OTTAWA, Nov. 9, 2017 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today released results for its three and nine months ended September 30, 2017. The unaudited consolidated financial statements are presented in accordance with IFRS (all figures in Canadian dollars).
Revenue for the quarter was $910,697 compared with $1,071,773 for the prior year's quarter. Operating loss before net financing costs was $307,790 for the quarter compared with $707,235 for the prior year's quarter. Net financing costs for the quarter were $806,641 compared with $715,636 for the prior year's quarter, with net loss for the quarter of $1,114,431 or $0.01 per share compared with $1,422,871 or $0.02 per share for the prior year's quarter.
For the nine months ended September 30, 2017 revenue was $2,720,196 compared with $3,033,563 in the prior year and our operating loss was $1,470,472 compared to $2,464,145 in the prior year. Net financing costs were $2,372,321 compared to $1,998,312 in the prior year. The net loss for the nine months ended September 30, 2017 was $3,842,793 or $0.04 per share compared to $4,462,457 or $0.05 per share in the prior year period.
UV Pure segmented revenues for the three and nine months ended September 30, 2017 were $863,353 and $2,593,364 compared to $811,653 and $2,448,063 in the prior year representing a 6.4% and 5.9% increase in sales respectively.
Costs of revenues decreased to $477,931 during the quarter from $627,623 in the prior year's quarter due to completion of Clearford One® project implementations in Colombia which concluded at the beginning of the quarter. Additionally, cost of revenues decreased at UV Pure based on a better product and channel revenue mix and component pricing which increased its overall gross margin for the nine month period to 50% from 45% in the prior year comparable period.
Sales and marketing costs decreased to $293,925 and $959,230 from $334,499 and $1,149,329 in the prior year's three and nine months periods respectively reflecting a reduction in salaries and consulting fees and international travel costs as sales efforts for Clearford One® were focused on the Ontario market partially offset by additional stock compensation expense and the addition of new sales resources and new marketing initiatives in UV Pure.
Costs of engineering and research and development were consistent at $206,905 and $618,349 compared to $215,853 and $643,738 in the prior year's three and nine months periods respectively.
General and administration costs decreased to $489,080 and $1,648,511 from $602,267 and $1,858,526 in the prior year's three and nine months period respectively. The decrease relates primarily to a reduction in short-term financing costs and reduction in general office expenses including rent, legal fees and stock compensation expense in Clearford.
Kevin Loiselle, President and CEO of Clearford, confirmed that the Company continues to focus on executing its new business plan as previously announced and that "the Company continues to work towards adding the necessary pieces it requires to execute on its strategy to become a full water and wastewater service provider", said Mr. Loiselle.
Mr. Loiselle also added that, "the strong sales in UV Pure is very encouraging and reflects the competitive strength of our patented Crossfire™ technology. The next generation of UV Pure disinfection systems, currently in the final development stages, was launched at WEFTEC in September. It is expected that commercial production and shipments to customers will begin in the first quarter of 2018. This new product should enhance UV Pure's technological lead in UV treatment of water and wastewater and lead to an expanded market share in this $1 billion dollar global market."
Clearford ended the September 30, 2017 quarter with unrestricted cash of $561,904 compared with $411,444 on December 31, 2016. The Company's quarterly unaudited 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