OTTAWA, April 27, 2012 /CNW/ - Clearford Industries Inc. ("Clearford" or the "Company"),(TSX-V:CLI) today issued a review and the financial results for the fiscal year ending December 31, 2011. 2011 represents Clearford's first financial reporting year under IFRS and 2010 comparable results have been adjusted to reflect IFRS treatment (all figures in Canadian dollars unless otherwise noted).
During the year Clearford continued to market its Small Bore Sewer (SBS™) based solution into markets such as Azerbaijan, China, Colombia, India, Peru, the Philippines and Sri Lanka.
As a result of these efforts, Clearford announced the signing of its first international contract in Peru in March 2012.
Clearford also announced a C$5.5 million definitive financing in March 2012 which will allow it to continue to progress on its project opportunities for the foreseeable future.
"This year has been very rewarding for Clearford as our focus on emerging markets has allowed us to build new customer relationships for our SBS solution and our strategy is beginning to be proven by our ability to obtain new long-term funding and signing our first international project in Peru. It is expected that the Company's previous marketing efforts in the Canadian market will result in Canadian contracts in 2012 and beyond. The sales cycle in Canada is typically long, and this cycle was extended by difficult financial markets for project developers. " Mr. Linton said.
For the fiscal year ended December 31, 2011 the Company recorded a net loss of $3,979,739 or $0.07 per share as compared to a net loss of $2,794,570 or $0.08 per share for the prior year. The Company reported revenue of $102,934 and expenses of $4,018,459 in the current year compared to revenue of $171,658 and expenses of $2,957,799 in the prior year. The increase in loss mainly relates to increased costs incurred in support of the Company's continued focus on its international initiatives.
The Company recorded a net loss for the fourth quarter ended December 31, 2011 of $658,185 or $0.01 per share as compared to a net loss of $1,106,766 or $0.03 per share for the same period of the prior year and a net loss of $926,281 or $0.01 per share for the third quarter of 2011. The decrease in expenses in the current quarter relates primarily to a reduction in the stock compensation expense related to certain of its consulting relationships.
For the year ended December 31, 2011, cash used in operations was $2,617,651 compared to cash used in continuing operations of $2,675,318 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.
For further information:
For more information contact: Bruce Linton, President and CEO, Clearford Industries Inc., Phone: (613) 599-6474 ext. 301, www.clearford.com