Bennett Environmental Inc. Announces Q2 Results

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Source: Marketwire

OAKVILLE, ONTARIO -- (Marketwire) -- 08/06/10 -- Bennett Environmental Inc. (TSX: BEV) (the 'Company' or 'BEI') today announced its results for the period ending June 30, 2010. Revenue for the quarter was $10.9 million, earnings before income taxes were $6.4 million and net earnings were $5.1 million. Earnings per share were $0.14 on a fully diluted basis.

As announced May 7, 2010 the Company completed its bought deal underwriting led by Jennings Capital Inc. and including Cormark Securities Inc. raising gross proceeds of $25 million. Further information can be found in the Company's May 7, 2010 press release.

BEI's policy with respect to announcing future projects has been to announce projects when there is virtual certainty that the material will be received at Saint Ambroise. This is typically well after the Request for Proposal process and after contracts have been awarded. At this time the Company does not have new projects that meet this criteria, other than the one announced on July 8, 2010.

Mr. Christopher Wallace, Chairman of the Board, commented 'The underwriting completed in Q2 has increased the credibility of the Company to complete a significant acquisition or program to support our diversification objectives. We are currently continuing our evaluation process of various alternatives. This is, of course, in addition to aggressively pursuing contracts for our current business.'

During the quarter the Company's cash increased by approximately $20 million composed primarily of $23 million in net proceeds from the underwriting offset by a use of cash of $3 million for operating and other costs for processing material for which the Company had previously received substantive payment.

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/BennettMDAQ210.pdf and Interim Consolidated Financial Statements available on http://media3.marketwire.com/r/docs/BennettIFSQ210.pdf.

The Company recognizes revenue after material has been processed. Amounts and holdbacks receivable pertain to unpaid invoices for processed materials only.

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' and 'confident' 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 Consolidated Balance Sheets
(Unaudited)
(Expressed in Canadian dollars)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                    June 30,   December 31,
                                                        2010           2009
----------------------------------------------------------------------------

Assets
Current assets:
 Cash and cash equivalents                     $  58,880,856  $  17,645,459
 Restricted cash (note 3)                             10,585        865,918
 Amounts receivable (note 5)                       7,378,938     10,215,767
 Holdbacks receivable (note 6)                       845,895      3,029,363
 Prepaid expenses and other                          255,100        446,104
 Future income tax asset (note 13)                   520,140      3,915,650
 ---------------------------------------------------------------------------
                                                  67,891,514     36,118,261
Property, plant and equipment                      8,132,590      8,424,518
Assets under capital leases                          525,804        412,074
Assets held for sale (note 4)                      2,675,532      2,675,532
----------------------------------------------------------------------------
                                               $  79,225,440  $  47,630,385
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
 Accounts payable and accrued liabilities      $   4,086,258  $   5,710,496
 Liabilities related to assets held for sale
  (note 4)                                           541,117        475,532
 Income taxes payable                              2,412,582      2,087,079
 Deferred revenue                                  6,292,836      7,286,897
 Current portion of long-term liabilities
  (note 9)                                           250,739        565,258
 Current portion of lease obligations                181,784        135,316
 ---------------------------------------------------------------------------
                                                  13,765,316     16,260,578
Long-term liabilities (note 9)                     2,971,331      2,912,430
Long-term portion of lease obligations               246,890        229,330

Shareholders' equity:
 Share capital (note 11)                          93,362,450     71,949,963
 Contributed surplus (note 11)                     4,593,746      4,244,554
 Share purchase warrants (note 12)                 2,722,721        429,056
 Accumulated deficit                             (38,437,014)   (48,395,526)
 ---------------------------------------------------------------------------
                                                  62,241,903     28,228,047
Continuing operations (note 1)
Contingencies (note 16)
----------------------------------------------------------------------------
                                               $  79,225,440  $  47,630,385
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----------------------------------------------------------------------------

These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/r/docs/BennettIFSQ210.pdf.


BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Operations and Comprehensive Income
(Loss)
(Unaudited)
(Expressed in Canadian dollars)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                          Three months ended          Six months ended
                               June 30,                   June 30,
                              2010          2009         2010          2009
----------------------------------------------------------------------------

Sales                 $ 10,914,914  $  6,057,589 $ 22,063,291  $  6,494,774

Expenses:
 Operating costs         2,525,960     3,469,026    5,480,724     4,373,001
 Administration and
  business
  development            1,214,854     1,061,606    2,583,428     2,401,898
 Depreciation and
  amortization             270,256       460,258      524,042       899,572
 Foreign exchange            3,954        15,211        2,268         3,104
 Interest                  502,476        52,684      528,706        93,998
 ---------------------------------------------------------------------------
                         4,517,500     5,058,785    9,119,168     7,771,573
----------------------------------------------------------------------------

Earnings (loss)
 before the
 undernoted              6,397,414       998,804   12,944,123    (1,276,799)

Other income,
 including interest         42,411        80,703       84,946        99,970
----------------------------------------------------------------------------

