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11/24/2006 Clearford Announces Record Revenue, Profit and Cash flow for Third Quarter; Mr. Szonyi joins Board of Directors Ottawa, Ontario – (November 24, 2006) – Clearford Industries Inc. (TSX-V: CLI) today announced financial results for the third quarter of fiscal year 2006, which ended September 30, 2006 (all figures in Canadian dollars and in accordance with Canadian GAAP). This is the Company's most profitable quarter since inception and also the second consecutive quarter with positive cash flow from operations. Revenue for the quarter was $7,795,000 compared to $7,736,000 of revenue for the second quarter of 2006 and no revenue for the same period of the prior year. Gross margin was $4,420,000 compared to $4,279,000 for the second quarter of 2006 and zero gross margin for the same period of the prior year. Operating income for the quarter was $1,382,000 compared to an operating income of $1,024,000 for the second quarter of 2006 and an operating loss of $529,000 for the same period of the prior year. Net income for the third quarter was $432,000 or $0.02 per share compared to net income of $57,000 or $0.00 per share for the second quarter of 2006 and a net loss of $516,000 or ($0.02) per share for the same period of the prior year. Revenue for the nine months that ended September 30, 2006 was $16,941,000 compared to $23,000 for the same period of the prior year. Gross margin was $9,009,000 compared to $3,000 for the same period of the prior year. Operating income for the nine months was $839,000 compared to an operating loss of $1,745,000 for the same period of the prior year. The net loss for the nine months was $1,724,000 or ($0.07) per share compared to a net loss of $1,702,000 or ($0.08) per share for the same period of the prior year. Cash flow from operations for the third quarter was $1,498,000 or $0.06 per share compared to $648,000 or $0.03 per share for the second quarter and ($390,000) or ($0.02) per share for the same period of the prior year. For the nine month period cash flow from operations was $65,000 or $0.00 per share compared to ($1,328,000) or ($0.06) per share for the same period of the prior year "The third quarter has been our most successful and profitable quarter to date," stated Bruce Linton, President and CEO of Clearford. "The Brooklin Concrete Division is strongly profitable and positioned for future growth, and Clearford's Wastewater Division has achieved major milestones that will support future success." Key milestones reported by the Company include:
The MOE Certification states "The Clearford Small Bore Sewer™ (SBS™) system has significant design and materials improvements to the traditional gravity sewers and has the following recommended key design criteria: average daily flowrate of 200 to 225 L/(c/d); minimum design cleansing velocity of 0.15 m/s; minimum nominal pipe diameter of 75 mm; design zero infiltration flow; design peaking factor of 2." The impact of this decision is to make clear that the cost saving features of the Clearford SBS™ system have the effect claimed by Clearford and are accepted by Ontario Ministry of Environment for use in Ontario. Clearford also reports that in bids made during the third quarter, the Clearford wastewater collection system was combined with the GE Zenon wastewater treatment system to service 1700 homes at a cost approximately 50% below the cost of traditional sewer and treatment systems. These bids also provided for installation by PCL Constructors Canada Inc. and the long term operation by Corix, with the option of full funding, to deliver a no risk solution to the communities. "The opportunity to deliver Clearford SBS™ systems in concert with these long established and respected companies is a significant step for Clearford in establishing the credibility of its technology for wastewater collection," Mr. Linton said. Clearford also announced that Mr. Andrew Szonyi has joined the Board of Directors and has become Chairman of the Audit Committee. Mr. Szonyi replaces Mr. Dale Smith, who resigned from the Board for personal reasons; since joining Clearford's Board in May of 2003, Mr. Smith has been a valued contributor. Mr. Szonyi has extensive experience as a Director of public companies, serving as Chair of Audit, Governance, Compensation and Special Committees. Dr. Szonyi earned his M.A.Sc. and Ph.D degrees in chemical engineering, and his M.B.A. from the University of Toronto where he served as Professor of Management and Engineering. As part of Mr. Szonyi's compensation, he has been granted options to buy 50,000 shares of the Company, vesting 25,000 at each of the first and second anniversary of his appointment, at an exercise price equal to the closing price of the shares on the TSX-V on November 28, 2006. Forward-Looking Statements The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. About Clearford Industries Inc. For more information contact: |
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