OTTAWA, May 17, 2017 /CNW/ - 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, 2017. 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, Colombia 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 with the expectation that
the new product releases will begin in the latter half of the 2017
fiscal year.
Kevin Loiselle, President and CEO
of Clearford, expressed enthusiasm for the future of Clearford: "We
are optimistic that we will continue to gain traction for the
Clearford One® system in our targeted markets. With the
Clearford One® system currently in operation in all
three of these jurisdictions, we expect additional interest in our
system", he said.
"This is particularly true in India, where our installation in
Jambudiyapura, India, has received
a positive response where public policy has set priority on
sanitation and clean water and believe the operational system in
Gujarat will lead to additional contract signings in India" he said. "Ontario municipalities and private
developments continue to be our primary focus. Ontario has stringent discharge requirements,
that coupled with high infiltration and wastewater treatment plants
reaching capacity provide incentives for communities which have
previously considered our system to review existing Environmental
Assessments and servicing plans to include alternative systems
designed to reduce the overall life cycle costs of providing
wastewater servicing to their constituents".
"We also expect to begin construction of the final phase of the
Cayunda project in Colombia in
June 2017 and expect to deliver
contract revenue in Ontario on
projects signed in previous years", he concluded.
Revenue for the quarter was $836,768 compared with $920,779 for the prior year's quarter. Operating
loss before net financing costs were $642,102 for the quarter compared with
$940,031 for the prior year's
quarter. Net financing costs for the quarter were $741,705 compared with $653,329 for the prior year's quarter, with net
loss for the quarter of $1,383,283 or
$0.02 per share compared with
$1,593,360 or $0.02 per share for the prior year's quarter.
Costs of sales decreased to $423,981 during the quarter from $594,067 in the prior year's quarter as project
implementations in Ontario and
India were completed in the prior
fiscal year.
Sales and marketing costs decreased to $335,622 from $413,509 in the prior year's quarter reflecting a
reduction in headcount and international travel as sales efforts
for Clearford One® continue to focus on Ontario.
Costs of engineering and research and development decreased to
$204,249 from $205,983 in the prior year's quarter.
General and administration costs decreased to $490,604 from $634,282 in the prior year's quarter primarily
reflecting reduced spending on general office and external
consultants, partially offset by an increase in legal fees
associated with trademark filings which were approved in the
quarter.
Clearford ended the March 31, 2017
quarter with unrestricted cash of $601,532 compared with $411,444 on December 31,
2016. The Company's quarterly unaudited consolidated
financial statements and MD&A are available at
www.SEDAR.com.
Subsequent to its quarter end, the Company received the final
tranche of funding under its US$5.25
million long-term loan Agreement signed in May 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.
