Ottawa – 2 March 2020 – BluMetric Environmental Inc. (TSX.V: BLM), a full-service environmental consulting and engineering cleantech firm, today announced its financial results for the three months ended December 31, 2019, recording revenue of $6.3 million and net earnings of $844,000, which included a gain on sale of the Company’s Ottawa office building of $948,000.
“During the quarter, we continued to see the positive effects of our efforts to enhance sector and income diversity through a more targeted approach to business development, including a focus on strategic partnerships and higher margin projects,” said Scott MacFabe, CEO of BluMetric. “We are now opening up new opportunities for sustained income growth and in particular we are pleased with increasing private sector revenues within our Commercial/Industrial and Mining markets and ongoing endeavours to build these lucrative client bases.”
While BluMetric’s Q1 FY2020 revenues of $6.3 million were down from $7.6 million in Q1 FY2019, this was primarily due to lower Military sector income stemming from a significant one-time contract in last year’s first quarter that did not repeat this year. The remaining decrease is attributed to a decline in the Company’s Government sector work in connection with less federal and provincial site investigation and remediation projects from the summer months leading up to the Fall 2019 federal election. The drop in total revenues was slightly offset by an increase in BluMetric’s Commercial/Industrial sector.
Consistent with BluMetric’s strategy to increase the significance of its private sector clients and projects, a number of meaningful operational developments and significant contracts were secured in Q1 of FY2020, as described below, that are expected to benefit the Company going forward.
Effective October 1, 2019, BluMetric adopted IFRS 16 - Leases using the modified retrospective approach and did not restate comparative information.
Highlights after adoption of IFRS 16 - Leases:
Highlights excluding the adoption of IFRS 16 - Leases:
An area of focus in FY2020 for BluMetric is ongoing growth within its Mining, and Commercial and Industrial markets. In particular, in these industries BluMetric is setting its sights on higher margin projects where the Company also sees the potential for deep, meaningful partnerships that deliver sustained income growth over the long term.
|Three Months Ended
December 31, 2019
|Three Months Ended
December 31, 2018
|Gross margin %||23%||22%|
|Gain on disposal of property, plant and equipment||(948)||-|
|EBITDA1 – Excluding IFRS 16||1,237||429|
|Adjusted EBITDA2 – Excluding IFRS 16||289||429|
|Earnings before provision for income tax||1,070||267|
|Deferred income tax expense||226||78|
|Income per share -basic and diluted||0.03||0.01|
Note 1: EBITDA is a non-IFRS measure and is calculated as net income before interest expense, income taxes, depreciation, and amortization.
Note 2: Adjusted EBITDA is a non-IFRS measure and is calculated as EBITDA before gain or loss on sale of property, plant and equipment.
The full results are available at www.sedar.com.
About BluMetric Environmental Inc.
BluMetric Environmental Inc. is an established publicly traded environmental consulting and engineering company with expertise across professional and trade disciplines and technologies that allow for the design, fabrication and delivery of sustainable solutions to environmental and water challenges. BluMetric has over 150 employees operating in ten offices and over 40 years of expertise. Headquartered in Ottawa, Ontario, BluMetric’s team of industry experts serves Commercial, Industrial, Military, Mining and Government clients in Canada and the United States.
For more information, visit www.blumetric.ca, or please contact:
Scott MacFabe, CEO
BluMetric Environmental Inc.
Vivian Karaiskos, CFO
BluMetric Environmental Inc.
Some of the statements in this press release, including those relating to the Company’s quarterly and annual results, future products, opportunities and cost initiatives, strategies, and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company’s expectations, estimates, and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.
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