Earnings (loss)
 before income taxes     6,439,825     1,079,507   13,029,069    (1,176,829)
----------------------------------------------------------------------------

Income taxes
 (recovery):
 Current                  (175,000)            -     (324,953)       67,684
 Future                  1,540,098             -    3,395,510             -
----------------------------------------------------------------------------

                         1,365,098             -    3,070,557        67,684
----------------------------------------------------------------------------

Net earnings (loss)
 for the period,
 being comprehensive
 income (loss)        $  5,074,727  $  1,079,507 $  9,958,512  $ (1,244,513)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings (loss)
 from operations per
 common share (note
 14)
 Basic                $       0.15  $       0.04 $       0.32  $      (0.05)
 Diluted                      0.14          0.04         0.31         (0.05)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/r/docs/BennettIFSQ210.pdf.


BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Accumulated Deficit and Other
Comprehensive Loss
(Unaudited)
(Expressed in Canadian dollars)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                      Three months ended             Six months ended
                           June 30,                      June 30,
                          2010           2009           2010           2009
----------------------------------------------------------------------------
                          (Unaudited)                  (Unaudited)

Accumulated
 deficit and
 other
 comprehensive
 loss, beginning
 of period       $ (43,511,741) $ (66,032,950) $ (48,395,526) $ (63,708,930)

Net earnings
 (loss) for the
 period              5,074,727      1,079,507      9,958,512     (1,244,513)
----------------------------------------------------------------------------

Accumulated
 deficit and
 other
 comprehensive
 loss, end of
 period          $ (38,437,014) $ (64,953,443) $ (38,437,014) $ (64,953,443)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/r/docs/BennettIFSQ210.pdf.


BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in Canadian dollars)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                         Three months ended           Six months ended
                              June 30,                    June 30,
                             2010          2009          2010          2009
----------------------------------------------------------------------------

Cash provided by
 (used in):
Operations:
 Net earnings (loss)
  from continuing
  operations         $  5,074,727  $  1,079,507  $  9,958,512  $ (1,244,513)
 Items not involving
  cash:
  Depreciation and
   amortization           270,256       460,258       524,042       899,572
  Stock-based
   compensation            32,873        27,978        65,386       183,567
  Foreign exchange
   related to U.S.
   Department of
   Justice accrual        108,239      (228,270)       30,165      (127,720)
  Future income tax
   expense              1,540,098             -     3,395,510             -
  Loss on disposal
   of property,
   plant and
   equipment                2,552             -         2,552             -
  Accretion interest       23,412        46,685        33,354        46,685
 Changes in non-cash
  operating working
  capital             (10,224,121)   (3,428,867)    2,704,453     2,137,233
 Repayment of long-
  term liabilities        (19,750)     (507,472)      (39,500)     (507,472)
 ---------------------------------------------------------------------------
 Cash provided by
  (used for)
  operating
  activities           (3,191,714)   (2,550,181)   16,674,474     1,387,352
 ---------------------------------------------------------------------------

Financing:
 Cash provided by
  (used for)
  financing
  activities
  Repayments of
   lease obligations      (97,638)            -      (131,248)            -
  Issuance of share
   capital due to
   exercise of stock
   options                 22,400             -       142,500             -
  Issuance of share
   capital due to
   exercise of
   warrants                     -             -       885,600             -
  Issuance of shares
   and warrants due
   to public
   offering, net of
   costs               22,961,859             -    22,961,859             -
 ---------------------------------------------------------------------------

 Cash provided by
  financing
  activities           22,886,621             -    23,858,711             -
 ---------------------------------------------------------------------------

Investments:
 Cash provided by
  (used for)
  investing
  activities
  Change in
   restricted cash            (15)       86,959       855,333        47,839
  Proceeds on
   disposal of
   property, plant
   and equipment           30,000             -        30,000             -
  Purchase of
   property, plant
   and equipment         (108,158)      (42,624)     (183,121)      (69,006)
 ---------------------------------------------------------------------------
 Cash provided by
  (used in)
  investing
  activities              (78,173)       44,335       702,212       (21,167)
----------------------------------------------------------------------------

Increase (decrease)
 in cash and cash
 equivalents           19,616,734    (2,505,846)   41,235,397     1,366,185
Cash and cash
 equivalents,
 beginning of period   39,264,122     6,474,723    17,645,459     2,602,692
----------------------------------------------------------------------------
Cash and cash
 equivalents, end of
 period              $ 58,880,856  $  3,968,877  $ 58,880,856  $  3,968,877
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Supplemental cash
 flow information:
 Interest paid       $      3,089  $     22,375  $     10,794  $     30,063
 Income taxes paid              -        49,324             -        72,000
 Income tax refund              -       168,862       149,953       298,258
Non-cash
 transactions:
 Leases on asset
  acquisitions       $    222,000  $    397,360  $    222,000  $    397,360

These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/r/docs/BennettIFSQ210.pdf.

Contacts:
Bennett Environmental Inc.
Jack Shaw
(905) 339-1540

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