OTTAWA, April 29 /CNW Telbec/ - Clearford Industries Inc. ("Clearford", TSX-V: CLI) today announced financial results for the fourth quarter and fiscal year of 2007, which both ended December 31, 2007 (all figures in Canadian dollars and in accordance with Canadian GAAP).
Clearford's revenue is generated primarily from the Brooklin Concrete Division, whose operations are seasonally affected by construction weather conditions. Revenue for the fiscal year 2007 was $24,443,000 compared to $22,093,000 for the fiscal year 2006. Gross margin was $9,590,000 compared to $9,315,000 for the same period of the prior year. Operating income for the fiscal year was $567,000 compared to operating income of $629,000 for the same period of the prior year. The net loss for the fiscal year was $3,595,000 or $0.14 per share compared to a net loss of $2,983,000 or $0.12 per share for the same period of the prior year. The twelve month period for the current year is not fully comparable to the prior year because the prior year's operating income does not include $484,000 of losses during January 2006 associated with the pre-acquisition period of Brooklin and does not reflect the additional depreciation charges incurred in the current year in excess of $300,000 relating to the increase in value of certain fixed assets following a financial asset valuation in late 2006.
Of the revenue for fiscal year 2007, $23,541,000 was contributed by the Brooklin Concrete Division and $902,000 was contributed by the Wastewater Division. All revenue for fiscal year 2006 was contributed by the Brooklin Concrete Division.
Revenue for the fourth quarter was $6,507,000 compared to $5,287,000 for the same period of the prior year and $8,300,000 of revenue for the third quarter of 2007. Gross margin was $2,392,000 compared to $2,134,000 margin for the same period of the prior year and $3,566,000 for the third quarter of 2007. Operating income for the quarter was $122,000 compared to an operating loss of $225,000 for the same period of the prior year and an operating income of $1,238,000 for the third quarter of 2007. Net loss for the fourth quarter was $922,000 or $0.03 per share compared to a net loss of $1,259,000 or $0.05 per share for the same period of the prior year and a net income of $185,000 or $0.01 per share for the third quarter of 2007.
For the fiscal year 2007 cash used in operations was $509,000 compared to cash used in operations of $854,000 for the same period of the prior year. Cash used in operations for the fourth quarter was $691,000 compared to cash used in operations of $919,000 for the same period of the prior year and cash flow from operations of $1,310,000 for the third quarter.
During fiscal year 2007, the Wastewater Division was able to initiate implementation of the SBS(TM) (Small Bore Sewer(TM)) system in both Ontario and Alberta. The SBS(TM) was selected for these sites as it proved to be the most cost effective option. It is however important to note that the environmental advantages of the SBS(TM) were of significant value for the Eco-Industrial application in Alberta. It remains a challenge to advance at reasonable and predictable rates of closure on the significant and growing bids list as many local authorities in Ontario continue to adhere to the status quo of historic infrastructure.
"The fourth quarter was marked by continued strong channel and direct distribution sales of the Brooklin product offering," stated Bruce Linton, President and CEO of Clearford. "We have a strong pipeline of sales opportunities for our Wastewater Division and revenue and contribution from that Division in the fourth quarter. The market for infrastructure remains strong and we remain confident that this segment of the market will provide both of our operating divisions with significant growth potential."
Clearford also announced the appointment of Sue Kavanagh as Secretary to the Board. Sue is Manager, Corporate Services at Perley-Robertson, Hill & McDougall LLP.
Any forward looking statements made in this press release involve risks and uncertainties, and actual results could differ materially from those expressed or implied in such statements. However, we disclaim any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. More detailed information of the matters
described herein is included in the public documents Clearford files from
time to time with Canadian securities regulatory authorities.
About Clearford Industries Inc.
Clearford Industries Inc. is comprised of two divisions: the Wastewater Systems Division and the Brooklin Concrete Division. The Wastewater Systems Division designs and implements the patented Small Bore Sewer(TM) (SBS(TM)), a watertight small diameter wastewater collection system for developers, municipalities and First Nations communities who need to create, expand or upgrade their sewage systems. This solution provides servicing with superior operational and environmental performance at a significantly lower cost when compared to historic gravity sewers. With its first installation in 1989, the SBS(TM) has since had several installations within Canada and the U.S. The Brooklin Concrete Division has been in operation since 1952, with 4 locations in Ontario, including: Brooklin, Newmarket, Huntsville and Haliburton. A leading producer of septic tanks in Ontario, Brooklin manufactures precast concrete products ranging from interlocking pavers and patio slabs, to retaining walls and storage structures. For more information on Clearford Industries Inc., please visit www.clearford.com.