OTTAWA,
Nov. 6, 2013 /CNW/ - Clearford
Industries Inc. ("Clearford" or the "Company") (TSXV: CLI) today
issued its third quarter financial results for the period ended
September 30, 2013. The statements
are presented in accordance with IFRS (all figures in Canadian
dollars unless otherwise noted).
During the quarter Clearford continued to market
and implement its patented Small Bore Sewer®
(SBS®) based solution focusing primarily on
international markets such as Colombia, India, Peru,
the Philippines and the
Caribbean.
Clearford has made significant progress on
implementing its project in Colombia, having earned $675,000 of revenue on this project during the
current year. The implementation of this project is expected to be
substantially complete during the current year while its other
projects in Peru and India are ongoing.
During the quarter, as previously announced, the
Company's Long Term Project Financing and Working Capital loan
agreement ("first loan agreement") was amended to increase the
available funds under the agreement to $9.56
million at the end of the quarter. The Company also
announced that it had entered into a new Long Term Project
Financing and Working Capital agreement ("second loan agreement")
with its lender for an additional $5.44
million, 20 year credit facility. At the end of the quarter,
the Company had drawn the full amounts available under the first
loan agreement and $3.2 million on
the second loan agreement.
"Construction of Phase I of the Cayunda project
in Colombia is nearing completion
and Clearford is very excited about finishing its first integrated
water infrastructure project," said Clearford CEO and President
Kevin Loiselle, "the response of our
client to our system and the proof of our ability to implement and
deliver the infrastructure has already resulted in additional
opportunities in Colombia that we
believe will lead to additional sales of water infrastructure
projects built around our patented Small Bore
Sewer®".
For the quarter ended September 30, 2013 the Company recorded a net
loss of $760,082 or $0.01 per share as compared to a net loss of
$484,561 or $0.01 per share for the prior year. The Company
reported $678,112 of revenue
$171,922 of gross margin,
$751,759 of operating expenses and
$186,597 of net financing costs in
the current quarter compared to $671,019 revenue, $466,551 gross margins, $818,778 of operating expenses, and $132,334 of net financing costs in the prior year
quarter. The increase in loss relates primarily to a decrease in
margins due to the product mix between licensing and construction
contracts, and additional financing costs incurred on its long-term
debt, partially offset by reduced operating costs.
For the 9 months ended June 30, 2013, the company recorded a net loss of
$2,654,426, or $0.04 per share as compared to a net loss of
$2,376,834, or $0.04 per share in the prior year comparative
period. The Company reported $957,192
of revenue, $266,951 of gross margin,
$2,479,765 of operating expenses and
$442,380 of net financing costs for
the first 9 months ended September 30,
2013 compared to $671,019 of
revenue, $466,551 of gross margins,
$2,586,892 of operating expenses, and
$256,493 of net financing costs in
the prior year.
For the quarter ended September 30, 2013, cash generated in operations
was $107,919 compared to cash
generated in operations of $44,752
for the prior year. For the nine months ended September 30, 2013 cash used in operations was
$1,968,629 compared to cash used in
operations of $2,107,918 for the
prior year.
While Clearford believes that significant and
near term opportunities exist for the Company's solution, there can
be no assurance that customer agreements will be reached or that
such agreements will be profitable should they be implemented.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
About Clearford Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is a water infrastructure
company that provides holistic solutions for all aspects of water
delivery, management, treatment and recycling. Clearford acts as a
system integrator and core solution provider in order to deliver
end-to-end water management for established and new communities.
Clearford partners with leading edge water treatment providers and
local constructors to deliver projects that integrate the Clearford
patented SBS® waste water collection system with potable
water treatment & supply, waste water treatment &
recycling, and storm water management & fire suppression
systems.
The Clearford SBS® System is a
patented watertight small diameter solids-free wastewater
collection system that provides servicing with superior operational
and environmental performance at a lower installation &
operational cost compared to other sewer systems.
Clearford currently has systems installed or
under construction in Canada,
Colombia, Peru and India.
For more information on Clearford, please visit
www.clearford.com.
Forward Looking Statements
This news release contains certain statements that constitute
forward-looking statements as they relate to the Company and its
management. Forward-looking statements are not historical
facts but represent managements current expectation of future
events, and can be identified by words such as "believe",
"expects", "will", "intends", "plans", "projects", "anticipates",
"estimates", "continues" and similar expressions. Although
management believes that the expectations represented in such
forward-looking statements are reasonable, there can be no
assurance that they will prove to be correct.
By their nature, forward-looking statements
include assumptions and are subject to inherent risks and
uncertainties that could cause actual future results, conditions,
actions or events to differ materially from those in the
forward-looking statements. If and when forward-looking
statements are set out in this news release, Clearford will also
set out the material risk factors or assumptions used to develop
the forward-looking statements. Except as expressly required by
applicable securities law, the Company assumes no obligation to
update or revise any forward looking statements. The future
outcomes that relate to forward-looking statements may be
influenced by many factors, including, but not limited to: industry
cyclicality; the ability to secure third party agreements;
successful integration of Clearford's system with third party
technology; competition; reduction in demand for products;
collection from customers; relationships with suppliers; product
liability; intellectual property; reliance on key personnel;
environmental; interest rates; uninsured and underinsured losses;
operating hazards; risks of future legal proceedings; income tax
matters; credit facilities; availability and terms of financing;
distribution of securities; restrictions on potential growth;
effect of market interest rates on price of securities; and
potential dilution.
SOURCE Clearford Industries Inc.
