Ottawa, Ontario--(Newsfile Corp. - February 26, 2025) - BluMetric Environmental Inc. (TSXV: BLM) (OTCQX: BLMWF) ("BluMetric" or "theCompany"), an engineering WaterTech and full-service environmental consulting firm, announced its consolidated financial results for the first fiscal quarter ended December 31, 2024.
Financial Highlights
Revenue for the quarter ended December 31, 2024, was $14.0 million compared to $8.5 million for the same period in 2023.
Gross margin for the quarter ended December 31, 2024, was 33% compared to 42% for the same quarter in the previous year. The decrease in gross margin is mainly due to the increase in component revenues associated with the large St. Kitts and Nevis project through Gemini Water ("Gemini").
Adjusted EBITDA (see definition below) for the quarter ended December 31, 2024, was $1.3 million, compared to $0.7 million in the same quarter of the previous year.
Net earnings for the quarter ended December 31, 2024, was $0.4 million compared to $0.2 million in the same quarter of the previous year.
Working capital (see definition below) as at December 31, 2024 was $9.3 million, compared to $11.2 million as at December 30, 2023.
Net cash (see definition below) as at December 31, 2024 was $3.7 million, compared to net cash of $0.8 million at December 31, 2023.
Closed an oversubscribed offering and private placement on December 13, 2024, for aggregate gross proceeds of $4.0 million.
"We had a record start to the fiscal year, thanks in part to a full quarter of revenue contribution from Gemini who continues to deliver strong results," said Scott MacFabe, CEO of BluMetric Environmental Inc. "Our goal is to carry this momentum throughout the balance of the fiscal year. The continued integration and expansion of our WaterTech team coupled with improvements to business development efforts for Professional Services is expected to help fuel our success for the balance of the year."
Business Highlights and Outlook
This quarter saw a significant increase in revenues and profitability due to the full quarter of revenue contributions from Gemini with limited increases in total overhead. Furthermore, Gemini accelerated revenue recognitions for the quarter to help mitigate the potential impact of political and trade uncertainties in its supply chain through faster-than-expected hardware deliveries on key projects. The overall financial performance showcases management's continued commitment to executing its growth strategy while sustaining a level of profitability and cash generation.
The Company continues to see significant potential growth opportunities within its WaterTech business. Earlier this calendar year, BluMetric signed a new lease for a larger, 25,000 square foot manufacturing facility in Gainesville, Florida. This manufacturing space increase coincides with the approximate doubling of the workforce in Florida which included several strategic hires in sales and client delivery.
Along with the expansion of Gemini, the Company is preparing to execute on other key contracts like the Rheinmetall Canada partnership in the Military market. The first production system has completed its final field assessments and BluMetric is waiting for the last approvals before commencing full-scale production. The Military market continues to have the most significant sales pipeline in terms of order value but has been slower than anticipated to close contracts.
BluMetric is proud to announce that it is now Partnership Accreditation in Indigenous Relations (PAIR) Committed, confirming its relationship with Indigenous partners. In addition, the Company has been chosen by one of the First Nations' governments to plan and carry out an environmental cleanup of abandoned sites that pose potential risks to their community. BluMetric's expertise and its commitment to working alongside local communities ensures a respectful and sustainable approach to the ecosystems alongside the needs of the impacted geographies.
Overall, BluMetric is well positioned to leverage the combination of its unique water technologies and professional services to meet the demand for more resilient and decentralized water solutions.
Financial Table
Three Months Ended December 30, 2024
Three Months Ended December 30, 2023
($000)
($000)
Revenue
13,967
8,524
Gross profit
4,611
3,583
Gross margin
33%
42%
Operating expenses
3,834
3,148
Operating profit (loss)
777
435
Finance costs
84
57
Earnings (loss) before provision for income tax
693
378
Income tax expense (recovery)
315
137
Net earnings (loss)
378
241
Earnings (loss) per share - basic
0.01
0.01
Earnings (loss) per share - diluted
0.01
0.01
EBITDA1
1,219
612
Adjusted EBITDA2
1,310
658
Free cash flow3
618
386
Working capital4
9,253
11,194
Net cash5
3,706
757
Note 1: EBITDA represents net income before interest expense, income taxes, depreciation of property and equipment, and amortization of intangible assets. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure for EBITDA.
Note 2: Adjusted EBITDA represents net income before interest expense, income taxes, depreciation of property and equipment, and amortization of intangible assets net of acquisition costs and non-cash share compensation. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure for Adjusted EBITDA.
Note 3: Free cash flow is a non-IFRS measure and is calculated as operating cash flows less net capital expenditures and net payment of lease obligations.
Note 4: Working capital is a non-IFRS measure and is calculated by subtracting current liabilities from current assets. There is no directly comparable measure under IFRS.
Note 5: Net cash is a non-IFRS measure and is calculated as cash less total funded debt excluding lease liabilities. The Company uses this measure as part of assessing liquidity. There is no directly comparable measure under IFRS.
BluMetric to Host Investor Conference Call BluMetric will host a conference call on Friday, February 28, 2025, at 1:00 PM ET (10:00 AM PT) to discuss the results. To join the conference call without operator assistance, it's important to register and enter your phone number at https://emportal.ink/3CuKKqE at least 15 minutes before the call's start time or later to receive an instant automated callback.
You can also dial directly to be entered into the call by an Operator. Please dial 1-888-699-1199 (Toll-Free North America) or 1-416-945-7677 (Local).
About BluMetric Environmental Inc.
BluMetric Environmental Inc. is a publicly traded environmental consulting and engineering company with expertise across professional and trade disciplines and technologies that allow for the design, fabrication and delivery of sustainable solutions to environmental and water challenges. BluMetric has more than 220 employees operating in ten offices and over 45 years of expertise. Headquartered in Ottawa, Ontario, BluMetric's team of industry experts serves Commercial and Industrial, Military, Mining and Government clients.
Scott MacFabe BluMetric Environmental Inc. Tel: 1-877-487-8436 x242 Email: smacfabe@blumetric.ca
Dan Hilton, CFO BluMetric Environmental Inc. Tel: 1-877-487-8436 x550 Email: dhilton@blumetric.ca
Brandon Chow, Principal & Founder Panolia Investor Relations Inc. Tel: 1-647-598-8815 Email: brandon@panoliair.com
Forward-Looking Statements
Some of the statements in this press release, including those relating to the Company's quarterly and annual results, future products, opportunities and cost initiatives, strategies, and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections regarding future events. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR+ at www.sedarplus.ca. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
