Ottawa – July 15, 2020 – BluMetric Environmental Inc. (TSX.V: BLM), a full-service environmental consulting and engineering cleantech firm, today announced its financial results for the quarter ended March 31, 2020, recording revenue of $5.0 million and a net loss of $2.3 million. The net loss includes a non-cash impairment of goodwill of $1.6 million, which was required due to the decline in the Company’s market capitalization resulting from the economic impacts of the COVID-19 pandemic.
BluMetric’s decrease in revenue and gross profit for Q2 FY2020 was the result of a variety of factors. Most notably, the Company experienced a significant reduction in revenue within its Military and Government markets over last year’s comparable quarter as a result of several one-time contracts which did not repeat in FY2020. This decline was slightly offset by a marginal increase in the Company’s Commercial and Industrial market where BluMetric has refocused resources over the past year in order to pursue more private sector business.
Also contributing to the quarter’s weaker results was a greater proportion of time invested in business development that has not yet translated to revenue due to both longer sales cycles as well as projects being put on hold due to the uncertainty of the pandemic. Additionally, there were various revenue adjustments required to account for the ambiguity of certain projects continuing given both the economic turmoil and the restrictions imposed by the government as a result of the pandemic.
“The pandemic has been disruptive to our operations. However, BluMetric was fortunate to have much of its work deemed essential amid the COVID-19 shutdowns.” said Scott MacFabe, CEO of BluMetric. “Our approach to market diversification and keeping the safety of our people and clients first will enable BluMetric to move forward effectively.”
As at March 31, 2020, the Company was not in compliance with the fixed charge coverage ratio covenant related to its demand loan credit facility. This situation created a cross-default with the Company’s term loan agreement. Although the Company has received waivers from both its bank and term loan lender with respect to this cross-default, the Company was required to re-classify the term loan at March 31, 2020 to current liabilities under IFRS.
BluMetric has been fortunate that much of its work has been deemed essential under COVID-19 emergency orders. This has enabled the Company to have minimal disruption to its workforce.
BluMetric developed and enacted a Pandemic Response Plan to protect all employees, clients and communities in which it operates. The health and safety of these stakeholders is a key Company priority. Additionally, the Company has taken a number of proactive measures to manage its costs.
BluMetric will continue to monitor the impacts of the pandemic. The closure of non-essential businesses combined with extensive travel restrictions, particularly to and from projects in Canada’s North and other isolated areas, will have a negative impact overall on the Company’s business. Notwithstanding this widespread uncertainty, the Company will continue to make adjustments to effectively navigate the challenges of the pandemic.
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 and impairment of goodwill.
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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