OTTAWA, Aug. 17 /CNW Telbec/ - Clearford Industries Inc. ("Clearford or
the Company", TSX-V: CLI) today announced financial results for the second
quarter of 2007, which ended June 30, 2007 (all figures in Canadian dollars
and in accordance with Canadian GAAP). Revenue of $8 million was the highest
in the history of the Company.
Clearford's revenue arises primarily from the Brooklin Concrete Division,
which operations are seasonally affected by construction weather conditions.
Revenue for the second quarter was $8,001,000 compared to $7,736,000 of
revenue for the same period of the prior year and $1,635,000 of revenue for
the first quarter of 2007. Gross margin was $3,490,000 compared to $3,537,000
for the same period of the prior year and $142,000 for the first quarter of
2007. Operating income for the quarter was $1,198,000 compared to an operating
income of $1,024,000 for the same period of the prior year and an operating
loss of $1,992,000 for the first quarter of 2007. Net income for the second
quarter was $132,000 or $0.01 per share compared to a net income of $57,000 or
$0.00 per share for the same period of the prior year and a net loss of
$2,991,000 or $0.12 per share for the first quarter of 2007.
Revenue for the six months ended June 30, 2007 was $9,636,000 compared to
$9,146,000 for the same period of the prior year. Gross margin was $3,632,000
compared to $3,549,000 for the same period of the prior year. The operating
loss for the six months was $794,000 compared to an operating loss of $543,000
for the same period of the prior year. The six months period for the current
year is not fully comparable to the prior year because the prior year's
operating loss does not include $484,000 of losses during January 2006
associated with the pre-acquisition period of Brooklin and does not reflect
the additional depreciation charges incurred in the current year of $360,000
relating to the increase in value of certain fixed assets following a
financial asset valuation in late 2006. The net loss for the six months was
$2,858,000 or $0.11 per share compared to a net loss of $2,155,000 or
$0.09 per share for the same period of the prior year.
For the second quarter of 2007 cash flow from operations was $869,000
compared to cash flow from operations of $608,000 for the same period of the
prior year and cash used in operations for the prior quarter of $1,997,000.
For the six month period cash used in operations was $1,128,000 compared to
cash used in operations of $1,473,000 for the same period of the prior year.
The Wastewater Division recorded no revenues during the second quarter of
2007. Revenue is expected in this Division during the second half of this
year. The Brooklin Concrete Division continues to increase sales and
profitability. This performance is expected to continue through the second
"The Brooklin Concrete Division has begun to deliver on our growth
strategy," stated Bruce Linton, President and CEO of Clearford. "The
Wastewater Division continues to overcome obstacles to the adoption of our
green sewer methodology."
Any forward looking statements made in this press release involve risks
and uncertainties, and actual results could differ materially from those
expressed or implied in such statements. However, we disclaim any intention
and assume no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. More detailed information of the matters
described herein is included in the public documents Clearford files from
time to time with Canadian securities regulatory authorities.
About Clearford Industries Inc.
Clearford Industries Inc. is comprised of two divisions: the Wastewater
Systems Division and the Brooklin Concrete Division. The Wastewater Systems
Division designs and implements the patented Small Bore Sewer(TM) (SBS(TM)), a
watertight small diameter wastewater collection system for developers,
municipalities and First Nations communities who need to create, expand or
upgrade their sewage systems. This solution provides servicing with superior
operational and environmental performance at a significantly lower cost when
compared to historic gravity sewers. With its first installation in 1989, the
SBS(TM) has since had several installations within Canada and the U.S. The
Brooklin Concrete Division has been in operation since 1952, with 4 locations
in Ontario, including: Brooklin, Newmarket, Huntsville and Haliburton. A
leading producer of septic tanks in Ontario, Brooklin manufactures precast
concrete products ranging from interlocking pavers and patio slabs, to
retaining walls and storage structures. For more information on Clearford
Industries Inc., please visit www.clearford.com.
For further information:
For further information: Mr. Bruce Linton, President and CEO Clearford
Industries Inc., (613) 599-6474 ext. 301, www.clearford.com