Mr. Scott MacFabe reports

BLUMETRIC ANNOUNCES FISCAL YEAR 2023 RESULTS

Blumetric Environmental Inc. has released its financial results for the quarter and fiscal year ended Sept. 30, 2023.

Financial highlights:

• Revenue for the fiscal year was $35.1-million compared with $34.3-million for the fiscal year ended Sept. 30, 2022. Revenue for the fourth quarter of fiscal year 2023 was $10.3-million compared with $9.9-million in the corresponding period of 2022.
• Gross margin for fiscal year 2023 was 22 per cent compared with 22 per cent for fiscal year 2022. Gross margin for the fourth quarter of fiscal year 2023 was 26 per cent compared with 18 per cent over the same quarter in fiscal year 2022.
• EBITDA (earnings before interest, taxes, depreciation and amortization) for the 2023 fiscal year decreased to $1.7-million from $2.2-million in the previous year. EBITDA for the fourth quarter increased to $1.1-million from $300,000 in the corresponding period of 2022.
• Net earnings for the fiscal year were $500,000 compared with net earnings of $1.3-million for the fiscal year ended Sept. 30, 2022. Net earnings for the fourth quarter increased to $700,000 from $200,000 in the corresponding period of 2022.
• Working capital as at Sept. 30, 2023, was $11.1-million, compared with $10.9-million as at Sept. 30, 2022.
• Net cash as at Sept. 30, 2023, was $3-million, compared with $4.9-million at Sept. 30, 2022.

"We are finishing the year with one of our strongest quarters in recent history and a return to positive EBITDA and net earnings," stated Scott MacFabe, chief executive officer at Blumetric Environmental. "We entered FY 2024 with a record backlog and our cost control initiatives position us well. In addition, our strong balance sheet enables us to accelerate our cleantech growth plan as we renew key contracts and explore geographical expansion opportunities with new partners."

Highlights

In the fourth quarter, Blumetric, experienced improvements in revenue generation, gross margins and profitability.

Over all, revenues and gross profits remained consistent for the full fiscal year compared with the year prior. This stability highlighted the resilience of Blumetric's business model which is driven by its reoccurring environmental consulting services and agile water and waste water systems.

In the company's key markets, commercial and industrial and government full-year revenues remained consistent with the previous year. Military market revenues declined by 13 per cent year-over-year, primarily due to reduced activity under the shipboard reverse osmosis desalination (SROD) contract, which is awaiting a replacement announcement. The mining market saw 36-per-cent year-over-year revenue growth, driven by an expanding customer base and the resumption of work on a large water treatment facility contract at a mine site.

During the year, Blumetric entered a $12.2-million contract with Rheinmetall Canada which is scheduled for delivery throughout fiscal 2025.

Business outlook

Management is committed to sustainable profitability while simultaneously investing in future growth and resiliency. In fiscal year 2023, the company completed 1,151 projects, compared with 993 projects in fiscal year 2022. No single customer contributed more than 10 per cent of total revenues, compared with one (16 per cent) in 2022, showcasing the company's diversification efforts.

Despite facing a decline in revenue, the military market maintains the most substantial sales pipeline in terms of order value, due to the scale and nature of its contracts. These contracts are typically in the multimillions and span multiple years, like the previously announced Rheinmetall Canada partnership. Blumetric is optimistic that the combination of its unique water technologies and a growing need for resilient water solutions will contribute to wider adoption.

Part of the military market growth strategy involves exploring broader market opportunities with partners that can integrate the company's mission-ready water technologies into a full-service solution throughout North America and globally with other allied nations.

The company is exploring potential acquisitions in technology or consulting that align with and enhance its current sales, operations and product portfolios.

Blumetric is well positioned to capitalize on future growth opportunities. It has strong working capital and a robust balance sheet, combined with a recognizable presence in environmental consulting services and clean water technologies.

The full results are available at on SEDAR+.

Blumetric to host investor conference call

Blumetric will host a conference call today, Monday, Jan. 29, 2024, at 1 p.m. ET (10 a.m. PT) to discuss the results. To join the conference call without operator assistance, it is important to register and enter your phone number at least 30 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 1-888-664-6392 (toll-free North America) and enter confirmation No. 80595566.

About Blumetric Environmental Inc.

Blumetric Environmental 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 180 employees operating in 10 offices and over 40 years of expertise. Headquartered in Ottawa, Ont., Blumetric's team of industry experts serves commercial and industrial, military, mining, and government clients.

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