Mr. Derek Webb reports

BIOREM REPORTS SECOND QUARTER RESULTS WITH 77% INCREASE IN YEAR OVER YEAR REVENUE AND RECORD ORDER BACKLOG

Biorem Inc. has released its results for the three- and six-month periods ended June 30, 2024. Biorem's complete second quarter financial statements and MD&A (management's discussion and analysis) have been filed on SEDAR+.

Biorem's revenue for the second quarter was $7.3-million, a 23-per-cent increase over the previous quarter and a 70-per-cent increase over the $4.3-million of revenue reported in the same quarter in 2023. Year-to-date revenue totalled $13.2-million, a 77-per-cent increase over the $7.4-million reported for the first six months of 2023. The increase in revenue for the first six months of 2024, compared with the prior year, is entirely due to the company's increase in orders received and resulting order backlog.

During the quarter, the company booked $13-million in new orders, resulting in a record order backlog of $57-million on June 30, 2024, compared with an order backlog of $51.5-million on June 30, 2023.

The company expects this record backlog to support strong revenue and earnings in the second half of the year.

"Our strategic initiatives gathered momentum in 2024," said Derek S. Webb, president and chief executive officer. "This is reflected in the product mix purchased by our clients, as well as new orders that have driven our order backlog to a record $57-million.

"There continues to be strong underlying demand for our full range of products and services, continued Mr. Webb. "Physical and chemical technologies are supplementing the core advanced biological solutions that customers have come to trust and rely upon. A large multistage project we recently confirmed in the Middle East offers a good example of this. The project will involve a combination of chemical and biological technologies to deal with emissions from a biosolids drying operation. Management is excited at working together with a repeat customer to deliver another successful project."

Gross profit for the quarter was $1.7-million or 22.7 per cent of revenue, compared with $954,000 of gross profit, representing 22.2 per cent of revenue recorded during the second quarter of 2023. Total operating expenses (net of other income) for the quarter were $1,145,000 against $1,018,000 in the same period the prior year. The increase in operating expenses in 2024 was primarily due to higher commission expenses on the higher revenue reported. EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $555,000, compared with $0 in the second quarter of 2023.

The company had net earnings for the quarter of $340,000, with year-to-date earnings of $681,000, compared with a net loss of $650,000 for the first half of 2023.

Cash on hand at June 30, 2024, decreased to $3.9-million. Earnings from operating activities during the quarter generated $629,000 of cash and net increases in non-cash working capital items used $2.5-million of cash reserves. Working capital at June 30, 2024, stood at $7.6-million.

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 odours, 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 1,600 installed systems worldwide, Biorem offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities.