CVF Technologies Corporation's Holding - BIOREM Announces Promising First Quarter Results and New Orders Totaling Cdn $1.7 Milli
08 Mayo 2008 - 7:30AM
PR Newswire (US)
WILLIAMSVILLE, N.Y., May 8 /PRNewswire-FirstCall/ -- CVF
Technologies Corporation's (OTC:CNVT) (BULLETIN BOARD: CNVT)
holding BIOREM announced its results for the first quarter ended
March 31, 2008, which are summarized in the following table:
---------------------- First quarter ended March 31,
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Information in table is in Cdn thousands except per share data 2008
2007
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REVENUE $3,184 $1,769
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GROSS PROFIT 1,455 618
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EBITDA(1) 236 (336)
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NET EARNINGS 104 (375)
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BASIC EARNINGS PER SHARE 0.01 (0.03)
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DILUTED EARNINGS PER SHARE 0.01 (0.03)
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WEIGHTED AVERAGE COMMON SHARES 11,978 11,978
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First quarter revenue was Cdn $3,184,000 which is up Cdn $1,415,000
or 80% over the comparative period in the prior year. This also
represents an 8.4% increase over revenue in Q4 2007 and a very
encouraging trend of four continuous quarters with revenue
increases. Strong revenue growth has resulted from the successful
implementation of the major sales initiatives adopted in early 2007
to bring special attention separately to the municipal and
industrial marketplaces and to build a very strong manufacturing
representative network. New orders in the first quarter were Cdn
$2,150,000 resulting in a current order backlog of Cdn $9 million.
The backlog is up Cdn $1.3 million or 17% from March 31, 2007.
Gross profit in the quarter of Cdn $1,455,000 is up Cdn $837,000
from last year's comparative quarter resulting from increased
revenue as well as improved margins on projects. This improvement
has driven the gross margin up to 45.7% compared to Q1 2007 of
34.9%. Operating Expenses were Cdn $1,219,000 which is up Cdn
$265,000 or a 27.8% increase compared to the comparative quarter of
Cdn $954,000. The largest increases are as follows: -- Sales and
marketing expenses of Cdn $620,000 are up Cdn $231,000 or 59.4% to
account for higher commissions as well as increased personnel
costs. -- Research and development expenses are up Cdn $94,000 or
61.8% from 2007 primarily due to activity associated with an
ongoing research program targeting industrial air pollution product
development. -- There was an exchange gain of Cdn $102,000 in Q1
2008 as compared to an exchange loss in the comparative period of
2007 of Cdn $14,000. Although Operating Expenses were higher than
last year's first quarter, the significant increase in gross margin
brought the Company to a positive net earnings of Cdn $104,000
compared to a loss of Cdn $375,000 in Q1 2007. The Company's
liquidity improved significantly in Q1 2008. Net working capital
increased by Cdn $337,000 in the three-month period. Total working
capital at March 31, 2008 was Cdn $4,201,000. Commenting on the
quarterly results, Peter Bruijns, BIOREM President and CEO said,
"The very favorable results confirm the positive direction of the
Company's sales restructuring from last year. Not only are the
number of orders per quarter increasing, the average deal size is
rising as the Company is winning many large orders. It is also
encouraging to see a healthy gross margin which is expected to
continue throughout 2008." BIOREM went on to announce that, as part
of an internal reorganization, the Director of Operations has
departed from the Company. Peter Bruijns will take responsibility
for this function in the interim as the Company builds
best-practices and determines the most cost effective structure to
deliver on the expanding business and new orders from both North
America and internationally. In addition, BIOREM has recently
announced the receipt of orders in the second quarter totaling Cdn
$1.7 million for odor control systems in Cape Coral, Florida and
Corpus Christi, Texas as well as five systems in three separate
locations in the Middle East. "BIOREM's technology has gained a
great deal of traction in the Middle East", said Peter Bruijns,
President & CEO of BIOREM. "We maintain strong relationships
with representatives worldwide in key market segments and these
organizations are successfully educating local owners, contractors
and engineers on the value of biological odor removal
technologies." BIOREM(R) manufactures BIOSORBENS(R) biofilter media
and is a leading supplier of biofilters for air pollution control
in municipal and industrial applications, including BIOCUBE(R)
modular units and the MYTILUS(R) biotrickling filters. With over
500 installed systems and over a decade of experience, the
Company's products are the technology of choice for odor control at
wastewater treatment plants across North America. Additional
information on BIOREM is also available at http://www.biorem.biz/.
CVF Technologies Corporation (http://www.cvfcorp.com/) is
headquartered in Williamsville, New York. CVF is a technology
development company, whose principal business is sourcing, funding
and managing emerging pre-public, clean-tech companies with
significant market potential. Certain statements made in this press
release which are not historical facts are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned that these statements involve
risks and uncertainties, which may cause actual results or
achievements to be materially different from any future results and
achievements expressed or implied by the forward-looking
statements. These risks include, but are not limited to, product
demand and market acceptance risks for the products and
technologies of CVF's subsidiary companies and investees; the
impact of competitive products, technologies and pricing; delays or
difficulties in developing, producing, testing and selling new
products and technologies; the ability of the company's
subsidiaries and investees to obtain necessary financing for their
operations and to consummate initial public offerings of their
stock; the effect of the Company's accounting policies; the effect
of trade restrictions and other risks detailed in the company's
Statement on Form 10-SB/A filed with the U.S. Securities and
Exchange Commission and any subsequent filings with the Commission.
For more information please contact: http://www.cvfcorp.com/ (1)
EBITDA is a non-GAAP earnings measure, therefore, it does not have
any standardized meaning prescribed by Canadian generally accepted
accounting principles and may not be similar to measures presented
by other companies. EBITDA represents earnings before interest,
income taxes, depreciation and amortization. This measure is
important to management since it is used by potential investors and
lenders to evaluate the ongoing cash generating capability of the
Company and thus the amounts they are willing to invest in the
Company. DATASOURCE: CVF Technologies Corporation CONTACT: Robert
L. Miller, Chief Financial Officer, or Jeffrey Dreben President
& CEO, both of CVF Technologies Corporation, +1-716-565-4711
Web site: http://www.cvfcorp.com/ http://www.biorem.biz/
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