OTTAWA, Nov. 9, 2016 /CNW Telbec/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), a TSX
Venture 50 Company, today released results for its three and nine
months ended September 30, 2016. The
unaudited consolidated financial statements are presented in
accordance with IFRS (all figures in Canadian dollars).
Revenue for the quarter was $1,071,773 compared with $766,938 for the prior year's quarter. Operating
loss before net financing costs were $707,235 for the quarter compared with
$1,252,990 for the prior year's
quarter. Net financing costs for the quarter were $715,636 compared with $586,450 for the prior year's quarter, with net
loss for the quarter of $1,422,871 or
$0.02 per share compared with
$1,839,440 or $0.02 per share for the prior year's quarter.
For the nine months ended September 30,
2016 revenue was $3,033,563
compared with $2,329,000 in the prior
year and our operating loss was $2,464,145 compared to $2,882,147 in the prior year. Net financing costs
were $1,998,312 compared to
$1,809,060 in the prior year. The net
loss for the nine month period was $4,462,457 compared to $4,691,207 in the prior year period.
UV Pure segmented revenues for the three and nine months ended
September 30, 2016 were $811,653 and $2,448,063 compared to $695,980 and $2,124,840 in the prior year representing a 16.6%
and 15.2% increase in sales respectively.
Costs of revenues increased to $627,623 during the quarter from $470,338 in the prior year's quarter due to
completion of Clearford OneTM project implementations in
Ontario and India in the first half of the year and the
substantial completion of Phase 2 of the Clearford OneTM
project implementation in Colombia
during the third quarter of the year. Additionally, cost of
revenues increased at UV Pure based on revenue increases and its
product and channel revenue mix which reduced its overall gross
margin for the nine month period to 45% from 47% in the prior year
comparable period.
Sales and marketing costs decreased to $334,499 and $1,149,329 from $484,382 and $1,188,584 in the prior year's three and nine
month periods respectively reflecting a reduction in salaries and
consulting fees and international travel costs as sales efforts for
Clearford OneTM 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 decreased to
$215,853 and $643,738 from $231,941 and $673,070 in the prior year's three and nine
months periods respectively reflecting a decrease in spending on
the Clearford OneTM System, and salaries and benefits
within Clearford, and additional capitalized development costs for
new product development in the UV Pure segment partially offset by
additional stock compensation expense.
General and administration costs decreased to $602,267 and $1,858,526 from $860,537 and $2,135,347 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, partially offset by additional
employee costs, legal fees and stock compensation expense in
Clearford and additional employee related costs in UV Pure.
Kevin Loiselle, President and CEO
of Clearford, expressed enthusiasm for the future of Clearford: "We
are very pleased with our progress in the quarter as we continue to
establish Clearford One™ as a world class sanitation solution.
Clearford One™ systems are now in operation in Ontario, Colombia and India. These sites provide the key proof
of concept for customers and will support strong sales growth
of our product in the Americas and South Asian markets. We are
particularly pleased with the response to our P4P™ financing model
in Ontario" said Mr. Loiselle.
"Ontario municipalities spend
approximately $1 billion a year in
capital expenditures on wastewater collection and treatment
systems. We believe the Clearford One™ System with its smaller
footprint and lower capital costs, will be very well received by
the smaller municipalities in Ontario who need to ensure that their capital
investments are not only affordable to build, but are capable of
being operated on a long-term basis without creating undue burden
for their ratepayers", he said.
"With our first Clearford One™ system in India now operational, our subsidiary
Clearford India Pvt. Ltd. has a full demonstration site of our
technology. Clearford was pleased to lead this project that
resulted in the first open defecation free village in the Indian
state of Gujarat. We believe the operational system in
Gujarat will lead to additional contract signings in India", he concluded.
Mr. Loiselle also added that, "the strong growth in 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 development, should enhance UV
Pure's technological lead in UV treatment of water and wastewater
and lead to expanded market share in this $1
billion dollar global market."
Clearford ended the September 30,
2016 quarter with unrestricted cash of $490,965 compared with $585,885 on December 31,
2015. The Company's quarterly unaudited consolidated
financial statements and MD&A are available at
www.SEDAR.com.
As previously announced, the Company entered into a new
US$5.25 million 10 year loan for
working capital and project financing requirements during its
second quarter. The loan bears 9.75% interest payable annually with
principal repayment required at the end of the 10 year term.
As of the date of this release the Company has received
US$1,990,000 (C$2,616,889) of this funding.
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.
