OTTAWA, April 28, 2017 /CNW/ - Clearford Water Systems
Inc. ("Clearford" or the "Company"), (TSXV: CLI), today released
results for its three months and fiscal year ended December 31, 2016. The audited consolidated
financial statements are presented in accordance with IFRS (all
figures in Canadian dollars).
During the fiscal year, 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).
The Company completed its installations in Jambudiyapura, in the
state of Gujarat, India and in
Fetherston, a small mobile home park in Ontario. The operational performance of both
systems are exceeding expectations and are showing the advantages
of the Clearford One® system in two very different
environments.
During the year, the Company signed a new US$5.25 million long-term loan agreement and had
received US$1,990,000 of this loan at
year end. Subsequent to its fiscal year end the Company received
remaining funds available for this loan. The proceeds were used to
provide project related working capital including interest payments
as the Company continues to develop its project opportunities in
Ontario.
UV Pure sales increased to $3,037,760 from $2,717,980 in the previous year and recorded a
net loss of $102,909 vs. a net profit
of $46,478 in the prior year. The
loss relates primarily to the first full year of its new expanded
sales capacity and its continued development of its 3rd
generation product which is expected to be released in phases
starting in the third quarter of the 2017 fiscal year. UV Pure had
earnings before interest, taxes and depreciation of $24,549 for the year compared to $156,033 in the prior year. The decrease relates
primarily to an increase in cost of sales and sales and marketing
resources as UV Pure prepares to launch its 3rd
generation products.
Kevin Loiselle, President and CEO
of Clearford, said "We are pleased with our progress in the past
fiscal year. With Clearford One® systems currently in
operation in Ontario, Colombia and India, we feel that the basis for strong sales
growth is being put in place for the South American and Asian
market and our P4P® offering in Ontario. "While the RFP for Adjala-Tosorontio
was cancelled, the process shows that the life cycle cost of the
Clearford One® system is lower than the conventional
network which is typically installed by municipalities. We will
continue to work on these opportunities in Ontario with both municipalities and private
developers who see the long-term benefit of these offerings", he
said. "We have received a large number of visitors to our working
site in India, and we expect that
this will lead to new project signings as governments, and
corporations required to invest their Corporate Social
Responsibility budgets in India,
embrace this technology as a real solution for the low water
environments faced by many of the people in the country."
"Our Colombia sales continue to
be stable" Mr. Loiselle continued. "We substantially completed
phase 1B of our project at Cayunda in Colombia and we expect to start the next and
final phase of this project in the second quarter of 2017", he
concluded.
Revenue for the year was $3,789,442 compared with $3,887,333 for the prior year. Operating loss
before net financing costs were $3,311,762 for the year compared with
$4,298,970 for the prior year. Net
financing costs for the year were $2,713,644 compared with $2,479,644 for the prior year, with net loss for
the year of $6,029,883 or
$0.07 per share compared with
$6,808,532 or $0.08 for the prior year.
Costs of sales decreased to $2,296,212 during the year from $2,822,873 in the prior year due to completion of
the lower margin Clearford One® projects and the
increase in sales by UV Pure during the fiscal year.
Sales and marketing costs decreased to $1,500,336 from $1,601,763 in the prior year reflecting
additional sales efforts for Clearford One® in
Ontario resulting in less
international travel. This was partially offset by UV Pure
incremental sales costs for its full-time sales force in 2016.
Costs of engineering and research and development decreased
during the year to $862,172 from
$905,052 reflecting a decrease in
spending on the Clearford One® System and the
capitalization of development costs in UV Pure as the next
generation products near completion.
General and administration costs decreased to $2,469,007 from $2,930,908 primarily reflecting reduced spend by
Clearford on consulting fees, financing related expenses, and
reduced leasing costs.
Clearford ended the December 31,
2016 quarter with unrestricted cash of $411,444 compared with $585,885 on December 31,
2015. 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. (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.
