OTTAWA, Nov. 27 /CNW Telbec/ - Clearford Industries Inc. ("Clearford" or the "Company", TSX-V: CLI) today announced financial results for the third quarter of 2009, which ended September 30, 2009, (all figures in Canadian dollars and in accordance with Canadian GAAP).
The Company recorded a net loss for the third quarter ended September 30, 2009 of $466,968 or $0.02 per share as compared to net income of $7,227,664 or $0.28 per share for the same period of the prior year and a net loss of $411,214 or $0.02 per share for the second quarter of 2009. The net income for the prior year's same quarter includes income before taxes from the discontinued Brooklin operations of $8,350,437 and a loss before taxes from the Wastewater operations of $1,122,773. The Company reported no revenue in the quarter.
For the nine months ended September 30, 2009 the Company recorded a net loss of $1,346,712 or $0.05 per share as compared to net income of $4,371,613 or $0.17 per share for the same period of the prior year. The net income for the prior year's period includes income before taxes from the discontinued Brooklin operations of $6,514,152 and a loss before taxes from the Wastewater operations of $2,142,539.
For the third quarter of 2009, cash used in continuing operations was $278,315 compared to cash used in continuing operations of $723,069 for the same period of the prior year and cash used in continuing operations of $498,191 for the second quarter of 2009. For the nine months ended September 30, 2009, cash used in continuing operations was $1,265,858 compared to cash used in continuing operations of $1,826,888 for the same period of the prior year.
The Clearford Small Bore Sewer(TM) (SBS(TM)) is an enabling technology which allows the Company to deliver turnkey, fixed-price wastewater collection, treatment, and energy generation solutions, ideally suited for many regions in the international marketplace. "The Company has recently undertaken strong initiatives in certain regions of the world including China, India and South America, where water responsible solutions such as Clearford's, are being sought to address the critical water and wastewater challenges they are facing" said Bruce Linton, Clearford's President and CEO. In order to finance these marketing and selling initiatives, and the Company's ongoing working capital requirements, the Company is pursuing additional financing in the fourth quarter of this year. In November 2009, the Company obtained short term financing in the amount of $125k from an Ontario based corporation wholly owned by Glenn Gold, a director of the Company. The loan is based on commercially reasonable terms and is secured against the assets of the Company.
While Clearford believes that significant and near term opportunities exist for the Company's solution, there can be no assurance that customer agreements will be reached or that such agreements will be profitable should they be implemented.
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About Clearford Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is the developer of the patented Small Bore Sewer(TM) (SBS(TM)), a watertight small diameter wastewater collection system that provides servicing with superior operational and environmental performance at a significantly lower cost when compared to historic gravity sewers. Clearford's SBS(TM) technology and industry expertise provide the enabling platform to deliver, on a global basis, turnkey, fixed-price wastewater collection, treatment and energy generation solutions that are ideally suited for water-scarce regions, those with unreliable water distribution networks, and new developments seeking a greener approach to water and wastewater management. For more information on Clearford, please visit www.clearford.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: For further information: Bruce Linton, President and CEO, Clearford Industries Inc., Phone: (613) 599-6474 ext. 301, www.clearford.com