BluMetric sustainable, profitable, says CEO

Ottawa-based BluMetric Environmental is meeting its main goals of sustainable and profitable growth, CEO Roger Woeller said after the cleantech firm released 2016 first-quarter results late Monday.

“We are doing this by reinforcing the foundation of our strong existing historical business as well as investing at a significant level in our staff, new products and technology,” Mr. Woeller said in a statement. “We still have much to do, but our success invigorates our initiative.”

For the three months ending Dec. 31, 2015, BluMetric posted revenues of $7.9 million, up from $7.8 million in the same quarter of last year. The company said the increase is due mainly to growth in its professional services business.

BluMetric’s gross margin declined from 22 per cent to 19 per cent year-over-year as “the gross margin on engineered solutions projects tends to be higher than fee-for-service projects,” the company said.

As a result, BluMetric’s net income for the quarter fell to $16,000, compared with $114,000 in the first quarter of fiscal 2015.

The company’s “ongoing cost-reduction measures” have resulted in a year-over-year drop in sales, general and administrative costs to $1.2 million from $1.4 million.

BluMetric’s EBITDA dipped to $400,000 from $500,000 in the same quarter last year.

While BluMetric added several significant contracts in the quarter, it remains in violation of a debt covenant. It is operating under a forbearance agreement with its current lender as it pursues a replacement credit facility.

While the company did not project revenues for the second quarter, it did say it will continue to strengthen its base business, emphasize cost control and build margins.