Q1 Fiscal 2015 Revenue Increases 92% to
$13.4 Million;
Achieves
EBITDA of $1.4 Million
SCOTTSDALE, AZ and CALGARY, AB, Sept. 2,
2014 /PRNewswire/ - 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 first quarter ending June 30, 2014.
Q1 Fiscal 2015 highlights (year-over-year):
- Revenues increased 92% to $13.4
million from $7.0 million
- EBITDA improved to $1.4 million
from a loss of $2.1 million
- RDX grew its Environmental and Reclamation business to record
levels, which included an excess land sale and related water
treatment at Santa Fe Springs
Dennis M. Danzik, Chief Executive
Officer of RDX, stated, "The RDX growth trend continues as we
demonstrated our ability to successfully acquire and monetize
underperforming assets. In addition to the real estate sale from
Santa Fe Springs, we generated significant revenues related to
reclamation and water treatment at the site. As a result, our
revenues increased by 92% this quarter compared to the same period
last year, and we achieved $1.4
million of EBITDA, compared to a loss of $2.1 million for the same period last year.
At the same time, we enhanced our cash position and ended the
quarter with over $5 million of cash
at the end of the quarter. RDX continues to seek out and
evaluate other similar real estate and reclamation opportunities
that would benefit from our technologies. Real estate development
of properties trapped by environmental challenges, that hold
underperforming assets, has become a part of our core business.
"
"RDX has moved far beyond its initial locations in California and Missouri. We remain on track to achieve our
goal of opening 40 new franchise locations in fiscal 2015, and to
open a total of at least 300 locations through the end of fiscal
2018. Demand for franchises has been extremely strong, as
evidenced by our recent agreement 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 USD $19.9 million.
We are now in the final stages of completing federal and state
registration requirements to allow us to open our franchises.
Once these filings are complete, we plan to immediately commence
equipment sales and support the franchise operations."
"We are also making significant headway securing major energy
customers. In fact, our fuel was recently recognized
publicly by Omega Proteins for helping cut energy costs, and
decreasing fossil fuel consumption by up to 80 percent at their
Reedville, Va., facility. We see a
virtually limitless market for our fuel as we are in the unique
position of having a financial hedge on the single largest traded
energy commodity in the world, diesel fuel. This allows us to sell
diesel equivalent energy at a substantial discount to our
customers. "
Mr. Danzik continued, "Overall, we are extremely encouraged by
the outlook for the business. Response from the market,
including both prospective energy customers and franchisees, has
been overwhelmingly positive. We have developed a highly
scalable business model and look forward to driving significant
value for shareholders."
Conference Call – The RDX Growth Model
The Company will host a business update conference call entitled
"The RDX Growth Model" which will provide more detail regarding the
first 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 franchise operators, on
Thursday, October 9thth 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
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."
(tables follow)
|
RDX TECHNOLOGIES
CORPORATION
|
|
(Formerly
Ridgeline Energy Services Inc.)
|
|
INTERIM UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
|
(IN CANADIAN
DOLLARS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Environmental and
reclamation segment
|
|
|
|
|
|
Revenue
|
$
3,775,693
|
|
$
-
|
|
Sale of
land
|
8,978,890
|
|
-
|
|
Total
revenue
|
12,754,583
|
|
-
|
|
Cost of
revenue
|
9,012,967
|
|
-
|
|
Gross profit -
Environmental and reclamation segment
|
3,741,616
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Other operating
segments
|
|
|
|
|
|
|
|
Revenue
|
648,706
|
|
6,967,033
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Direct
expenses
|
|
|
|
2,056,877
|
|
5,908,608
|
|
|
Amortization
|
|
|
|
948,988
|
|
919,855
|
|
Total cost of
revenue
|
|
|
|
3,005,865
|
|
6,828,463
|
|
Gross profit - Other
operating segments
|
(2,357,159)
|
|
138,570
|
|
|
|
|
|
|
|
|
|
|
Total gross
profit
|
1,384,457
|
|
138,570
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
1,825,813
|
|
2,439,052
|
|
Share-based payment
expense
|
10,675
|
|
184,723
|
|
Amortization
|
857,398
|
|
861,013
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
2,693,886
|
|
3,484,788
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(1,309,429)
|
|
(3,346,218)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Finance
costs
|
(581,469)
|
|
(302,487)
|
|
Foreign exchange loss
on CWT notes payable
|
754,000
|
|
(612,000)
|
|
Change in fair value
of PTEC earn-out
|
202,500
|
|
90,000
|
|
Gain on forgiveness
of indebtedness
|
2,962
|
|
-
|
|
Other income
(expense), net
|
(11,332)
|
|
4,407
|
|
|
|
|
|
|
|
|
|
|
Total other income
(expense)
|
366,661
|
|
(820,080)
|
|
|
|
|
|
|
|
|
|
|
Loss before
tax
|
(942,768)
|
|
(4,166,298)
|
|
Income tax
expense
|
61,468
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
(1,004,236)
|
|
(4,166,298)
|
|
Income from
discontinued operations
|
-
|
|
506,098
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$ (1,004,236)
|
|
$ (3,660,200)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share -
|
|
|
|
|
|
|
continuing
operations
|
$
(0.01)
|
|
$
(0.02)
|
|
Basic and diluted
income per share -
|
|
|
|
|
|
discontinued
operations
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
$
(0.01)
|
|
$
(0.02)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
common shares
outstanding
|
169,149,750
|
|
164,712,554
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
Net loss
|
$ (1,004,236)
|
|
$ (3,660,200)
|
|
Other comprehensive
income - Item that may be
|
|
|
|
|
|
reclassified
subsequently to earnings:
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(1,726,713)
|
|
1,546,956
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
$ (2,730,949)
|
|
$ (2,113,244)
|
|
|
|
|
|
|
|
|
|
|
|
RDX TECHNOLOGIES
CORPORATION
|
|
(Formerly
Ridgeline Energy Services Inc.)
