Clearford Announces Results for the Second Quarter of Fiscal Year 2008



    OTTAWA, Aug. 29 /CNW Telbec/ - Clearford Industries Inc. ("Clearford",
TSX-V: CLI) today announced financial results for the second quarter of 2008,
which ended June 30, 2008 (all figures in Canadian dollars and in accordance
with Canadian GAAP).
    As previously announced, on July 31, 2008, following shareholder and TSX
approval, the Company completed the divestiture of the Brooklin Concrete
Division ("Brooklin") assets and the assignment of the right to purchase the
shares of Boucher Pre-Cast Concrete Limited for $43 million (the
"Transaction"). The Company subsequently repaid all bank and debenture debt
following the divestiture. As a result of this Transaction, the results of
operations of Brooklin for the current quarter have been segregated to
discontinued operations on the Statement of Operations, and the net assets of
Brooklin have been segregated to Held for Sale on the Balance Sheet.
    The Brooklin Division recorded net income from discontinued operations
for the second quarter of $920,622 compared to $788,123 for the same period of
the prior year. This increase was mainly attributable to the increase in
revenue during the current quarter as compared to the same period of the prior
year. The Wastewater Division recorded $202,389 of revenue for the current
quarter compared to no revenue for the same period of the prior year and
recorded a loss from continuing operations of $473,405 for the current quarter
as compared to a loss from continuing operations of $656,040 for the same
period of the prior year. Total net income for the Company for the second
quarter was $447,217 or $0.02 per share compared to net income of $132,083 or
$0.01 per share for the same period of the prior year and a net loss of
$3,303,268 or $0.13 per share for the first quarter of 2008.
    The Brooklin Concrete Division recorded a net loss from discontinued
operations for the six months ended June 30, 2008 of $1,836,285 compared to a
net loss of $1,720,768 for the same period of the prior year. The Wastewater
Division recorded $202,389 of revenue for the six months ended June 30, 2008
as compared to $125,000 of revenue for the same period of the prior year and
recorded a loss from continuing operations of $1,019,766 for the six months
ended June 30, 2008 as compared to a loss from continuing operations of
$1,137,665 for the same period of the prior year. Total net loss for the
Company for the six months ended June 30, 2008 was $2,856,051 or $0.11 per
share compared to a net loss of $2,858,433 or $0.11 per share for the same
period of the prior year.
    For the second quarter of 2008, cash used in continuing operations was
$174,996 compared to cash used in continuing operations of $123,080 for the
same period of the prior year and cash provided by Brooklin was $933,899
compared to cash provided of $801,701 for the same period of the prior year.
For the six months ended June 30, 2008 cash used in continuing operations was
$440,510 compared to cash used in continuing operations of $399,945 for the
same period of the prior year and cash used by Brooklin was $1,389,839
compared to cash used of $1,020,013 for the same period of the prior year.
    "The sale of the Concrete Division allows Clearford the opportunity to
focus on its proprietary technology of the Small Bore Sewer(TM). While facing
the same continuing challenges in the Ontario market, the Company is excited
by the potential opportunities in the emerging market countries," stated John
Kelly, President and CEO of Clearford.
    Following the sale of Brooklin on July 31, 2008, SC Stormont Holdings
Inc. acquired ownership of 4,000,000 common shares of Clearford Industries
Inc. which represents approximately 15.56% of the issued and outstanding
Clearford common shares. Stormont currently now owns 4,500,000 Clearford
common shares, which represents approximately 17.5% of the issued and
outstanding common shares of the Company. Stormont is controlled by the
Company's chairman, Roderick M. Bryden. The purchase of the shares was a
private transaction between Stormont and certain principals of Clearford.

    Forward-Looking Statements

    This news release contains certain statements that constitute
forward-looking information within the meaning of applicable securities laws
("forward-looking statements"). All statements other than statements of
historical fact contained herein are forward-looking statements, including,
without limitation, statements regarding the impact of the transaction on the
Clearford financial performance and statements regarding the business
strategy, plans and objectives of or involving Clearford or the businesses in
which they have invested. Prospective investors can identify many of these
statements by looking for words such as "believe", "expects", "will",
"intends", "plans", "projects", "anticipates", "estimates", "continues" and
similar words or the negative thereof. There can be no assurance that the
plans, intentions or expectations upon which these forward-looking statements
are based will occur. Although management believes that the expectations
represented in such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct.
    By their nature, forward-looking statements require assumptions and are
subject to inherent risks and uncertainties, including those discussed herein.
There is significant risk that forward-looking statements will not prove to be
accurate. You are cautioned not to place undue reliance on forward-looking
statements made herein because a number of factors could cause actual future
results, conditions, actions or events to differ materially from the targets,
expectations, estimates or intentions expressed in the forward-looking
statements. Except as expressly required by applicable securities law we
disclaim any intention and assure no obligation to update or revise any
forward looking statements whether as a result of new information, future
events or otherwise.
    The future outcomes that relate to forward-looking statements may be
influenced by many factors, including but not limited to: industry
cyclicality; competition; reduction in demand for products; collection from
customers; relationships with suppliers; lack of long-term agreements;
expiration of rights under license and distribution arrangements; raw material
price volatility; product liability; intellectual property; reliance on key
personnel; environmental; collective bargaining; interest rates; uninsured and
underinsured losses; operating hazards; risks of future legal proceedings;
income tax matters; leverage and restrictive covenants; credit facilities;
distribution of securities; restrictions on potential growth; effect of market
interest rates on price of securities; potential dilution; and various risks
relating to the transaction, including risks relating to integration and
realization of expected synergies, reliance on key personnel, potential
undisclosed liabilities associated with the transaction. You are cautioned
that the foregoing list of factors is not exhaustive and that when relying on
forward-looking statements to make decisions with respect to Clearford,
investors and others should carefully consider these factors, as well as other
uncertainties and potential events, and the inherent uncertainty of
forward-looking statements.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release. More detailed information of the matters
    described herein is included in the public documents Clearford files from
    time to time with Canadian securities regulatory authorities.
    

    About Clearford Industries Inc.

    Clearford Industries Inc. operating unit, the Wastewater Systems
Division, designs and implements the patented Small Bore Sewer(TM) (SBS(TM)),
a watertight small diameter wastewater collection system for developers,
municipalities and First Nations communities who need to create, expand or
upgrade their sewage systems. This 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

Organization Profile

Clearford Industries Inc.

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