BioteQ Reports 2011 Year End Operating and Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2012) - BioteQ Environmental Technologies, Inc. (TSX:BQE), a leader in the treatment of industrial wastewater, reports its financial and operating results for the year ended December 31, 2011. All figures are in Canadian dollars and are in accordance with International Reporting Standards (IFRS), unless otherwise noted.
Financial and operating results highlights for 2011:
BioteQ had active operations in Canada, the US, and China during 2011 that together treated 9.5 billion litres of contaminated water and removed 2.1 million pounds of metal contaminants from the environment. Company operations generated recurring revenues from water treatment fees and metals recovered; the Company also generated revenue from several engineering and service related contracts in Latin America and Eastern Europe. BioteQ's financial results for 2011 are in line with guidance issued by the Company in mid-October. Total revenues for the year were $7.4 million compared to $8.7 million in 2010. This was a 15% decline or $1.3 million lower than 2010. The decrease in revenue over the prior year was mainly due to the suspension of water treatment operations at the Minto site for the 2011 season and lower plant sale revenue in 2011. Operating income for the year was $2.8 million, compared to $3.8 million in 2010. The overall net loss for the year was $5.1 million, or $0.07 per share, compared to a loss of $10.9 million in 2010, or $0.16 per share. The Comprehensive loss for the period was $4.7 million compared to a loss of $12.4 million in 2010. Cash used in operating activities, before changes in working capital, was $3.5 million compared to cash generated by operations of $949,000 in 2010. Cash used in operating activities, including changes in working capital, was $2.5 million in 2011. These figures include one-time costs for CEO transition expenses of $750,000. Working capital at the end of 2011 was $9.5 million which included $9.3 million in cash and short-term investments. BioteQ ended the year with total assets of $19.3 million compared to $22.1 million in 2010. Looking ahead to 2012 and beyond, BioteQ has adopted a new strategy that contains a more focused and proactive commercial approach. Going forward, it is management's intention that the company will have a significantly enhanced focus on Sales and Business Development activities. This includes:
The recent hiring of BioteQ's first Vice President of Sales and Marketing and its first Sales Manager for Latin America. BioteQ is creating a dedicated team of Sales professionals, including sales engineering and market research resources. The Sales team will be focused on proactively selling and closing contracts for BioteQ's commercial technologies including BioSulphide(R) and ChemSulphide(R), ion exchange for metal recovery, SART, and a limited range of Sulf-IX™ applications; Development and furthering of effective and commercially productive channel relationships with select alliance partners such as Newalta and Ecometales; Separation of Business Development activities from Sales. Business Development will focus on the testing and early deployment of pre-commercial systems (which, at present, are mainly Sulf-IX™ related) into novel applications and into new market verticals such as power generation and frac water treatment. A recent reorganization of senior management within the company that included the appointment of Dr. David Kratochvil to the role of Chief Technology Officer has created greater bandwidth and focus for the company's Business Development activities. In the near term, the goals of the organization centre very clearly on significantly growing the Company's revenue base and driving to positive cash flow within the next 18 to 24 months.
BioteQ's key milestone targets for 2012:
Revenue is expected to increase to at least $10 million, an increase of more than 30% compared to 2011; Cash used in operations (including changes in working capital) is expected to be reduced from $2.5 million in 2011 to less than $1.5 million in 2012; A first commercial plant sale to a channel partner is expected to close; A first plant sale and/or significant operating contract in Latin America is expected to close; A pilot will be undertaken in a market vertical outside of hard rock mining. Jonathan Wilkinson, BioteQ's Chief Executive Officer, stated "BioteQ is committed to delivering concrete commercial progress in 2012 and beyond. The opportunities in front of us are large. While the full impact of some of the organizational and commercial changes that have recently been made will take time, given the lengthy sales cycles that exist in our chosen markets, we are confident that the Company will turn the corner and will demonstrate concrete commercial progress in 2012 and beyond to shareholders and partners."
BioteQ's financial statements and the Company's MD&A have been filed on SEDAR, www.sedar.com, and will be available on the BioteQ website at www.bioteq.ca.
A conference call to discuss the financial results is scheduled for Thursday March 29 at 11:00 am Eastern. Participants can access the call by dialing 416-695-7806 or 1-888-789-9572, reference number 9447043. A playback of the call will be available until April 12th by dialing 905-694-9451 or 1-800-408-3053, reference number 3591824. A recording of the call will be available on the BioteQ website within two days of the call.
