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Organic Resource Announces Annual Results for Year Ended June 30, 2008
download pdfOrganic Resource Management Inc.
3700 Steeles Avenue West, Suite 601
Woodbridge, Ontario L4L 8K8
TEL: (905) 264-7700 FAX: (905) 264-7273
E-mail: mailto:info@ormi.com
Website: http://www.ormi.com/
September 25, 2008
TSX Symbol: ORI
NEWS RELEASE
Organic Resource Announces Annual Results
for Year Ended June 30, 2008
Woodbridge, Ontario - September 25, 2008. Organic Resource Management Inc. ("ORMI" or "Company") is pleased to announce its annual results for the year ended June 30, 2008.
During the past year, and in particular the last few months, the Company progressed on a number of fronts. Management substantially completed the restructuring program started in 2007 to simplify the Company's balance sheet and organizational structure, strengthen its management team and secure ownership of its vital proprietary assets. However, the most significant accomplishment this year was successfully demonstrating that ORMI can process the organic residuals it collects into a valuable high-energy feedstock for the production of biogas renewable energy. This has allowed the Company to secure long-term, exclusive, organic residuals supply agreements with three farm-based anaerobic digesters in Ontario. Their acknowledgement of the energy value of ORMI's processed residuals confirms that the Company's recycling costs with anaerobic digestion will be significantly reduced, and will provide the economic stimulus for more anaerobic digester projects to proceed, thus providing a fundamental increase in recycling capacity.
For the year ended June 30, 2008, revenue from the Company's core business of grease interceptor servicing increased 16% over the prior year, largely on the strength of higher volumes. This increase was offset by the termination of the compactor rental business and a 29% decrease in revenues from industrial organics because of lack of disposal capacity. Total revenues for 2008 were $15,206,000, a decrease of $212,000 or 1% from $15,418,000 in 2007.
Total gross margin was $4,731,000 for the year, an increase of $81,000 or 2% from $4,650,000 last year. As a percentage of revenue, gross margin was 31.1% in 2008, up from 30.2% in 2007. Lower residuals management costs contributed to the improvement in gross margin.
The Company continued to have large non-cash expenses in 2008 of $2,278,000 compared to $2,023,000 in 2007. $1,383,000 of this expense resulted from an impairment loss of 100% of the remaining goodwill relating to the acquisition of A&A in 2002. In 2007 preferred share dividends and intangible asset amortization, including the write-down of patents, accounted for $2,216,000 of non-cash expenses.
The net loss for the year was $1,229,000, a decrease of $15,000 or 1% from $1,244,000 in 2007.
The future income tax recovery for 2008 was $104,000.
Cash flows from operating activities decreased by $466,000 or 47%, from $998,000 in 2007 to $532,000 in 2008. This decrease was mainly due to the payment of liabilities accrued at June 30, 2007 and a reduction in trade payables.
The Company will be holding its annual general meeting on October 23, 2008, at 4:00 pm at the office of McMillan LLP, Suite 4400, BCE Place, Bay Wellington Tower, 181 Bay Street, Toronto, Ontario.
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This press release is available on the investor relations section of the Company's website www.ormi.com/ir/index.php where there is also investor commentary, feedback and questions. Alternatively, investors are asked to e-mail all questions and correspondence to mailto:info@ormi.comwhere they can also request addition to the Organic Resource investor e-mail list to receive all future press releases and updates directly.
About Organic Resource Management Inc.
Organic Resource Management (TSX Symbol: ORI) is Canada's largest provider of vacuum truck services for the collection, treatment and disposal of organic and other non-hazardous liquid waste. ORMI services in excess of 8,000 commercial, industrial, institutional and residential customers in Ontario, Quebec, and British Columbia. Further information about ORMI may be obtained at the Company's web site: www.ormi.com .
Cautionary Note: Certain information contained in this press release is forward-looking and therefore subject to unknown risks or uncertainties. The AD expansion, and thereby the resulting cost savings announced herein, are reliant on many factors that are not under the Company's control, including but not limited to various regulatory requirements and technical factors. The actual results, performance or achievements of Organic Resource Management Inc. may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.
CONTACT INFORMATION
Corporate Inquiries
Charles H. Buehler,
Chairman & Chief Executive Officer
(905) 264-7700 Ext. 112
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