OTTAWA, July 31, 2015 /CNW/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today
released results for its three and six months ended June 30, 2015. The condensed interim financial
statements are presented in accordance with IFRS (all figures in
Canadian dollars).
During the quarter, the Company focused on the marketing and
sales of Clearford One™ for Ontario municipalities with the Pay for
Performance (P4P™) delivery model. Response by
municipalities was very positive. The Township Council of
Adjala-Tosorontio passed a resolution directing staff to prepare a
notice of expressions of interest to provide sanitation services
for two towns on a pay for service basis.
The subsequent call for Expression of Interest (EOI) was
advertised and closed on July 3, 2015
and was responded to by Clearford. The Township is currently
reviewing the responses and is expected to make a decision on or
about August 10, 2015 to proceed with
a call for proposals from qualified responses to the EOI or to
negotiate a contract with Clearford.
The company continued to advance project opportunities and
strategic relationships in India.
A contract was announced with a subsidiary of Infrastructure
Leasing & Financial Services Limited ("IL&FS") to build a
Clearford One system with toilet blocks in Jambudiyapura, a small
village in the state of Gujarat, India under the Corporate Social
Responsibility ("CSR") program mandated by the India government for corporations operating in
India. This relationship and
others that have been developed during several years of marketing
activity in India provide a basis
for confidence in adoption of Clearford One™ in this
market.
UV Pure completed its second consecutive profitable quarter
since acquisition by Clearford in December
2014. For the first six months of this year UV Pure revenue
was $1,428,860 with EBITDA of
$156,765 and net income of
$93,264. During the quarter UV
Pure announced a new co-branded product, H2O Optima,
with Aquion Inc. of Elk Grove Village
Illinois using its Crossfire® technology to deliver water
purification systems to the food and hospitality industry
worldwide.
Kevin Loiselle, President and CEO
of Clearford, expressed enthusiasm for the future of Clearford: "We
are very pleased with our progress in the quarter. Our
P4P™ delivery model of Clearford One™ for Ontario municipalities has been very well
received", Mr. Loiselle said. "We expect to make a formal
announcement on the first P4P™ contract in Ontario soon, which will make clear the impact
of this product offering and how it will contribute to our revenue
and earnings", he continued.
"International opportunities for Clearford, particularly in
India where public policy has set
priority on sanitation and clean water are looking very positive.
Clearford One™ and Crossfire® are uniquely suited to many of the
requirements of the Indian market where potable water supply
is not consistently available. Clearford has been active in
developing a position in India
since 2010 and continues to work with large contractors in
India to partner for delivery of
Clearford One™ to that market", Mr. Loiselle continued. "We
believe that an operational Clearford One™ system in Gujarat will
lead to additional contract signings in India", he concluded.
Consolidated financial results for the quarter, including UV
Pure were revenue of $785,913 compared with
$86,378 for the prior year quarter.
operating loss before finance costs was $823,912 for the quarter compared with
$977,238 for the prior year quarter
and net loss for the quarter of $1,513,627 or $0.02
per share compared with $1,278,405 or
$0.02 for the prior year. Net
financing costs for the quarter were $689,715 compared with $301,167 for the prior year quarter.
For the six months ended June 30,
2015 the consolidated results were revenue of $1,562,062 compared with $384,623 for the prior year, operating loss
before finance costs was $1,629,157
compared with $1,729,608 for the
prior year and net loss of $2,851,767
or $0.04 per share compared with a
net loss of $2,330,427 or
$0.03 per share for the prior year.
Net financing costs were $1,222,610
compared with $600,439 for the prior
year.
For the three and six month ended June
30, 2015 overall operating expenses increased by
$234,131 and $508,664 respectively. UV Pure accounted for
$341,890 and $639,120 of operating expenses during the three
and six months respectively.
Clearford ended the June 30, 2015
quarter with unrestricted cash of $552,796 compared with $710,299 on December 31,
2014. The Company's condensed interim financial statements
and MD&A are available at www.SEDAR.com.
Following the end of the 2nd quarter, on July 28th the company announced a
private placement issue of 3 million common shares from treasury at
a price of $0.50 per share for
proceeds of $1.5 million. Of that
$1.45 million has closed, subject to
final TSX-V approval, with the remaining portion expected to close
before August 7, 2015. The
transaction was not brokered and no placement fee was paid.
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 Water Systems Inc.
Clearford Water
Systems Inc. (TSX-V: CLI) is a provider of unified water management
and sanitation systems based on Clearford One™. Clearford One™ is a
proprietary system comprised of ClearDigest™ smart digester,
SBS® ClearConvey™ small bore sewer, and ClearRecover™
final treatment facility. For more information on Clearford Water
Systems, please visit www.clearford.com .
About UV Pure Technologies Inc.
UV Pure Technologies
manufactures technically advanced UV water purification systems.
The Company has won an Artemis Top 50 Clean Tech Company award, two
Frost and Sullivan Best Practices awards, a Canadian Drinking Water
Association award for innovation, and is a Going Green Global Top
200 company.
There are currently over 14,000 UV Pure systems in residential,
commercial, industrial, public and municipal applications, with
flow rates up to 1 million gallons per day. An aerospace version of
UV Pure's system is being used by Boeing to purify water on its new
787 Dreamliner.
UV Pure's patented Crossfire Technology® is
dramatically advantaged compared to conventional UV systems. Lamps
are mounted in air surrounded by elliptical reflectors providing
more effective deactivation of pathogens, facilitating easy lamp
changes and visual quartz inspection. They are self-cleaning, smart
– with multiple sensors and on-board diagnostics guiding
maintenance, engineered to be fail-safe, virtually maintenance
free, and are plug-in ready for remote monitoring. For more
information on UV Pure Technologies, please visit
www.uvpure.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
management's 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 Water Systems Inc.
