Clearford Announces Results for quarter ended June 30, 2015
Jul 31, 2015, 08:00 ET
OTTAWA, July 31, 2015 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today released results for its three and six months ended June 30, 2015. The condensed interim financial statements are presented in accordance with IFRS (all figures in Canadian dollars).
During the quarter, the Company focused on the marketing and sales of Clearford One™ for Ontario municipalities with the Pay for Performance (P4P™) delivery model. Response by municipalities was very positive. The Township Council of Adjala-Tosorontio passed a resolution directing staff to prepare a notice of expressions of interest to provide sanitation services for two towns on a pay for service basis.
The subsequent call for Expression of Interest (EOI) was advertised and closed on July 3, 2015 and was responded to by Clearford. The Township is currently reviewing the responses and is expected to make a decision on or about August 10, 2015 to proceed with a call for proposals from qualified responses to the EOI or to negotiate a contract with Clearford.
The company continued to advance project opportunities and strategic relationships in India. A contract was announced with a subsidiary of Infrastructure Leasing & Financial Services Limited ("IL&FS") to build a Clearford One system with toilet blocks in Jambudiyapura, a small village in the state of Gujarat, India under the Corporate Social Responsibility ("CSR") program mandated by the India government for corporations operating in India. This relationship and others that have been developed during several years of marketing activity in India provide a basis for confidence in adoption of Clearford One™ in this market.
UV Pure completed its second consecutive profitable quarter since acquisition by Clearford in December 2014. For the first six months of this year UV Pure revenue was $1,428,860 with EBITDA of $156,765 and net income of $93,264. During the quarter UV Pure announced a new co-branded product, H2O Optima, with Aquion Inc. of Elk Grove Village Illinois using its Crossfire® technology to deliver water purification systems to the food and hospitality industry worldwide.
Kevin Loiselle, President and CEO of Clearford, expressed enthusiasm for the future of Clearford: "We are very pleased with our progress in the quarter. Our P4P™ delivery model of Clearford One™ for Ontario municipalities has been very well received", Mr. Loiselle said. "We expect to make a formal announcement on the first P4P™ contract in Ontario soon, which will make clear the impact of this product offering and how it will contribute to our revenue and earnings", he continued.
"International opportunities for Clearford, particularly in India where public policy has set priority on sanitation and clean water are looking very positive. Clearford One™ and Crossfire® are uniquely suited to many of the requirements of the Indian market where potable water supply is not consistently available. Clearford has been active in developing a position in India since 2010 and continues to work with large contractors in India to partner for delivery of Clearford One™ to that market", Mr. Loiselle continued. "We believe that an operational Clearford One™ system in Gujarat will lead to additional contract signings in India", he concluded.
Consolidated financial results for the quarter, including UV Pure were revenue of $785,913 compared with $86,378 for the prior year quarter. operating loss before finance costs was $823,912 for the quarter compared with $977,238 for the prior year quarter and net loss for the quarter of $1,513,627 or $0.02 per share compared with $1,278,405 or $0.02 for the prior year. Net financing costs for the quarter were $689,715 compared with $301,167 for the prior year quarter.
For the six months ended June 30, 2015 the consolidated results were revenue of $1,562,062 compared with $384,623 for the prior year, operating loss before finance costs was $1,629,157 compared with $1,729,608 for the prior year and net loss of $2,851,767 or $0.04 per share compared with a net loss of $2,330,427 or $0.03 per share for the prior year. Net financing costs were $1,222,610 compared with $600,439 for the prior year.
For the three and six month ended June 30, 2015 overall operating expenses increased by $234,131 and $508,664 respectively. UV Pure accounted for $341,890 and $639,120 of operating expenses during the three and six months respectively.
Clearford ended the June 30, 2015 quarter with unrestricted cash of $552,796 compared with $710,299 on December 31, 2014. The Company's condensed interim financial statements and MD&A are available at www.SEDAR.com.
Following the end of the 2nd quarter, on July 28th the company announced a private placement issue of 3 million common shares from treasury at a price of $0.50 per share for proceeds of $1.5 million. Of that $1.45 million has closed, subject to final TSX-V approval, with the remaining portion expected to close before August 7, 2015. The transaction was not brokered and no placement fee was paid.
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 Water Systems Inc.
For further information: Kevin Loiselle, President & CEO, Clearford Water Systems Inc., Phone: (613) 599-6474 ext. 303, www.clearford.com
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