Bennett Environmental Announces Q2 Results.Business Editors OAKVILLE Oakville, town (1991 pop. 114,670), Ont., Canada, on Lake Ontario, between Toronto and Hamilton. A major component of the local economy is the Ford Motor Co plant, one of the largest auto plants in Canada. , Ontario--(BUSINESS WIRE)--July 24, 2003 Bennett Environmental Bennett Environmental TSX: BEV AMEX: BEL is a Canadian company based in Oakville, Ontario. It specializes in the recovering of soils contaminated with chlorinated hydrocarbons, including PCB's and PCP's, Dioxins and Furans. Inc., a North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. leader in the high temperature treatment of contaminated contaminated, v 1. made radioactive by the addition of small quantities of radioactive material. 2. made contaminated by adding infective or radiographic materials. 3. an infective surface or object. soils, announces a Q2 profit of $3,083,870 or $0.18 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on revenue of $13,369,587. Compared to the same quarter last year, the Company significantly increased its profit from $1,119,145 or $0.06 per share on revenue of $7,405,649. "Given the weather related challenges of record rainfall levels in the northeast US which impacted the steady flow of shipments, I am pleased with the results we achieved in the quarter", said John Bennett
John Bennett may refer to:
Mr. Bennett added, "With shipments from Resolution Island and Saglek Labrador Labrador: see Labrador-Ungava; Newfoundland and Labrador, Canada. Labrador Large peninsula, northeastern Canada. Divided between the provinces of Quebec and Newfoundland and Labrador, it occupies an area of about 625,000 sq mi (1,620,000 sq km). in the Canadian North
Recent Bennett announcements include: -- The Company currently has $272 million of contracts in backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. representing approximately 400,000 tonnes of soil. These contracts include soil from Phase II and Phase III of the Federal Creosote Superfund project in New Jersey, clean-ups from DEW line DEW line n. A line of radar stations near the 70th parallel across the North American continent, maintained by the United States and Canada and intended to give advance warning of approaching enemy aircraft and missiles. (distant early warning) sites in the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. north, scheduled shipments from the recently announced 5-year agreement with a major electrical manufacturer, Canadian Government contracts in Eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
TERC Total Environmental Restoration Contract TERC Technology Education Research Center TERC Turbine Engine Research Center TERC Technical Education Resource Center TERC Tribal Emergency Planning Committee contracts (Total Environmental Restoration Contracts) and several additional projects throughout Canada and the United States. -- The new storage facility at our Saint Ambroise, Quebec facility was completed in mid-June and is now accepting shipments. This additional storage will give the Company the ability to store the growing backlog of orders and to dry and optimally blend the soil to more efficiently treat the materials. We expect to have 40,000 tonnes in storage by the end of this year. -- The Government of New Brunswick New Brunswick, province, Canada New Brunswick, province (2001 pop. 729,498), 28,345 sq mi (73,433 sq km), including 519 sq mi (1,345 sq km) of water surface, E Canada. is completing its review of our permit application to construct a high temperature soil treatment facility to be located near the Port of Belledune in northeastern New Brunswick and will be the key tenant in the Renviro environmental industrial park. Approval is expected shortly. Construction on this $20 million project is anticipated to start in August and full production is expected by early Q2 2004. -- The Company's current backlog of contracts is expected to keep both its existing and new plants full for the next several years allowing for the healthy growth in revenues and earnings to continue for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. The Company reiterates that it is confident in achieving the previously stated financial guidance of Cdn. $70 -$75 million (U.S. $50 - $53 million) in revenue and Cdn. $1.20 - $1.30 (U.S. $0.85 - $0.92) in earnings per share. This represents a further 50% increase in sales revenue and a 70% increase in earnings over 2002 record levels. Results of Operations Bennett Environmental had a Q2 profit of $3,083,870 or $0.18 per fully diluted share versus a profit of $1,119,145 or $0.06 per share in the corresponding period last year. Revenues were $13,369,587 in the quarter versus $7,405,649 for Q2 2002. