OTTAWA, May 15, 2015 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today released results for its quarter ended March 31, 2015 The condensed interim financial statements are presented in accordance with IFRS (all figures in Canadian dollars).
The Company reported that the first quarter of 2015 was focused on introducing the Pay for Performance (P4PTM) to Ontario municipalities and supporting established management of UV Pure Technologies Inc. ("UV Pure") to increase revenue and income.
The results include the first full quarter of financial results for UV Pure, following the acquisition which was announced in the last quarter of 2014 and closed on December 19, 2014. UV Pure contributed $746,000 in revenues and $91,000 in profit for the first quarter of the year. Compared on a year over year basis to its March 31, 2014 quarter end on a pro-forma basis, UV Pure revenues grew by 28% from $582,000 and net profit improved by $120,000 from a net loss of $28,000.
The Company announced on January 10th, 2015 that Signina Capital AG ("Signina") has committed $100 million to fund the implementation of Clearford OneTM in Ontario subject to Signina acceptance of each agreement. Discussions advanced during the quarter and the Company expects to sign the first agreement under this funding commitment during the third quarter. The Company also reported that it expects to begin construction on its Fetherston project in Q2 with completion in Q3.
Kevin Loiselle, President and CEO of Clearford, expressed enthusiasm for the future of Clearford: "We are very pleased with UV Pure posting 28% year over year growth in revenue, and solid profitability in its first full quarter post acquisition. The market response to the (P4PTM) delivery model of Clearford One™ has been very positive", Mr. Loiselle said. "We expect to make a formal announcement on the first P4PTM contract soon, which will make clear the impact of this remarkable product offering and materially contribute to our revenue and earnings", he continued.
"International opportunities look attractive for Clearford, particularly in India where public policy has set priority on sanitation and clean water. These markets will develop more slowly than we expect to see in North America, but the scope is enormous and Clearford One™ and Crossfire® are uniquely suited to many of these requirements. Clearford has been active for more than three years in developing a position in India and is working with large contractors in India to partner for delivery of Clearford One™ to that market", Mr. Loiselle concluded.
Revenue for the quarter was $776,149 compared with $298,245 for the prior year quarter. Included in revenues was $746,648 of revenue for UV Pure. The operating loss before finance costs were $805,245 for the quarter compared with $752,370 for the prior year quarter. Net financing costs for the quarter were $532,985 compared with $299,272 for the prior year quarter, with net loss for the quarter of $1,338,140 or $0.02 per share compared with $1,051,642 or $0.02 for the prior year.
Overall operating expenses increased by $274,533. UV Pure accounted for $297,230 of incremental spend during the quarter.
Clearford ended the March 31, 2015 quarter with cash of $468,924 compared with $710,299 on December 31, 2014. The Company's condensed interim financial statements and MD&A are available at www.SEDAR.com.
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 Water Systems Inc.
Clearford Water Systems Inc. (TSX-V: CLI) is a provider of unified water management and sanitation systems based on Clearford One™. Clearford One™ is a proprietary system comprised of ClearDigest™ smart digester, SBS® ClearConvey™ small bore sewer, and ClearRecover™ final treatment facility. For more information on Clearford Water Systems, please visit www.clearford.com.
About UV Pure Technologies Inc.
UV Pure Technologies manufactures technically advanced UV water purification systems. The Company has won an Artemis Top 50 Clean Tech Company award, two Frost and Sullivan Best Practices awards, a Canadian Drinking Water Association award for innovation, and is a Going Green Global Top 200 company.
There are currently over 14,000 UV Pure systems in residential, commercial, industrial, public and municipal applications, with flow rates up to 1 million gallons per day. An aerospace version of UV Pure's system is being used by Boeing to purify water on its new 787 Dreamliner.
UV Pure's patented Crossfire Technology® is dramatically advantaged compared to conventional UV systems. Lamps are mounted in air surrounded by elliptical reflectors providing more effective deactivation of pathogens, facilitating easy lamp changes and visual quartz inspection. They are self-cleaning, smart – with multiple sensors and on-board diagnostics guiding maintenance, engineered to be fail-safe, virtually maintenance free, and are plug-in ready for remote monitoring. For more information on UV Pure Technologies, please visit www.uvpure.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: Kevin Loiselle, President & CEO, Clearford Water Systems Inc., Phone: (613) 599-6474 ext. 303, www.clearford.com; Renmark Financial Communications Inc.: Bettina Filippone: [email protected]; Richard Dupuy: [email protected], Tel.: (416) 644-2020 or (514) 939-3989, www.renmarkfinancial.com