ORMI Reports Fiscal 2012 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Feb. 14, 2012) - Organic Resource Management Inc. (TSX VENTURE:ORI) ("ORMI" or "the Company"), today announced its financial results for the three and six month periods ended December 31, 2011.

Q2 2012 Highlights

• Total revenues of $3,524,000, an increase of $24,000 or 1% from $3,500,000 for Q2 2011.
• Total gross margin of $1,428,000 or 41% of revenue, an increase of $153,000 or 12% from $1,275,000 or 36% of revenue for Q2 2011.
• Net income of $90,000, an increase of $129,000 from a net loss of $39,000 for Q2 2011.
• Income per share of $0.02 compared to a net loss per share of $0.01 for Q2 2011.
• EBITDA of $505,000, an increase of $137,000 or 37% from $368,000 for Q2 2011.

"The Company returned to profitability in the second quarter," said Charles Buehler, Chairman and Chief Executive Officer of ORMI. "During the latter half of fiscal 2011, we implemented a number of measures in order to offset the impact of lower revenues stemming from the actions of two national account customers and higher costs related to a number of strategic initiatives implemented earlier in the year. We are now starting to see the benefits of those measures with EBITDA improving steadily during the last three quarters."

Three months ended December 31

Total revenues were $3,524,000 for the quarter, an increase of 1% from $3,500,000 for the same period last year as increased ORRS¹ services and other revenue of $75,000 relating to a one-time patent license payment more than offset a decrease in industrial organics revenues. Gross margin of $1,428,000 was $153,000 or 12% higher, partly due to other revenue, and because last year's margin was negatively impacted by a number of one-time operating costs. As a percentage of revenue, gross margin was 41% for the quarter compared to 36% for the same period last year. Total operating expense was $1,248,000 for the quarter, approximately equal to the same period last year.

Net income was $90,000, an increase of $129,000 from a net loss of $39,000 for the same period last year. EBITDA was $505,000 for the quarter, an increase of $137,000 or 37% from $368,000 for the same period last year. Income per share for the quarter was $0.02 compared to a loss per share of $0.01 for the same period last year.

Six months ended December 31

Total revenues were $7,097,000 for the six months ended December 31, 2011, approximately equal to the same period last year. Gross margin was $2,780,000, a decrease of $74,000 or 3% from gross margin of $2,854,000 for the same period last year, mainly as a result of higher costs in the first quarter relating to both the City of Toronto's wastewater discharge fees and higher truck operating expenses due to an increase in feedstock volumes shipped to anaerobic digesters. As a percentage of revenue, gross margin was 39%, compared to 40% for the same period last year. Total operating expense was $2,578,000 for the period, a decrease of $22,000 or 1% from $2,600,000 for the same period last year.

Net income was $47,000, a decrease of $78,000 or 62% from $125,000 for the same period last year. EBITDA was $862,000 for the period, a decrease of $71,000 or 8% from $933,000 for the same period last year. Income per share was $0.01, down from $0.03 for the same period last year.

¹ ORRS refers to "organic residuals recovery system", the Company's patent-protected process which grinds produce and other solid food residuals into slurry and then discharges the liquid into a holding tank where it is stored until collected by ORMI's vacuum trucks.

Additional information

The comparative financial statements for the three and six months ending December 31, 2011 along with other information may be obtained through the Company's website at www.ormi.com, or on SEDAR at www.sedar.com.

This press release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit the investor relations section of the Company's website at www.ormi.com/ir/index.php. Alternatively, investors are asked to e-mail all questions and correspondence to info@ormi.com where they can also request addition to the Company's investor e-mail list to receive all future press releases and updates directly.

About Organic Resource Management Inc.

Organic Resource Management is Canada's largest provider of vacuum truck services for the collection, processing and recycling of grease interceptor and other food-related organic residuals. ORMI services in excess of 10,000 grease interceptors for industrial, commercial and institutional food industry customers across Canada on a regularly-scheduled basis. ORMI also provides ancillary services such as drain flushing, fabrication and installation of its Duratrap brand grease interceptors, ORRS equipment sales, and interceptor and ORRS equipment repairs. Further information about ORMI may be obtained at the Company's web site at www.ormi.com.

Non-IFRS Measures

The Company reports its financial results in accordance with IFRS. However, this press release contains references to certain non-IFRS financial measures such as "EBITDA". Non-IFRS financial measures are used by management to evaluate the performance of the Company. Non-IFRS financial measures do not have any meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. Investors are cautioned that non-IFRS measures, such as those presented herein, should not be construed as an alternative to net income determined in accordance with IFRS as indicators of the Company's performance or to cash flows from operating activities as a measure of liquidity and cash flow.

EBITDA means net income or loss before income taxes, interest, amortization, share based compensation and gains or losses on disposal of property, plant and equipment and intangible assets. In effect, EBITDA is equal to cash flows from operating activities before changes in non-cash operating assets and liabilities.

Forward Looking Statements

Certain information contained in this press release may be forward-looking and therefore subject to unknown risks or uncertainties. The actual results, performance or achievements of Organic Resource Management Inc. may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.