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
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.
SOURCE RDX Technologies Corporation