OAKVILLE, ONTARIO--(Marketwire - Aug. 10, 2011) - Bennett Environmental Inc. (TSX:BEV) (the "Company" or "BEI") today announced its results for the three month period ending June 30, 2011. There was no revenue for the quarter as the Saint Ambroise facility remained closed in order to accumulate a stockpile of soil inventory. Net loss was $4.3 million and loss per share was $0.11 on a fully diluted basis. During the quarter the Company incurred expenses of $2.3 million in connection with the proxy contest with Second City Capital. Had these costs not been incurred, the net loss would have been $2.0 million.
Commenting on the results, Mr. Lawrence Haber, President and CEO, stated "Current inventory levels represent approximately two and one-half months of processing. Operating costs are controlled and consistent with expectations.
The Company's Board of Directors is in the process of positioning the Company for the future, and is united in its view to enhance the value of the Company for the benefit of the Company's shareholders and other stakeholders. The transitioning of the Company and its strategic focus has been started and is underway. The Board plans to take a broad view of the opportunities available to the Company, which will include but not be limited to, the environmental sector. The Board and CEO will seek to source, structure and complete one or more transactions, designed to create meaningful value for shareholders.
With respect to its core soil remediation business, Bennett is continuing to concentrate on building sustainable growth and shareholder value through an ongoing focus on cost controls and securing orders for soil treatment by building new relationships with key market players and decision makers in treatment projects."
The Company also made the following comments on its results, with fuller discussion in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BennettMDAQ211.pdf and Interim condensed consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ211.pdf.
This report may contain forward-looking information that is subject to risks, uncertainties and assumptions. Such information represents our current views based on information as at the date of issuing this report. We do not intend to update this information and disclaim any legal obligation to the contrary.
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", "confident", "plan" and "intends" 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.
BENNETT ENVIRONMENTAL INC. | ||||||||||
Interim Condensed Consolidated Statement of Financial Position | ||||||||||
(Unaudited) | ||||||||||
(Expressed in Canadian dollars) | ||||||||||
June 30, | December 31, | January 1, | ||||||||
2011 | 2010 | 2010 | ||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 61,797,796 | $ | 64,993,643 | $ | 17,645,459 | ||||
Restricted cash (note 4) | 20,744 | 10,649 | 865,918 | |||||||
Amounts receivable | 328,011 | 321,906 | 10,215,767 | |||||||
Holdbacks receivable | - | - | 3,029,363 | |||||||
Holdback receivable (note 5) | 300,000 | - | - | |||||||
Deferred costs | 1,911,566 | 661,925 | - | |||||||
Prepaid expenses and other | 162,358 | 561,402 | 446,104 | |||||||
Assets classified as held for sale (note 5) | - | 2,675,532 | 2,675,532 | |||||||
64,520,475 | 69,225,057 | 34,878,143 | ||||||||
Property, plant and equipment (note 6) | 9,147,972 | 9,523,502 | 10,290,464 | |||||||
Assets under finance lease (note 7) | 506,639 | 522,237 | 382,500 | |||||||
Deferred tax assets | - | - | 3,915,650 | |||||||
$ | 74,175,086 | $ | 79,270,796 | $ | 49,466,757 | |||||
Liabilities and Shareholders' Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accrued liabilities | $ | 1,879,406 | $ | 2,850,241 | $ | 5,369,309 | ||||
Current tax liabilities | 488,500 | 583,962 | 2,087,079 | |||||||
Liabilities related to assets held for sale (note 5) | 225,000 | 618,020 | 475,532 | |||||||
Stock compensation liability (note 14) | 564,339 | - | - | |||||||
Deferred revenue | 5,370,137 | 2,445,369 | 7,286,897 | |||||||
Provisions (note 10) | 411,675 | 695,828 | 620,825 | |||||||
