OTTAWA, May 2, 2016 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI), today released results for its three months and fiscal year ended December 31, 2015. The audited consolidated financial statements are presented in accordance with IFRS (all figures in Canadian dollars).
During the quarter, the Company continued to focus on the marketing and sales of Clearford One™ in Ontario and India and the continued growth and profitability of its subsidiary UV Pure Technologies Inc.
Ontario municipalities may choose the Pay for Performance (P4PTM) delivery model which was originally announced in the first quarter of the fiscal year. Response by municipalities continues to be positive. The Company has continued its discussions with the Township Council of Adjala-Tosorontio and received on April 25th a request for proposal ("RFP") with a June 24th closing date. Clearford and one other bidder qualified through the Municipality's pre-qualification process. The Company began the installation of its Clearford OneTM system in Fetherston during the third quarter and substantially completed the project during the fiscal year.
In the third quarter the Company also began installation of its first complete Clearford OneTM system in Jambudiyapura, a small village in the state of Gujarat, India. The Company hosted a commissioning ceremony of the system on April 21, 2016 marking the completion of Clearford One™ installation and making this the only open defecation free village in Gujarat.
Kevin Loiselle, President and CEO of Clearford said "the delivery of Clearford One™ in 2015 and the market positioning of Clearford in Ontario and in India opens very significant opportunities for our company in 2016 and the years ahead".
During the year, the Company issued three million new common shares from Treasury through a private placement for proceeds of $1.5 million and issued a $3.6 million debenture through a second private placement for a total of $5.1 million both of which closed during the third quarter of 2015 as previously announced. The proceeds were used to repay short-term debt, finance the Company's Fetherston project, and provide working capital.
Subsequent to its year end, the Company also announced that it has entered into a proposed agreement to restructure its existing long-term debt and enter into a new long-term loan agreement. Please refer to the Company's press releases issued on April 18th and updated on April 29th, 2016 for additional details on these proposed transactions.
UV Pure was profitable for the first full year since it was acquired by Clearford in December 2014. For the first full fiscal year UV Pure revenue was $2,717,980 with EBITDA of $156,033 and net income of $32,660.
Kevin Loiselle, President and CEO of Clearford, expressed enthusiasm for the future of Clearford: "We are very pleased with our progress in the quarter and the past fiscal year. With Clearford One™ systems currently in operation in Ontario and India, we feel that the basis for strong sales growth is being put in place for the South Asian market and our P4P™ offering in Ontario. " With the RFP issued in Adjala-Tosorontio we anticipate that our long-term economical solution will be considered by other municipalities in Ontario as a solution to the immediate needs of servicing new developments within their communities", he said.
"International opportunities for Clearford, particularly in India where public policy has set priority on sanitation and clean water continue to look very positive, Mr. Loiselle continued. "With the completion of our first Clearford One™ system in Prime Minister Modi's home state of Gujarat our subsidiary Clearford India Pvt. Ltd. now has a live demonstration site of our technology. We believe the operational system in Gujarat will lead to additional contract signings in India", he concluded.
Revenue for the year was $3,887,333 compared with $534,993 for the prior year. Operating loss before net financing costs were $4,298,970 for the year compared with $3,793,577 for the prior year. Net financing costs for the year were $2,479,644 compared with $1,425,386 for the prior year, with net loss for the year of $6,778,614 or $0.08 per share compared with $5,218,963 or $0.08 for the prior year.
Costs of sales increased to $2,822,873 during the year from $382,063 in the prior year due to Clearford OneTM project implementations and the addition of UV Pure for the full fiscal year.
Sales and marketing costs increased to $1,601,763 from $958,177 in the prior year reflecting additional sales efforts for Clearford OneTM in Ontario and the addition of UV Pure for the full fiscal year.
Costs of engineering and research and development increased during the year to $905,052 from $902,558 reflecting a decrease in spending as the Clearford OneTM System was brought to final design and introduction in the prior fiscal year offset by the addition of UV Pure for the full fiscal year.
General and administration costs increased to $2,930,908 from $2,087,325 primarily reflecting UV Pure in the full year results.
Clearford ended the December 31, 2015 quarter with unrestricted cash of $585,885 compared with $710,299 on December 31, 2014. The Company's annual audited consolidated 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, 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 15,000 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