Achieves Fiscal 2013 Revenues of $30.5 Million
Fourth Quarter 2013 Revenue of $12.5 Million
CALGARY, July 25, 2013 /CNW/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) a water treatment and energy technology company, today announced financial results for the fourth quarter and fiscal year ending March 31, 2013.
Recent operating highlights:
- Signed definitive agreement to sell the Ridgeline Environment and Ridgeline Greenfill divisions for CDN $7.4 million
- Completed acquisition of Santa Fe Springs (SFS), which maintains one of the largest discharge permits among service providers supporting the Los Angeles County Sanitation District
- Completed acquisition of Carthage, Missouri water treatment and refinery operations
- In preparation to become U.S. reporting company
- Shipped first raw material effluent for refining from Santa Fe Springs to Carthage
Dennis Danzik, Chief Executive Officer of Ridgeline Energy Services, stated, "As expected, we achieved very significant growth in fiscal 2013. This represents our third year of significantly increased revenues, and we are extremely pleased with both our financial and operational performance. In addition, we are extremely well positioned to continue this strong growth for the foreseeable future. We have transformed Ridgeline from a low margin environmental services company primarily serving the Canadian oil and gas industry in Alberta, to a fully integrated waste water treatment company operating in six states across the United States, and successfully delivering energy in the form of fuel. We are now focused on increasing throughput and further enhancing our operating facilities in California and Missouri. These facilities now have a combined revenue run rate surpassing $55 million for fiscal 2014, while continuing to grow."
"In the next several days, the Company will officially change its name to RDX Technologies Corporation - reflecting our change to a company that is focused on mining waste water and our ability to refine these materials into one of the highest quality renewable fuels in North America. Our Company's ability to extract waste that can be converted to energy is very unique, and has now proven itself to be both commercially successful and profitable. The remaining months of this calendar year will be one of focus - focus on water and focus on maximizing the profitability of operations at our two flagship properties. In connection with the name change, we are working to complete our U.S. reporting requirements by October of this year, which will broaden the audience of potential investors through access to the world's largest capital markets."
Mr. Danzik concluded, "We have also demonstrated our ability to acquire and integrate underperforming assets, install our proprietary technologies, enhance operations, implement strict financial controls, and thereby improve both revenue and profitability. For example, when we assumed operations of SFS, this facility was producing negative cash flow. Under our leadership, fiscal 2013 showed revenue of nearly $7.5 million and adjusted EBITDA of nearly $3.4 million at this facility. Similarly, since the purchase of our Missouri refinery, we have increased the selling price of our fuel, by nearly 20%, while reducing the cost of our raw material operations by 75%, through our waste water operations. Our Missouri facility is now cash flow positive, and we project significant cash flow in fiscal 2014 based on just these first two operating properties. We have developed a highly scalable business model that will enable us to maintain strong growth and enhance profitability in the months and years ahead. The recent sale of our Environment and GreenFill business segments removes unnecessary overhead, improves company-wide margins, strengthens our balance sheet and completes our transformation to a leader in the North American waste water industry."
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is a water treatment and energy technology 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. The Company trades on the TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, 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 OPERATIONS|
|(IN CANADIAN DOLLARS)|
|Year Ended March 31,|
|Cost of revenue:|
|Total cost of revenue||23,235,144||11,146,342|
|General and administrative||11,850,098||5,016,033|
|Share-based payment expense||1,268,333||529,779|
|Loss on disposal of equipment||1,902,589||-|
|Impairment of goodwill||1,257,086||-|
|Total operating expenses||19,531,740||6,243,339|
|Loss from operations||(12,204,679)||(1,899,790)|
|Other income (expense):|
|Change in fair value of PTEC earn-out|
|and note payable||253,800||-|
|Finance and other income||92,970||19,953|
|Total other income (expense)||220,921||(27,539)|
|Loss before tax||(11,983,758)||(1,927,329)|
|Income tax expense||4,482||-|
|Ridgeline Energy Services Inc||$||(11,988,240)||$||(2,408,017)|
|Basic and diluted loss per share attributable to|
|Ridgeline Energy Services Inc||$||(0.09)||$||(0.03)|
|Weighted average number of|
|common shares outstanding||127,937,568||70,576,539|
|Foreign currency translation adjustments||106,144||-|
|RIDGELINE ENERGY SERVICES INC.|
|CONSOLIDATED STATEMENTS OF FINANCIAL POSITION|
|(IN CANADIAN DOLLARS)|
|Trade and other receivables||7,695,442||2,835,225|
|Prepaid expenses and other current assets||663,401||575,350|
|Total current assets||11,388,850||8,873,922|
|Property, plant and equipment, net||27,548,066||8,038,728|
|Deferred tax asset||-||362,750|
|Liabilities and Equity|
|Trade and other payables||$||12,039,504||$||2,353,806|
|Income tax payable||5,067||676,391|
|Notes payable, current portion||151,069||126,323|
|Obligations under finance lease, current portion||92,328||21,906|
|Total current liabilities||12,287,968||3,178,426|
|Notes payable, non-current portion||1,248,116||179,272|
|Obligations under finance lease, non-current portion||289,379||3,509|
|Deferred tax liability||-||130,106|
|Santa Fe Springs purchase price payable||5,513,251||-|
|Environmental remediation liability||5,588,000||-|
|Asset retirement obligations||58,234||41,674|
|Commitments and contingencies|
|Accumulated other comprehensive income||106,144||-|
|Total liabilities and equity||$||65,884,664||$||38,138,712|
SOURCE: Ridgeline Energy Services Inc.
David Waldman at Crescendo Communications
(212) 671-1021 (New York)