OTTAWA,
May 2, 2016 /CNW/ - Clearford
Water Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI),
today released results for its three months and fiscal year ended
December 31, 2015. The audited
consolidated financial statements are presented in accordance with
IFRS (all figures in Canadian dollars).
During the quarter, the Company continued to focus on the
marketing and sales of Clearford One™ in Ontario and India and the continued growth and
profitability of its subsidiary UV Pure Technologies
Inc.
Ontario municipalities
may choose the Pay for Performance (P4PTM) delivery
model which was originally announced in the first quarter of the
fiscal year. Response by municipalities continues to be
positive. The Company has continued its discussions with the
Township Council of Adjala-Tosorontio and received on April 25th a request for proposal
("RFP") with a June 24th
closing date. Clearford and one other bidder qualified through the
Municipality's pre-qualification process. The Company began the
installation of its Clearford OneTM system in Fetherston
during the third quarter and substantially completed the project
during the fiscal year.
In the third quarter the Company also began installation
of its first complete Clearford OneTM system in
Jambudiyapura, a small village in the state of Gujarat,
India. The Company hosted a
commissioning ceremony of the system on April 21, 2016 marking the completion of
Clearford One™ installation and making this the only open
defecation free village in Gujarat.
Kevin Loiselle, President
and CEO of Clearford said "the delivery of Clearford One™ in 2015
and the market positioning of Clearford in Ontario and in India opens very significant opportunities for
our company in 2016 and the years ahead".
During the year, the Company issued three million new
common shares from Treasury through a private placement for
proceeds of $1.5 million and issued a
$3.6 million debenture through a
second private placement for a total of $5.1
million both of which closed during the third quarter of
2015 as previously announced. The proceeds were used to repay
short-term debt, finance the Company's Fetherston project, and
provide working capital.
Subsequent to its year end, the Company also announced
that it has entered into a proposed agreement to restructure its
existing long-term debt and enter into a new long-term loan
agreement. Please refer to the Company's press releases issued on
April 18th and updated on
April 29th, 2016 for
additional details on these proposed transactions.
UV Pure was profitable for the first full year since it
was acquired by Clearford in December
2014. For the first full fiscal year UV Pure revenue was
$2,717,980 with EBITDA of
$156,033 and net income of
$32,660.
Kevin Loiselle, President
and CEO of Clearford, expressed enthusiasm for the future of
Clearford: "We are very pleased with our progress in the quarter
and the past fiscal year. With Clearford One™ systems currently in
operation in Ontario and
India, we feel that the basis for
strong sales growth is being put in place for the South Asian
market and our P4P™ offering in Ontario. " With the RFP
issued in Adjala-Tosorontio we anticipate that our long-term
economical solution will be considered by other municipalities in
Ontario as a solution to the
immediate needs of servicing new developments within their
communities", he said.
"International opportunities for Clearford, particularly
in India where public policy has
set priority on sanitation and clean water continue to look very
positive, Mr. Loiselle continued. "With the completion of our first
Clearford One™ system in Prime Minister Modi's home state of
Gujarat our subsidiary Clearford India Pvt. Ltd. now has a live
demonstration site of our technology. We believe the
operational system in Gujarat will lead to additional contract
signings in India", he
concluded.
Revenue for the year was $3,887,333 compared with $534,993 for the prior year. Operating loss
before net financing costs were $4,298,970 for the year compared with
$3,793,577 for the prior year. Net
financing costs for the year were $2,479,644 compared with $1,425,386 for the prior year, with net loss for
the year of $6,778,614 or
$0.08 per share compared with
$5,218,963 or $0.08 for the prior year.
Costs of sales increased to $2,822,873 during the year from $382,063 in the prior year due to Clearford
OneTM project implementations and the addition of UV
Pure for the full fiscal year.
Sales and marketing costs increased to $1,601,763 from $958,177 in the prior year reflecting additional
sales efforts for Clearford OneTM in Ontario and the addition of UV Pure for the
full fiscal year.
Costs of engineering and research and development
increased during the year to $905,052
from $902,558 reflecting
a decrease in spending as the Clearford
OneTM System was brought to final design and
introduction in the prior fiscal year offset by the addition of UV
Pure for the full fiscal year.
General and administration costs increased to $2,930,908 from $2,087,325 primarily reflecting UV Pure in the
full year results.
Clearford ended the December 31,
2015 quarter with unrestricted cash of $585,885 compared with $710,299 on December 31,
2014. The Company's annual audited consolidated financial
statements and MD&A are available at
www.SEDAR.com.
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, 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 15,000 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.
