2009-11-09 23:11:05 -
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/09/09 -- BioteQ Environmental Technologies Inc. (TSX: BQE), a leader in the treatment of industrial waste water, today reported financial results for the three and nine months ended September 30, 2009. All figures are in Canadian dollars and are in accordance with Canadian GAAP, unless otherwise noted.
Third quarter operating and financial results summary:
- BioteQ treated over 2 billion litres of water during the third quarter, bringing the total treated in nine months to more than 6 billion litres; the company's water treatment plants removed 298,000 kg (658,000 pounds) of metal contaminants from the environment during the third quarter, bringing the total for nine months of 2009 to nearly 890,000 kg (2 million pounds).
- BioteQ's revenues from water treatment operations increased to $2.3 million in the third quarter of 2009, totaling $4.2 million in the nine months ended September 30. BioteQ had fewer active plants during the quarter compared to the same quarter last year. As a result, revenues remained below 2008 levels, when the company recorded $4.2 million in revenue for the third quarter and $6.5 million for the nine month period.
- BioteQ generated positive cash flow of $1.2 million from plant operations during the quarter.
- BioteQ reported an overall net loss of $262,000 for the quarter, compared to a net loss of $71,000 in Q3 2008, including non-cash items.
- The Company ended the quarter with working capital of $8.4 million (unchanged from the first half), and no debt.
Brad Marchant, BioteQ's CEO, stated, "BioteQ's financial results are continuing to improve, and we are working to bring all of our water treatment assets into active operation. We continue to expand the scope of our activities with important customers, we are investing in market diversification, and we have an active business development pipeline. We remain optimistic about BioteQ's future opportunities."
Significant events for the third quarter included:
- BioteQ successfully completed water treatment operations at the Minto Mine site in the Yukon. Subsequent to the quarter end, BioteQ entered into a fee-based contract with the site owner, Minto Explorations Limited, to design and construct a long-term water treatment plant at the site.
- BioteQ's water treatment plant in Dexing, China continued its strong performance, producing 650,000 pounds of copper during the quarter. The joint venture has revised its estimate for annual copper recovery to 1.8 million pounds of copper for the year, up from 1.2 million.
- BioteQ secured a fee-based contract with a new customer, Koza Gold, to design a SART plant for Koza's Mastra gold mine site in Turkey.
- BioteQ continued to implement technical improvements and cost reduction measures at the Bisbee water treatment plant. The plant, which has been on furlough since April 2009, is expected to resume operations by the end of the year.
- BioteQ announced plans to restart water treatment operations in Australia. Subsequent to the quarter end, operations resumed at the site.
BioteQ's quarterly 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 Tuesday November 10 at 11:00 am Eastern. Participants may call 1-888-789-9572 and enter reference number 2147238. A replay of the call will be available until November 24 by calling 1-800-408-3053, reference number 2726255. A recording will be available within two days of the call on the BioteQ website at www.bioteq.ca :
BioteQ Corporate Profile
BioteQ is a water treatment company that applies innovative technologies and operating expertise to solve challenging water treatment problems, reducing environmental liabilities while delivering lower life cycle costs for water treatment. The Company's commercially proven technologies treat industrial wastewater contaminated with dissolved heavy metals and sulphate, producing saleable by-products and clean water that can be discharged safely to the environment. BioteQ has built 8 plants at sites in Canada, the US, China, Australia and Mexico, with additional projects in design and construction.
BioteQ has been named one of Canada's Top 50 Most Socially Responsible Corporations by Jantzi Research and Maclean's, and the company's sustainable water treatment solutions have been recognized with the Globe Award for Environmental Excellence, the PDAC Award for Environmental and Social Responsibility, the China Mining Environmental Protection Award, and the Mines & Money Sustainable Development Award. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to www.bioteq.ca :
.
On behalf of the Board of Directors
Brad Marchant
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "might" or "will" occur. 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 and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled "Risks" in the Company's Annual Report for the Year Ended December 31, 2008. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
BioteQ Environmental Technologies Inc.
Consolidated Balance Sheets
---------------------------------------------------------------------------
Sep 30 2009 Dec 31 2008
(Unaudited)
$ $
Assets
Current assets
Cash and cash equivalents $ 3,282,265 $ 3,524,777
Short-term investments 3,051,171 5,702,696
Trade receivables 2,473,276 1,561,640
Receivable from joint venture partners 120,923 1,019
Current portion of loan receivable (note 8) 405,806 -
Taxes recoverable - 56,757
Inventory (note 6) 143,970 895,909
Prepaid expenses 206,132 373,858
Other receivables 26,387 -
-------------- --------------
9,709,930 12,116,656
Loan receivable (note 8) 9,851,726 4,413,191
Property, plant and equipment (note 9) 15,053,119 22,170,585
Intangible asset (note 10) 139,369 162,598
-------------- --------------
-------------- --------------
$ 34,754,144 $ 38,863,030
-------------- --------------
-------------- --------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 957,878 $ 2,010,691
Taxes payable 266,911 -
Deferred revenue 66,180 -
-------------- --------------
1,290,969 2,010,691
-------------- --------------
Shareholders' Equity
Capital stock, warrants and contributed
surplus (note 11) 58,428,637 57,757,637
Deficit (24,965,462) (20,905,298)
-------------- --------------
-------------- --------------
33,463,175 36,852,339
-------------- --------------
$ 34,754,144 $ 38,863,030
-------------- --------------
-------------- --------------
Approved by the Board of Directors
"P.B. Marchant" "C. Bruce Burton"
----------------------- -------------------------
P.B. Marchant, Director C. Bruce Burton, Director
For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca : .
