Ridgeline Reports Fiscal Year 2012 Financial Results

CALGARY, July 24, 2012 /CNW/ - Ridgeline Energy Services Inc. (TSX-V:RLE) (OTCQX: RGDEF) ("Company"), an energy services and water treatment company, today announced the financial results for its fourth quarter and fiscal year 2012 ending March 31, 2012.

FY 2012 Highlights:

  • Total revenues of $15.5 million, an increase of 38% compared to the same period of the prior year.
  • Total assets have climbed from $9.6 million to $38.1 million with cash of $4.6 million before the most recent equity raise.
  • Completed the acquisition of Danzik Hydrologic Sciences ("DHS"), a leading provider of water treatment technologies, paving the way for Ridgeline to address the growing industrial and oil and gas wastewater markets
  • Expanded Ridgeline GreenFill soil remediation sites from one to three with the addition of facilities in Lloydminster and Redcliff

Tony Ker, CEO of Ridgeline Energy Services, commented "We are very pleased with the operational and strategic results of the past fiscal year. In addition to solid performance in our Ridgeline Environment and Ridgeline GreenFill segments, we accomplished an important milestone by completing the acquisition of the water treatment technology through Danzik Hydrologic Sciences. Through the acquisition of the technology, we now have put the foundational blocks in place to build a world-class water treatment company. We are now executing on ever increasing opportunities in front of us in the industrial wastewater and oil and gas markets and look forward to building upon the success of 2012 into the future."

Mr. Ker continued, "Our near-term objectives are to continue to capitalize on our technology by increasing facility installations in areas where we can generate the greatest returns on invested capital. In April 2012 we finalized a management agreement - with an option to purchase - the wastewater processing facility of the Lakeland Processing Company in Santa Fe Springs, California, just outside of Los Angeles. At the time of closing the transaction, Santa Fe Springs generated approximately $2.7 million of annual wastewater billings. In the three months that we have managed the facility we are currently exceeding a $6 million annual billings run rate, due to the increased capabilities inherent in utilizing Ridgeline's water treatment technology. Our technology allows us to process with greater efficiency, while enabling us to more efficiently manage the permitted discharge capacities available to us. The success of the oil and gas and industrial waste business models is enabling the company to carry out a strategy of developing additional facilities throughout North America."

Mr. Ker concluded, "2012 has been a transformational year for Ridgeline. Following the acquisition of DHS and our recently completed financings, we have a solid financial foundation, we have the right people, and most importantly we have the technologies that will allow Ridgeline to continue to build on the growth curve on which we find ourselves today.  We are dedicated to developing these rapidly growing markets with the express intent of enhancing shareholder value."

Financial Results

For the fiscal year 2012, Ridgeline reported revenue of $15.5 million versus $11.2 million in the comparable period last year; an increase of 38%. These results reflect the company's entry into the water treatment market via the acquisition of Danzik Hydrologic Sciences as well as continued growth in the company's Ridgeline GreenFill operations. Ridgeline reported an operating loss of $1.9 million versus an operating loss of $637,000 in the comparable period of the prior year.  Net loss totaled $1.9 million, or a $(0.03) per basic and diluted share compared to a net loss of $1.3 million or $(0.02) per basic and diluted share in the prior year.

Revenues for Ridgeline Water, Inc. ("RWI") were $2.2 million for the year ended March 31, 2012 compared with no revenues in the prior period. Revenues for RWI for the year ended March 31, 2012 relate to RWI's installation of a water treatment facility in Northeast British Columbia in the first quarter of fiscal 2012, which represents the first significant revenue for RWI. The agreement with Lakeland Processing Company in Santa Fe Springs, California, wherein the company is retrofitting an industrial wastewater treatment facility by deploying the company's   water treatment technology, was completed in April 2012, and therefore did not contribute any revenues in fiscal year 2012.

Revenues for Ridgeline GreenFill, Inc. ("RGI") were $2.1 million and $1.1 million for the years ended March 31, 2012 and 2011, respectively, an increase of $1.0 million or 97.5%. The increase in revenues for fiscal 2012 relates to increased volume at our existing Drumheller, Alberta treatment site, as well as the opening of our two new RGI treatment sites that commenced operations during the third quarter of fiscal 2012.

Revenues for Ridgeline Environment, Inc. ("REI") were $11.2 million and $10.1 million for the years ended March 31, 2012 and 2011, respectively, an increase of $1.1 million or 9.9%. This improvement in revenues relates to a general increase in service requirements during fiscal 2012 and a corresponding increase in revenues in the second and third quarters of fiscal 2012 following a slower first quarter due to an extended period of wet weather during such time.

As previously announced, the Company completed a financing in which it issued 16,428,900 common shares of the Company at a price of $0.70 per common share, including 2,142,900 common shares pursuant to the exercise in full by the Underwriters of the over-allotment option by the Underwriters in connection with the Offering, for aggregate gross proceeds of $11,500,230. The proceeds will allow the company to continue executing on the strategic plans in place to enhance the acquisition of Santa Fe Springs, and to build water treatment units for the recently signed water treatment agreement with Kerr Energy.

Conference Call

The company will be conducting a conference call at 4:30 p.m. ET on Tuesday, July 24, 2012. Interested parties can access the conference call by dialing (877) 317-6789 or (412) 317-6789, or listen via a live Internet webcast on the Company's website at www.ridgelinecanada.com.  A teleconference replay of the conference call will be available by dialing (877) 344-7529 or (412) 317-0088, confirmation code 10016195, through July 27, 2012. A webcast replay of the conference call will be accessible on the Company's website at www.ridgelinecanada.com for 90 days.

