OTTAWA, July 29, 2016 /CNW/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), a TSX
Venture 50 Company, today released results for its three months
ended June 30, 2016. The unaudited
consolidated financial statements are presented in accordance with
IFRS (all figures in Canadian dollars).
Revenue for the quarter was $1,041,011 compared with $785,913 for the prior year's quarter. Operating
loss before net financing costs were $816,879 for the quarter compared with
$823,912 for the prior year's
quarter. Net financing costs for the quarter were $629,347 compared with $689,715 for the prior year's quarter, with net
loss for the year of $1,446,226 or
$0.02 per share compared with
$1,514,217 or $0.02 per share for the prior year's quarter.
For the six months ended June 30,
2016 revenue was $1,961,790
compared with $1,562,062 in the prior
year and our operating loss was $3,039,586 compared to $2,851,767 in the prior year. Net financing costs
were $1,282,676 compared to
$1,222,610 in the prior year. The net
loss for the six month period was $3,039,586 compared to $2,857,876 in the prior year period.
UV Pure segmented sales for the three and six months ended
June 30th were
$900,020 and $1,636,410 compared to $682,212 and $1,428,860 in the prior year representing a 32%
and 15% increase in sales respectively.
Costs of sales increased to $614,784 during the quarter from $404,875 in the prior year's quarter due to
completion of Clearford One™ project
implementations in Ontario and
India and the start of Phase 2 of
the Clearford One™ project implementation in
Colombia. Additionally, cost of
sales increased at UV Pure based on sales increases and its product
and channel sales mix which reduced its overall gross margin for
the six month period to 46% from 51% in the prior year comparable
period.
Sales and marketing costs increased to $401,321 and $814,830 from $385,484 and $704,202 in the prior year's three and six month
periods respectively 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
$221,902 and $427,885 from $227,268 and $441,129 in the prior year's three and six months
periods respectively reflecting a decrease in spending on the
Clearford One™ System and additional capitalized
development costs for new product development in the UV Pure
segment.
General and administration costs increased to $621,977 from $600,423 in the prior year's quarter primarily
reflecting additional costs for legal and corporate overheads for
changes in the Company's stock option plan which was approved by
shareholders at its annual general meeting and legal costs
associated with its South American subsidiaries. General and
administrative costs decreased in the six month period ended
June 30th to $1,256,259 from $1,274,810 primarily related to the reduced
spending in on legal counsel and external consultants.
Kevin Loiselle, President and CEO
of Clearford, expressed enthusiasm for the future of Clearford: "We
are very pleased with our continued progress in the quarter.
Clearford One™ systems are now in operation in Ontario and India. These provide the key reference
for customers in both of these markets, to support strong sales
growth of our product in the South Asian market and our P4P™
offering in Ontario" said Mr.
Loiselle.
"Ontario municipalities spend
approximately $1 billion a year in
capital on wastewater collection and treatment systems. We believe
the Clearford One System with its smaller footprint and capital
costs, should be very well accepted by the smaller municipalities
in Ontario who need to ensure that
their capital investments are not only affordable to build, but are
capable of being operated on an long-term basis without creating
undue burdens for their constituents", he said.
"The India market is expected
exceed US$5 billion dollars by 2018
as the India government continues
to place its focus via public policy to set priority on delivering
sanitation and clean water to its people 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.
Mr. Loiselle also added that, "the strong growth in sales in UV
Pure is very encouraging and reflects the competitive strength of
the Crossfire technology. The next generation of products based on
Crossfire, currently in development, will allow UV Pure to continue
to grow and increase its market share in this $1 billion dollar market."
Clearford ended the June 30, 2016
quarter with unrestricted cash of $$224,819 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.
During the quarter, the Company announced that it had entered
into a new US$5.25 million 10 year
loan for working capital and project financing requirement. The
loan bears 9.75% interest payable annually with principal repayment
required at the end of the 10 year term. Subsequent to its
quarter end, the Company received the second tranche of its new
funding in the amount of US$250,000
(C$323,625).
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. (TSXV: 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.
