SCOTTSDALE, AZ and CALGARY, AB, March 3, 2015 /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 its fiscal third quarter ending December 31, 2014.
Q3 Fiscal 2015 highlights:
- Revenue from water treatment and machinery sales of $3.6 million
- Adjusted EBITDA improved to $1.8 million
- Reduced overhead and streamlined expenses in response to lower oil prices
Dennis M. Danzik, Chief Executive Officer of RDX, stated, "We have responded to a number of changes in our business, including the dramatic drop in oil prices, by reducing overhead and streamlining expenses. As a result, we achieved $1.8 million of adjusted EBITDA for the quarter. Due to the difficult environment, we are no longer providing financial guidance until we have better visibility. However, we believe we have now turned the corner and expect continued growth in revenue and positive cash flow."
"Despite the drop in fuel prices, the cost of waste materials we use to produce our fuel have fallen in price as well, and the ability to treat waste water more economically is now again showing strength. This has allowed us to remain profitable despite the market, unlike many of our peers. In addition, the U.S. government did not renew the biofuel tax credit, which puts us in an even stronger competitive position. As a result, we believe we will be extremely well positioned for an eventual rebound in the oil market."
"Among the challenges we faced were fuel quality and qualification problems at our acquired refinery in Carthage Missouri. We believe we have now addressed these issues and are pursuing recourse against the former owners. In addition, we have begun the permitting process in Missouri, and rebuilding of the refinery in order to meet Federal and State fuel regulations. "
"Overall, we believe the business is back on track despite factors that were out of our control. Our strategy going forward is to operate as a leaner and more focused organization. We have prioritized our sales efforts around waste water equipment sales and services to municipalities and larger waste water generators. We are putting our franchise initiatives on temporary hold until oil prices return to a more normalized level. Nevertheless, RDX believes that its business model represents a substantial and scalable market opportunity for the company at the right time. We are also focused on improving our balance sheet and have paid off more than $1 million in debt since October. In addition, our cash position is improving, our machinery backlog is growing and we see substantiasl untapped opportunities in the waste water market."
"I still believe in the RDX business model and am as confident as ever. As evidence of my conviction, I am personally extending RDX an additional loan of up to $950,000 for machinery expansion and near term growth. By doing so, we have avoided issuing equity and minimized dilution in light of the current share price. We are 100 percent committed to delivering shareholder value. Our RDX staff has worked tirelessly and have shown that they can produce results, even in the face of historically poor market conditions."
Market Update – The RDX Profit Model
The Company will host a business update on its website at www.rdxh2o.com on Tuesday March 10th at 9AM Arizona Time. RDX will provide more detail regarding the balance of calendar year 2015 expectations for fiscal 2016. Any shareholder or interested party can join the update without a dial in number. Simply log in to participate in the program.
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."
SOURCE RDX Technologies Corporation
For further information: David Waldman at Crescendo Communications, (212) 671-1021, [email protected]