|
|
INTERIM UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
|
(IN CANADIAN
DOLLARS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
|
|
|
|
|
2014
|
|
2014
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
|
$
5,359,739
|
|
$
1,350,546
|
|
Trade and other
receivables, net
|
9,009,275
|
|
9,394,277
|
|
Inventory,
net
|
2,638,101
|
|
2,111,043
|
|
Prepaid expenses and
other current assets
|
1,703,313
|
|
1,622,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,710,428
|
|
14,478,722
|
|
Santa Fe Springs
assets held for sale
|
357,513
|
|
17,295,173
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
19,067,941
|
|
31,773,895
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
459,033
|
|
88,655
|
|
Property, plant and
equipment, net
|
38,422,008
|
|
37,769,000
|
|
Maintenance
parts
|
1,147,935
|
|
1,189,140
|
|
Intangible
assets
|
14,793,942
|
|
15,672,666
|
|
Goodwill
|
8,434,402
|
|
8,737,155
|
|
Other
assets
|
1,194,324
|
|
1,138,373
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$ 83,519,585
|
|
$ 96,368,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
3,945,424
|
|
$
4,294,210
|
|
Accrued
liabilities
|
7,943,014
|
|
8,876,029
|
|
Notes payable,
current portion, net of discount of $406,527
|
24,310,792
|
|
23,504,751
|
|
Obligations under
finance lease, current portion
|
95,473
|
|
96,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,294,703
|
|
36,771,745
|
|
Liabilities related
to Santa Fe Springs assets held for sale
|
106,700
|
|
11,634,861
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
36,401,403
|
|
48,406,606
|
|
|
|
|
|
|
|
|
|
|
Notes payable,
non-current portion
|
544,828
|
|
1,011,348
|
|
Obligations under
finance lease, non-current portion
|
192,825
|
|
219,335
|
|
Deferred tax
liability
|
294,169
|
|
237,940
|
|
Environmental
remediation liability
|
533,500
|
|
552,650
|
|
PTEC
earn-out
|
225,000
|
|
427,500
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
38,191,725
|
|
50,855,379
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Share
capital
|
82,371,100
|
|
79,785,679
|
|
Warrants
|
2,543,829
|
|
2,543,829
|
|
Contributed
surplus
|
2,496,813
|
|
2,536,930
|
|
Accumulated other
comprehensive income
|
2,905,894
|
|
4,632,607
|
|
Accumulated
deficit
|
(44,989,776)
|
|
(43,985,540)
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
45,327,860
|
|
45,513,505
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
$ 83,519,585
|
|
$ 96,368,884
|
|
|
|
|
RDX TECHNOLOGIES
CORPORATION
|
|
(Formerly
Ridgeline Energy Services Inc.)
|
|
INTERIM UNAUDITED
SUPPLEMENTAL FINANCIAL INFORMATION
|
|
(IN CANADIAN
DOLLARS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Interest, Taxes, and Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's
financial statements are prepared in accordance with International
Financial Reporting Standards ("IFRS"). The following table
calculates earnings before interest, taxes, and amortization
(EBITDA) and Adjusted EBITDA, which are not measures determined in
accordance with IFRS or accounting principles generally accepted in
the United States ("US GAAP"), for the three months ended June 30,
2014 and 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss - continuing
operations
|
$
(1,004,000)
|
|
$
(4,166,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
finance costs
|
582,000
|
|
302,000
|
|
Taxes
|
|
61,000
|
|
-
|
|
Amortization (in cost
of revenue)
|
949,000
|
|
920,000
|
|
Amortization (in
operating costs)
|
857,000
|
|
861,000
|
|
EBITDA
|
1,445,000
|
|
(2,083,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payment
expense
|
11,000
|
|
185,000
|
|
Foreign exchange loss
on CWT notes payable
|
(754,000)
|
|
612,000
|
|
Change in fair value
of PTEC earn-out and note payable
|
(203,000)
|
|
(90,000)
|
|
Gain on forgiveness
of indebtedness
|
(3,000)
|
|
-
|
|
Other expense
(income)
|
12,000
|
|
(5,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
508,000
|
|
$
(1,381,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that
presenting EBITDA and Adjusted EBITDA are useful to investors
because they provide important information concerning our operating
performance exclusive of certain non-cash and other costs.
EBITDA and Adjusted EBITDA demonstrate our ability to execute our
financial strategy, which includes reinvesting in waster water
related capital assets to ensure a high level of product quality,
investing in capital assets to facilitate growth in our energy
business, repurchasing our common stock, and maintaining and
improving our market position through business optimization.
These measures have limitations. Although amortization and
share-based payment expenses are considered operating costs in
accordance with IFRS and US GAAP, they represent the allocation of
non-cash costs generally associated with long-lived assets acquired
or constructed in prior years and non-cash compensation primarily
for our employees. Our definition of EBITDA and Adjusted
EBITDA may not be comparable to similarly titled measures presented
by other companies.
|
SOURCE RDX Technologies Corporation
