2009-11-10 22:28:03 -
OAKVILLE, ONTARIO -- (Marketwire) -- 11/10/09 -- Bennett Environmental Inc. (TSX: BEV) (the "Company" or "BEI") today announced its third quarter 2009 results for the period ending September 30, 2009. Revenue for the quarter was $10.9 million, pre-tax income was $6.3 million and after-tax income was $8.9 million. Earnings per share were $0.32 on a fully diluted basis.
Mr. Christopher Wallace, Chairman of the Board, commented "We are clearly pleased with these results. They reflect a great deal of effort over the last several years. We have implemented a strategy that focused on our soil treatment business, we have continued to manage our costs, management has maintained focus and these financial results are the result."
Mr. Jack Shaw, President and CEO, added the following remarks "The Q3 results reflect the impact of the Pottersburg Creek project. This is the first quarter where the positive impact of this project has been fully felt. At the end of October we had soil in inventory that was approximately two times the volume processed in the third quarter, some 95 per cent of that amount from Pottersburg.
Saint Ambroise has operated since the beginning of April with no material unplanned interruptions. This reflects the quality of the leadership and team in Saint Ambroise as well as the robust nature of our technology. We have invested appropriately in advance of this project and have seen the results during this and the preceding quarter. As previously announced, we had a scheduled shutdown at the beginning of November reducing our projection for the period correspondingly. We continue to aggressively pursue new projects and at this time we have announced all work we are confident of receiving."
The Board and management are seeking opportunities to diversify the Company's business.
The Company also made the following comments on its results, with fuller discussion in the Management Discussion and Analysis available on
media3.marketwire.com/docs/BennettMDAQ309.pdf :
and Interim Consolidated Financial Statements available on
media3.marketwire.com/docs/BennettIFSQ309.pdf.
The Company recognizes revenue after material has been processed. Amounts and holdbacks receivable pertain to unpaid invoices for processed materials only.
The income tax recovery in the quarter is the result of recognizing future tax assets of $3.2 million and future tax liabilities of $0.6 million in advance of the date they will be realized. The future tax asset is being recognized now because it is "more likely than not" that future earnings from processing existing soil inventories will utilize tax loss carryforwards belonging to the operating entity. It is the intention of management to implement a reorganization of various entities that will, among other things, make all income tax carry forwards, held by the group of subsidiaries comprising BEI, available to those entities earning taxable income.
Forward Looking Statements
Certain statements contained in this press release and in certain documents incorporated by reference into this press release constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and "confident" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. BEI believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of this press release. BEI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Bennett Environmental Inc.
Bennett Environmental Inc. is a North American leader in high temperature treatment services for the treatment of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the U.S. Bennett Environmental's technology provides for the safe, economical and permanent solution to contaminated soil. Independent testing has consistently proven that the technology operates well within the most stringent criteria in North America. For information, please visit the Bennett Environmental website at: www.bennettenv.com :
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BENNETT ENVIRONMENTAL INC.
Interim Consolidated Balance Sheets
(Expressed in Canadian dollars)
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September 30, December 31,
2009 2008
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(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 6,144,652 $ 2,602,692
Restricted cash (note 3) 870,530 1,793,708
Amounts receivable (note 7) 8,494,746 7,414,973
Holdbacks receivable (note 8) 2,060,912 -
Deferred transportation costs - 110,283
Prepaid expenses and other 719,934 701,976
Future income tax asset (note 15) 2,595,354 -
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20,886,128 12,623,632
Property, plant and equipment 8,438,844 9,664,407
Assets under capital leases (note 4) 367,558 -
Assets held for sale (note 5) 3,007,284 3,007,284
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$ 32,699,814 $ 25,295,323
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 4,575,250 $ 4,185,212
Liabilities related to assets held for
sale (note 5) 1,624,670 1,551,500
Income taxes payable 1,962,679 2,363,981
Deferred revenue - 175,496
Current portion of long-term liabilities
(note 10) 519,390 1,019,244
Current portion of lease obligations
(note 11) 121,062 -
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8,803,051 9,295,433
Long-term liabilities (note 10) 3,155,886 3,460,152
Long-term portion of lease obligations
(note 11) 215,443 -
Shareholders' equity:
Share capital (note 12) 71,904,963 71,733,963
Contributed surplus 4,229,902 4,085,649
Share purchase warrants (note 13) 429,056 429,056
Accumulated deficit (56,038,487) (63,708,930)
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20,525,434 12,539,738
Continuing operations (note 1)
Contingencies (note 18)
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$ 32,699,814 $ 25,295,323
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These interim consolidated financial statements do not include accompanying
notes. A complete set of interim consolidated financial statements
including notes is available on
media3.marketwire.com/docs/BennettIFSQ309.pdf : .
BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Operations and Comprehensive Income
(Expressed in Canadian dollars)
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Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
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(Unaudited) (Unaudited)
Sales $ 10,916,688 $ 15,517 $ 17,411,462 $ 2,307,723
Expenses:
Operating costs 3,000,741 455,714 7,373,743 2,789,198
Administration
and business
Development 1,183,396 1,380,855 3,585,294 3,545,061
Depreciation
and amortization 456,881 483,131 1,356,452 1,694,595
Impairment of
long-lived
assets (note 5) - - - 723,903
Foreign
exchange 4,519 (196) 7,623 37,580
Interest 11,780 133,681 105,777 153,446
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4,657,317 2,453,186 12,428,889 8,943,783
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Earnings (loss)
before the
undernoted 6,259,371 (2,437,668) 4,982,573 (6,636,060)
Other income,
including
interest 60,231 22,825 160,200 166,878
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Earnings (loss)
before income
taxes 6,319,602 (2,414,843) 5,142,773 (6,469,182)
Income tax
expense
(recoverable)
(note 15)
Current - - 67,684 69,473
Future (2,595,354) - (2,595,354) -
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(2,595,354) - (2,527,670) 69,473
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Net earnings
(loss) from
continuing
operations 8,914,956 (2,414,843) 7,670,443 (6,538,655)
Net earnings
(loss) from
discontinued
operations
(note 6) - (31,755) - (325,711)
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Net earnings
(loss) for the
period, being
comprehensive
income $ 8,914,956 $ (2,446,598) $ 7,670,443 $ (6,864,366)
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Net earnings
(loss) from
continuing
operations per
common share
(note 16)
Basic $ 0.33 $ (0.09) $ 0.28 $ (0.24)
Diluted 0.32 (0.09) 0.28 (0.24)
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Net earnings
(loss) from
discontinued
operations per
common share
(note 16)
Basic $ - $ - $ - $ (0.01)
Diluted - - - (0.01)
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Net earnings
(loss) per
common share
(note 16)
Basic $ 0.33 $ (0.09) $ 0.28 $ (0.25)
Diluted 0.32 (0.09) 0.28 (0.25)
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These interim consolidated financial statements do not include accompanying
notes. A complete set of interim consolidated financial statements
including notes is available on
media3.marketwire.com/docs/BennettIFSQ309.pdf : .
BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Accumulated Deficit
(Expressed in Canadian dollars)
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Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
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(Unaudited) (Unaudited)
Accumulated
deficit,
beginning
of period $ (64,953,443) $ (63,494,449) $ (63,708,930) $ (59,076,681)
Net earnings
(loss) for
the period 8,914,956 (2,446,598) 7,670,443 (6,864,366)
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Accumulated
deficit,
end of
period $ (56,038,487) $ (65,941,047) $ (56,038,487) $ (65,941,047)
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These interim consolidated financial statements do not include accompanying
notes. A complete set of interim consolidated financial statements
including notes is available on
media3.marketwire.com/docs/BennettIFSQ309.pdf : .
BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)
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Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
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(Unaudited) (Unaudited)
Cash provided
by (used in):
Operations:
Net earnings (loss)
from continuing
operations $ 8,914,956 $ (2,414,843) $ 7,670,443 $ (6,538,655)
Items not involving
cash:
Depreciation and
amortization 456,881 483,131 1,356,452 1,694,596
Stock-based
compensation 40,486 19,257 224,053 74,464
Foreign
exchange related
to U.S.
Department
of Justice
accrual (214,337) 123,450 (342,057) 202,235
Loss from
impairment
of long-lived
assets - - - 723,903
Accretion interest 20,552 - 67,237 -
Future income
taxes (recovery) (2,595,354) - (2,595,354) -
Changes in non-cash
operating working
capital (5,315,692) 898,828 (3,178,459) 3,342,044
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Cash provided by
(used for)
continuing
operations 1,307,492 (890,177) 3,202,315 (501,413)
Cash provided by
(used for)
discontinued
operations - 199,376 - 8,628
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Cash provided by
(used for)
operating
activities 1,307,492 (690,801) 3,202,315 (492,785)
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Financing:
Cash provided by
(used for) financing
activities
Repayment
of lease
obligations (30,035) - (30,035) -
Repayments
of long-term
liabilities (5,319) - (512,791) (75,000)
Issuance of
share capital 91,200 - 91,200 -
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Cash provided by
(used for)
financing
activities 55,846 - (451,626) (75,000)
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Investments:
Change in
restricted cash 875,339 (40,713) 923,178 (68,229)
Purchase of
property,
plant and
equipment (62,902) (2,845) (131,907) (4,579)
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Cash provided by
(used for)
investing
activities 812,437 (43,558) 791,271 (72,808)
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Increase (decrease)
in cash and
cash equivalents 2,175,775 (734,359) 3,541,960 (640,593)
Cash and cash
equivalents,
beginning of period 3,968,877 4,003,602 2,602,692 3,909,836
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Cash and cash
equivalents,
end of period $ 6,144,652 $ 3,269,243 $ 6,144,652 $ 3,269,243
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Supplemental
cash flow
information:
Interest paid $ 3,049 $ 26,446 $ 33,112 $ 56,200
Income taxes paid 13,149 - 85,149 -
Income tax refund 40,668 - 338,926 1,060,300
Non-cash
transactions:
Leases on asset
acquisitions $ - $ - $ 397,360 $ -
These interim consolidated financial statements do not include accompanying
notes. A complete set of interim consolidated financial statements
including notes is available on
media3.marketwire.com/docs/BennettIFSQ309.pdf : .
Contacts:
Bennett Environmental Inc.
Jack Shaw
(905) 339-1540
