BioteQ Reports Q2 2011 Operating and Financial Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/04/11 -- BioteQ Environmental Technologies Inc. (TSX: BQE), a leader in the treatment of industrial waste water, reports its unaudited financial and operating results for the three and six months ended June 30, 2011. All figures are in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.
Operating and financial results highlights for Q2 2011:
-- BioteQ has active water treatment operations in China and the US and
seasonal operations in Canada; these operations generate recurring
revenues. The Company is also involved in several engineering, design,
construction and piloting projects at various stages of completion;
these projects generate one-time revenues. Recurring revenues for the
quarter were generated by copper recovery at the Dexing plant in China,
and fee-based water treatment operations at the Raglan site in Quebec.
One-time revenues were driven by engineering projects for new plants
that are expected to enter into construction later in 2011 and in 2012.
-- Total revenues for the period were $1.4 million compared to $1.9 million
in 2010. Year to date, revenues totaled $2.7 million compared to $4.5
million in 2010. The decrease in revenue was mainly attributable to
lower copper production at the Dexing plant in China during 2011, and
higher one-time revenues in 2010 from a plant sale. Management
anticipates that new projects currently in development will drive
significant revenue growth in the last half of 2011 and into next year
to meet the Company's revenue growth targets.
-- Operating income for the quarter was $569,000 compared to $995,000 in
2010. Year to date, operating income is $787,000 compared to $1.6
million in 2010. The decrease was largely due to the same items that
impacted revenue.
-- The net loss for the quarter was $737,000, compared to a loss of
$567,000 in 2010. The comprehensive loss for the quarter was $915,000
compared to $152,000 in 2010. Year to date, the comprehensive loss is
$2.2 million compared to $863,000 in 2010.
-- BioteQ ended the period with $11.3 million in working capital which
included $11 million in cash and short-term investments. At December 31,
2010, those balances were $13.8 million and $12.6 million respectively.
The Company has no debt.
-- During the quarter, BioteQ commenced commissioning of a new 800 cubic
meter per hour ion exchange plant for recovery of cobalt and nickel from
low-grade solution at the Dexing site in China. Commissioning is
progressing, with completion expected by the end of the third quarter.
-- BioteQ entered into a fee-based contract with Compania Minera Maricunga,
a wholly-owned subsidiary of Kinross Gold, to provide process review and
commissioning services for a SART plant currently under construction at
the Maricunga Mine located in Chile. BioteQ's services include
engineering and operations review, preparation of operating manuals and
procedures, training of local operators, and on site engineering
supervision of the SART plant operation during commissioning. Services
under the contract began during the quarter and are expected to be
completed in early 2012.
-- BioteQ has completed engineering for a 6,500 m3/h zinc recovery plant
with capacity to recover 130 million pounds of zinc, on behalf of a
mining customer. BioteQ has earned engineering and design fees. Project
execution is subject to customer approvals and schedule.
-- BioteQ is continuing its litigation efforts for the plants in Mexico and
Australia to recover the value of the Company's assets.
-- During the quarter, the Company announced the retirement of its Chief
Executive Officer and director ('CEO'). The CEO will remain with the
Company in his current role until a permanent successor is appointed.
The Board of Directors has established a CEO Search Committee, and has
retained the services of an international executive search firm, with a
mandate to seek out a seasoned leader who can accelerate BioteQ's
growth. The Board has reviewed the qualifications of potential
candidates, developed a short-list, and carried out initial interviews.
A final decision is expected early this fall.
-- Subsequent to quarter end, BioteQ signed an agreement with a European
engineering firm to advance a cyanide regeneration and recovery project
that incorporates a SART process plant to be designed and provided by
BioteQ at a gold mine site in Central Asia. Test work followed by
process design is expected to commence in the third quarter.
Negotiations of the final commercial terms and timeline for construction
are expected by the end of the year pending customer requirements.
-- In July 2011, BioteQ entered into a framework agreement with Minera
Mexico, S.A. de C.V., a subsidiary of Grupo Mexico S.A.B. de C.V., to
provide water treatment solutions at their selected sites. Under the
agreement BioteQ will provide process design and commissioning services
as well as plant equipment on a process fee basis, in return for a
license to use BioteQ's technology for each treatment project. Minera
Mexico will provide for construction of the treatment plants. The
companies have initiated the review of the first ten potential treatment
projects at three of Minera Mexico's sites in Mexico.
-- BioteQ has 12 additional projects in the development pipeline for 2011,
2012, and 2013 which are subject to customer approval, including three
additional SART projects, expansion of an existing water treatment plant
for a current customer, a new water treatment plant at an active mine to
treat up to 650 m3/h, a new water treatment plant for a new mine to
treat up to 730 m3/h, two multi-stage water treatment plants for a new
mine to treat up to 1,800 m3/h, two Sulf-IX? projects ranging in
size from 30 to 300 m3/h, and two portable metal recovery plants.
