Edgar Filing: BENNETT ENVIRONMENTAL INC

Press Release dated Feb 6, 2003

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
the Securities Exchange Act of 1934

For the month of February, 2003

Bennett Environmental Inc.
(Translation of registrant’s name into English)

Suite 208, 1540 Cornwall Road, Oakville ON L6J 7W5
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


Form 20-F		Form 40-F X

Please note that pursuant to Rule 12g3-2(d)(1), this registrant, being registered under Section 12, is not eligible for exemption under Rule 12g3-2(b). Accordingly, the following two questions are not relevant to this registrant and are therefore left blank.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes		No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- .

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		Bennett Environmental Inc. (Registrant)
Date:	February 6, 2003	By:	/s/ John Bennett

		[Print]	Name: John Bennett Title: Chief Executive Officer


	For Immediate Release

BENNETT Announces Record Q4 and Full Year Results

Trend in Strong Growth In Sales and Profits Continues

Oakville, Ontario, February 6, 2003 — BENNETT Environmental Inc., a North American leader in high temperature remediation of contaminated soils, is pleased to announce a Q4 profit of $5,456,360, or $0.32 per share on revenue of $18,807,941. For the full year, profit was $12,542,851 and revenues were $48,103,845, reflecting a significant growth in business. Profits increased by 165% from $4,726,976 a year earlier and revenues climbed by 105% from $23,422,574. Full year earnings per share of $0.73 showed a substantial increase from $0.30 in the previous year.

“I am very pleased with the results we achieved in 2002, we doubled sales and nearly tripled earnings from a year earlier and are continuing to expand the business”, said John Bennett, Chairman and CEO of BENNETT Environmental. “Our business plans are progressing well and we should see continued growth for our services for the foreseeable future. In order to meet demand, our permitting activities are continuing for the proposed plants in Belledune, New Brunswick and Kirkland Lake, Ontario and all going well we should start construction in April 2003 in Belledune. Our existing plant in Saint Ambroise is operating exceptionally well and our recent acquisition of Material Resource Recovery (MRR) is already starting to contribute to overall results.”

Rick Stern, BENNETT’s Chief Financial Officer added, “We ended the year with an exceptionally strong balance sheet with cash and receivables on hand of $31,773,584 with only a small amount of non-interest bearing debt. We generated $16,227,559 million of free cash flow this year even after investments of $5,745,292 million. Our goal for 2003 is to continue to execute our business plan of rapidly increasing sales, earnings and capacity growth and we are on track to meet our targets of $1.20 — $1.30 earnings per share on revenues of $70 — $75 million.”

Results of Operations

BENNETT Environmental had a Q4 profit of $5,456,360 or $0.32 per share versus a profit of $2,920,465 or $0.19 per share in the corresponding period last year. Revenues were $18,807,941 in the quarter versus $10,136,008 for Q4 2001. Revenues of $48,103,845 and earnings of $12,542,851 or $0.73 per share were up from revenue of $23,422,574 and a profit of $4,726,976 or $0.30 per share for the same 12-month period ending December 31, 2001.

The Company’s operating costs of $20,228,635 for the full year 2002, were higher than the $10,990,627 for the same period last year and reflect the higher plant utilization. Administrative and business development costs of $7,787,483 for 2002 were higher than the $4,337,901 incurred last year due to increased sales and marketing efforts, management incentives and the consolidation of MRR expenses commencing October 1, 2002. The Company incurred $3,724,229 of income tax expense for the quarter and $7,681,292 for the year and has been in a taxable position since Q3 2001.


