Reaffirms Prior Revenue Guidance of USD $85M to $107M for Fiscal 2015 and EBITDA in the Range of $19M to $26M
Business Update Video Available at www.rdxh2o.com
SCOTTSDALE, AZ and CALGARY, AB, Dec. 1, 2014 /CNW/ - RDX Technologies Corporation ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE:RL7), a water treatment and energy technology company today provided a general business update for the second quarter of fiscal 2015.
Dennis M. Danzik, Chief Executive Officer of RDX, stated, "The past business quarter was difficult but absolutely necessary to re-position the Company according to our business model. Specifically, we are moving from a centralized, facility based model, to a decentralized model emphasizing localized and onsite water treatment. As such, we have reduced much of our operations at our Carthage, Missouri facility, and have been ramping up to commence onsite operations with several major customers. As an example, we recently announced a significant fuel supply contract with Tyson Farms, Inc. This agreement is major validation of our technology and our decentralized production model. Having completed extensive independent third party testing as part of this deployment, which reaffirmed the strong value proposition of our fuel, we are now building a substantial pipeline of similar energy customers and have very good visibility into our revenue and cash flow heading into the second half of the year."
"We are also getting ready to aggressively roll-out our franchise model. We remain on track with Pontus Energy, LLC of Cincinnati, Ohio for sixteen RDX franchises to be located within the State of Ohio, Monroe County Michigan, and the counties of: Boone, Kenton, Campbell, Gallatin, Grant, and Pendleton in the State of Kentucky. The total value of the agreement is $19.9 million and Pontus has agreed to install, open and place into operation all of the locations by March 31st, 2015. We look forward to announcing similar franchise agreements in the near future."
"At this juncture, RDX may have lost some ground in a single quarter, but it was necessary to shift our business model in anticipation of our future growth. We have also reduced significant expenses and overhead to improve cash flow. Based on our current sales pipeline, we remain confident in our prior guidance of USD $85 to $107 million in sales and EBITDA in the range of $19 to $26 million for fiscal 2015."
The Company has prepared a video based Business Update which is now available on its website at www.rdxh2o.com.
Mr. Danzik added "We encourage investors to attend the video update available on our website. I will also be announcing more changes to our investor information flow and access to increased conference calls and update videos in the very near future."
Conference Call – The RDX Progress. Growth and Profitability
The Company will host a business update conference call which will provide more detail regarding the third quarter and expectations for fiscal 2015, as well as upcoming RDX real estate developments, a franchise update, and an energy sales update. The call will be hosted by RDX CEO Dennis M. Danzik and will feature several key RDX division management speakers as well as operators, on Thursday, January 8th at 10:00 a.m. Eastern Time. The Company will provide dial in information ahead of the scheduled call.
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]