OTTAWA, May 17, 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 March 31, 2017. The unaudited consolidated financial statements are presented in accordance with IFRS (all figures in Canadian dollars).
During the quarter, the Company continued to focus on the marketing and sales of Clearford One™ in Ontario, Colombia and India and the continued growth and profitability of its subsidiary UV Pure Technologies Inc. (UV Pure). To support expanded market scope UV Pure continued to invest in its next generation product to provide more robust systems with the capability of processing up to 1 million gallons per day of water or wastewater effluent with the expectation that the new product releases will begin in the latter half of the 2017 fiscal year.
Kevin Loiselle, President and CEO of Clearford, expressed enthusiasm for the future of Clearford: "We are optimistic that we will continue to gain traction for the Clearford One® system in our targeted markets. With the Clearford One® system currently in operation in all three of these jurisdictions, we expect additional interest in our system", he said.
"This is particularly true in India, where our installation in Jambudiyapura, India, has received a positive response where public policy has set priority on sanitation and clean water and believe the operational system in Gujarat will lead to additional contract signings in India" he said. "Ontario municipalities and private developments continue to be our primary focus. Ontario has stringent discharge requirements, that coupled with high infiltration and wastewater treatment plants reaching capacity provide incentives for communities which have previously considered our system to review existing Environmental Assessments and servicing plans to include alternative systems designed to reduce the overall life cycle costs of providing wastewater servicing to their constituents".
"We also expect to begin construction of the final phase of the Cayunda project in Colombia in June 2017 and expect to deliver contract revenue in Ontario on projects signed in previous years", he concluded.
Revenue for the quarter was $836,768 compared with $920,779 for the prior year's quarter. Operating loss before net financing costs were $642,102 for the quarter compared with $940,031 for the prior year's quarter. Net financing costs for the quarter were $741,705 compared with $653,329 for the prior year's quarter, with net loss for the quarter of $1,383,283 or $0.02 per share compared with $1,593,360 or $0.02 per share for the prior year's quarter.
Costs of sales decreased to $423,981 during the quarter from $594,067 in the prior year's quarter as project implementations in Ontario and India were completed in the prior fiscal year.
Sales and marketing costs decreased to $335,622 from $413,509 in the prior year's quarter reflecting a reduction in headcount and international travel as sales efforts for Clearford One® continue to focus on Ontario.
Costs of engineering and research and development decreased to $204,249 from $205,983 in the prior year's quarter.
General and administration costs decreased to $490,604 from $634,282 in the prior year's quarter primarily reflecting reduced spending on general office and external consultants, partially offset by an increase in legal fees associated with trademark filings which were approved in the quarter.
Clearford ended the March 31, 2017 quarter with unrestricted cash of $601,532 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.
Subsequent to its quarter end, the Company received the final tranche of funding under its US$5.25 million long-term loan Agreement signed in May 2016.
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.
For further information: Kevin Loiselle, President & CEO, Clearford Water Systems Inc., Phone: (613) 599-6474 ext. 303, www.clearford.com