BENNETT Environmental Press Release		Page 1 of 5 PR 112 — 2003 02 06


	For Immediate Release

The Company’s cash position has increased in the quarter to $19,267,639 primarily due to the generation of cash from operations and positive working capital changes. For the year, the Company increased its cash position by $16,227,559 from $3,040,080 at the end of last year. The receivables balance of $12,505,945 at the end of the Q4 2002 is virtually unchanged from the previous quarter and up from $9,810,018 from the same period last year due to higher sales activity. The Company’s net working capital position at December 31, 2002 is $19,057,602 increasing from the net working position of $8,981,200 at December 31, 2001. During the quarter, the Company invested $2,426,745 in new plant and equipment, primarily to expand storage capabilities at the Saint Ambroise plant. On September 30, 2002, the Company acquired all of the outstanding common and preferred shares of Material Resource Recovery Inc. including assets of $4,688,970 for an aggregate purchase price of $61,621, the excess of book value over purchase price resulted in negative goodwill of $2,602,940 which was allocated proportionately to reduce the book value of the acquired assets. On October 2, 2002 the Company’s Normal Course Issuer Bid expired. In total, the Company purchased 68,800 of its own shares in the stock market over the past year.

About BENNETT Environmental Inc.

BENNETT Environmental Inc. is a North American leader in high temperature treatment services for the remediation of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the US. BENNETT Environmental’s proprietary technology provides for the safe, economical and permanent solution to contaminated soil. Independent testing has consistently proven that the technology operates well within the most stringent criteria in North America.

BENNETT Environmental is listed on the Toronto Stock Exchange (Trading Symbol “BEV”) and the American Stock Exchange (Trading Symbol “BEL”). For information, please visit the BENNETT Environmental website at www.bennettenv.com, or contact John Bennett at the Vancouver office (604) 681-8828 or Rick Stern at the Oakville office (905) 339-1540.

Note for Investors:

This news release includes statements about expected future events and/or financial results that are forward looking in nature and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbour for forward-looking statements provisions contained in the Private Litigation Reform Act of 1995. The Company cautions that actual performance will be affected by a number of various factors, many of which are beyond the Company’s control. Discussions of the various factors that may affect future results are contained in the Company’s filings with the Securities and Exchange Commission and Ontario Securities Commission.


BENNETT Environmental Press Release		Page 2 of 5 PR 112 — 2003 02 06


	For Immediate Release

BENNETT ENVIRONMENTAL INC.
Consolidated Balance Sheets
Expressed in Canadian dollars)
December 31, 2002 and 2001


		2002		2001

		(unaudited)		(audited)
Assets
Current assets
	Cash and cash equivalents	$	19,267,639		3,040,080
	Accounts receivable		12,505,945		9,810,018
	Work-in-progress		411,051		1,703,057
	Prepaid expenses and other		1,177,214		153,222

			33,361,849		14,706,377

Investment			851,395		125,000
Capital assets, net of amortization			14,263,408		12,008,247
Other assets, net of amortization			3,261,384		1,950,828
Goodwill			646,638		646,638

		$	52,384,674		29,437,090

Liabilities and Shareholders’ Equity
Current liabilities
	Accounts payable and accrued liabilities	$	7,978,096		3,266,594
	Income taxes payable		5,862,523		1,092,581
	Current portion of long-term debt		1,315,023		1,178,942

			15,155,642		5,725,177

Future income tax liability			895,738		1,077,525
Long-term debt			829,434		2,146,017
Shareholders’ equity
	Share capital (Common shares outstanding 16,508,739 (2001 - 15,115,570))		23,882,001		20,820,249
	Retained Earnings (Deficit)		11,621,859		(144,818	)

			35,503,860		20,675,431

		$	52,384,674		29,437,090


BENNETT Environmental Press Release		Page 3 of 5 PR 112 — 2003 02 06


	For Immediate Release

BENNETT ENVIRONMENTAL INC.
Consolidated Statement of Operations and Retained Earnings (Deficit)
(Expressed in Canadian dollars)
Year ended December 31, 2002 and 2001


		12 months			12 months			3 months		3 months
		31-Dec-02			31-Dec-01			31-Dec-02		31-Dec-01

		(unaudited)			(audited)			(unaudited)		(unaudited)
Sales		$	48,103,845		$	23,422,574			18,807,941		10,136,008
Interest and other income			1,749,799			487,377			1,218,706		293,732

			49,853,644			23,909,951			20,026,647		10,429,740
Expenses
	Operating costs		20,228,635			10,990,627			7,165,403		4,193,102
	Administration and business development		7,787,483			4,337,901			3,140,399		1,047,016
	Amortization		1,398,449			1,070,499			472,250		321,527
	Foreign exchange		—			228,425			—		(75,691	)
	Interest expenses		214,934			86,861			68,006		52,396

