Biorem Reports 2023 Financial Results including $0.14 earnings per share

GUELPH, ON, April 11, 2024 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced its results for the three and twelve-month periods ended December 31, 2023. Biorem's complete fiscal 2023 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com).

FINANCIAL HIGHLIGHTS:

For the twelve months ended December 31, 2023 revenue totaled $25.2 million compared to $28.9 million for the same twelve months in 2022. Net earnings for the year were $2.2 million compared to net earnings of $1.6 million in 2022. Earnings per share for the year increased by 40% to $0.14 per share against earnings per share of $0.10 basic and $0.09 fully diluted reported in 2022.

Gross profit for the year was $7.0 million, a 20% decrease from gross profit of $8.8 million recorded for the year-ended December 31, 2022.

Total operating expenses for the year were $4.0 million compared to $6.2 million of operating expenses in 2022. The $ 1.2 million decrease in operating expenses year over year was due to a decrease in commission expenses on the reduced revenues, the reversal of $373,000 in credit loss provisions that had been recorded in 2022 and one time legal and settlement expenses incurred in 2022 of approximately $700,000 related to the settlement of a long standing lawsuit.

On December 31, 2023 the Company had cash on hand of $2.3 million and working capital of $6.7 million compared to $3.8 million of cash and $4.9 million of working capital on December 31, 2022.  The decrease in cash on hand was largely due to the repayment of $775,000 of the Company's operating loan and the repayment of $525,000 of long term debt during the year.

Total order bookings for the year were $36.5 million, a 3% decrease in bookings over the record bookings in 2022 of $37.7 million. The Company's order backlog stood at $50.1 million on December 31, 2023 compared to $38 million on December 31, 2022.

"Management looks forward to beginning the next phase of the Corporation's development", said Derek S. Webb, President and CEO.  "A strong backlog; healthy bidding activity and a number of exciting new products introduced and under development promise to provide us with the tools necessary to achieve growth in 2024."

"We are particularly excited about expanding both our organic as well as inorganic growth initiatives.  The market has been responsive to our new introductions and we expect the same level of interest with the next offering of complimentary technologies.  A number of new initiatives are underway with results expected to begin to be realized within the coming quarters.  All in all, a very exciting period for our company."

Revenue in the fourth quarter of 2023 was $12.2 million compared to $5.5 million in the previous quarter and $10.9 million in the fourth quarter of 2022. Orders booked in the quarter totaled $7.9 million.

Gross profit of $4.4 million in the fourth quarter amounted to 36.1% of revenue, which was higher than the 28% gross profit margin in the previous quarter and the 35.8% achieved in the same quarter the prior year. The increase in gross profit and  increased gross margin percentage  was the result of higher revenues in the quarter and a reduction in warranty and inventory valuation provisions.

Total operating expenses (net of other income) for the quarter were $1.3 million, a 50% reduction from the operating expenses of $2.6 million incurred during the fourth quarter of 2022. The comparative decrease from the fourth quarter a year ago was due to $700,000 of legal and settlement expenses and a $200,000 expected credit loss provisions recorded in the 4^th quarter of 2022.

Ebitda for the quarter was $3.3 million compared to ebitda of $1.3 million in the fourth quarter of 2022.

Net earnings for the quarter were $2.4 million compared to net earnings of $789,000 in the fourth quarter of 2022.

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 worldwide sales representative network and more than 2,000 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.

SOURCE Biorem Inc.

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