OTTAWA, Nov. 9, 2017 /CNW/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI),
today released results for its three and nine months ended
September 30, 2017. The unaudited
consolidated financial statements are presented in accordance with
IFRS (all figures in Canadian dollars).
Revenue for the quarter was $910,697 compared with $1,071,773 for the prior year's quarter.
Operating loss before net financing costs was $307,790 for the quarter compared with
$707,235 for the prior year's
quarter. Net financing costs for the quarter were $806,641 compared with $715,636 for the prior year's quarter, with net
loss for the quarter of $1,114,431 or
$0.01 per share compared with
$1,422,871 or $0.02 per share for the prior year's quarter.
For the nine months ended September 30,
2017 revenue was $2,720,196
compared with $3,033,563 in the prior
year and our operating loss was $1,470,472 compared to $2,464,145 in the prior year. Net financing costs
were $2,372,321 compared to
$1,998,312 in the prior year. The net
loss for the nine months ended September 30,
2017 was $3,842,793 or
$0.04 per share compared to
$4,462,457 or $0.05 per share in the prior year period.
UV Pure segmented revenues for the three and nine months ended
September 30, 2017 were $863,353 and $2,593,364 compared to $811,653 and $2,448,063 in the prior year representing a 6.4%
and 5.9% increase in sales respectively.
Costs of revenues decreased to $477,931 during the quarter from $627,623 in the prior year's quarter due to
completion of Clearford One® project implementations in
Colombia which concluded at the
beginning of the quarter. Additionally, cost of revenues decreased
at UV Pure based on a better product and channel revenue mix and
component pricing which increased its overall gross margin for the
nine month period to 50% from 45% in the prior year comparable
period.
Sales and marketing costs decreased to $293,925 and $959,230 from $334,499 and $1,149,329 in the prior year's three and nine
months periods respectively reflecting a reduction in salaries and
consulting fees and international travel costs as sales efforts for
Clearford One® were focused on the Ontario market partially offset by additional
stock compensation expense and the addition of new sales resources
and new marketing initiatives in UV Pure.
Costs of engineering and research and development were
consistent at $206,905 and
$618,349 compared to $215,853 and $643,738 in the prior year's three and nine
months periods respectively.
General and administration costs decreased to $489,080 and $1,648,511 from $602,267 and $1,858,526 in the prior year's three and nine
months period respectively. The decrease relates primarily to a
reduction in short-term financing costs and reduction in general
office expenses including rent, legal fees and stock compensation
expense in Clearford.
Kevin Loiselle, President and CEO
of Clearford, confirmed that the Company continues to focus on
executing its new business plan as previously announced and that
"the Company continues to work towards adding the necessary pieces
it requires to execute on its strategy to become a full water and
wastewater service provider", said Mr. Loiselle.
Mr. Loiselle also added that, "the strong sales in UV Pure is
very encouraging and reflects the competitive strength of our
patented Crossfire™ technology. The next generation of UV Pure
disinfection systems, currently in the final development stages,
was launched at WEFTEC in September. It is expected that commercial
production and shipments to customers will begin in the first
quarter of 2018. This new product should enhance UV Pure's
technological lead in UV treatment of water and wastewater and lead
to an expanded market share in this $1
billion dollar global market."
Clearford ended the September 30,
2017 quarter with unrestricted cash of $561,904 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.