Advertisement
SALES & ENGINEERING PROJECTS
During the year, BioteQ continued to build its business of providing technology solutions - including design, engineering, commissioning and other technical services to mining and other industrial customers.
-- In Q1 2012, BioteQ delivered a mobile ion exchange water treatment plant to an international mining customer.-- BioteQ and its joint venture partner Jiangxi Copper Company announced plans to build a second ChemSulphide® copper recovery plant at the Dexing site. The plant is expected to be completed by Q3 2013 at a total cost of approximately $3 million.-- BioteQ obtained 7 paid testing contracts relating to a number of different applications. These testing contracts typically constitute the initial phase in the development of projects that could lead to the provision of full-scale treatment plants.-- Significant technology development progress was made in the areas of: -- Selective high-value metals recovery (one test contract signed); and -- Selenium removal (two test contracts signed).
GUIDANCE
2012 was the first year in which BioteQ began to implement its new corporate strategy. It was also a year in which the Company strived to show measured but meaningful financial and operational progress. However, the primary focus for the Company in 2012 was to lay the foundation that would enable continuing rapid growth over the coming 5 years.
In 2012 BioteQ achieved a record level of revenue and reduced its cash used in operations by over 40%. In addition, the Company made several operational changes that included:
-- Creation of a focused and dedicated sales and marketing organization;-- Establishment of a technology innovation and business development function; and-- Enhanced and made more rigorous our engineering and project execution functions.
In 2013, BioteQ expects to continue to build on the progress made in 2012. Key financial milestones for 2013 are:
a. Revenue
The Company expects to grow revenue in 2013, on a proportionate revenue basis, by 25% over 2012 to approximately $11.8 million. Revenue growth is expected to be generated from: the completion of plants currently under construction at the Dexing site; large scale piloting campaigns with customers in North and South America; plant sales; and engineering and technical development projects.
b. Adjusted EBITDA
BioteQ will provide guidance for 2013 and beyond in terms of Adjusted EBITDA (adjusted to exclude the effects of foreign exchange and stock based compensation charges). BioteQ believes that this non-GAAP measure will provide investors and observers with enhanced transparency and understanding of the underlying performance of the Company.
In 2012, BioteQ's adjusted EBITDA was ($1.9) million. For 2013, the Company expects to improve its adjusted EBITDA by approximately 50% to less than ($1 million). The projected improvement in adjusted EBITDA is expected to come from additional margin generated via increased sales revenues and from continued improvements in the efficiency of our operating and engineering activities.
Jonathan Wilkinson, BioteQ's Chief Executive Officer, stated "2012 was a year in which significant progress was made with regard to development and implementation of a new strategy that we believe will stabilize the existing business and provide a platform for rapid growth going forward. Given the numerous financial, sales and operational accomplishments made by the company over the past 12 months, I believe that we are poised for sustained growth and that we are well on our way towards creating a robust, innovative and financially sound organization."
