Clearford Water Systems Inc. has released financial results for its three months ended March 31st, 2018, which show growth in the company’s revenue streams.
The first fiscal quarter of 2018 was the first full quarter of results since the acquisition of Koester Canada in November 2017. During the first quarter, the Clearford was focused on the marketing and sale of its Clearford One offering in Ontario and India and the continued growth and profitability of its subsidiary UV Pure Technologies Inc. (UV Pure).
“We are seeing the expected synergies from our recent acquisition of Koester Canada on the revenue line, we expect revenue to continue to grow and now we will focus on the earnings line,” said Kevin Loiselle, president and CEO of Clearford. “Clearford continues to execute on its new business model transitioning into a full-service utility that will benefit from the full value of our product offerings”
Delivery of backlog related to monthly treatment plant operating contracts from Clearford Waterworks was the primary driver of Q1 growth. Revenue from equipment sales and the company’s Indian operations rounded out the growth.
UV Pure is in the final stages of its investment in its next generation product to provide more robust systems. The company expects that new product releases will begin in the latter half of the 2018 fiscal year.
“Our plan calls for additional acquisitions this year as we continue to move toward selling water as a service,” said Loiselle.
Revenue for the quarter was $1,668,881 compared with $836,768 for the prior year’s quarter, including the first full quarter of revenue related to the Clearford-Koester acquisition. The operating loss before net financing costs was $1,776,946 for the quarter compared with $642,102 for the prior year’s quarter and included a $651,072 foreign exchange loss on the company’s U.S. dollar denominated debt. Net financing costs for the quarter were $937,546 compared with $741,705 for the prior year’s quarter, with net loss for the quarter of $2,714,492 or $0.02 per share compared with $1,383,283 or $0.02 per share for the prior year’s quarter.
Costs of sales increased to $922,602 during the quarter from $423,981 in the prior year’s quarter, primarily due the increase in revenues and the cost to deliver those revenues, associated with the acquisition of Koester.
Clearford ended the March 31st, 2018 quarter with unrestricted cash of $627,191 compared with $1,217,373 on December 31st, 2017. The company’s quarterly unaudited consolidated financial statements and MD&A are available at www.sedar.com.