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis profits are $6,178,567 or $0.36 per fully diluted share on revenues of $25,419,700. Compared to the first 6 months of last year, profit was $4,780,251 or $0.28 per share on revenues of $20,238,779. The Company's operating costs operating costs npl → gastos mpl operacionales of $6,503,884 for the second quarter, were higher than the $3,914,177 for the same period last year and reflect the higher plant utilization in the quarter. In total, 13,000 tonnes of soil were processed in the quarter compared to 8,000 tonnes for the same period last year. So far this year nearly 29,000 tonnes has been thermally treated. Administrative and business development costs of $1,691,262 for the quarter were higher than the $1,196,827 incurred in Q2 2002 due to the significant increases in sales and marketing effort this quarter versus the same period last year. The Company's cash position has decreased slightly in the quarter due to working capital and capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. demands with cash on hand of $10,505,182 at June 30 2003, down by $940,470 from March 31, 2003. Cash balances are reduced by $3,179,193 from $13,684,375 at the end of the same period last year. Receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed balance of $16,163,636 is up from the $12,505,945 outstanding at the end of December 31 2002 and reflects the higher level of sales activity late in the quarter versus Q4 2002 and a high level of receivables due from the Government of Canada The Government of Canada is the federal government of Canada. The powers and structure of the federal government are set out in the Constitution of Canada. In modern Canadian use, the term "government" (or "federal government") refers broadly to the cabinet of the day and as part of the negotiated payment schedule negotiated payment schedule Negotiated fee schedule, see there on the Saglek Labrador project. The Company's net working capital position at March 31 2003 increased to $21,613,551 from the net working capital position of $18,206,207 at December 31, 2002. During the quarter the Company invested $1,924,069 in new plant and equipment at the Saint Ambroise treatment facility, primarily for the construction of a significantly larger soil storage building, which will enhance the Company's ability to service its customers and reduce the Company's dependence on timely customer shipments. About Bennett Environmental Inc. Bennett Environmental Inc. is a North American leader in high temperature treatment services for the remediation of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the US. Bennett Environmental's proprietary 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 North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Bennett Environmental is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (Trading Symbol Trading symbol See: Ticker symbol "BEV") and the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (Trading Symbol "BEL Bel (bāl, bĕl), deity of the Middle Eastern religions. The name is a cognate of that of Baal. For Bel in the Bible, see Bel and the Dragon. "). Note for Investors: This news release includes statements about expected future events and/or financial results that are forward looking in nature and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. provisions contained in the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. The Company cautions that actual performance will be affected by a number of various factors, many of which are beyond the company's control. Discussions of the various factors that may affect future results are contained in the company's filings with the Securities and Exchange Commission and Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. .
BENNETT ENVIRONMENTAL INC.
Consolidated Balance Sheets
(Expressed in Canadian dollars)
As at June 30, 2003 with comparative figures
As at December 31, 2002
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June 30 December 31
2003 2002
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(unaudited)
Assets
Current assets
Cash and cash equivalents $ 10,505,182 $ 19,267,639
Accounts receivable 16,163,636 12,505,945
Work-in-progress 267,699 411,051
Prepaid expenses and other 2,440,854 1,177,214
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29,377,371 33,361,849
Investment 851,395 851,395
Property Plant and Equipment 16,866,666 14,263,408
Other assets 3,817,655 3,261,384
Goodwill 646,638 646,638
$ 51,559,725 $ 52,384,674
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Liabilities and Shareholders'
Equity
Current liabilities
Accounts payable and accrued
liabilities $ 5,766,630 $ 7,978,096
Income taxes payable 863,916 $ 5,862,523
Current portion of long-term
debt 1,133,274 1,315,023
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7,763,820 15,155,642
Future income tax liability 945,738 895,738
Long-term debt 488,060 829,434
Shareholders' equity
Share capital 24,561,681 23,882,001
(Common shares outstanding
16,745,189 (2002 - 16,508,739))
Retained Earnings 17,800,426 11,621,859
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42,362,107 35,503,860
$ 51,559,725 $ 52,384,674
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BENNETT ENVIRONMENTAL INC.
