RDX Reports Record 2Q Earnings

2Q Revenue Increases Six Fold to $ 11.81 Million
2Q Adjusted EBITDA $ 2.33 Million
2Q Net Income of $ 1.15 Million

SCOTTSDALE, AZ, Nov. 21, 2013 /CNW/ - RDX TECHNOLOGIES CORPORATION ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE: RL7) a water treatment and energy technology company, today announced financial results for the second quarter and six months ending September 30, 2013.

Recent operating highlights:

  • Continued strong demand for both water and energy products.
  • Diligently maintained margins at key properties and reduced overhead.
  • Completed startup of new waste water treatment systems at Santa Fe Springs operation.
  • All RDX water treatment systems at Santa Fe Springs are now fully permitted and operational.
  • The permitted system at Santa Fe Springs is one of the largest discharge permits within the Los Angeles County Sanitation District.
  • Completed conversion of fuel system to methyl-ester based, higher quality fuel product.
  • Preparation to become U.S. reporting company moving forward with projected initial filings with SEC in fourth quarter of fiscal 2014.
  • Organic growth of fuel effluent collection at Santa Fe Springs from 15,000 to over 40,000 Gallons per week.
  • The Company, based on meeting its financial goals has started to accept new customer opportunities for the current quarter and next calendar quarter.

Dennis M. Danzik, Chief Executive Officer of RDX, stated, "We achieved record results through a focused effort during our second quarter, reflected by over $ 2 million of adjusted EBITDA for the second quarter. We concentrated on our primary properties, and stayed focused on shipped and billed product. Coming out of a reconstructive first quarter with the divestiture of our Canadian operations, was difficult. But with the diligent work of our team, and special recognition of the efforts by our Chairman, Tony Ker; the work was successfully completed, without losing revenue targets for the second quarter. "

"Our backlog demand continues to grow in all of our divisions. As a Company, we are dedicated to adding additional customers and increasing revenue, while strengthening our margins, and improving profitability. At the same time we continue to work on securing our cash position, and insure that we can deliver value add to each customer."

Mr. Danzik concluded, "Once again, we have accomplished our key performance targets. Our on property management has exceeded expectations, but our work is far from done. The next few financial quarters should allow RDX to grow, as well as present an opportunity to instill confidence in our investors. Consistency in maintaining our high product quality to our customers will provide consistency in our earnings. That process will over time build investor trust and confidence in our Company."

About RDX Technologies Corporation

RDX Technologies Corporation is a water treatment and energy technology company. The Company applies water treatment technology to provide waste water treatment services to a variety of industries. In addition, RDX technology allows for the mining of valuable materials from waste water streams. Most of the materials mined from waste water sources are currently converted to energy in the form of renewable fuels.

The Company also supplies a wide range of commercial scale water and refinery systems, machinery and products within the waste water, refining, and remediation industries.

The Company trades on the TSX Venture Exchange under the symbol "RDX", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".For further information please contact:

ON BEHALF OF THE BOARD OF DIRECTORS

"Dennis M. Danzik"

Dennis M. Danzik, CEO

danzikdirect@rdxh2o.com

"Neither 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 news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward- looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."

RDX TECHNOLOGIES CORPORATION
(FORMERLY RIDGELINE ENERGY SERVICES, INC)
SUPPLEMENTAL FINANCIAL INFORMATION
(IN CANADIAN DOLLARS)
                     
        Three Months
Ended
September 30,
                  2013
                       
Net Income - continuing operations        $ 733,000
                       
  Interest         372,000
  Taxes         -
  Amortization (in operating costs)         1,066,000
  Amortization (in cost of revenue)         869,000
EBITDA         3,040,000
                     
  Stock-based compensation         (68,000)
  Foreign exchange gain on note payable         (454,000)
  Change in fair value of PTEC earn-out         (113,000)
  Gain on forgiveness of indebtedness         (121,000)
  Other expense         46,000
Adjusted EBITDA         2,330,000

 


RDX TECHNOLOGIES CORPORATION
(FORMERLY RIDGELINE ENERGY SERVICES INC.)
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(IN CANADIAN DOLLARS)
                         
    Three Months Ended September 30,   Six Months Ended September 30,
              2013   2012   2013   2012
                          
Revenue    $ 11,806,880    $ 1,581,840    $ 18,773,913    $ 2,693,546
                         
Cost of revenue:                          
  Direct expenses     7,784,967     471,246     13,693,575     1,417,682
  Amortization     1,065,620     144,972     1,985,475     287,666
                         