Current portion of long-term liabilities (note 12) | 1,120,075 | 2,230,194 | 285,621 | |||||||
Current portion of finance lease obligations (note 11) | 183,900 | 182,838 | 135,316 | |||||||
10,243,032 | 9,606,451 | 16,260,579 | ||||||||
Long-term liabilities (note 12) | 712,035 | 741,633 | 2,912,430 | |||||||
Long-term portion of finance lease obligations (note 11) | 62,990 | 155,206 | 229,330 | |||||||
Shareholders' equity: | ||||||||||
Share capital (note 13) | 96,812,271 | 93,364,040 | 71,949,963 | |||||||
Contributed surplus (note 13) | 4,104,007 | 4,846,334 | 4,244,554 | |||||||
Share purchase warrants (note 13) |
2,721,131 | 2,721,131 | 429,056 | |||||||
Accumulated deficit | (40,480,380 | ) | (32,163,999 | ) | (46,559,155 | ) | ||||
Total equity | 63,157,029 | 68,767,506 | 30,064,418 | |||||||
$ | 74,175,086 | $ | 79,270,796 | $ | 49,466,757 |
BENNETT ENVIRONMENTAL INC. | |||||||||||||
Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | |||||||||||||
(Unaudited) | |||||||||||||
(Expressed in Canadian dollar) | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
Sales | $ | - | $ | 10,914,914 | $ | - | $ | 22,063,291 | |||||
Expenses: | |||||||||||||
Operating costs | 336,279 | 2,525,960 | 710,990 | 5,480,724 | |||||||||
Administration and business development | 1,576,277 | 1,191,441 | 3,104,523 | 2,550,074 | |||||||||
Management/Board restructuring costs (note 15) | 2,285,577 | - | 2,490,072 | - | |||||||||
Amortization | 221,981 | 257,441 | 439,224 | 518,741 | |||||||||
Loss on disposal of assets held for sale(note 5) | 18,286 | - | 18,286 | - | |||||||||
4,438,400 | 3,974,842 | 6,763,095 | 8,549,539 | ||||||||||
Results from operating activities | (4,438,400 | ) | 6,940,072 | (6,763,095 | ) | 13,513,752 | |||||||
Finance income | 167,307 | 52,277 | 525,760 | 93,935 | |||||||||
Finance costs | (19,495 | ) | (537,158 | ) | (56,440 | ) | (570,765 | ) | |||||
Net finance income (costs) | 147,812 | (484,881 | ) | 469,320 | (476,830 | ) | |||||||
Income (loss) before income taxes | (4,290,588 | ) | 6,455,191 | (6,293,775 | ) | 13,036,922 | |||||||
Income taxes expense (recovery) | - | 1,365,098 | (228,775 | ) | 3,070,557 | ||||||||
Net income (loss) for the period, being comprehensive income (loss) | $ | (4,290,588 | ) | $ | 5,090,093 | $ | (6,065,000 | ) | $ | 9,966,365 | |||
Earnings (loss) per share (note 16) | |||||||||||||
Basic (loss) earnings per share | $ | (0.11 | ) | $ | 0.15 | $ | (0.16 | ) | $ | 0.32 | |||
Diluted (loss) earnings per share | (0.11 | ) | 0.14 | (0.16 | ) | 0.31 |
BENNETT ENVIRONMENTAL INC. | |||||||||||||||
Interim Condensed Consolidated Statement of Changes in Equity | |||||||||||||||
(Unaudited) | |||||||||||||||
(Expressed in Canadian dollars) | |||||||||||||||
For the six months ended June 30, 2010 | |||||||||||||||
Attributable to equity holders of the Company | |||||||||||||||
Share capital | Contributed surplus |
Share purchase warrants |
Accumulated deficit |
Total equity |
|||||||||||
Balance at January 1, 2010 | $ | 71,949,963 | $ | 4,244,554 | $ | 429,056 | $ | (46,559,155 | ) | $ | 30,064,418 | ||||
Comprehensive income for the period | - | - | - | 9,966,366 | 9,966,366 | ||||||||||
Share-based compensation | - | 65,386 | - | - | 65,386 | ||||||||||
Share options exercised | 241,220 | (98,721 | ) | - | - | 142,499 | |||||||||
Warrants exercised | 1,314,656 | - | (429,056 | ) | - | 885,600 | |||||||||
Shares issued in connection with public offering closing May 7, 2010 | 22,213,117 | - | - | - | 22,213,117 | ||||||||||
Share-based costs | (2,356,506 | ) | - | - | - | (2,356,506 | ) | ||||||||
Fair value of compensation options issued in connection with share and warrant offering closing May 7, 2010 | - | 483,992 | - | - | 483,992 | ||||||||||
Excess fair value of warrants issued on over-allotment closing May 21, 2010 over consideration received | - | (110,656 | ) | - | - | (110,656 | ) | ||||||||
Fair value of compensation options issued in connection with over-allotment closing May 21, 2010 | - | 9,191 | - | - | 9,191 | ||||||||||
Warrants issued in connection with public offering closing May 7 and May 21, 2010 net of issue costs | - | - | 4,713,115 | - | 4,713,115 | ||||||||||