About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is an energy services and water treatment company. The Company is applying proprietary technology to treat water generated from industrial and commercial waste water markets. These markets include a wide variety of clients across a broad spectrum of industries including oil and gas. Through its environmental consulting and remediation divisions, Ridgeline Environment has built a reputation as an established provider of environmental services to the Western Canadian oil and gas industry. Ridgeline GreenFill provides soil remediation and water treatment services to the oil and gas industry.  The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Additional information is available on the Company's website at: www.ridgelinecanada.com.

ON BEHALF OF THE BOARD OF DIRECTORS
"Tony Ker"
Tony Ker, CEO

"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."

RIDGELINE ENERGY SERVICES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in CANADIAN DOLLARS)
                       
            As at March 31,     As at April 1,
            2012     2011     2010
Assets                      
                       
Current assets:                      
  Cash and cash equivalents       $ 4,565,281   $ 413,027   $ -
  Trade and other receivables         2,835,225     1,956,350     1,921,483
  Accrued revenue         898,066     1,586,000     1,644,078
  Prepayments and other current assets         575,350     67,456     41,429
                         
  Total current assets         8,873,922     4,022,833     3,606,990
                         
Restricted cash         78,360     -     54,811
Property, plant and equipment         8,038,728     3,535,690     819,170
Loan receivable         177,001     157,218     -
Deferred tax asset         362,750     35,000     184,000
Intangible assets         18,723,430     32,500     42,500
Goodwill         1,832,202     1,832,202     1,832,202
Other assets         52,319     -     -
                         
Total assets       $ 38,138,712   $ 9,615,443   $ 6,539,673
                         
Liabilities and Equity                      
                       
Current liabilities:                      
  Trade and other payables       $ 2,353,806   $ 1,836,297   $ 2,391,300
  Customer deposit         -     400,000     -
  Income tax payable         676,391     390,498     171,996
  Current portion of note payable                       
   and bank indebtedness         126,323     47,773     363,677
  Current portion of obligations under                       
   finance lease         21,906     21,959     17,681
                         
  Total current liabilities         3,178,426     2,696,527     2,944,654
                         
Note payable, non-current         179,272     234,524     235,918
Obligations under finance lease, non-current         3,509     21,224     43,528
Deferred tax liability         130,106     92,000     -
Asset retirement obligations         41,674     13,753     12,650
                         
  Total liabilities         3,532,987     3,058,028     3,236,750
                         
Commitments                      
                         
Equity:                      
  Share capital         50,323,292     7,439,453     4,119,984
  Warrants         1,794,102     886,350     65,800
  Contributed surplus         1,103,803     712,264     400,039
  Accumulated deficit         (18,615,472)     (2,020,411)     (1,282,900)
                         
Equity attributable to Ridgeline Energy Services Inc.         34,605,725     7,017,656     3,302,923
Non-controlling interests         -     (460,241)     -
                         
Total equity         34,605,725     6,557,415     3,302,923
                         
Total liabilities and equity       $ 38,138,712   $ 9,615,443   $ 6,539,673
                         
                         

RIDGELINE ENERGY SERVICES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in CANADIAN DOLLARS)
                 
                    Year Ended March 31,
                    2012     2011
Continuing operations:                  
  Revenue       $ 15,489,891   $ 11,213,827
  Cost of revenue         11,146,342     7,314,217
                           
  Gross profit         4,343,549     3,899,610
                           
  Operating expenses:                
    Administrative expenses         5,016,033     3,366,499
    Share-based payment expense         529,779     352,226
    Amortization expense         697,527     137,693
    Research and development         -     680,643
                         
  Total operating expenses         6,243,339     4,537,061
                           
  Operating loss         (1,899,790)     (637,451)
                       
  Other income (expense):                    
    Finance costs         (47,492)     (34,425)
    Finance and other income         19,953     56,140
                           
  Total other income (expense)         (27,539)     21,715
                           
  Loss before tax from continuing operations         (1,927,329)     (615,736)
  Income tax expense         -     481,000
                           
Loss from continuing operations         (1,927,329)     (1,096,736)
Loss from discontinued operations (Note 15)         -     (244,016)
                           
Loss and comprehensive loss       $ (1,927,329)   $ (1,340,752)
                         
Attributable to:                      
  Ridgeline Energy Services Inc       $ (2,408,017)   $ (737,511)
  Non-controlling interests         480,688     (603,241)
                           
  Total       $ (1,927,329)   $ (1,340,752)
                       
Basic and diluted loss per share for continuing                   
  operations attributable to Ridgeline Energy Services Inc.       $ (0.03)    $ (0.01)
                           
Basic and diluted loss per share for discontinued                  
  operations attributable to Ridgeline Energy Services Inc.       $ -   $ (0.01)
                           
Basic and diluted loss per share attributable                  
  to Ridgeline Energy Services Inc.       $ (0.03)   $ (0.02)
                           
Weighted average number of common shares outstanding         70,576,539     42,407,996

 

SOURCE: Ridgeline Energy Services Inc.

For further information:

Ryan Johnson of Ridgeline Energy Services Inc.
Corporate Development
(604) 566-8066 ext. 3 (Vancouver)
rjohnson@ridgelinecanada.com

Robert Blum, Joe Diaz or Joe Dorame
Lytham Partners, LLC
Investor Relations
(602) 889-9700 (Phoenix)
RLE@lythampartners.com

Organization Profile

Ridgeline Energy Services Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890