Clearford Water Systems announces second quarter fiscal 2014 financial results
OTTAWA, Aug. 1, 2014 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today issued its unaudited financial results for the 3 and 6 month periods ending June 30, 2014. The statements are presented in accordance with IFRS (all figures in Canadian dollars unless otherwise noted).
Revenue for the quarter was $86,378 compared with $207,228 for the same quarter last year and $298,245 in the prior quarter. The Company's operating loss before financing costs was $977,238 for the quarter compared with $780,254 for the same quarter last year and $752,370 in the prior quarter. Net financing costs for the quarter were $301,167 compared with $142,437 for the same quarter last year and $299,272 in the prior quarter, resulting in a net loss for the quarter of $1,261,533 or $0.02 per share compared with a net loss of $929,149 or $0.02 for the same quarter last year and a net loss of $1,051,642 or $0.02 per share in the prior quarter.
For the six months ended June 30, 2014, the Company recorded revenue of $384,623 compared to $279,080 for the same period last year. The Company's operating loss was $1,729,608 compared to $1,632,977 for the same period last year. Net financing costs during this period were $600,439 compared to $255,783 in the same period last year resulting in a year to date loss of $2,296,547 or $0.03 per share as compared to $1,894,344 or $0.03 per share in the same period last year.
During the quarter the Company completed the first phase of its project in Cayunda, Colombia. Subsequent to the quarter end the Company received 50% of the principal amount of the loan outstanding plus all accrued interest on this contract. The Company has extended the due date on the remainder of the loan. The extension is subject to the condition that the Company's customer begins construction on the remainder of the project during the Company's third quarter of fiscal 2014.
Additionally, as previously announced and subsequent to the quarter end, the Company entered into a short-term financing arrangement with a Canadian lender in the amount of $600,000 to fund short-term working capital commitments. The Company's financial statements and MD&A are available on WWW.SEDAR.COM.
Kevin Loiselle, President & CEO of Clearford sees 2014 as the beginning of substantial participation by Clearford Water Systems in the Canadian and international demand for cost-effective and sustainable water and waste water systems. "Key results in this quarter were the completion of Phase I installation of Clearford One™ in Cayunda, Colombia. Furthermore, Clearford Water Systems expects to begin construction of its Clearford OneTM installation for Fetherston Mobile Home Park in North Grenville Ontario during the third quarter of fiscal 2014. The system which is being built by Clearford Water Systems in conjunction with a 30 year operating agreement is expected to be fully operational during the fourth quarter of fiscal 2014. The response to the Clearford OneTM system, particulary in Colombia, India and Ontario, continues to be very encouraging", Mr. Loiselle said.
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, SBS® ClearConvey™ small bore sewer, and ClearRecover™. For more information on Clearford Water Systems, please visit www.clearford.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 managements 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 Industries Inc.For further information: Sharilyn McNaughton, Clearford Water Systems Inc., Phone: (613) 762-8402, www.clearford.com