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Bovar Reports 1996 Results.



CALGARY, ALBERTA--(BUSINESS WIRE)--Feb. 27, 1997--Bovar (TSE See Tokyo Stock Exchange.

TSE

1. See Tokyo Stock Exchange (TSE).

2. See Toronto Stock Exchange (TSE).
: BVR BVR Beyond Visual Range
BVR Business Valuation Review (journal)
BVR Biliverdin Reductase
BVR Bureau of Vocational Rehabilitation
BVR Bulletin de Versement (French) 
.) BOVAR Inc. reported that revenues increased 13.7 percent to $106.7 million in 1996 from $93.8 million in 1995.

Net income for the year ended December 31, 1996 was $4.9 million ($0.06 per share) compared to $10.8 million ($0.13 per share) for the year ended December 31, 1995. As previously announced, during the fourth quarter of 1996 a loss of $3.6 million was recognized on the write-down of assets associated with BOVAR's biomedical bi·o·med·i·cal
adj.
1. Of or relating to biomedicine.

2. Of, relating to, or involving biological, medical, and physical sciences.
 facility. During the third quarter of 1995, other income of $4.3 million was recognized relating to relating to relate prepconcernant

relating to relate prepbezüglich +gen, mit Bezug auf +acc 
 an agreement reached with the Province of Alberta. Excluding these two unusual events, net income for 1996 was $8.5 million compared to $6.6 million for 1995.

Revenues for the fourth quarter were $35.3 million compared to $24.8 million in the fourth quarter of 1995. Net loss for the fourth quarter was $0.5 million, after the $3.6 million write down, compared to net income of $2.0 million in the comparable quarter of 1995.

Cash flow from operations Cash flow from operations

A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses
 for the year decreased to $12.4 million from $24.7 million in 1995. Cash at December 31, 1996 was $49.2 million compared to $17.9 million at December 31, 1995.

Revenues of the Waste Management segment increased 10.9 percent to $61.8 million in 1996 from $55.8 million in 1995. The Waste Management segment principally consists of the operation of the Swan Hills Treatment Centre ("Treatment Centre").

Revenues of the Treatment Centre were as follows: -0-


------------------------------------------------------
(millions)                          1996         1995
------------------------------------------------------

Alberta generated waste            $ 8.4        $13.3

Extra-provincial generated waste    26.6          9.3

Amortization of deferred revenues   12.3           -

Subsidy for operating deficiency     4.6         14.1

Guaranteed rate of return            7.7         17.4
------------------------------------------------------
                                   $59.6        $54.1
------------------------------------------------------





Direct and indirect operating expenses Operating expenses

The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted.
 of the Waste Management segment increased 27.5 percent to $30.9 million from $24.2 million in 1995 and as a percentage of revenues increased from 43.4 percent to 49.9 percent in 1996. The increase in expense levels principally reflects BOVAR's increased ownership in the Treatment Centre. The decline in profitability reflects decreased revenues associated with the operating deficiency subsidies and the guaranteed rate of return payments received from the Province.

Excluding revenues associated with operating deficiencies and guaranteed rates of return, operating expenses of the Treatment Centre, as a percentage of waste treatment revenues received from customers, improved 16.2 percent over 1995 as a result of improved operating efficiencies and the processing of higher margin waste streams.

Revenues of $25.2 million for the Engineered Products segment remained consistent with levels achieved in 1995. New products and non-North American markets accounted for a larger portion of revenues in 1996. Direct and indirect operating expenses of the Engineered Products segment declined 6.2 percent to $16.4 million from $17.4 million in 1995 and as a percentage of revenues declined from 68.6 percent to 65.0 percent in 1996. During the year, $1.0 million of profit from the sale of air quality monitoring equipment for Malaysia, deferred from 1995, was recognized.

Revenues of the Environmental Services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric,  segment increased 54.9 percent to $19.6 million from $12.7 million in 1995. Of this increase, $6.0 million relates to reimbursable re·im·burse  
tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es
1. To repay (money spent); refund.

2. To pay back or compensate (another party) for money spent or losses incurred.
 subcontracted sub·con·tract  
n.
A contract that assigns some of the obligations of a prior contract to another party.

intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts
 costs associated with remediation projects in which BOVAR acts as project manager. Direct and indirect operating expenses of the Environmental Services segment increased 44.0 percent to $17.6 million from $12.2 million in 1995 and as a percentage of revenues decreased from 96.5 percent to 89.5 percent in 1996. Margins recognized on the reimbursable subcontracted costs and improved utilization rates account for the improvement.

Administrative and selling expenses increased 12.5 percent to $13.8 million from $12.2 million in 1995. Depreciation and amortization expense increased 19.5 percent to $16.1 million from $13.5 million in 1995 reflecting the write off of equipment at the Treatment Centre. This charge was offset by additional amortization of deferred revenues. Net financing expense decreased 82.9 percent to $1.0 million from $5.8 million in 1995.

Although cash flow from operations decreased as a result of the privatization privatization: see nationalization.
privatization

Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned
 of the Treatment Centre, the cash BOVAR received upon its acquisition allowed BOVAR to repay all of its long term debt and improve its cash position significantly. BOVAR has adequate capital resources to meet its operating and capital expenditure requirements and is well positioned to pursue investment opportunities.

BOVAR Inc., which 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.
 under the symbol BVR, is one of Canada's leading international providers of environmental and waste management products and services. BOVAR owns and operates Canada's only fully integrated hazardous waste Hazardous waste

Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes.
 treatment facility which is located near Swan Hills, Alberta Swan Hills is a town (incorporated January 1, 1967) in northern Alberta, Canada. It is located  km ( mi) north of Whitecourt at the junction of Highway 32 and Grizzly Trail. Swan Hills is located in Municipal District of Big Lakes within census Division No. 17, Alberta. . BOVAR conducts its environmental operations through BOVAR Waste Management, BOVAR Western Research and BOVAR Environmental.

CONTACT: Bovar Inc.

Monty (programming, abuse) monty - /mon'tee/ Any program with a ludicrously complex user interface that performs a trivial task. An example would be a menu-driven, button clicking, pulldown, pop-up windows program for listing directories.  L. Davis, 403/235-8302-8300

bovarinc@bovar.com

or

Bovar Inc.

Daryl W. Ferko, 403/235-8329
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Publication:Business Wire
Date:Feb 27, 1997
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