Bennett Environmental Inc. ("BEI") Reports Fourth Quarter and 2010 Year End Results

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Source: Marketwire

OAKVILLE, ONTARIO -- (Marketwire) -- 03/28/11 -- Bennett Environmental Inc. (TSX: BEV) (the 'Company' or 'BEI') today announced its financial results for the year ended December 31, 2010 and the results for the fourth quarter 2010. Revenue for the year was $32.7 million, pre-tax income was $16.6 million, after-tax income was $14.4 million and earnings per share was $0.41 on a fully diluted basis. There was no revenue for the quarter, pre-tax loss was $2.7 million, after-tax loss was $2.9 million and loss per share was $0.08 on a fully diluted basis.

Commenting on the results, Mr. Jack Shaw, President and CEO, stated 'The 2010 results are consistent with expectations. The operating question in front of us now is the sourcing of new volume for 2011. We currently have approximately 16,000 tonnes of soil in storage, have been notified that we are the preferred supplier for a couple of projects in the United States (less than 5,000 tonnes each) and expect to bid on a significant PCB project at the end of the summer (in excess of 20,000 tonnes). We will announce these and any other projects at the point we become reasonably certain of the timing and the volume.

It is with regret that we announce the departure of Mr. Christopher Wallace from the Bennett Board. Chris joined the Board in 2006 and has been Chairman since 2007. Under Chris' guidance the Board developed strategy that was successfully implemented. From the perspective of today's healthy balance sheet it is difficult to remember that the Company successfully managed significant financial issues during 2007 and 2008 and Chris' steady leadership and firm vision was instrumental in guiding the Company to its current position. All of the directors join with me in wishing Chris every success in the future.'

Mr. Shaw went on to say 'As we have previously announced, a Special Committee of the Board will be making recommendations to the Board with respect to Second City Capital Partners I, Limited Partnership's ('SCC') requisition for a special meeting. While the actions of SCC are distracting we remain committed to appropriately diversifying the Company's operating business. We are confident that the strategy that the majority of the Board has endorsed is the correct one for the Company and will be validated by the shareholders. We were disappointed to not have reached a mutually acceptable conclusion with our last opportunity, however, we gained valuable industry insight and have identified suitable candidates, some of which we are currently in preliminary discussions with.'

The Company has implemented mechanisms to facilitate the exercise of options in order to minimize the impact on the market price of the shares as options are exercised, provide the Company with certainty regarding required tax withholdings and provide the option holder with greater certainty regarding the impact of exercising options.

A fuller discussion is available in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BennettMDAQ410.pdf and Audited Consolidated Financial Statements for the years ended December 31, 2010 and 2009 available on http://media3.marketwire.com/docs/BennettACFSYE10.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.
Consolidated Balance Sheet
(Expressed in Canadian dollars)
(Unaudited)
----------------------------------------------------------------------------
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                                                December 31,   December 31,
                                                        2010           2009
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Assets
Current assets:
  Cash and cash equivalents                    $  64,993,643  $  17,645,459
  Restricted cash                                     10,649        865,918
  Amounts receivable                                 321,906     10,215,767
  Holdbacks receivable                                     -      3,029,363
  Deferred costs                                     661,925              -
  Prepaid expenses and other                         561,401        446,104
  Future income tax asset                                  -      3,915,650
  --------------------------------------------------------------------------
                                                  66,549,524     36,118,261
Property, plant and equipment                      7,734,783      8,424,518
Assets under capital leases                          479,547        412,074
Assets held for sale                               2,675,532      2,675,532
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                                               $  77,439,386  $  47,630,385
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Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable and accrued liabilities     $   3,546,068  $   5,710,496
  Liabilities related to assets held for sale        618,020        475,532
  Income taxes payable                               583,962      2,087,079
  Deferred revenue                                 2,445,369      7,286,897
  Current portion of long-term liabilities         2,230,194        565,258
  Current portion of lease obligations               182,838        135,316
  --------------------------------------------------------------------------
                                                   9,606,451     16,260,578
Long-term liabilities                                741,633      2,912,430
Long-term portion of lease obligations               155,206        229,330

