Mr. Scott MacFabe reports

BLUMETRIC ANNOUNCES Q1 2024 FINANCIAL RESULTS

Blumetric Environmental Inc. has released its financial results for the first quarter ended Dec. 31, 2023.

Financial highlights:

• Gross margin for the quarter ended Dec. 31, 2023, was 42 per cent compared with 32 per cent (as restated -- see note below) for the same quarter in the previous year.
• Revenue for the quarter ended Dec. 31, 2023, was $8.5-million compared with $10.5-million for the same period in 2022.
• EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter ended Dec. 31, 2023, was $600,000, compared with $900,000 in the same quarter of the previous year.
• Net earnings for the quarter ended Dec. 31, 2023, was $200,000 compared with $500,000 in the same quarter of the previous year.
• Working capital as at Dec. 31, 2023, was $11.2-million, compared with $11.4-million as at Dec. 30, 2022.
• Net cash as at Dec. 31, 2023, was $800,000, compared with net cash of $2.9-million at Dec. 31, 2022. The company expects an increase in its net cash as it is awaiting a large payment from a government client whose fiscal year-end is March 31.
• Sales orders closed during the trailing-12-month period ending Dec. 31, 2023, of $50.6-million.

"We had a good start to the year, showcased by our continued profitability and gross margins reflecting more ideal contracts," stated Scott MacFabe, chief executive officer at Blumetric Environmental. "While maintaining a long-term focus on profitability and a robust balance sheet, we continue to strike a balance by making strategic investments for growth. The next 12 months will be an important period as we execute on our record backlog, aim to expand the geographical reach of our cleantech systems, and explore potential acquisitions."

Business outlook

This quarter continued to demonstrate management's commitment to sustainable profitability, while simultaneously investing in future growth and resiliency. The company believes that its financial position, consisting of adequate working capital and minimal debt, offers the ability to deliver on its record order backlog.

With the addition of key sales personnel in 2023, along with the growth of cleantech business in Atlantic Canada, Blumetric established a satellite office. The office will support Blumetric's business development, and the service and support of its key clients in the region. This continuing investment in the company's cleantech water systems aims to enhance both geographical reach and personnel capabilities in engineering and operations.

In addition, Blumetric has launched a new operations and maintenance (O&M) division, which will deploy an expanding team of field service representatives across Canada and the globe.

Subsequent to the quarter, Blumetric announced a $5.3-million extension for a service and support contract for Canada's Department of National Defence reverse osmosis water purification units (ROWPU), which is expected to be delivered in calendar-year 2024. In addition, the company won a $400,000 proof-of-concept contract from a multinational defence contractor to optimize onboard potable water quality.

These contracts highlight the company's versatile cleantech service capabilities which extend across both land and sea applications. They are also an important part of the overall growth strategy to build a larger base of recurring and higher-margin revenues.

Over all, Blumetric sees upcoming quarters focused on execution to capitalize on opportunities through its recognizable presence in environmental consulting services and clean water technologies.

The full results are available at SEDAR+.

Pursuant to the company's board compensation policy, Blumetric has granted options of 199,000 common shares to directors and employees of the company. These options are granted effective Feb. 28, 2024, vest over two years, and are exercisable into common shares of Blumetric at a price of 48 cents per share for a period of seven years.

Blumetric to host investor conference call

Blumetric will host a conference call today on Thursday, Feb. 29, 2024, at 1 p.m. Eastern Time (10 a.m. Pacific Time) to discuss the results. To join the conference call without operator assistance, enter your details and phone number on-line for an instant callback. While the company recommends joining closer to the start time, participants can join up to 30 minutes early, connecting to the call with hold music until the scheduled start.

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. 57247649.

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 175 employees operating in 10 offices and over 45 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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