BioteQ Environmental Technologies Inc.
Consolidated Statement of Operations, Comprehensive Loss and Deficit
(Unaudited)
For the nine months ended September 30, 2009
3 months ended Sep 30th, 9 months ended Sep 30th,
------------------------ ------------------------
2009 2008 2009 2008
$ $ $ $
Revenue $ 2,280,280 $ 4,171,093 $ 4,417,043 $ 6,493,064
------------------------ ------------------------
Operating expenses
Plant and other
operating costs 1,045,289 2,664,787 3,273,123 4,015,065
General and
administrative
expenses 630,916 615,256 1,994,474 1,727,832
Marketing and
development costs 231,602 318,313 644,784 739,350
------------------------ ------------------------
Operating expenses
before amortization
and stock-based
compensation 1,907,807 3,598,356 5,912,381 6,482,247
Amortization of
property, plant
and equipment 216,866 238,414 842,441 565,909
Amortization of
intangible asset 7,743 7,743 23,229 23,229
Stock-based
compensation charge 195,000 387,200 671,000 1,193,200
------------------------ ------------------------
Loss before the
undernoted (47,136) (60,620) (3,032,008) (1,771,521)
Interest income 4,238 232,941 42,125 673,451
Other income 41,680 - 98,770 -
Foreign exchange
loss (186,757) (62,798) (264,905) (159)
------------------------ ------------------------
Income (loss) before
income taxes (187,975) 109,523 (3,156,018) (1,098,229)
Income taxes
(note 12) 73,777 180,823 207,108 180,823
------------------------ ------------------------
Loss before
extraordinary items (261,752) (71,300) (3,363,126) (1,279,052)
Extraordinary items
net of tax (note 13) - - (697,038) -
------------------------ ------------------------
Net loss and
comprehensive loss
for the period (261,752) (71,300) (4,060,164) (1,279,052)
Deficit - Beginning
of period (24,703,710) (16,867,901) (20,905,298) (15,660,149)
------------------------ ------------------------
Deficit - End of
period (24,965,462) (16,939,201) (24,965,462) (16,939,201)
------------------------ ------------------------
------------------------ ------------------------
Loss per share
- basic and diluted
(note 11) $ - $ - $ (0.07) $ (0.02)
------------------------ ------------------------
------------------------ ------------------------
Weighted average
number of basic
and diluted shares
outstanding
(note 11) 61,926,973 59,587,130 61,926,973 59,990,282
------------------------ ------------------------
For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca :
BioteQ Environmental Technologies Inc.
Consolidated Statement of Cash Flows
(Unaudited)
For the nine months ended September 30, 2009
3 months ended Sep 30th, 9 months ended Sep 30th,
------------------------ ------------------------
2009 2008 2009 2008
$ $ $ $
Cash flows used in
operating activities
Loss for the period $ (261,752) $ (71,300) $(4,060,164) $(1,279,052)
Items not affecting
cash:
Amortization of
property, plant and
equipment 216,866 238,414 842,441 565,909
Amortization of
intangible asset 7,743 7,743 23,229 23,229
Stock based
compensation charge 195,000 387,200 671,000 1,193,200
------------------------ ------------------------
157,857 562,057 (2,523,494) 503,286
Change in non-cash
working capital
items (note 14) (661,520) (585,025) (842,907) (2,975,721)
------------------------ ------------------------
(503,663) (22,968) (3,366,401) (2,472,435)
------------------------ ------------------------
Cash flows from
financing activities
Proceeds from
exercise of warrants
and options - 29,933 - 1,052,815
------------------------ ------------------------
Cash flows from
(used in) investing
activities
Purchase of
property, plant
and equipment (5,230) (859,845) (27,636) (6,595,520)
Short-term
investments 591,405 4,475,491 2,651,525 13,074,887
Decrease (increase)
in loan receivable - (2,471,563) 500,000 (4,132,801)
------------------------ ------------------------
586,175 1,144,083 3,123,889 2,346,566
------------------------ ------------------------
Increase (decrease)
in cash and cash
equivalents 82,512 1,151,048 (242,512) 926,946
Cash and cash
equivalents -
Beginning of period 3,199,753 1,534,642 3,524,777 1,758,744
------------------------ ------------------------
Cash and cash
equivalents - End of
period $ 3,282,265 $ 2,685,690 $ 3,282,265 $ 2,685,690
------------------------ ------------------------
------------------------ ------------------------
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.
Contacts:
BioteQ Environmental Technologies Inc.
Tanja McQueen
Corporate Development
604-685-1243 or 1-800-537-3073
BioteQ Environmental Technologies Inc.
Caren Holtby
Investor Relations
604-685-1243 or 1-800-537-3073
604-685-7778 (FAX)
investor@bioteq.ca :
www.bioteq.ca :
