VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 05/13/13 — BioteQ Environmental Technologies Inc. (TSX: BQE), a leader in industrial waste water treatment, releases its financial and operating results for the first quarter ended March 31, 2013. Further information on the first quarter results can be obtained from the Company–s Unaudited Condensed Consolidated Interim Financial Statements and Management–s Discussion and Analysis (“MD&A”).
BioteQ will hold a conference call on May 14, 2013 at 11:00 AM EDT to discuss results for Q1 2013. Participants can dial in at 416-695-7806 or 888-789-9572; participant pass code 3207139. European callers can dial in at 800-4222-8835; participant pass code 3207139.
Due to recent changes in Generally Accepted Accounting Standards (“GAAP”) effective Q1 2013, the results of the Company–s joint ventures will be accounted for as equity investments in BioteQ–s current and future financial statements. In prior years, the results of the Company–s joint ventures were accounted for through proportionate consolidation. Going forward, the revenue and operating costs associated with the Company–s proportionate share of activities in joint ventures will be netted and disclosed as a single line item on the Consolidated Statements of Operations and the Company–s share of assets, liabilities and equity in each joint venture will be presented as a net investment on the Consolidated Statement of Financial Position. The change in accounting standard will not impact overall, consolidated profitability or cash flow in past or future periods. However this change will, given the mandated accounting treatment, result in the Company showing lower revenues than has historically been the case.
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 Measures” in the Company–s Q1 2013 MD&A.
Q1 2013 Financial and Operations results
BioteQ–s results for Q1 2013 were in line with the company–s expectations:
While BioteQ–s adjusted EBITDA loss was approximately $755,000 in Q1 2013, the Company anticipates stronger bottom line performance over the coming three quarters as the Raglan plant commences operations and as BioteQ recognizes additional revenues from field piloting and laboratory contracts, and from other sales opportunities.
BioteQ remains optimistic with regard to prospects for 2013 and beyond. As a result, 2013 targets for Proportional Revenue growth and adjusted EBITDA remain unchanged.
It should be noted however that a significant portion of BioteQ–s Proportional Revenues and profitability remain tied to copper prices. In recent months, the price of copper has fallen and been quite volatile. At the beginning of the year, copper prices were approximately USD $3.65/pound on the London Metals Exchange (LME). Currently, they are approximately USD $3.30/pound on the LME. A sustained decline in copper prices could have a material impact on Proportional Revenue and adjusted EBITDA forecast for the year.
BioteQ Corporate Profile
BioteQ is an innovative clean technology leader in global industrial water treatment, serving the mining and energy markets. The company–s proven technologies have been applied at sites around the world to recover dissolved metals and remove sulphate, producing clean water and eliminating residual waste. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at for additional information.
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 (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, 2012 and the section entitled “Risk Factors” in the Company–s Annual Information Form for the year ended December 31, 2012). 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.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Contacts:
BioteQ Environmental Technologies
Jonathan Wilkinson
CEO
604.685.1243 or 1.800.537.3073
BioteQ Environmental Technologies
Paul Kim
CFO
604.685.1243 or 1.800.537.3073