BioteQ's financial statements and the Company's MD&A have been filed on SEDAR, www.sedar.com, and will be available on the BioteQ website at www.bioteq.ca.
A conference call to discuss the financial results is scheduled for Friday August 5th at 11:00 am Eastern. Participants can access the call by dialing 416-340-2217, or 1-866-696-5910, reference number 3277435. A playback of the call will be available until August 19th by dialing 905-694-9451, reference number 2127682. A recording will be available on the BioteQ website within two days of the call.
BioteQ Corporate Profile
BioteQ creates custom water treatment solutions to recover dissolved metals and remove sulphate from water impacted by mining, energy and industrial activities. The company's clean technologies convert wastewater into a useful resource while delivering lower life cycle costs for water treatment. BioteQ has designed and commissioned 14 plants at sites in Canada, the US, Mexico, Australia and China, with additional projects in development.
BioteQ continues to diversify its technology offering to address challenging water treatment problems in mining, oil and gas, and power generation. The Company is actively marketing its new Sulf-IX? technology to address tightening regulations for sulphate discharge. The Company's portfolio of metal recovery technologies has expanded to include specialty applications of ion exchange to recover valuable metals. In addition, BioteQ maintains an active research and development program to develop new treatment technologies for emerging water treatment concerns.
BioteQ's sustainable water treatment solutions have been recognized with national and international awards for innovation and sustainability. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please visit our website at www.bioteq.ca.
BioteQ Environmental Technologies Inc.
Consolidated Statement of Financial Position
Unaudited
---------------------------------------------------------------------------
Jun 30, 2011 Dec 31, 2010
$ $
Assets
Current assets
Cash and cash equivalents 7,333,682 4,653,465
Short-term investments 3,686,902 7,957,391
Trade receivables 1,437,143 1,676,963
Receivable from joint venture partners 129,532 180,204
Net insurance proceeds receivable (note 8) 629,256 618,248
Taxes recoverable - 15,469
Inventory (note 9) 80,099 54,723
Prepaid expenses 208,908 241,089
------------------------------
13,505,522 15,397,552
Non-current assets
Property, plant and equipment (note 10) 7,240,234 6,671,046
Intangible asset 85,168 100,654
------------------------------
Total assets 20,830,924 22,169,252
------------------------------
------------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 2,129,733 1,544,901
Taxes payable 76,118 -
Deferred lease inducement 33,153 47,362
------------------------------
2,239,004 1,592,263
Non-current liabilities
Long-term liabilities 107,487 46,884
------------------------------
Total liabilities 2,346,491 1,639,147
------------------------------
Shareholders' Equity
Capital stock and warrants (note 11) 55,269,417 55,182,229
Contributed surplus (note 11) 8,085,925 8,045,826
Accumulated other comprehensive loss (1,603,247) (1,482,945)
Deficit (43,267,662) (41,215,005)
------------------------------
Total shareholders' equity 18,484,433 20,530,105
------------------------------
Total liabilities and shareholders' equity 20,830,924 22,169,252
------------------------------
------------------------------
Commitment (note 18)
For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.
BioteQ Environmental Technologies Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the three and six months ended June 30, 2011 and 2010
Unaudited
---------------------------------------------------------------------------
3 months ended June 30, 6 months ended June 30,
2011 2010 2011 2010
$ $ $ $
Revenue 1,406,041 1,949,090 2,729,971 4,486,995
Plant and other operating
costs (other than
depreciation) 837,061 953,795 1,943,099 2,872,764
------------------------ ------------------------
568,980 995,295 786,872 1,614,231
General and administration 1,051,191 722,029 1,987,595 1,441,615
Marketing and development 217,717 262,699 340,725 568,509
Stock-based compensation
(note 11) 27,903 150,590 70,403 280,128
Depreciation of property,
plant and equipment (note
10) 151,843 209,478 300,490 416,480
Amortization of intangible
asset 7,743 7,743 15,486 15,486
------------------------ ------------------------
Loss before the under-
noted (887,417) (357,244) (1,927,827) (1,107,987)
Interest income 23,780 9,763 50,778 14,650
Other income - 33,082 - 72,444
Lease fee income - 247,119 - 485,890
Foreign exchange gain
(loss) 204,747 (403,308) (597) (496,365)
------------------------ ------------------------
Loss before income taxes (658,890) (470,588) (1,877,646) (1,031,368)
Income taxes (note 12) 78,316 95,840 175,011 183,296
------------------------ ------------------------
Net loss for the period (737,206) (566,428) (2,052,657) (1,214,664)
Other comprehensive income
(loss)
Cumulative translation
adjustment (178,182) 415,180 (120,302) 350,739
------------------------ ------------------------
Comprehensive loss for the
period (915,388) (151,248) (2,172,959) (863,925)
------------------------ ------------------------
------------------------ ------------------------
Net loss per share
Basic and diluted (0.01) (0.01) (0.03) (0.02)
Weighted average number of
shares outstanding
Basic 69,955,188 69,854,752 69,930,714 69,391,903
Diluted 70,207,985 69,932,596 70,292,453 69,679,433
For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.
