OTTAWA, Nov. 6, 2013 /CNW/ - Clearford Industries Inc. ("Clearford" or the "Company") (TSXV: CLI) today issued its third
quarter financial results for the period ended September 30, 2013. The
statements are presented in accordance with IFRS (all figures in
Canadian dollars unless otherwise noted).
During the quarter Clearford continued to market and implement its
patented Small Bore Sewer® (SBS®) based solution focusing primarily on international markets such as
Colombia, India, Peru, the Philippines and the Caribbean.
Clearford has made significant progress on implementing its project in
Colombia, having earned $675,000 of revenue on this project during the
current year. The implementation of this project is expected to be
substantially complete during the current year while its other projects
in Peru and India are ongoing.
During the quarter, as previously announced, the Company's Long Term
Project Financing and Working Capital loan agreement ("first loan
agreement") was amended to increase the available funds under the
agreement to $9.56 million at the end of the quarter. The Company also
announced that it had entered into a new Long Term Project Financing
and Working Capital agreement ("second loan agreement") with its lender
for an additional $5.44 million, 20 year credit facility. At the end of
the quarter, the Company had drawn the full amounts available under the
first loan agreement and $3.2 million on the second loan agreement.
"Construction of Phase I of the Cayunda project in Colombia is nearing
completion and Clearford is very excited about finishing its first
integrated water infrastructure project," said Clearford CEO and
President Kevin Loiselle, "the response of our client to our system and
the proof of our ability to implement and deliver the infrastructure
has already resulted in additional opportunities in Colombia that we
believe will lead to additional sales of water infrastructure projects
built around our patented Small Bore Sewer®".
For the quarter ended September 30, 2013 the Company recorded a net loss
of $760,082 or $0.01 per share as compared to a net loss of $484,561 or
$0.01 per share for the prior year. The Company reported $678,112 of
revenue $171,922 of gross margin, $751,759 of operating expenses and
$186,597 of net financing costs in the current quarter compared to
$671,019 revenue, $466,551 gross margins, $818,778 of operating
expenses, and $132,334 of net financing costs in the prior year
quarter. The increase in loss relates primarily to a decrease in
margins due to the product mix between licensing and construction
contracts, and additional financing costs incurred on its long-term
debt, partially offset by reduced operating costs.
For the 9 months ended June 30, 2013, the company recorded a net loss of
$2,654,426, or $0.04 per share as compared to a net loss of $2,376,834,
or $0.04 per share in the prior year comparative period. The Company
reported $957,192 of revenue, $266,951 of gross margin, $2,479,765 of
operating expenses and $442,380 of net financing costs for the first 9
months ended September 30, 2013 compared to $671,019 of revenue,
$466,551 of gross margins, $2,586,892 of operating expenses, and
$256,493 of net financing costs in the prior year.
For the quarter ended September 30, 2013, cash generated in operations
was $107,919 compared to cash generated in operations of $44,752 for
the prior year. For the nine months ended September 30, 2013 cash used
in operations was $1,968,629 compared to cash used in operations of
$2,107,918 for the prior year.
While Clearford believes that significant and near term opportunities
exist for the Company's solution, there can be no assurance that
customer agreements will be reached or that such agreements will be
profitable should they be implemented.
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 Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is a water infrastructure company
that provides holistic solutions for all aspects of water delivery,
management, treatment and recycling. Clearford acts as a system
integrator and core solution provider in order to deliver end-to-end
water management for established and new communities. Clearford
partners with leading edge water treatment providers and local
constructors to deliver projects that integrate the Clearford patented
SBS® waste water collection system with potable water treatment & supply,
waste water treatment & recycling, and storm water management & fire
The Clearford SBS® System is a patented watertight small diameter solids-free wastewater
collection system that provides servicing with superior operational and
environmental performance at a lower installation & operational cost
compared to other sewer systems.
Clearford currently has systems installed or under construction in
Canada, Colombia, Peru and India.
For more information on Clearford, 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
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:
Clearford Industries Inc.
Phone: (613) 762-8402