Welcome!

News Feed Item

BioteQ Reports Q2 2014 Financial and Operating Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/12/14 -- BioteQ Environmental Technologies Inc. (TSX: BQE), a leader in the treatment of mine impacted waters, releases its financial and operating results for the three and six months ended June 30, 2014. Further information on the quarterly results can be obtained from the Company's Q2 2014 Quarterly Report which includes the Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("MD&A").

BioteQ will hold a conference call on August 13 at 11:00 AM EDT to discuss results for the quarter. Participants can dial in as follows:

North America: 1- 416-204-9271 or toll free at 1-800-505-9568

United Kingdom: toll free at 0800-279-0444

Switzerland: toll free at 0800-200-345

Participant pass code: 3771618

As noted at the beginning of 2013, due to changes in Generally Accepted Accounting Standards ("GAAP"), the results of the Company's joint ventures are accounted for as equity investments in BioteQ's financial statements. In prior years before 2013, the results of the Company's joint ventures were accounted for through proportionate consolidation.

To ensure clarity and comparability with historic results, certain statements in this news release and in the MD&A are characterized as BioteQ's "proportional" share, which means the effective portion of results that BioteQ would have reported if each of its joint ventures had been reported in accordance with past accounting standards. For further details, please see "Non-GAAP Financial Measures" in the Company's Q2 2014 MD&A.

Q2 2014 Financial Results


--  Revenues for Q2 2014 as reported under GAAP were $697,000 compared to
    $924,000 in 2013, a decline of 25% compared to the prior year;
--  Proportional revenues for Q2 2014 were $1,873,000 compared to $2,008,000
    in 2013, a decline of 7% compared to the prior year;
--  Earnings for the current quarter include a recovery of $300,000 from a
    bad debt expense originally recognized in 2010;
--  Adjusted earnings before interest, tax, depreciation and amortization
    ("adjusted EBITDA") for Q2 2014 was income of $203,000 compared to a
    loss of $468,000 in 2013;
--  Net loss for the quarter as reported under GAAP was $16,000 compared to
    a loss of $844,000 in 2013; and
--  Cash and short-term investments, including our share held in joint
    ventures, was $1.9 million compared to $3.2 million at December 31,
    2013.

Other Items


--  During the second quarter, BioteQ further amended the payment terms of
    its legal settlement with NWM Mining Corporation ("NWM"). Under the
    amended terms, the final $600,000 balance due June 30, 2014 is now due
    as follows: $300,000 has been paid and the remaining $300,000 by no
    later than September 30, 2014. All other terms and conditions remain
    unchanged.
--  During the quarter, BioteQ and Aditya Birla Minerals ("Birla") met for
    court ordered mediation related to lawsuits commenced in 2010. The
    parties failed to come to an agreement and the litigation continues to
    be in progress.

Water Treatment Operations


--  In June, BioteQ commenced operations at its plant at the Raglan mine
    site in Quebec. The current operating season is expected to continue
    until the end of October. BioteQ staff will also be operating a lime
    treatment plant for water that is not treated by BioteQ's
    ChemSulphide® plant. During the quarter, BioteQ treated and discharged
    72,000 cubic metres of water.
--  Water treatment operation at the Dexing mine site, a joint venture with
    mine site owner Jiangxi Copper Company ("JCC"), treated 2.6 million
    cubic metres of water and recovered a total of 681,000 pounds of copper
    compared to Q2 2013 when BioteQ treated 3.4 million cubic metres of
    water and recovered 592,000 pounds of copper.

New Plant Construction Update

During the second quarter, BioteQ completed construction and commissioning of one of the two new plants in China with joint venture partner JCC. The second copper recovery plant is in the final stages of commissioning and will commence operations in the third quarter.


--  The plant at JCC's Yinshan mine site began operations in early June.
    During the quarter, the plant processed 260,000 cubic metres of
    wastewater and recovered 44,000 pounds of copper. The plant is expected
    to recover approximately 450,000 pounds of copper to the end of the year
    and 900,000 pounds of copper on an annual basis.
--  A second copper recovery plant at JCC's Dexing mine site is in the final
    commissioning phase and expected to begin operations later in Q3. Once
    in operation, the plant is also expected to recover approximately
    900,000 pounds of copper on an annual basis.

Sales and New Technology Development

Since the personnel changes announced at the beginning of the year, management has been actively engaging existing and potential new customers to advance joint business opportunities and have been working with several new channel partners to broaden BioteQ's outreach and capacity to execute projects.

The following is an update on key opportunities in progress:

Selenium Removal - Selen-IX™

During the quarter, BioteQ secured a contract with a Canadian company to conduct pilot scale testing of our Selen-IX™ technology for selenium removal. The current value of the contract is $890,000 and work is already under way to allow the pilot plant to begin operating in August and complete the pilot campaign by the end of October 2014.

EcoMetales Limited - BioSulphide® Plant Design

During the quarter, BioteQ secured a technical services contract with its Chilean strategic partner EcoMetales Limited ("ECL") for the detailed process engineering of a smelter effluent treatment plant using our BioSulphide® process.

