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Ridgeline Reports 97% Increase in Annual Revenue and 275% Year-Over-Year Revenue Increase in Fourth Quarter of Fiscal 2013

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Achieves Fiscal 2013 Revenues of $30.5 Million
Fourth Quarter 2013 Revenue of $12.5 Million

CALGARY, July 25, 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 financial results for the fourth quarter and fiscal year ending March 31, 2013.

Recent operating highlights:

  • Signed definitive agreement to sell the Ridgeline Environment and Ridgeline Greenfill divisions for CDN $7.4 million
  • Completed acquisition of Santa Fe Springs (SFS), which maintains one of the largest discharge permits among service providers supporting the Los Angeles County Sanitation District
  • Completed acquisition of Carthage, Missouri water treatment and refinery operations
  • In preparation to become U.S. reporting company
  • Shipped first raw material effluent for refining from Santa Fe Springs to Carthage

Dennis Danzik, Chief Executive Officer of Ridgeline Energy Services, stated, "As expected, we achieved very significant growth in fiscal 2013. This represents our third year of significantly increased revenues, and we are extremely pleased with both our financial and operational performance.  In addition, we are extremely well positioned to continue this strong growth for the foreseeable future. We have transformed Ridgeline from a low margin environmental services company primarily serving the Canadian oil and gas industry in Alberta, to a fully integrated waste water treatment company operating in six states across the United States, and successfully delivering energy in the form of fuel.  We are now focused on increasing throughput and further enhancing our operating facilities in California and Missouri.  These facilities now have a combined revenue run rate surpassing $55 million for fiscal 2014, while continuing to grow."

"In the next several days, the Company will officially change its name to RDX Technologies Corporation - reflecting our change to a company that is focused on mining waste water and our ability to refine these materials into one of the highest quality renewable fuels in North America. Our Company's ability to extract waste that can be converted to energy is very unique, and has now proven itself to be both commercially successful and profitable. The remaining months of this calendar year will be one of focus - focus on water and focus on maximizing the profitability of operations at our two flagship properties.  In connection with the name change, we are working to complete our U.S. reporting requirements by October of this year, which will broaden the audience of potential investors through access to the world's largest capital markets."

Mr. Danzik concluded, "We have also demonstrated our ability to acquire and integrate underperforming assets, install our proprietary technologies, enhance operations, implement strict financial controls, and thereby improve both revenue and profitability.  For example, when we assumed operations of SFS, this facility was producing negative cash flow.  Under our leadership, fiscal 2013 showed revenue of nearly $7.5 million and adjusted EBITDA of nearly $3.4 million at this facility. Similarly, since the purchase of our Missouri refinery, we have increased the selling price of our fuel, by nearly 20%, while reducing the cost of our raw material operations by 75%, through our waste water operations. Our Missouri facility is now cash flow positive, and we project significant cash flow in fiscal 2014 based on just these first two operating properties. We have developed a highly scalable business model that will enable us to maintain strong growth and enhance profitability in the months and years ahead.  The recent sale of our Environment and GreenFill business segments removes unnecessary overhead, improves company-wide margins, strengthens our balance sheet and completes our transformation to a leader in the North American waste water industry."

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. The Company trades on the TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".

ON BEHALF OF THE BOARD OF DIRECTORS


"Dennis M. Danzik"
Dennis M. Danzik, CEO
danzikdirect@danzik.pro

"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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN CANADIAN DOLLARS)
     
    Year Ended March 31,
    2013   2012
             
Revenue   $    30,562,205   $   15,489,891
             
Cost of revenue:            
  Direct expenses   21,714,312     10,614,501
  Amortization   1,520,832     531,841
             
Total cost of revenue     23,235,144     11,146,342
             
Gross profit     7,327,061     4,343,549
             
Operating expenses:            
  General and administrative   11,850,098     5,016,033
  Share-based payment expense   1,268,333     529,779
  Amortization   3,253,634     697,527
  Loss on disposal of equipment   1,902,589     -
  Impairment of goodwill   1,257,086     -
             
Total operating expenses     19,531,740     6,243,339
             
Loss from operations     (12,204,679)     (1,899,790)
             
Other income (expense):            
  Finance costs   (125,849)     (47,492)
  Change in fair value of PTEC earn-out          
  and note payable   253,800     -
  Finance and other income   92,970     19,953
             
Total other income (expense)     220,921     (27,539)
             
Loss before tax     (11,983,758)     (1,927,329)
Income tax expense     4,482     -
             
Net loss   $   (11,988,240)   $ (1,927,329)
             
Attributable to:            
  Ridgeline Energy Services Inc $   (11,988,240)   $   (2,408,017)
  Non-controlling interests   -     480,688
             
  Total $   (11,988,240)    $ (1,927,329)
             
Basic and diluted loss per share attributable to            
  Ridgeline Energy Services Inc $   (0.09)   $   (0.03)
             
Weighted average number of             
  common shares outstanding   127,937,568     70,576,539
             
Comprehensive loss:            
  Net loss $   (11,988,240)   $   (1,927,329)
  Foreign currency translation adjustments   106,144     -
             
  Comprehensive loss $   (11,882,096)    $ (1,927,329)

 

RIDGELINE ENERGY SERVICES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN CANADIAN DOLLARS)
             
      March 31,
      2013     2012
  Assets          
Current assets:          
  Cash   1,336,478     4,565,281
  Trade and other receivables   7,695,442     2,835,225
  Accrued revenue   539,395     898,066
  Inventory   1,154,134     -
  Prepaid expenses and other current assets   663,401     575,350
             
  Total current assets   11,388,850     8,873,922
             
Restricted cash   159,771     78,360
Property, plant and equipment, net   27,548,066     8,038,728
Intangible assets   18,404,007     18,723,430
Goodwill   2,668,952     1,832,202
Deferred tax asset   -     362,750
Loan receivable   -     177,001
Other assets   5,715,018     52,319
             
Total assets  $   65,884,664    $   38,138,712
             
  Liabilities and Equity          
Current liabilities:          
  Trade and other payables  $   12,039,504    $   2,353,806
  Income tax payable   5,067     676,391
  Notes payable, current portion   151,069     126,323
  Obligations under finance lease, current portion   92,328     21,906
             
  Total current liabilities   12,287,968     3,178,426
             
Notes payable, non-current portion   1,248,116     179,272
Obligations under finance lease, non-current portion   289,379     3,509
Deferred tax liability   -     130,106
Santa Fe Springs purchase price payable   5,513,251     -
Environmental remediation liability   5,588,000     -
PTEC earn-out   330,000     -
Asset retirement obligations   58,234     41,674
             
  Total liabilities   25,314,948     3,532,987
             
Commitments and contingencies          
             
Equity:          
  Share capital   66,732,800     50,323,292
  Warrants   2,162,794     1,794,102
  Contributed surplus   2,348,691     1,103,803
  Accumulated other comprehensive income   106,144     -
  Accumulated deficit     (30,780,713)       (18,615,472)
             
Total equity   40,569,716     34,605,725
             
Total liabilities and equity  $   65,884,664    $   38,138,712

 

  

SOURCE Ridgeline Energy Services Inc.



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