Ridgeline Announces Positive 3rd QTR EBIDTA

REVENUES SURGE OVER $9 MILLION FOR 3rd QTR

76% INCREASE IN REVENUE OVER 2ND QTR 2013
GROSS PROFIT UP 25% AND POSITIVE EBITDA

CALGARY, Feb. 19, 2013 /PRNewswire/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) a water treatment and energy technology company, today announced third quarter earnings for the period ended December 31st 2012.

Revenues increased 76% over the previous quarter from $5.33 million to $9.38 million an increase of $4.05 million for the quarter. The increase in revenue over the period was primarily due to gains in the water treatment revenues. EBITDA improved by $0.77 million from an adjusted negative $0.28 million to a positive $0.49 million. Loss for the quarter was $0.78 million compared with a loss in the 2nd quarter of $1.55 million. Gross profit increased to $2.86 million compared to $2.29 million in the 2nd quarter. The drop in gross profit percentage from 43% as a percentage of revenue to 31% was primarily due to the startup costs associated with the Missouri operation, (CMT). CMT has been in turn around mode since the Company started operating the property in early December of last year. The Company has implemented major operating changes to increase revenues and sees an opportunity to produce strong gross profit margins in the 4th QTR.

Dennis M Danzik, Ridgeline CEO commented "Water, Water, Water is the message of our Company. We secure it, We treat it, and We manage it. This is a turning point in the Company as it has moved to positive EBITDA results. The commitment to Research and Development of our core technologies coupled with a strong management team, and a market development plan that has produced positive financial results putting the Company on a trajectory of positive EBITDA growth. The CMT Missouri facility combined with the Santa Fe Springs facility provide the Company with two major operations that are successful and duplicable. They also provide for recurring revenue that will be the engine for growth.

Our CMT operation and the addition of 13TON complete the vertical track into the waste water collection, treatment, discharge and energy related products. It also provides evidence that both our Company's strategic and tactical business plans are proven and Ridgeline is poised to aggressively grow our now fully integrated water opportunities."

Tony Ker, Ridgeline's Executive Chairman stated, "Ridgeline has taken four years of hard work and the successful execution of carefully selected opportunities by our management team. It is also about staying our course, keeping our news timely and factual, and continuing to recruit the most qualified and experienced people possible."

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. Through its environmental consulting and remediation divisions, Ridgeline Environment has built a reputation as an established provider of environmental services to the Western Canadian oil and gas industry. Ridgeline GreenFill provides soil remediation and wet waste disposal services to the oil and gas industry.  The Company trades on the TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".

Additional information is available on the Company's website at: www.ridgelinecanada.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"Tony Ker"
Tony Ker, 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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN CANADIAN DOLLARS)
                     
            December 31,   March 31,
            2012   2012
        Assets            
Current assets:                
  Cash $ 3,633,584   $ 4,565,281
  Trade and other receivables   5,776,321     2,835,225
  Accrued revenue   1,065,753     898,066
  Inventory   1,218,794     -
  Prepaid expenses and other current assets   787,986     575,350
             
  Total current assets   12,482,438     8,873,922
                     
Restricted cash   158,360     78,360
Property, plant and equipment, net   12,574,014     8,038,728
Loan receivable   -     177,001
Intangible assets   19,220,095     18,723,430
Goodwill   3,893,064     1,832,202
Deferred tax asset   362,750     362,750
Other assets   2,973,034     52,319
                     
Total assets $ 51,663,755   $ 38,138,712
                     
        Liabilities and Equity            
Current liabilities:                
  Trade and other payables $ 7,744,819   $ 2,353,806
  Income tax payable   491,561     676,391
  Note payable, current portion   146,626     126,323
  Obligations under finance lease, current portion   93,537     21,906
                     
  Total current liabilities   8,476,543     3,178,426
                     
Note payable, non-current portion   149,841     179,272
Obligations under finance lease, non-current portion   304,640     3,509
Deferred tax liability   130,106     130,106
PTEC earn-out   330,000     -
Asset retirement obligations   44,362     41,674
                     
  Total liabilities   9,435,492     3,532,987
                     
Commitments                  
                     
Equity:                  
  Share capital   62,920,863     50,323,292
  Warrants   1,514,697     1,794,102
  Contributed surplus   2,004,802     1,103,803
  Accumulated other comprehensive income   (100,292)     -
  Accumulated deficit   (24,111,807)     (18,615,472)
                     
Total equity   42,228,263     34,605,725
                     
Total liabilities and equity $ 51,663,755   $ 38,138,712

 

 
RIDGELINE ENERGY SERVICES INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN CANADIAN DOLLARS)
                         
            Three Months Ended    Nine Months Ended 
            December 31,   December 31,
            2012   2011   2012   2011
                           
Revenue $ 9,376,921   $ 5,433,342   $ 18,110,961   $ 12,173,256
                                 
Cost of revenue:                            
  Direct expenses   6,286,811     3,447,999     12,089,121     7,513,991
  Amortization   227,965     142,695     599,929     237,824
                                 
Total cost of revenue   6,514,776     3,590,694     12,689,050     7,751,815
                                 
Gross profit   2,862,145     1,842,648     5,421,911     4,421,441
                                 
Operating expenses:                            
  General and administrative   2,624,150     1,693,700     7,751,579     3,737,449
  Share-based payment expense   405,257     162,251     924,444     410,069
  Amortization   869,536     47,100     2,257,656     115,310
                                 
Total operating expenses   3,898,943     1,903,051     10,933,679     4,262,828
                                 
Income (loss) from operations   (1,036,798)     (60,403)     (5,511,768)     158,613
                                 
Other income (expense):                            
  Finance costs   (23,476)     (12,736)     (61,471)     (36,282)
  Change in fair value of PTEC earn-out
  and note payable
     253,800      -      253,800     -
  Finance and other income   25,341     6,481     72,926     15,197
                                 
Total other income (expense)   255,665     (6,255)     265,255     (21,085)
                                 
Income (loss) before tax   (781,133)     (66,658)     (5,246,513)     137,528
Income tax expense   -     414,689     72,821     554,565
                                 
Net loss $ (781,133)   $ (481,347)   $ (5,319,334)   $ (417,037)
                                 
Attributable to:                            
  Ridgeline Energy Services Inc. $ (781,133)   $ (147,494)   $ (5,319,334)   $ (897,725)
  Non-controlling interests   -     (333,853)     -     480,688
                                 
  Total $ (781,133)   $ (481,347)   $ (5,319,334)   $ (417,037)
                                 
Basic and diluted loss per share attributable to
  Ridgeline Energy Services Inc
$ (0.01)   $ -   $ (0.04)   $ (0.02) 
                         
                                 
Weighted average number of
  common shares outstanding
      132,968,849     61,730,644      125,705,621      58,454,314
                         

 

SOURCE Ridgeline Energy Services Inc.




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