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
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, 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. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....