OTTAWA, May 31, 2016 /CNW Telbec/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), a TSX
Venture 50 Company, today released results for its three months
ended March 31, 2016. The unaudited
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. (UV
Pure). To support expanded market scope UV Pure
continued to invest in its next generation product to provide more
robust systems with the capability of processing up to 1 million
gallons per day of water or wastewater effluent.
Kevin Loiselle, President and CEO
of Clearford, expressed enthusiasm for the future of Clearford: "We
are very pleased with our progress in the quarter. 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 our first Clearford One™
system in Prime Minister Modi's home state of Gujarat now
operational, our subsidiary Clearford India Pvt. Ltd. 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 quarter was $920,779 compared with $776,149 for the prior year's quarter. Operating
loss before net financing costs were $940,031 for the quarter compared with
$805,245 for the prior year's
quarter. Net financing costs for the quarter were $653,329 compared with $532,895 for the prior year's quarter, with net
loss for the year of $1,593,360 or
$0.02 per share compared with
$1,343,659 or $0.02 per share for the prior year's quarter.
Costs of sales increased to $594,067 during the quarter from $414,227 in the prior year's quarter due to
continued Clearford OneTM project implementations in
Ontario and India.
Sales and marketing costs increased to $413,509 from $318,718 in the prior year's quarter reflecting
additional sales efforts for Clearford OneTM in Ontario and the addition of new sales
resources in UV Pure.
Costs of engineering and research and development decreased to
$205,983 from $213,861 in the prior year's quarter reflecting a
decrease in spending on the Clearford OneTM System and
additional capitalized development costs for new product
development in the UV Pure segment.
General and administration costs decreased to $634,282 from $674,387 in the prior year's quarter primarily
reflecting reduced spending in on legal counsel and external
consultants.
Clearford ended the March 31, 2016
quarter with unrestricted cash of $427,207 compared with $585,885 on December 31,
2015. The Company's quarterly unaudited consolidated
financial statements and MD&A are available at
www.SEDAR.com.
Subsequent to its quarter end, the Company announced that it has
entered into a US$5.25 million new
long-term loan agreement and closed $0.5
million of that loan. Additionally, it also entered into an
option with the lender to acquire and renegotiate the existing
long-term debt into a new US dollar denominated long-term debt as
previously announced on April
29th, 2016 for additional details on these
proposed transactions. The option to acquire and restructure the
current long-term debt expires on September
19, 2016.
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.