BioteQ Corporate Profile
BioteQ is an innovative clean technology leader in global industrial water treatment. The Company's proven technologies have been applied at sites around the world to recover dissolved metals and remove sulphate, producing clean water and eliminating residual waste. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. Please visit our website at www.bioteq.ca for additional information.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained herein may not be based on historical fact and therefore constitutes "forward-looking information" under applicable Canadian securities legislation. This includes without limitation statements containing the words "plan", "expect", "project", "estimate", "intend", "believe", "anticipate", "may", "will" and other similar words or expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at www.sedar.com (including without limitation the factors described in the section entitled "Risks and Uncertainties" in the Company's Annual Report for the year ended December 31, 2011 and the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2011). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.
| BioteQ Environmental Technologies Inc. | | Consolidated Statement of Financial Position | | As at December 31, 2011 and 2010 | | Audited | | | Dec 31 2011 | Dec 31 2010 | Jan 1 2010 | | $ | $ | $ | | Assets | | (note 26) | | | Current assets | | | | | Cash | 4,774,970 | 4,653,465 | 2,491,302 | | Short-term investments | 4,486,097 | 7,957,391 | 2,849,244 | | Trade receivables | 1,664,326 | 1,676,963 | 2,169,978 | | Receivable from joint venture partners | 182,286 | 180,204 | 47,288 | | Current portion of loan receivable (note 7) | - | - | 468,424 | | Net insurance proceeds receivable (note 9) | 637,099 | 618,248 | - | | Taxes recoverable | 153,889 | 15,469 | 76,597 | | Inventory (note 10) | 48,174 | 54,723 | 673,617 | | Work in progress | 432,261 | 29,378 | - | | Prepaid expenses | 222,709 | 241,089 | 223,009 | | 12,601,811 | 15,426,930 | 8,999,459 | | Non-current assets | | | | | Loan receivable | - | - | 10,339,235 | | Property, plant and equipment (note 11) | 6,615,837 | 6,641,668 | 10,273,858 | | Intangible asset | 69,682 | 100,654 | 131,626 | | Total assets | 19,287,330 | 22,169,252 | 29,744,178 | | | | | | Liabilities | | | | | Current liabilities | | | | | Accounts payable and accrued liabilities | 2,659,249 | 1,544,901 | 1,295,759 | | Deferred revenue | 340,185 | - | - | | Taxes payable | 63,105 | - | - | | Deferred lease inducement | 18,945 | 47,362 | - | | 3,081,484 | 1,592,263 | 1,295,759 | | Non-current liabilities | | | | | Deferred income tax liability (note 16) | 88,713 | - | - | | Long-term liabilities (note 12) | 111,146 | 46,884 | - | | Total liabilities | 3,281,343 | 1,639,147 | 1,295,759 | | | | | | Shareholders' Equity | | | | | Capital stock and warrants (note 13) | 55,269,416 | 55,182,229 | 51,148,380 | | Contributed surplus | 8,117,400 | 8,045,826 | 7,586,362 | | Accumulated other comprehensive loss | (1,075,369) | (1,482,945) | - | | Deficit | (46,305,460) | (41,215,005) | (30,286,323) | | Total shareholders' equity | 16,005,987 | 20,530,105 | 28,448,419 | | Total liabilities and shareholders' equity | 19,287,330 | 22,169,252 | 29,744,178 | | Commitments (Note 22) | | | | Approved by the Board of Directors
| Jonathan Wilkinson, Director | | G.W. Poling, Director | | | | | For a complete set of consolidated financial statements including accompanying notes, go to bioteq.ca. | | | BioteQ Environmental Technologies Inc. | | Consolidated Statement of Operations and Comprehensive Loss | | For the years ended December 31, 2011 and 2010 | | Audited | | | | | 2011 | 2010 | | $ | $ | | Revenue | 7,413,797 | 8,744,237 | | Plant and other operating costs (other than depreciation) | 4,654,065 | 4,920,893 | | 2,759,732 | 3,823,344 | | General and administration | 4,991,527 | 3,094,422 | | Marketing and development | 955,225 | 842,572 | | Stock-based compensation | 101,878 | 471,079 | | Depreciation of property, plant and equipment (note 11) | 664,038 | 848,828 | | Amortization of intangible asset | 30,972 | 30,972 | | Loss before the under-noted | (3,983,908) | (1,464,529) | | Interest income | 122,418 | 79,133 | | Other income | 2,376 | 99,713 | | Foreign exchange gain (loss) | (204,519) | 967,650 | | Write-down of capital assets | (554,565) | - | | Lease fee income | - | 1,000,710 | | Impairment of Mt. Gordon operations | - | (3,103,981) | | Impairment of Lluvia de Oro operations | - | (8,282,650) | | Loss before income taxes | (4,618,198) | (10,703,954) | | Income taxes (note 16) | 472,257 | 224,728 | | Net loss for the year | (5,090,455) | (10,928,682) | | | | | Other comprehensive income (loss) | | | | Cumulative translation adjustment | 407,576 | (1,482,945) | | Comprehensive loss for the year | (4,682,879) | (12,411,627) | | | | | Net loss per share | | | | Basic and diluted (note 17) | (0.07) | (0.16) | | | | | Weighted average number of shares outstanding | | | | Basic and diluted (note 17) | 69,949,120 | 67,782,512 | | | | | For a complete set of consolidated financial statements including accompanying notes, go to bioteq.ca. | | | BioteQ Environmental Technologies Inc. | | Consolidated Statement of Changes in Equity | | For the years ended December 31, 2011 and 2010 | | Audited | | | | | | | | Accumulated