Consolidated Statement of Operations and Retained Earnings (Deficit)
(Expressed in Canadian dollars)
For the Six-Month Period Ended June 30, 2003 with comparative
figures for the Six-Month Period Ended June 30, 2002, and the
Three-Month Period Ended June 30, 2003 with the comparative figures
for the Three-Month Period Ended June 30, 2002
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6 months 3 months
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
(unaudited) (unaudited) (unaudited) (unaudited)
Sales $25,419,700 $20,238,779 $13,369,587 $7,405,649
Interest and
other income 333,831 378,808 65,551 188,776
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25,753,531 20,617,587 13,435,138 7,594,425
Expenses
Operating costs 11,677,955 9,173,278 6,503,884 3,914,177
Administration
and business
development 3,480,587 2,957,877 1,691,262 1,196,827
Amortization 847,209 609,787 406,034 285,013
Foreign exchange 481,319 386,128 265,653 386,128
Interest expenses 50,921 121,219 14,207 84,509
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16,537,991 13,248,289 8,881,040 5,866,654
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Earnings before
income taxes 9,215,540 7,369,298 4,554,098 1,727,771
Income tax expense
Current 2,986,973 2,380,905 1,356,801 457,425
Future 50,000 208,142 113,427 151,201
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3,036,973 2,589,047 1,470,228 608,626
Net earnings 6,178,567 4,780,251 3,083,870 1,119,145
Retained Earnings
(Deficit),
beginning of
period 11,621,859 (144,817) 14,716,556 3,516,289
Retained Earnings,
end of period $17,800,426 $4,635,434 $17,800,426 $4,635,434
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Basic earning
per share $0.37 $0.30 $0.18 $0.07
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Fully diluted
earnings per share $0.36 $0.28 $0.18 $0.06
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BENNETT ENVIRONMENTAL INC.
Consolidated Statement of Cash Flows
(Expressed in Canadian dollars)
For the Six-Month Period Ended June 30, 2003 with comparative figures
for the Six-Month Period Ended June 30, 2002, and the Three-Month
Period Ended June 30, 2003 with the comparative figures for the
Three-Month Period Ended June 30, 2002
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6 months 3 months
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
(unaudited) (unaudited) (unaudited) (unaudited)
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CASH PROVIDED BY
(USED IN):
Operations
Net earnings $6,178,567 $4,780,251 $3,083,870 $1,119,145
Items not
involving cash
Amortization 847,209 609,787 406,034 285,013
Stock-based
compensation - 18,113 - 18,113
Shares issued for
services rendered 2,840 - 2,840 -
Future income taxes 50,000 208,142 113,427 151,201
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7,078,616 5,616,293 3,606,171 1,573,472
Change in non-cash
operating working
capital
Accounts receivable (3,657,691) 4,844,717 (1,570,341) 3,983,287
Work-in-progress 143,352 1,599,250 197,039 1,103,434
Prepaid expenses
and other (1,263,640) (472,798) 173,773 386,301
Accounts payable
and accrued
liabilities (2,211,466) (1,733,083) 15,203 (362,950)
Income taxes payable (4,998,607) 774,228 (871,852) 61,354
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(11,988,052) 5,012,314 (2,056,178) 5,171,426
Financing Activities
Repayments of
long-term debt (523,123) (446,229) (259,731) (96,476)
Share capital,
issued for cash 676,840 2,592,593 188,126 1,667,118
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153,717 2,146,364 (71,605) 1,570,642
Investing Activities
Investments - (440,000) - -
Purchase of capital
assets (3,450,467) (733,052) (1,924,069) (255,357)
Increase in other
assets (556,271) (957,624) (494,789) (711,257)
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(4,006,738) (2,130,676) (2,418,858) (966,614)
Increase (Decrease)
in cash and cash
equivalents (8,762,457) 10,644,295 (940,470) 7,348,926
Cash and cash
equivalents,
beginning of period 19,267,639 3,040,080 11,445,652 6,335,449
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Cash and cash
equivalents, end
of period $10,505,182 $13,684,375 $10,505,182 $13,684,375
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