OTTAWA, Nov. 26, 2014 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI), today provided a strategic update and issued its unaudited financial results for the 3 and 9 month periods ending September 30, 2014. The statements are presented in accordance with IFRS (all figures in Canadian dollars unless otherwise noted).
Clearford introduced to the market in the first half of this year the Clearford One™ wastewater collection and treatment system. The first system sale was contracted in the second quarter for delivery to the Fetherston Mobile Park Association. The third quarter focused on opportunities for sales to communities in Ontario, Colombia and India. Clearford One™ is an alternative to traditional sanitary sewage collection and treatment systems. Clearford One™ is lower in capital and operating costs and can be installed in existing communities with minimal disruption of streets and sidewalks. Initial response to Clearford One™ is encouraging.
Demand for disinfection of water and waste water is growing both in developed and developing countries. Ultraviolet treatment is gaining in market share with growth rate estimated at 14% per year. During the third quarter Clearford worked with Toronto based U V Pure Technologies (UV Pure) to assess the opportunities for combining the capacities businesses and technologies. On November 19th Clearford announced acquisition of 90% of the shares of UV Pure.
Clearford believes that acquisition of UV Pure completes the Clearford One™ system and gives Clearford a highly competitive offering in water and waste water management.
During the quarter, the Company entered into a short-term financing arrangement with a Canadian lender in the amount of $600,000 to fund short-term working capital commitments. Subsequent to the quarter end the Company entered into a new 20 year loan facility in the amount of C$3.25 million as previously announced and issued 8,666,666 bonus shares to the lender from its treasury shares.
Kevin Loiselle, President & CEO of Clearford sees this new funding and the acquisition of UV Pure as additional key factors in executing Clearford's strategic plans. "While key financial results were disappointing in the current quarter as certain of our signed projects have been delayed into fiscal 2015, the reception of our Clearford OneTM System, particularly in Ontario, Colombia and India, continues to be very encouraging. The addition of UV Pure, which is the last component in our Clearford OneTM system before wastewater is discharged back into the environment, is expected to increase the interest in our products particularly in Ontario where wastewater discharge regulations are very rigorous", Mr. Loiselle said.
Revenue for the quarter was $32,469 compared with $678,112 for the same quarter last year and $86,378 in the prior quarter. The Company's operating loss before financing costs was $958,593 for the quarter compared with $751,759 for the same quarter last year and $977,238 in the prior quarter. Net financing costs for the quarter were $415,833 compared with $186,597 for the same quarter last year and $301,167 in the prior quarter, resulting in a net loss for the quarter of $1,408,158 or $0.02 per share compared with a net loss of $760,082 or $0.01 for the same quarter last year and a net loss of $1,261,533 or $0.02 per share in the prior quarter.
For the nine months ended September 30, 2014, the Company recorded revenue of $417,092 compared to $957,192 for the same period last year. The Company's operating loss was $2,707,946 compared to $2,212,814 for the same period last year. Net financing costs during this period were $1,016,272 compared to $442,380 in the same period last year resulting in a year to date loss of $3,704,705 or $0.05 per share as compared to $2,655,194 or $0.04 per share in the same period last year.
The Company's financial statements and MD&A are available on 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, SBS® ClearConvey™ small bore sewer, and ClearRecover™. For more information on Clearford Water Systems, 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 managements 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: Sharilyn McNaughton, Clearford Water Systems Inc., Phone: (613) 762-8402, www.clearford.com