VANCOUVER, BC – BioteQ Environmental Technologies Inc. (TSX VENTURE:BQE), a leading company in the treatment of acid contaminated water, today announced consolidated financial results for the fourth quarter and fiscal year ended December 31, 2006. All figures are in Canadian dollars and are in accordance with Canadian GAAP unless otherwise specified.
Revenue for the year ended December 31, 2006 was $4.52 million compared with $2.75 million in fiscal 2005 representing a 64% increase over the year. Net loss for fiscal 2006 was $1.75 million or a basic loss of $0.04 per share, compared with a loss of $2.79 million or a basic loss of $0.10 per share in fiscal 2005. Plant operating profit, for the year was $1,650,000 compared with a loss of $464,000 for fiscal 2005.
Revenue for Q4 2006 was $1,175,000 compared with $681,000 in Q4 2005. Net loss for Q4 2006 was $908,000 or a basic loss of $0.02 per share compared with a loss of $1,034,000 or a basic loss of $0.03 per share in Q4 2005. Plant operating profit for Q4 2006 was $439,000 compared with a loss of $385,000 for Q4 2005.
Financial Highlights for Fiscal 2006
The Company increased revenues by 64% year over year and completed a financing for net proceeds of $18.4 million to create a strong balance sheet with current cash resources of $27.2 million and no debt. Plant operating profit for the year ending December 31, 2006 was $1.65 million.
Revenue improvements in 2006 and lower plant operating costs produced a much improved net operating result from the plants. The increase in revenues was largely due to Bisbee and Raglan plants. Copper revenues at Bisbee increased from $614,000 in 2005 to $1.97 million in 2006. Copper production was 41% higher due to mechanical improvements made in 2005 and early 2006, coupled with the benefit of increased operating availability and increased copper prices. Raglan revenues increased from $832,000 in 2005 to $1.21 million in 2006.
Stock based compensation charges increased by $352,000 to $429,000 in 2006, reflecting the fair value charges for stock options granted mostly in 2006. Additional non-cash charges in 2006 were largely amortization of property plant and equipment and totaled $467,000 compared to $423,000 for 2005.
Business Highlights – Fiscal 2006
The Company doubled the amount of water treated in 2006, compared to 2005, to 4 billion litres. Three new construction projects were developed in 2006, now in progress, and are expected to be commissioned in 2007. In addition, a fourth construction project is in progress for commissioning in 2008. The Company added new sites for development between 2008 and 2010 to provide a steady flow of construction projects and potential new cash flow. The Company expanded the potential project sites to over 70 and have developed new technology for sludge processing and sulphate removal to potentially increase the target water treatment market.
Business Highlights – Q4 2006
All of the plant operations reported a profit in the fourth quarter.
“We are pleased to report the success of our growth strategy in 2006. BioteQ doubled the amount of water treated compared to 2005 and our operating plants started to show profitable results that can provide an established cash flow for the Company. We expect to commission three new plants this year which are expected to start contributing to revenues before the end of 2007. Based on current conditions and, with the existing operations, the Company is forecasting a profitable 2007. Our project pipeline is growing, both in quantity and quality of projects, with projects that fit our business plan for build, own operate or joint venture to treat water and recover metals,” stated Brad Marchant, President and CEO. “Our treatment plants can provide a sustainable answer to water treatment and can reduce long term liabilities for our customers.”
The Company’s fiscal 2006 financial statements and MD&A have been filed on SEDAR, www.sedar.com.
Conference Call Details
BioteQ will conduct a teleconference to discuss the fourth quarter and fiscal year results for the period ended December 31, 2006 on Friday, March 23, 2007 at 8:00 a.m. Pacific Time, 11:00 a.m. Eastern Time. To participate in the conference call please dial (416) 695-5259 Canada/USA (866) 902-2211, about 5-10 minutes prior to 8:00 am PST. Please refer to the BioteQ earnings teleconference call.
A recording of the conference call will be available on the Company’s website at www.bqewater.com. The call will also be available from March 23, 2007 through April 6, 2007, by dialing (416) 695-5275 or Canada/USA (866) 509-0081, conference ID #642023.
Corporate Profile
BioteQ is establishing itself as a leader in the treatment of acid contaminated water through the use of its patented BioSulphide® Process and the ChemSulphide™ Process. Focused on the mining industry, BioteQ has partnered with leading metal producers including Phelps Dodge, Breakwater, INCO, Jiangxi Copper and Xstrata as well as utilities operator EPCOR Water Services, to finance, design, build and operate mine site water treatment plants which recover saleable metals in addition to meeting ever stricter environmental regulations.
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On behalf of the Board of Directors
Brad Marchant