production, order fulfillment and delivery processes to improve its cash flow management . As well the lower bookings and backlog in 2011 were impacted by the recession which began during 2009.Gross profit was $2,869,000 for the year-ended December 31, 2011, down 43.1% from gross profit of $ 5,044,000 for the year-ended December 31, 2010. The Gross profit decline can be attributed to the Company's decision to accept some strategic projects in 2011 and 2010 that had low gross margins, one of which was an investment of a demonstration project so the Company could gain entry into the Biogas Sweetening market.Total operating expenses were $6,536,000 for the year-ended December 31, 2011 compared to $8,211,000 for the year-ended December 31, 2010. The decrease was due to the Company taking deliberate actions in 2011 to reduce the cost structure of the Company in all functional areas.Net loss for fiscal 2011 was $3,369,000, or a loss of $0.28 per basic and diluted share, compared to net loss of $2,813,000 or a loss of $0.26 per basic and diluted share in 2010.Cash generated from operations totalled $905,000 in 2011 compared to $1,449,000 being used by operations in 2010.At December 31, 2011 the Company had a working capital deficiency of $1,534,000 compared to a working capital balance of $1,734,000 at December 31, 2010. Included in the December 31, 2011 working capital deficiency is a 12.75% debenture payable that is classified as a current liability due to non- compliance with certain of the debenture covenants. In 2010 this debenture was classified as a Non- current liability.On April 20, 2012, the Company announced a proposed private placement of up to 1,400 units at a price per unit of $1,000 for gross proceeds of up to $1.4 million. Concurrently the Company is negotiating revised covenants and debt repayments terms for the 12.75% debenture that is currently outstanding and classified as a current liability.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). 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. For further information: Peter Bruijns, Chief Executive Officer BIOREM Inc. pbruijns@biorem.biz Tel:  (519) 767-9100