OTTAWA, April 28 /CNW Telbec/ - Clearford Industries Inc. ("Clearford" or the "Company", TSX-V:CLI) today announced financial results for the fourth quarter and fiscal year ended December 31, 2009 (all figures in Canadian dollars and in accordance with Canadian GAAP).
Operations at the Company for 2009 were focused on finalizing design, intellectual property protection and developing the prototype of the Company's sewage collection and treatment system. Sales and marketing focus for 2009 was upon developing contract opportunities for the system in regions of the world where the Company believes demand and value to be the greatest.
"The Clearford solution is enjoying a very positive response from the developing world marketplace in countries ranging from Colombia to China" said Bruce Linton, President of Clearford. "Everyone involved with Clearford recognizes the critical requirement that we capture the positive market reaction in the form of contracts in order to begin to build our market capitalization and balance sheet strength." concluded Mr. Linton.
For the fiscal year ended December 31, 2009 the Company recorded a net loss of $2,026,638 or $0.08 per share as compared to net income of $3,222,964 or $0.13 per share for the prior year. The net income for the prior year includes income before taxes from the discontinued Brooklin operations of $6,124,352 and a loss before taxes from the Wastewater operations of $2,901,388. The Brooklin operations were divested on July 31, 2008.
The Company recorded a net loss for the fourth quarter ended December 31, 2009 of $680,000 or $0.03 per share as compared to a net loss of $1,149,000 or $0.04 per share for the same period of the prior year and a net loss of $467,000 or $0.02 per share for the third quarter of 2009. The net loss during the fourth quarter of fiscal 2009 included a $211,000 non-cash charge relating to the write down of intangible assets previously capitalized. The prior year's fourth quarter included an expense of $389,800 representing the settlement of the working capital adjustment for the Brooklin Divestiture.
For the year ended December 31, 2009, cash used in operations was $1,536,474 compared to cash used in continuing operations of $2,412,079 for the prior year. This change was mainly a result of the marketable securities and trade receivables on the balance sheet at December 31, 2008, being converted to cash during fiscal 2009.
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 the developer of the patented Small Bore Sewer(TM) (SBS(TM)), a watertight small diameter wastewater collection system that provides servicing with superior operational and environmental performance at a significantly lower cost when compared to historic gravity sewers. Clearford's SBS(TM) technology and industry expertise provide the enabling platform to deliver, on a global basis, turnkey, fixed-price wastewater collection, treatment and energy generation solutions that are ideally suited for water-scarce regions, those with unreliable water distribution networks, and new developments seeking a greener approach to water and wastewater management. 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 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 Industries Inc.
For further information: For further information: Bruce Linton, President and CEO, Clearford Industries Inc., Phone: (613) 599-6474 ext. 301, www.clearford.com