OTTAWA, May 24, 2018 /CNW/ - Clearford Water Systems
Inc. ("Clearford" or the "Company"), (TSXV: CLI), today released
results for its three months ended March 31,
2018. The unaudited consolidated financial statements are
presented in accordance with IFRS (all figures in Canadian
dollars).
The first fiscal quarter of 2018 is the first full quarter of
results since the acquisition of Koester
Canada in November 2017. During the first quarter, the
Company focused on the marketing and sales of its now complete
Clearford One™ offering in Ontario
and India and the continued growth
and profitability of its subsidiary UV Pure Technologies Inc. (UV
Pure).
Delivery of backlog related to monthly treatment plant operating
contracts from Clearford Waterworks was the primary driver of this
growth. Revenue from equipment sales and the Company's Indian
operations rounded out the growth.
UV Pure is in the final stages of its investment in its next
generation product to provide more robust systems with the
expectation that the new product releases will begin in the latter
half of the 2018 fiscal year.
Kevin Loiselle, President and CEO
of Clearford, expressed enthusiasm for the future of Clearford: "We
are seeing the expected synergies from our recent acquisition of
Koester Canada on the revenue line,
we expect revenue to continue to grow and now we will focus on the
earnings line. Clearford continues to execute on its new business
model transitioning into a full-service utility that will benefit
from the full value of our product offerings".
"Our plan calls for additional acquisitions this year as we
continue to move toward selling water as a service" Mr. Loiselle
concluded.
Revenue for the quarter was $1,668,881 compared with $836,768 for the prior year's quarter and
included the first full quarter of revenue relating to the
Clearford Koester acquisition. The operating loss before net
financing costs was $1,776,946 for
the quarter compared with $642,102
for the prior year's quarter and included a $651,072 foreign exchange loss on the Company's
US dollar denominated debt. Net financing costs for the quarter
were $937,546 compared with
$741,705 for the prior year's
quarter, with net loss for the quarter of $2,714,492 or $0.02
per share compared with $1,383,283 or
$0.02 per share for the prior year's
quarter.
Costs of sales increased to $922,602 during the quarter from $423,981 in the prior year's quarter primarily
due the increase in revenues, and the cost to deliver these
revenues, associated with the acquisition of Koester.
Sales and marketing costs increased to $375,790 from $335,622 in the prior year's quarter reflecting
new marketing efforts for UV Pure 3rd generation
products and for the integration of the Clearford One®
and Koester products into one complete package focused on
Ontario and New York State.
Costs of engineering and research and development increased
slightly to $212,829 from
$204,249 in the prior year's quarter
primarily relating to the UV Pure Generation 3 product nearing the
end of the product development stage.
General and administration costs increased to $1,201,314 from $490,604 in the prior year's quarter primarily
reflecting the addition of Clearford Koester Canada Inc. and
Clearford Waterworks for one full quarter.
Clearford ended the March 31, 2018
quarter with unrestricted cash of $627,191 compared with $1,217,373 on December 31,
2017. The Company's quarterly unaudited consolidated
financial statements and MD&A are available at
www.SEDAR.com.
Subsequent to its quarter end, the Company issued a new
C$1.65 million convertible debenture
with a 5-year term, 5% annual interest rate, compounding annually,
and a $0.20 Conversion Price.
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 is a provider of unified water management solutions for the
design, deployment, finance and operation of water infrastructure
systems. The Company's technology-based water solutions include
Clearford One® wastewater infrastructure systems,
Clearford M‑brane™ packaged treatment solutions, and a full range
of UV Pure® water disinfection products. Clearford
is the winner of the Frost & Sullivan 2017 Enabling
Technology Leadership Award for Global Decentralized
Water & Wastewater Treatment. For more information, visit
www.clearford.com.
About Clearford Koester Canada Inc.
Clearford Koester
Canada Inc. is a manufacturer of packaged water and wastewater
treatment systems for municipal, commercial and industrial
applications. The company designs and builds custom modular and
containerized treatment systems that integrate advanced
technologies like membrane filters, ultraviolet disinfection, and
smart instrumentation and control systems for highly efficient
treatment solutions that address any site constraints and water
quality challenges. The company's M-brane™ membrane bioreactor
(MBR) treatment plant has been installed at sites in Ontario and New York
State.
About Clearford Waterworks Inc.
Clearford Waterworks
Inc. is a full-service provider of water and wastewater systems
management including in-field operations and maintenance, emergency
operations, regulatory compliance support, technical assistance and
troubleshooting, and asset management services. The company
operates over 80 treatment plants, water distribution and
wastewater collection systems in Ontario for private developments, golf
courses, camps and campgrounds.
About UV Pure Technologies Inc.
UV Pure Technologies
is a manufacturer of advanced ultraviolet water disinfection
systems for residential, commercial, industrial, public, and
municipal applications. The company's patented Crossfire
Technology® is an innovative water disinfection solution
with over 18,000 installations worldwide. UV Pure has earned
an Artemis Top 50 Clean Tech Company award, Going Green Global
Top 200 award, two Frost & Sullivan Best Practices
Awards, and a Canadian Drinking Water Association award for
innovation. For more information, 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.
