Clearford Water Systems Inc. today released results for its third quarter (Q3) and nine month (YTD) periods ended September 30th, 2017. Its subsidiary UV Pure, showed strong Q3 growth in 2017.
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 30th, 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 YTD net 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 30th, 2017 were $863,353 and $2,593,364 compared to $811,653 and $2,448,063 in the prior year representing a 6.4 per cent and 5.9 per cent 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 YTD gross margin to 50 per cent from 45 per cent 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.
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 Loiselle.
Clearford ended the September 30th, 2017 quarter with unrestricted cash of $561,904 compared with $411,444 on December 31st, 2016. The Company’s quarterly unaudited consolidated financial statements and MD&A are available at www.SEDAR.com.