Consulting Contracts - Latin America

BioteQ has also entered into several small contracts for the supply of technical services to a number of customers and sites across Latin America. The scope of these contracts range from technical feasibility studies, to operational reviews including on-site operations assistance, and laboratory testing. While the financial amounts to be received from these contracts are limited, BioteQ has performed rigorous screening of the sites and customer requirements to ensure a long-term strategic fit with the new business strategy, and as a result BioteQ is optimistic that these service contracts will prove to be a catalyst for larger contracts in the future.

OUTLOOK AND GOING CONCERN

As previously noted, the new sales model being implemented by management will take time to begin bringing cash flow into the Company. This shortfall in near term sales has brought working capital resources to lower than expected levels. In recent months, BioteQ has completed various short-term measures to manage working capital through the next three to six months including: a repatriation of funds from our Chinese joint venture, receipt of funds from our legal settlement with NWM Mining, and cost deferrals and reductions. Although the Company believes it can manage its working capital through this period, non-operational sources of capital may be required beyond this period.

For the current fiscal year, BioteQ projects Proportional Revenues to be in the range of $6.8 million to $7.3 million. BioteQ projects Adjusted EBITDA loss to be in the range of $2.1 million to $2.6 million. In the prior year, BioteQ had Proportional Revenues of $7.6 million and an Adjusted EBITDA loss of $2.3 million. The current year's forecast include the impact of significant one-time restructuring costs and provisions incurred in the first quarter. Projections also include anticipated earnings from two new plants in China as well as successful completion of the selenium removal piloting contract recently awarded.

David Kratochvil, President & Interim CEO, said, "Our results for the second quarter are beginning to reflect the impact of cost savings through internal restructuring and our new sales model and strategy to rebuild our sales pipeline. This, in combination with the working capital initiatives implemented earlier in the year have stabilized our short-term financial position. We intend to carry this momentum to ultimately generate long-term, sustainable, profitability for the company."

Q2 2014 Financial Highlights Summary

For a complete set of Financial Statements and Management Discussion and Analysis, please go to www.bioteq.ca


(unaudited, in $'000 except
 for per share amounts)       3 months ended Jun. 30  6 months ended Jun. 30
                                    2014        2013        2014        2013
                                       $           $           $           $
                            ------------------------------------------------
Revenues                             697         924         851       1,720
less: Plant and other
 operating costs (excluding
 depreciation)                       463         654         615       1,262
                            ------------------------------------------------
                                     234         270         236         458
General and administration           484       1,067       1,540       2,038
Sales and development                337         449         862         923
Share of results of equity
 accounted joint ventures          (399)       (184)       (322)       (317)
                            ------------------------------------------------
                                   (188)     (1,062)     (1,844)     (2,186)
Depreciation and
 amortization                         55         126         119         272
Stock-based compensation            (27)          31          13          65
                            ------------------------------------------------
Loss before other (expense)
 income                            (216)     (1,219)     (1,976)     (2,523)
Other (expenses) income -
 net                                (15)          14           1         107
Bad debt recovery (expense)          300         200        (78)         400
Gain on disposal of
 equipment                             3         239           3         239
Income tax                          (88)        (78)        (88)        (80)
                            ------------------------------------------------
Net loss for the quarter            (16)       (844)     (2,138)     (1,857)
Translation (loss) gain on
 foreign operations                 (61)         406         113         553
                            ------------------------------------------------
Comprehensive (loss) for the
 quarter                            (77)       (438)     (2,025)     (1,304)
                            ------------------------------------------------
                            ------------------------------------------------

Net loss per share (basic
 and diluted)                         $-     $(0.01)     $(0.02)     $(0.03)

Proportional Revenues(1)           1,873       2,008       2,426       3,946
Adjusted EBITDA(1)                   203       (468)     (1,783)     (1,222)

(1) see "Non-GAAP Financial Measures" in the Company's Q2 2014 MD&A

BioteQ Corporate Profile

BioteQ is an innovative clean technology leader in global mine water treatment, serving the mining, metal smelting, refining and hydrometallurgical sectors. The company has commercially proven patented technologies and operational capabilities to help customers achieve compliance with stringent regulations cost effectively while minimizing waste and maximizing water recovery. Over the past decade, BioteQ has designed and commissioned plants at mine sites for leading organizations including Glencore-Xstrata, Freeport McMoran, Jiangxi Copper and the US EPA and is currently operating four plants under long-term contracts. These plants remove dissolved metals and sulphate to well below the required regulatory discharge limits while reducing or eliminating the production of waste sludge and/or recovering valuable metals from waste streams for sale which reduces the life cycle cost of water treatment. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at www.bioteq.ca for additional information.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain information contained herein may not be based on historical fact and therefore constitutes "forward-looking information" under applicable Canadian securities legislation. This includes without limitation statements containing the words "plan", "expect", "project", "estimate", "intend", "believe", "anticipate", "may", "will" and other similar words or expressions. 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, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at www.sedar.com (including without limitation the factors described in the section entitled "Risks and Uncertainties" in the Company's Annual Report for the year ended December 31, 2013 and the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2013). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...