Total cost of revenue     8,850,587     616,218     15,679,050     1,705,348
                        
Gross profit     2,956,293     965,622     3,094,863     988,198
                         
Operating expenses:                          
  General and administrative     1,692,231     2,188,740     4,131,283     4,050,436
  Share-based payment expense     (67,735)     241,828     116,988     519,188
  Amortization     868,653     745,295     1,729,666     1,388,120
                         
Total operating expenses     2,493,149     3,175,863     5,977,937     5,957,744
                          
Income (loss) from operations     463,144     (2,210,241)     (2,883,074)     (4,969,546)
                          
Other income (expense):                          
  Finance costs     (371,745)     (18,880)     (674,232)     (34,973)
  Foreign exchange gain (loss) on CWT notes payable     454,000     -     (158,000)     -
  Change in fair value of PTEC earn-out     112,500     -     202,500     -
  Gain on forgiveness of indebtedness     120,573     -     120,573     -
  Other income (expense), net     (45,758)     47,585     (41,351)     47,585
                         
Total other income (expense)           28,705     (550,510)     12,612
                         
Income (loss) before tax     732,714     (2,181,536)     (3,433,584)     (4,956,934)
Income tax expense     -     52,635     -     52,635
                         
Income (loss) from continuing operations     732,714     (2,234,171)     (3,433,584)     (5,009,569)
Income from discontinued operations     416,345     682,132     922,443     471,368
                          
Net income (loss)    $ 1,149,059    $ (1,549,039)    $ (2,511,141)    $ (4,538,201)
                           
Basic and diluted income (loss) per share -
continuing operations
   $ 0.01    $ (0.02)    $ (0.02)    $ (0.04)
Basic and diluted income (loss) per share -
discontinued operations
    -     0.01     -     -
                          
Basic and diluted income (loss) per share    $ 0.01    $ (0.01)    $ (0.02)    $ 0.04
                       
Weighted average number of                           
  common shares outstanding     169,123,820     129,856,925     166,930,240     122,054,162
                         
Comprehensive income (loss):                          
  Net income (loss)    $ 1,149,059    $ (1,549,039)    $ (2,511,141)    $ (4,538,201)
  Other comprehensive income (loss) - Item that
may be reclassified subsequently to earnings:
                       
    Foreign currency translation adjustments     (1,142,263)     (192,285)     404,693     (161,122)
                         
  Comprehensive income (loss)    $ 6,796    $ (1,741,324)    $ (2,106,448)    $ (4,699,323)

 

RDX TECHNOLOGIES CORPORATION
(FORMERLY RIDGELINE ENERGY SERVICES INC.)
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN CANADIAN DOLLARS)
                 
            September 30,   March 31,
            2013   2013
Assets          
Current assets:                
  Cash  $ 3,495,205    $ 1,336,478
  Trade and other receivables, net   6,081,864     7,695,442
  Accrued revenue   -     539,395
  Inventory, net   2,441,826     1,154,134
  Prepaid expenses and other current assets   629,313     663,401
                       
  Total current assets   12,648,208     11,388,850
                     
Restricted cash   82,413     159,771
Property, plant and equipment, net   52,529,223     27,548,066
Intangible assets   17,243,298     18,404,007
Goodwill   8,130,068     2,668,952
Other assets   5,785,331     5,715,018
                     
Total assets  $ 96,418,541    $ 65,884,664
                     
Liabilities and Equity            
Current liabilities:                
  Accounts payable  $ 3,948,234    $ 5,715,945
  Accrued expenses   6,185,467     6,323,559
  Income tax payable   -     5,067
  Notes payable, current portion   3,378,319     151,069
  Obligations under finance lease, current portion   86,039     92,328
             
  Total current liabilities   13,598,059     12,287,968
             
Notes payable, non-current portion   19,069,880     1,248,116
Obligations under finance lease, non-current portion   239,713     289,379
Santa Fe Springs purchase price payable   5,581,082     5,513,251
Environmental remediation liability   5,656,750     5,588,000
PTEC earn-out   127,500     330,000
Asset retirement obligations   -     58,234
            
  Total liabilities   44,272,984     25,314,948
                     
Commitments and contingencies            
               
Equity:              
  Share capital   79,964,218     66,732,800
  Warrants   2,543,829     2,162,794
  Contributed surplus   2,418,527     2,348,691
  Accumulated other comprehensive income   510,837     106,144
  Accumulated deficit   (33,291,854)     (30,780,713)
               
Total equity   52,145,557     40,569,716
             
Total liabilities and equity  $ 96,418,541    $ 65,884,664
           

 

SOURCE: RDX Technologies Corporation

For further information:

David Waldman at Crescendo Communications

Investor Relations

(212) 671-1021

dwaldman@crescendo-ir.com

Profil de l'entreprise

RDX Technologies Corporation

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