Ottawa's BluMetric keeps profits coming in Q1

Jss ship
BluMetric has been tapped to provide water purification systems on Canadian naval vessels. Rendering via Department of National Defence.

Ottawa cleantech firm BluMetric continued its profitable ways in the first quarter of fiscal 2019, thanks in part to a multimillion-dollar deal to provide water purification systems to the Canadian navy and a dip in operating expenses, the firm said.

BluMetric (TSX-V:BLM) reported revenues of $7.62 million for the three-month period ending Dec. 31, 2018. That’s up slightly from the $7.56 million figure the company posted a year earlier.

In financial filings, the firm attributes its consistent revenue totals to ongoing projects such as environmental site assessments in Canada’s Arctic as well as a deal to expand waste disposal capacity at a municipal landfill in Ontario.

In a news release, BluMetric said its military business “continued to thrive” in the first quarter of 2019. The company said it worked on various “challenging” projects for the Royal Canadian Navy and touted its new $4.16-million contract with Vancouver’s Seaspan Shipyards to provide water desalination services on Canadian naval support vessels, an agreement it signed in November.

BluMetric posted net earnings from $189,000 for the quarter, an 87 per cent jump from the $101,000 profit it earned in the same period a year earlier. Meanwhile, the firm trimmed its operating expenses year-over-year by $163,000 to $1.3 million.

In a report filed with regulators, BluMetric noted that last year’s quarterly expense figures were inflated because they included a $250,000 severage package to former chief executive Roger Woeller, who left the company in June 2018.

BluMetric also noted its net income before deducting interest expenses, income tax, depreciation and amortization was $429,000, up substantially from $301,000 in the first quarter of 2018.

“Building on strong annual results for fiscal year 2018, our first quarter of 2019 produced solid improvement in our net earnings and EBITDA as we improve the quality of our client portfolio,” CEO Scott MacFabe said in a statement.

“By focusing on markets where we offer elite technical expertise and clients where we see the opportunity to develop deep, meaningful partnerships, we are laying the groundwork for solid success in coming quarters and positioning BluMetric for sound, sustained growth.”