Company News
Organic Resource Management Inc. Reports Fiscal 2009 First Quarter Results
download pdf
Organic Resource Management Inc. Reports Fiscal 2009 First Quarter Results
Toronto, ON, November 12, 2008 - Organic Resource Management Inc. ("ORMI" or "the Company"), today announced the financial results for the three-month period ended September 30, 2008.
Q1 2009 Highlights:
- Signed agreements with three farm-based anaerobic digesters
- Total revenue of $4,048,000 compared to $3,723,000 in Q1 2008
- Gross margin of $1,517,000 compared to $1,198,000 in Q1 2008
- Net income of $175,000 compared to $114,000 in Q1 2008
"We are very pleased with our strong performance during the first quarter, as we continue to shift our focus to Ontario recycling options, particularly anaerobic digestion as a renewable-power solution through the diversion of organic waste to farm-based anaerobic digesters ("ADs")," said Charles Buehler, Chairman and Chief Executive Officer of ORMI. "During the quarter, we signed three exclusive 20-year agreements to supply organic residuals to Ontario ADs. Combined with the Klaesi AD agreement, signed in 2007, these contracts will give us four fully-operational ADs to receive our organic residuals by the end of 2009. In total, these ADs are expected to generate approximately two megawatts of electricity, enough to power 1600 homes."
Net income for the first quarter of fiscal 2009 was $175,000, an increase of 54% or $61,000 from $114,000 for the first quarter of fiscal 2008.
The Company's core grease interceptor business continued to show strong growth during the first quarter of fiscal 2009, recording an increase in revenue of 15% when compared to the first quarter of fiscal 2008. The increase is entirely attributable to higher volume. Revenue from ORMI's industrial organics services fell by 28% during the same period, due largely to limited disposal capacity in Ontario. Total revenue for the first quarter was $4,048,000, up 9% or $325,000 from $3,723,000 for the same period the prior year.
Total gross margin for the period ended June 30, 2008 was $1,517,000, an increase of 27% or $319,000 from $1,198,000 compared to the first quarter of fiscal 2008. Gross margin as a percentage of revenue was 37.5% during the first quarter, compared to 32.2% during the same period in fiscal 2008. During the quarter, the Company was able to source alternative disposal sites in Ontario and New York State, eliminating the need to transport residuals to Quebec, thereby significantly reducing transportation costs.
Cash flows from operating activities were $382,000 for the three-months ended September 30, 2008, an increase of 178% or $281,000 compared to $101,000 for the same period the prior year. The improvement was mainly due to a $204,000 increase generated from operations during the period. Cash flows from operations were offset slightly by a $165,000 increase in accounts receivable during the first quarter of fiscal 2009.
The comparative financial statements for the three-months ending September 30, 2008 along with other information may be obtained through the Company's website at www.ormi.com, or on SEDAR at www.sedar.com.
This press release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit the investor relations section of the Company's website at http://www.ormi.com/ORMI_Investor.asp. Alternatively, investors are asked to e-mail all questions and correspondence to Info@ormi.com where they can also request addition to the Company's investor e-mail list to receive all future press releases and updates directly.
About Organic Resource Management Inc.
Organic Resource Management 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 at www.ormi.com.
Note: Certain information contained in this press release may be forward-looking and therefore subject to unknown risks or uncertainties. 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.
For further information, contact:
|
Organic Resource Management Inc. Charles Buehler Website: www.ormi.com |
The Equicom Group Glen Williams Investor Relations Tel: 416-815-0700 ext. 272 Email: gwilliams@equicomgroup.com
|
download pdfback