other
comprehensive
income (loss) | | | | Number
of shares | | | Contributed surplus | | | | Capital
stock | Warrants | Deficit | Total | | | $ | $ | $ | $ | $ | $ | | Balance - January 1, 2010 | 66,190,308 | 51,148,380 | - | 7,586,362 | - | (30,286,323) | 28,448,419 | | Issuance of capital stock and warrants (note 13) | 3,636,364 | 2,486,583 | 1,513,417 | - | - | - | 4,000,000 | | Stock-based compensation | - | - | - | 471,079 | - | - | 471,079 | | Exercise of options | 38,334 | 33,849 | - | (11,615) | - | - | 22,234 | | Net income for the period | - | - | - | - | - | (10,928,682) | (10,928,682) | | Other comprehensive loss for the year | - | - | - | - | (1,482,945) | - | (1,482,945) | | Balance - December 31, 2010 | 69,865,006 | 53,668,812 | 1,513,417 | 8,045,826 | (1,482,945) | (41,215,005) | 20,530,105 | | | | | | | | | | Balance - January 1, 2011 | 69,865,006 | 53,668,812 | 1,513,417 | 8,045,826 | (1,482,945) | (41,215,005) | 20,530,105 | | Stock-based compensation | - | - | - | 101,878 | - | - | 101,878 | | Exercise of options | 101,666 | 87,187 | - | (30,304) | - | - | 56,883 | | Net loss for the period | - | - | - | - | - | (5,090,455) | (5,090,455) | | Other comprehensive income for the year | - | - | - | - | 407,576 | - | 407,576 | | Balance - December 31, 2011 | 69,966,672 | 53,755,999 | 1,513,417 | 8,117,400 | (1,075,369) | (46,305,460) | 16,005,987 | | | | | | | | | | For a complete set of consolidated financial statements including accompanying notes, go to bioteq.ca. | | | BioteQ Environmental Technologies Inc. | | Consolidated Statement of Cash Flow | | For the years ended December 31, 2011 and 2010 | | Audited | | | | 2011 | 2010 | | $ | $ | | Cash flow provided by (used in) | | | | | | | Operating activities | | | | Net loss for the year | (5,090,455) | (10,928,682) | | Items not affecting cash: | | | | Depreciation of property, plant and equipment | 664,038 | 848,828 | | Amortization of intangible asset | 30,972 | 30,972 | | Amortization of deferred lease inducement | (28,417) | (14,208) | | Deferred income tax | 88,713 | - | | Write down of capital assets | 554,565 | - | | Loss on disposal of equipment | 6,171 | - | | Impairment of Lluvia Oro operations | - | 8,282,650 | | Impairment of Mt. Gordon operations | - | 3,103,981 | | Unrealized foreign exchange (gain) loss | 230,021 | (774,631) | | Interest income | (99,110) | (70,549) | | Stock-based compensation charge (note 13) | 101,878 | 471,079 | | (3,541,624) | 949,440 | | Change in non-cash working capital items (note 18) | 992,968 | 248,557 | | Net cash provided by (used in) operating activities | (2,548,656) | 1,197,997 | | Investing activities | | | | Purchase of property, plant and equipment | (984,892) | (1,038,681) | | Proceeds on disposal of capital assets | 12,604 | - | | Purchase of short-term investments | (14,053,596) | (22,952,189) | | Proceeds from sale of short-term investments | 17,624,000 | 17,914,591 | | Increase in loan receivable | - | (99,713) | | Increase in interest in loan receivable | - | (106,029) | | Increase in accrued lease fee income | - | (1,000,710) | | Repayment of loan receivable | - | 4,106,461 | | Net cash provided by (used in) investing activities | 2,598,116 | (3,176,270) | | Financing activities | | | | Proceeds from exercise of options | 56,883 | 22,234 | | Proceeds from issuance of capital stock and warrants | - | 4,000,000 | | Increase in long-term liabilities | 64,262 | 46,884 | | Net cash provided by financing activities | 121,145 | 4,069,118 | | 170,605 | 2,090,845 | | Effect of exchange rate changes on cash and cash equivalents | (49,100) | 71,318 | | Increase in cash and cash equivalents | 121,505 | 2,162,163 | | Cash and cash equivalents | | | | Beginning of year | 4,653,465 | 2,491,302 | | End of year | 4,774,970 | 4,653,465 | | For a complete set of consolidated financial statements including accompanying notes, go to www.bioteq.ca. | |
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
conference call
http://bioteq.ca/water-treatment/wp-content/uploads/2012/03/2011-BioteQ-YE-Conference-Call.mp3
|