BioteQ Environmental Technologies Inc.
Consolidated Statement of Changes in Equity
For the three and six months ended June 30, 2011 and 2010
Unaudited
---------------------------------------------------------------------------
Accumulated
other
Share compre-
capital hensive
and Contributed income
warrants surplus (loss) Deficit Total
$ $ $ $ $
Balance -
January 1,
2011 55,182,229 8,045,826 (1,482,945) (41,215,005) 20,530,105
Stock-based
compensation - 70,403 - - 70,403
Exercise of
options (note
11) 87,188 (30,304) - - 56,884
Net loss for
the period - - - (2,052,657) (2,052,657)
Other
comprehensive
income for the
period - - (120,302) - (120,302)
------------------------------------------------------------
Balance - June
30, 2011 55,269,417 8,085,925 (1,603,247) (43,267,662) 18,484,433
------------------------------------------------------------
------------------------------------------------------------
Balance -
January 1,
2010 51,148,380 7,586,362 - (30,286,323) 28,448,419
Issuance of
capital stock
and warrants
(note 11) 4,000,000 - - - 4,000,000
Stock-based
compensation - 280,128 - - 280,128
Exercise of
options (note
11) 25,018 (8,585) - - 16,433
Net loss for
the period - - - (1,214,664) (1,214,664)
Other
comprehensive
loss for the
period - - 350,739 - 350,739
------------------------------------------------------------
Balance - June
30, 2010 55,173,398 7,857,905 350,739 (31,500,987) 31,881,055
------------------------------------------------------------
------------------------------------------------------------
For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.
BioteQ Environmental Technologies Inc.
Consolidated Statement of Cash Flow
For the three and six months ended June 30, 2011 and 2010
Unaudited
---------------------------------------------------------------------------
3 months ended June 30, 6 months ended June 30,
2011 2010 2011 2010
$ $ $ $
Cash flow provided by
(used in)
Operating activities
Net loss for the period (737,206) (566,428) (2,052,657) (1,214,664)
Items not affecting cash:
Depreciation of property,
plant and equipment 151,843 209,478 300,490 416,480
Amortization of
intangible asset 7,743 7,743 15,486 15,486
Amortization of deferred
lease inducement (7,104) - (14,209) -
Unrealized foreign
exchange (gain) loss (72,462) 615,255 (124,275) 567,112
Stock-based compensation
charge (note 11) 27,903 150,590 70,403 280,128
----------------------- ------------------------
(629,283) 416,638 (1,804,762) 64,542
Change in non-cash working
capital items (note 13) 372,391 (187,818) 976,202 (38,023)
----------------------- ------------------------
Net cash provided by (used
in) operating activities (256,892) 228,820 (828,560) 26,519
----------------------- ------------------------
Investing activities
Purchase of property,
plant and equipment (332,969) (312,853) (868,922) (317,586)
Purchase of short-term
investments (3,679,908) (6,038,444) (6,072,880) (12,083,469)
Proceeds from sale of
short-term investments 5,557,673 6,044,369 10,340,881 8,892,310
Repayment of loan
receivable - 150,000 - 300,000
----------------------- ------------------------
Net cash provided by (used
in) investing activities 1,544,796 (156,928) 3,399,079 (3,208,745)
----------------------- ------------------------
Financing activities
Proceeds from exercise of
options 30,652 1,934 56,884 16,434
Proceeds from issuance of
capital stock and
warrants - - - 4,000,000
Increase (decrease) in
long-term liabilities (64,342) - 60,603 -
----------------------- ------------------------
Net cash provided by
financing activities (33,690) 1,934 117,487 4,016,434
----------------------- ------------------------
1,254,214 73,826 2,688,006 834,208
Effect of exchange rate
changes on cash and cash
equivalents (70,225) (70,060) (7,789) (2,273)
----------------------- ------------------------
Increase in cash and cash
equivalents 1,183,989 3,766 2,680,217 831,935
Cash and cash equivalents
Beginning of period 6,149,693 3,319,471 4,653,465 2,491,302
----------------------- ------------------------
End of period 7,333,682 3,323,237 7,333,682 3,323,237
----------------------- ------------------------
----------------------- ------------------------
For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to the Company, certain information contained herein constitutes 'forward-looking statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate' and other similar words, or statements that certain events or conditions 'might' or 'will' occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled 'Risks' in the Company's Annual Report for the Year Ended December 31, 2010. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Contacts:
BioteQ Environmental Technologies Inc.
Tanja McQueen
VP Corporate Development
604-685-1243 or 1-800-537-3073
604-685-7778 (FAX)
investor@bioteq.ca
www.bioteq.ca
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