Ottawa – August 28, 2014 – BluMetric Environmental Inc. (TSX-V: BLM) announces the following unaudited results for the three and nine months ended June 30, 2014, with comparative unaudited results for the three- and nine-month periods ended May 31, 2013.
Revenues for the third quarter ended June 30, 2014 were $6,498,000 compared with $7,267,000 for the closest comparable period in 2013. The reported revenues were comparable to the $6,618,000 reported in the second quarter of fiscal 2014. Results were affected by two major projects experiencing start-up delays arising from client decisions over which the Company had no control. The anticipated revenue from these two projects is now expected to occur during the fourth quarter of 2014 and into fiscal 2015.
Despite the slight reduction in revenues in the quarter, gross margins and income per share improved relative to both the third quarter of fiscal 2013 and the second quarter of 2014.
Operating costs were substantially reduced from both the prior quarter of 2014 and the equivalent period in 2013, reflecting the previously reported measures to curtail expenses, particularly with respect to overhead. Temporary labour was hired to meet the summer bulge in business activity.
The Company is nearing break-even on a cash basis, and expects a strong fourth quarter for both divisions. In the short run, the Water division will focus on both cost control and working through the projects in the division’s order backlog, which at $11 million represents a more than 10% improvement over fiscal 2013’s total divisional sales. The Professional Services division will continue to focus on winning value-added contracts and building margins.
“BluMetric has significantly reduced its overhead, and is working to improve its margins,” said Roger Woeller, CEO of BluMetric Environmental. “To that end, the Company has reduced its staff levels, tightened its proposal procedures, improved project management across the board, and refined its marketing approach to focus on larger client contracts in under-served locations. While we would like to see a much stronger bottom line, we are encouraged by the improvements to our margins and bottom line progress towards profitability.”
BluMetric, a cleantech company, delivers sustainable solutions to complex environmental issues. The Company serves clients in many industrial sectors, and at all levels of government, in Canada and abroad.
BluMetric operates through two divisions:
More information can be obtained at www.blumetric.ca
Some of the statements in this press release, including those relating to the Company’s 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Ian Malone, CFO
Tel: (613) 839-4028 x121
Fax: (613) 731-0851
Robin M. Sundstrom
IRonside Investor Relations
Tel: (647) 822-8111