Shareholders' equity:
  Share capital                                   93,364,040     71,949,963
  Contributed surplus                              4,846,334      4,244,554
  Share purchase warrants                          2,721,131        429,056
  Accumulated deficit                            (33,995,409)   (48,395,526)
  --------------------------------------------------------------------------
                                                  66,936,096     28,228,047
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                                               $  77,439,386  $  47,630,385
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BENNETT ENVIRONMENTAL INC.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Expressed in Canadian dollars)
(Unaudited)
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                             Three months ended         Twelve months ended
                                   December 31,                December 31,
                            2010           2009          2010          2009
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Sales               $          -   $ 10,712,316  $ 32,668,014  $ 28,058,146
Expenses:
  Operating costs        618,264      2,795,997     8,495,640    10,104,108
  Administration
   and business
   development         1,885,885      1,001,744     6,111,809     4,587,038
  Amortization           267,484        498,598     1,063,077     1,855,050
  Foreign exchange         1,467        (21,018)        2,278       (13,395)
  Gain on sale of
   investment                  -        (79,910)            -       (79,910)
  Impairment of
   long-lived
   assets                      -        331,752             -       331,752
  Interest               269,513          1,957       877,781       107,734
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                       3,042,613      4,529,120    16,550,585    16,892,377
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(Loss) earnings
 before the
 undernoted           (3,042,613)     6,183,196    16,117,429    11,165,769
Other income,
 including interest      298,078        139,469       512,912       299,669
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(Loss) earnings
 before income taxes  (2,744,535)     6,322,665    16,630,341    11,465,438
Income taxes
 expense
 (recovery):
  Current                149,344              -    (1,685,426)       67,684
  Future                       -     (1,320,296)    3,915,650    (3,915,650)
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                         149,344     (1,320,296)    2,230,224    (3,847,966)
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Net (loss) earnings
 and comprehensive
 income (loss) for
 the period         $ (2,893,879)  $  7,642,961  $ 14,400,117  $ 15,313,404
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(Loss) earnings per
 common share
  Basic             $      (0.08)  $       0.28  $       0.42  $       0.56
  Diluted                  (0.08)          0.28          0.41          0.55
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BENNETT ENVIRONMENTAL INC.
Consolidated Statements of Accumulated Deficit and Other Comprehensive
Income
(Expressed in Canadian dollars)
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             Three months ended         Twelve months ended
                                   December 31,                December 31,
                            2010           2009          2010          2009
----------------------------------------------------------------------------


Accumulated deficit
 and other
 comprehensive
 income, beginning
 of period          $(31,101,530)  $(56,038,487) $(48,395,526) $(63,708,930)

Net (loss) earnings
 for the period       (2,893,879)     7,642,961    14,400,117    15,313,404
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Accumulated deficit
 and other
 comprehensive
 income, end of
 period             $(33,995,409)  $(48,395,526) $(33,995,409) $(48,395,526)
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BENNETT ENVIRONMENTAL INC.

Consolidated Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited)


                             Three months ended          Twelve months ended
                                   December 31,                 December 31,
                             2010          2009           2010          2009
----------------------------------------------------------------------------

Cash provided by
 (used in):
Operations:
 Net (loss)
  earnings from
  continuing
  operations        $ (2,893,879) $   7,642,961  $  14,400,117 $  15,313,404
 Items not
  involving cash:
  Amortization            267,484       498,598      1,063,077     1,855,050
  Stock-based
   compensation           219,353        35,652        317,974       259,705
  Foreign exchange
   related to U.S.
   Department of
   Justice accrual       (75,083)      (41,350)      (124,613)     (383,407)
  Impairment of
   long-lived
   assets                       -       331,752              -       331,752
  Gain on sale of
   investment                   -      (79,910)              -      (79,910)
  Gain on sale of
   property, plant
   and equipment         (26,934)             -       (24,382)      (56,438)
  Future income
   taxes (recovery)             -   (1,320,296)      3,915,650   (3,915,650)
  Accretion               129,066         6,936        178,589        74,173
 Changes in non-
  cash operating
  working capital       3,502,138     5,082,035      3,499,780     1,903,575
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 Cash provided by
  operating
  activities            1,122,145    12,156,378     23,226,192    15,302,254

Financing:
 Cash provided by
 (used for)
 financing
 activities
  Repayment of
   lease
   obligations           (45,381)      (32,359)      (221,878)      (62,394)
  Repayment of
   long-term
   liabilities          (220,950)     (183,536)      (280,200)     (696,326)
  Issuance of share
   capital due to
   exercise of
   stock options                -        24,000        142,500       115,200
  Issuance of share
   capital due to
   exercise of
   warrants                     -             -        885,600             -
  Issuance of share
   capital and
   warrants due to
   public offering,
   net of costs                 -             -     22,961,859             -
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 Cash provided by
  (used in)
  financing
  activities            (266,331)     (191,895)     23,487,881     (643,520)
Investments:
 Cash provided by
 (used for)
 investing
 activities
  Change in
   restricted cash           (32)         4,612        855,269       927,790
  Proceeds on
   disposal of
   property, plant
   and equipment                -             -         30,000             -
  Purchase of
  property, plant
  and equipment           (6,821)     (468,288)      (251,158)     (543,757)
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 Cash provided by
 (used in)
 investing
 activities               (6,853)     (463,676)        634,111       384,033
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Increase in cash
 and cash
 equivalents              848,961    11,500,807     47,348,184    15,042,767
Cash and cash
 equivalents,
 beginning of
 period                64,144,682     6,144,652     17,645,459     2,602,692
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Cash and cash
 equivalents, end
 of period          $  64,993,643 $  17,645,459  $  64,993,643 $  17,645,459
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Supplemental cash
 flow information:
 Interest paid      $     403,977 $      15,026  $     742,129 $      48,138
 Income tax refund              -             -        550,590       338,926
 Income taxes paid        395,088             -        756,308        85,149
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Non-cash
 transactions:
 Assets acquired by
  capital leases    $           - $      60,500  $     222,000 $     457,860

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

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