Press release from CNW Group
Clearford Announces Fiscal 2012 Review and Financial Results. Clearford raises C$6.6 Million in Project & Working Capital and Sees Eightfold Increase in Revenue
Thursday, April 25, 2013
Clearford Announces Fiscal 2012 Review and Financial Results. Clearford raises C$6.6 Million in Project & Working Capital and Sees Eightfold Increase in Revenue16:30 EDT Thursday, April 25, 2013
OTTAWA, April 25, 2013 /CNW/ - Clearford Industries Inc. ("Clearford" or the "Company"), (TSXV: CLI) today issued a review and the financial results for the fiscal year ending December 31, 2012. The statements are presented in accordance with IFRS (all figures in Canadian dollars unless otherwise noted).
During the year Clearford continued to market its Small Bore Sewer (SBS™) based solution focusing primarily on international markets such as Colombia, India, Peru, the Philippines and the Caribbean.
As a result of these efforts, as previously announced, Clearford signed and began the implementation of its first international contract in Peru in March 2012. The implementation of this project is ongoing and is expected to be completed in 2013 which will provide the company with a reference site in South America.
The start date of the first contract in India, announced in July 2012, has been delayed due to construction site delays. At this time Clearford has proceeded with the construction of a demonstration facility on the builder's construction site in order to collect additional system performance data in the South Asian climate while waiting for approval to proceed. Construction of the full system is expected to commence upon the completion of the demonstration.
During the year, it also announced the signing of a license agreement and a finance agreement with a private residential developer in Ontario.
Clearford, as previously announced, also entered into a C$5.5 million project financing and working capital agreement in March 2012. As previously announced, the agreement was subsequently amended to increase the available funds under the agreement to $7.95 million of which $6.6 million was drawn in the year.
"With the long-term project financing and working capital in place, along with the additional commitment throughout the year shown by our lender, Clearford was able to focus on the markets where management has identified the best opportunities to create long-term revenue growth and enhance the shareholder value of Clearford. In addition to the international contracts we expect to sign in 2013 and beyond, we remain active in North America. As many of the Canadian opportunities have been in our sales cycle for a number of years, primarily due to the regulatory approval process, we expect that some of these opportunities will become contracts in 2013 and beyond." Mr. Loiselle said.
For the fiscal year ended December 31, 2012 the Company recorded a net loss of $3,558,673 or $0.05 per share as compared to a net loss of $3,979,739 or $0.07 per share for the prior year. The Company reported revenue of $887,045, operating expenses of $3,712,599 and net financing costs of $301,706 in the current year compared to revenue of $102,934, operating expenses of $4,018,459, and net financing costs of Nil in the prior year. The decrease in loss mainly relates to cost savings initiatives undertaken in the latter part of 2011 and an increase in gross margin resulting from the licensing and installation contracts signed during the year. The increased margins and operating expense savings were partially offset by the financing costs associated with the long-term financing entered into by the Company.
During the fourth quarter ended December 31, 2012 the Company recorded a net loss of $1,181,839 or $0.01 per share as compared to a net loss of $658,185 or $0.01 per share for the same period of the prior year and a net loss of $484,561 or $0.01 per share for the third quarter of 2012. The decrease in expenses in the current quarter relates primarily to a reduction in the stock compensation expense related to certain of its consulting relationships.
For the year ended December 31, 2012, cash used in operations was $2,826,937 compared to cash used in continuing operations of $2,617,651 for the prior year.
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.
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 Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is the developer of the patented Small Bore Sewer ™ (SBS™) based solution, which enables the efficient collection and treatment of sewage. Superior operational and environmental performance is achieved at a significantly lower cost when compared to historic gravity sewers. Clearford's SBS™ 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 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 Industries Inc.
For further information:
Clearford Industries Inc.
Phone: (613) 762-8402