OTTAWA, April 30 /CNW Telbec/ - Clearford Industries Inc. ("Clearford" or
the "Company", TSX-V: CLI) today announced financial results for the fourth
quarter and fiscal year of 2008, which both ended December 31, 2008 (all
figures in Canadian dollars and in accordance with Canadian GAAP).
As a result of the previously announced divestiture of the Brooklin
Concrete Division ("Brooklin Division") on July 31, 2008, the results of
operations of Brooklin for the fiscal year 2008 have been segregated to
discontinued operations on the Statement of Operations. These results include
Brooklin's operating results from January to July as well as the gain on the
Brooklin divestiture of $12,341,363, which is net of a working capital
adjustment of $389,800. This gain has been partially offset by expenses
relating to the divestiture and the full repayment of bank and convertible
debenture debt, which includes $2,369,314 of transaction costs, $1,942,285 of
debenture settlement expenses and $768,376 for the write-off of previous
financing costs. The working capital adjustment of $389,800 was negotiated and
settled during March 2009. This adjustment, which was effectively a reduction
in the purchase price, will be settled through the return of 27,000 escrow
units to the purchaser.
The Brooklin Division recorded net income from discontinued operations
before tax for fiscal year 2008 of $6,124,352 compared to a net loss from
discontinued operations of $1,390,608 for the prior year. The Wastewater
Division recorded $293,305 of revenue for the fiscal year 2008 compared to
$902,664 for fiscal year 2007 and recorded a loss from continuing operations
before tax of $2,901,388 for fiscal year 2008 as compared to a loss from
continuing operations of $2,204,347 for the prior year. The increase in the
loss for the Wastewater division was mainly a result of the decrease in value
of marketable securities that the Company received as partial compensation for
the divestiture of the Brooklin Division. An income tax expense of $1,397,000
was recorded against the net income from the Brooklin Division discontinued
operations which has been fully offset by an income tax recovery of $1,397,000
on the Wastewater Division continuing operations. Total net income for the
Company for the fiscal year 2008 was $3,222,964 or $0.13 per share compared to
net loss of $3,594,955 or $0.14 per share for the prior year.
The Brooklin Division recorded a net loss from discontinued operations
before tax for the fourth quarter ended December 31, 2008 of $389,800
representing the accrual of the settlement of the working capital adjustment
for the Brooklin Divestiture, compared to a net loss of $478,244 for the same
period of the prior year. The Wastewater Division recorded $43,006 of revenue
for the fourth quarter ended December 31, 2008 as compared to $777,664 of
revenue for the same period of the prior year and recorded a loss from
continuing operations before tax of $758,849 for the fourth quarter as
compared to a loss from continuing operations of $443,537 for the same period
of the prior year. Total net loss for the Company for the fourth quarter ended
December 31, 2008 was $1,148,649 or $0.04 per share compared to a net loss of
$921,781 or $0.03 per share for the same period of the prior year.
For the fiscal year 2008, cash used in continuing operations was
$2,573,058 compared to cash used in continuing operations of $1,471,753 for
the prior year and cash provided by Brooklin was $2,343,687 compared to cash
used of $1,054,720 for the prior year.
Proceeds of the Brooklin disposition have provided value in the form of
exchangeable units in Armtec Infrastructure Income Fund ("Armtec Units").
Value of the Armtec Units has been reduced by approximately 30% percent as at
December 31, 2008 as a result of capital market conditions. Restrictions on
the timing of sale of these units expose the Company to continuing market
As previously announced on April 20, 2009, the Company has entered into a
letter of intent to create a strategic alliance with two leading edge
Ontario-based environmental companies - Filter Innovations Inc. and Aslan
Technologies Inc. This strategic alliance, once formed, will provide the
capability to supply communities with integrated water management solutions
encompassing wastewater collection, treatment and conservation, and water
distribution including potable water.
While Clearford, Filter Innovations and Aslan believe that significant
and near term opportunities exist for this integrated 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) designs and implements the
patented Small Bore Sewer (TM) (SBS(TM)), a watertight small diameter
wastewater collection system for developers, municipalities and communities
who need to create, expand or upgrade their sewage systems. The SBS(TM)
solution provides servicing with superior operational and environmental
performance at a significantly lower cost when compared to historic gravity
sewers. With its first installation in 1989, the SBS(TM) has since had several
installations within Canada and the U.S. For more information on Clearford
Industries Inc., please visit www.clearford.com.
For further information:
For further information: Mr. John Kelly, President and CEO, Clearford
Industries Inc., (613) 599-6474 ext. 307, www.clearford.com