Balance at June 30, 2010 | $ | 93,362,450 | $ | 4,593,746 | $ | 4,713,115 | $ | (36,592,789 | ) | $ | 66,076,522 | ||||
BENNETT ENVIRONMENTAL INC. | ||||||||||||||
Interim Condensed Consolidated Statement of Changes in Equity | ||||||||||||||
(Unaudited) | ||||||||||||||
(Expressed in Canadian dollars) | ||||||||||||||
For the six months ended June 30, 2011 | ||||||||||||||
Attributable to equity holders of the Company | ||||||||||||||
|
|
Share capital | Contributed surplus |
Share purchase warrants |
Accumulated deficit |
Total equity |
||||||||
Balance at January 1, 2011 | $ | 93,364,040 | $ | 4,846,334 | $ | 2,721,131 | $ | (32,163,999 | ) | $ | 68,767,506 | |||
Comprehensive loss for the period | - | - | - | (6,065,000 | ) | (6,065,000 | ) | |||||||
Share-based compensation | - | 49,290 | - | - | 49,290 | |||||||||
Conversion from equity settled to cash settled stock option plan (note 14) | - | (791,617 | ) | - | (2,251,381 | ) | (3,042,998 | ) | ||||||
Share options exercised | 3,448,231 | - | - | - | 3,448,231 | |||||||||
Balance at June 30, 2011 | $ | 96,812,271 | $ | 4,104,007 | $ | 2,721,131 | $ | (40,480,380 | ) | $ | 63,157,029 |
BENNETT ENVIRONMENTAL INC. | ||||||||
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
(Expressed in Canadian dollars) | ||||||||
For the six months ended June 30 | ||||||||
2011 | 2010 | |||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net income (loss) for the period | $ | (6,065,000 | ) | $ | 9,966,364 | |||
Adjustments for: | ||||||||
Amortization | 439,224 | 518,741 | ||||||
Foreign exchange gains related to U.S. Department of Justice accrual | (55,117 | ) | 30,165 | |||||
Unwinding of discount on provisions | 13,037 | 33,354 | ||||||
Gain on sale of property, plant and equipment | (1,671 | ) | - | |||||
Loss on sale of assets held for sale | 18,286 | - | ||||||
Share-based compensation | 325,362 | 65,386 | ||||||
Income tax expense (recovery) | (228,775 | ) | 3,395,510 | |||||
Change in non-cash working capital items: | ||||||||
Amounts receivable | (6,105 | ) | 2,836,829 | |||||
Holdbacks receivable | (300,000 | ) | 2,183,468 | |||||
Prepaid expenses and other | 399,044 | 191,004 | ||||||
Deferred costs | (1,249,641 | ) | - | |||||
Accounts payable and accrued liabilities | 416,395 | (1,906,994 | ) | |||||
Stock compensation liability | (564,339 | ) | - | |||||
Liabilities related to assets held for sale | (393,020 | ) | 65,584 | |||||
Provisions | (284,153 | ) | 3,121 | |||||
Deferred revenue | 2,924,768 | (994,061 | ) | |||||
Current tax payable | 133,313 | 325,503 | ||||||
Repayment of long-term liabilities | (1,097,637 | ) | (39,500 | ) | ||||
Net cash provided by (used in) operating activities | (5,576,029 | ) | 16,674,474 | |||||
Cash flows from investing activities | ||||||||
Proceeds from sale of property, plant and equipment | 4,250 | 30,000 | ||||||
Proceeds from sale of assets held for sale | 1,834,356 | - | ||||||
Acquisition of property, plant and equipment | (50,675 | ) | (183,121 | ) | ||||
Change in restricted cash | (10,095 | ) | 855,333 | |||||
Net cash provided by investing activities | 1,777,836 | 702,212 | ||||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of warrants | - | 885,600 | ||||||
Proceeds from exercise of share options | 693,500 | 142,500 | ||||||
Proceeds from shares and warrants due to public offering, net of costs | - | 22,961,859 | ||||||
Payment of finance lease liabilities | (91,154 | ) | (131,248 | ) | ||||
Net cash provided by financing activities | 602,346 | 23,858,711 | ||||||
Net increase (decrease) in cash and cash equivalents | (3,195,847 | ) | 41,235,397 | |||||
Cash and cash equivalents at beginning of period | 64,993,643 | 17,645,459 | ||||||
Cash and cash equivalents at end of period | $ | 61,797,796 | $ | 58,880,856 |
These interim condensed consolidated financial statements do not include accompanying notes. A complete set of interim condensed consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ211.pdf.
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