OTTAWA, July 28, 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 June 30, 2017. The unaudited
consolidated financial statements are presented in accordance with
IFRS (all figures in Canadian dollars).
As previously disclosed on June 22,
2017, the Company announced a new strategic business plan
which includes pursuing strategic acquisitions to support the
company's growth. The business model provides a path for the
Company to become an operating utility with equipment supply
capability and an effective technology capable of delivering water
and wastewater infrastructure at a lower life-cycle cost. These
additional capabilities will be added through a series of
acquisitions. The execution of the business plan will require
the Company to put in place new equity and debt financing. The
Company has had discussions with lenders and equity interests to
fund the new strategic business plan but has not entered into any
agreements at this time. Additional updates will be provided as
required under the continuous disclosure requirements. The first
acquisition is expected to be completed before the end of the
fiscal year.
Revenue for the quarter was $972,731 compared with $1,041,011 for the prior year's quarter.
Operating loss before net financing costs were $520,580 for the quarter compared with
$816,879 for the prior year's
quarter. Net financing costs for the quarter were $823,975 compared with $629,347 for the prior year's quarter, with net
loss for the year of $1,344,555 or
$0.01 per share compared with
$1,446,226 or $0.02 per share for the prior year's quarter.
For the six months ended June 30,
2017 revenue was $1,809,499
compared with $1,961,790 in the prior
year and our operating loss was $1,162,682 compared to $1,756,910 in the prior year. Net financing costs
were $1,565,680 compared to
$1,282,676 in the prior year. The net
loss for the six month period was $2,728,362 or $0.03
per share compared to $3,039,586 or
$0.03 per share in the prior year
period.
UV Pure segmented sales for the three and six months ended
June 30th were
$938,357 and $1,730,011 compared to $900,020 and $1,636,410 in the prior year representing a 4%
and 6% increase in sales respectively.
Costs of sales decreased to $498,148 during the quarter from $614,784 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 OneTM project implementation in Colombia. Additionally, cost of sales were
flat at UV Pure on sales increases and a better product and
channel sales mix which increased its its overall gross margin for
the six month period to 52% from 46% in the prior year comparable
period.
Sales and marketing costs decreased to $339,355 and $674,977 from $401,321 and $814,830 in the prior year's three and six month
periods respectively reflecting less travel for both segments.
Costs of engineering and research and development decreased to
$207,195 and $411,444 from $221,902 and $427,885 in the prior year's three and six months
periods respectively reflecting a decrease in spending on the
Clearford OneTM System and capitalized development costs
for new product development in the UV Pure segment.
General and administration costs increased to $659,155 from $621,977 in the prior year's quarter primarily
reflecting additional costs for legal and corporate overheads and
accounting and legal costs. General and administrative costs
decreased in the six month period ended June
30th to $1,149,759
from $1,256,259 primarily related to
the reduced spending on external consultants.
Kevin Loiselle, President and CEO
of Clearford, expressed enthusiasm for the future of Clearford:
"The new business model will position Clearford as a provider of
water purification and complete wastewater solutions: collection;
treatment; and systems operations. This will solidify
Clearford's market position, increase the revenue from each
project, and capture the full value created by the Clearford One
system" he said. "This will be achieved by acquiring the capacity
for treatment plant fabrication and a systems operations
capability, these competencies are complementary to Clearford's
current capabilities and will allow us to control every step of the
water infrastructure services chain, including potable water
purification and delivery, wastewater collection, treatment, and
operations" he continued. "Integration of systems operations
will also secure the long-term operating contracts that will
generate steady monthly cash flow for Clearford." He concluded.
Mr. Loiselle also added that, "UV Pure continues to grow on the
competitive strength of the Crossfire technology. The next
generation of products based on Crossfire, currently in
development, and expected to be released to market in the latter
half of fiscal 2017 will allow UV Pure to continue to grow and
increase its market share in this $1 billion
dollar market."
Clearford ended the June 30, 2017
quarter with unrestricted cash of $324,950 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.
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.