OTTAWA, May 28, 2013 /CNW/ - Clearford Industries Inc. ("Clearford" or the "Company"), (TSXV:CLI) today issued its first quarter financial results for the period ended March 31, 2013. The statements are presented in accordance with IFRS (all figures in Canadian dollars unless otherwise noted).
During the quarter Clearford continued to market its patented Small Bore Sewer (SBS™) based solution focusing primarily on international markets such as Colombia, India, Peru, the Philippines and the Caribbean.
As a result of these efforts, as previously announced, Clearford signed its first contract in Colombia and began the implementation of this contract in May of this year. The implementation of this project and projects in Peru and India are ongoing. All projects are expected to be completed in 2013 which will provide the company with reference sites in three international markets.
During the quarter, as previously announced, the Company's Long Term Project Financing and Working Capital loan agreement was amended to increase the available funds under the agreement to $7.2 million at the end of the quarter. Subsequent to the end of the quarter, as previously announced, this loan was further amended to increase the facility to $8.3 million which additional funding has been received in full.
"Construction of the Cayunda project in Colombia is underway and Clearford is very excited about executing on its first integrated water infrastructure project," said Clearford CEO and President Kevin Loiselle, "we believe Cayunda will lead to additional sales of water infrastructure projects built around our patented Small Bore Sewer".
For the quarter ended March 31, 2013 the Company recorded a net loss before other comprehensive income of $966,069 or $0.01 per share as compared to a net loss of $854,018 or $0.01 per share for the prior year. The Company reported revenue of $71,852, operating expenses of $851,018 and net financing costs of $113,346 in the current quarter compared to revenue of $Nil, operating expenses of $835,076, and net financing costs of $18,942 in the prior year. The increase in loss relates primarily to the additional financing costs incurred on the long-term debt negotiated in the first quarter of the prior year.
For the quarter ended March 31, 2013, cash used in operations was $500,670 compared to cash used in operations of $963,843 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 the developer of the patented Small Bore Sewer ™ (SBS™) based solution, which enables the efficient collection and treatment of sewage. Superior operational and environmental performance is achieved at a significantly lower cost when compared to historic gravity sewers. Clearford's SBS™ 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 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 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:
Clearford Industries Inc.
Phone: (613) 762-8402