			29,629,501			16,714,313			10,846,058		5,538,350

Earnings before income taxes			20,224,143			7,195,638			9,180,589		4,891,390
Income tax expense
	Current		7,115,875			1,068,919			3,085,814		571,182
	Future		565,417			1,399,743			638,415		1,399,743

			7,681,292			2,468,662			3,724,229		1,970,925
Net earnings			12,542,851			4,726,976			5,456,360		2,920,465
Retained Earnings (Deficit), beginning of period			(144,818	)		(4,806,590	)		6,147,386		(3,065,283	)
Shares purchased in excess of assigned value			(776,174	)		(65,204	)		18,113		—

Retained Earnings (Deficit), end of period		$	11,621,859		$	(144,818	)		11,621,859	$	(144,818	)

Basic earning per share		$	0.78		$	0.31		$	0.33	$	0.19

Fully diluted earnings per share		$	0.73		$	0.30		$	0.31	$	0.18


BENNETT Environmental Press Release		Page 4 of 5 PR 112 — 2003 02 06


	For Immediate Release

BENNETT ENVIRONMENTAL INC.
Consolidated Statement of Cash Flows
(Expressed in Canadian dollars)
Years ended December 31, 2002 and 2001


			12 months			12 months			3 months			3 months
			2002			2001			31-Dec-02			31-Dec-01

			(unaudited)			(audited)			(unaudited)			(unaudited)
CASH PROVIDED BY (USED IN):
Operations
	Net earnings		$	12,542,851		$	4,726,976			5,456,360			2,920,465
	Items not involving cash
		Unrealized foreign exchange gain		304,074			—			304,074			(151,621	)
		Loan settlement		106,390			—			106,390			—
		Amortization		1,398,449			1,070,499			472,250			321,527
		Equity investment loss		13,605			—			13,605			—
		Loss of disposal of assets		54,731			17,366			54,731			—
		Non-employee stock-based compensation		18,113			—			—			—
		Future income taxes		(181,787	)		1,399,743			(108,789	)		1,197,337

				14,256,426			7,214,584			6,298,621			4,287,708
Change in non-cash operating working capital
	Accounts receivable			(1,646,264	)		(6,805,104	)		958,960			(2,223,060	)
	Income taxes receivable			—			355,000			—			23,251
	Work-in-progress			1,292,006			(1,637,479	)		967,175			(1,637,479	)
	Prepaid expenses and other			(1,023,992	)		59,972			(440,772	)		299,547
	Accounts payable and accrued liabilities			3,800,318			1,753,830			2,597,743			1,031,512
	Income taxes payable			4,769,942			1,092,581			2,660,593			972,769

				7,192,010			(5,181,200	)		6,743,719			(1,533,460	)
Financing Activities
	Repayments of long-term debt			(1,956,988	)		(226,936	)		(1,547,106	)		(183,347	)
	Share capital, issued for cash			3,160,136			1,487,273			413,475			986,975
	Repurchase of share capital			(892,671	)		(133,140	)		—			—

				310,477			1,127,197			(1,133,631	)		803,628
Investing Activities
	Investments			(740,000	)		—			—			—
	Purchase of capital assets			(3,708,341	)		(2,759,910	)		(2,071,357	)		(1,339,474	)
	Increase in deferred business development costs			—			(125,000	)		—			(125,000	)
	Increase in permitting costs			(1,310,556	)		(993,927	)		(356,429	)		(310,354	)
	MRR acquisition, net of cash received of $289,164			227,543			—			227,543			—

				(5,531,354	)		(3,878,837	)		(2,200,243	)		(1,774,828	)
Increase (Decrease) in cash and cash equivalents				16,227,559			(718,256	)		9,708,466			1,783,048
Cash and cash equivalents, beginning of period				3,040,080			3,758,336			9,559,173			1,257,032

Cash and cash equivalents, end of period			$	19,267,639		$	3,040,080		$	19,267,639		$	3,040,080


BENNETT Environmental Press Release		Page 5 of 5 PR 112 — 2003 02 06