2014

Ridgeline Reports First Quarter Fiscal Year 2013 Financial Results

CALGARY, Aug. 24, 2012 /PRNewswire/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) an energy services and water treatment company, today announced the financial results for its first quarter of fiscal year 2013 ending June 30, 2012.

Tony Ker, CEO of Ridgeline Energy Services, commented "We are pleased with the accomplishments of the first quarter. The quarter marked the initial recognition of revenues from our operations at Santa Fe Springs, our multi-user industrial wastewater treatment facility located in Los Angeles County.  In just two months of operations during the quarter, we recorded $1.1 million in revenues, equating to an annualized billings rate in excess of $6 million. At the time we assumed management, Santa Fe Springs generated approximately $2.7 million of annual wastewater billings. We continue to see a strong ramp in revenues, with August expected to be our highest month yet."

Mr. Ker continued, "We remain focused on investing in our manufacturing production capabilities to deploy revenue producing facilities in the field.  We expect to place an additional water treatment facility at Santa Fe Springs in the next few weeks, with another two facilities earmarked for Santa Fe Springs by October.

Mr. Ker concluded, "We believe Ridgeline's water treatment technology is ideally suited to provide the oil and gas, and industrial wastewater markets, with a cost effective solution. The technology allows us the ability to leverage discharge permits, increase saltwater disposal well profitability, and enable the sale of water for re-use. We look forward to the further deployment of our systems in the coming quarters."

Financial Results

For the first quarter of fiscal year 2013, Ridgeline reported revenue of $3.4 million versus $3.5 million in the comparable period last year, which included $2.2 million in revenue from the installation and connection of a water treatment unit in Northeast British Columbia, Canada. Ridgeline reported an operating loss of $3.0 million versus an operating profit of $0.7 million in the comparable period of the prior year.  Net loss totaled $3.0 million, or a $(0.03) per basic and diluted share compared to a net loss attributable to Ridgeline of $0.5 million or $(0.01) per basic and diluted share in the prior year. Included in the first quarter of fiscal year 2013 are non-cash charges of $0.6 million pertaining to the amortization of intellectual property and other non-cash items as well as $0.3 million pertaining to non-cash stock based compensation expense.  Excluding the effect of these items, the company's cash use from operations was $2.9 million which is largely attributable to the operational ramp-up costs of our manufacturing facilities in Arizona and Wyoming.

Revenues for Ridgeline Water ("RWI") were $1.1 million and $2.2 million for the three months ended June 30, 2012 and 2011. Revenues for RWI for the three months ended June 30, 2012 relate to approximately two months of operations at our Santa Fe Springs facility.  Revenues for RWI for the three months ended June 30, 2011 relate exclusively to RWI's one time connection fee for a water treatment facility in Northeast British Columbia.

Revenues for Ridgeline GreenFill were $0.1 million and nil for the three months ended June 30, 2012 and 2011, respectively. GreenFill revenues are limited during the first quarter due to the seasonal nature of the business. The company anticipates that the majority of revenues derived from its GreenFill operations will occur in the last quarter of the year.

Revenues for Ridgeline Environment were $2.2 million and $1.3 million for the three months ended June 30, 2012 and 2011, respectively, an increase of $0.9 million or 70%. This improvement in revenues primarily relates to improved weather conditions and the more effective deployment of personnel.

Balance Sheet

The company's balance sheet was highlighted by an increase in cash balance to $10.5 million, compared to $4.6 million at the beginning of the quarter. Total equity also increased to $42.5 million from $34.6 million.

Outlook

Ridgeline expects the second quarter for this year (2013) revenues to be in the range of $4.9 million to $5.5 million, an increase of 53% to 71% from the second quarter of the previous fiscal year.  Continued increases in revenues are expected for the third and fourth quarters. The growth in revenues is expected to be largely driven by the company's water treatment segment, specifically its operations at Santa Fe Springs. The company's GreenFill segment is also expected to report sizeable revenue growth due to the increase of sites compared to the previous year. The company expects its Ridgeline Environment segment to approximate its revenue from the previous year.

Conference Call

The company will be conducting a conference call at 11:00 a.m. ET on Friday, August 24, 2012. Interested parties can access the conference call by dialing (877) 317-6789 or (412) 317-6789, or listen via a live Internet webcast on the Company's website at www.ridgelinecanada.com.  A teleconference replay of the conference call will be available by dialing (877) 344-7529 or (412) 317-0088, confirmation code 10017465, through August 29, 2012. A webcast replay of the conference call will be accessible on the Company's website at www.ridgelinecanada.com for 90 days.

About Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc. is an energy services and water treatment 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.
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN CANADIAN DOLLARS)
              June 30,     March 31,
              2012     2012
        Assets            
Current assets:                
  Cash $   10,545,239   4,565,281
  Trade and other receivables (Note 6)   2,727,206     2,835,225
  Accrued revenue   997,632     898,066
  Prepaid expenses and other current assets   1,365,499     575,350
                   
  Total current assets   15,635,576     8,873,922
                     
Restricted cash (Note 7)   78,360     78,360
Property, plant and equipment, net (Note 8)   8,137,310     8,038,728
Loan receivable (Note 9)   177,001     177,001
Intangible assets (Note 10)   18,989,569     18,723,430
Goodwill   1,832,202     1,832,202
Deferred tax asset (Note 12)   362,750     362,750
Other assets (Note 11)   716,660     52,319
                     
Total assets 45,929,428   38,138,712
                     
        Liabilities and Equity            
Current liabilities:                
  Trade and other payables $ 2,059,116   2,353,806
  Income tax payable (Note 12)   718,591     676,391
  Current portion of note payable (Note 14)   79,602     126,323
  Current portion of obligations under finance lease (Note 15)   18,284     21,906
                   
  Total current liabilities   2,875,593     3,178,426
                     
Note payable, non-current (Note 14)   186,753     179,272
Obligations under finance lease, non-current (Note 15)   2,350     3,509
Deferred tax liability (Note 12)   130,106     130,106
Stock appreciation rights (Note 17)   188,533     -
Asset retirement obligations (Note 16)   42,570     41,674
                 
  Total liabilities   3,425,905     3,532,987
                       
Commitments (Note 23)                  
                   
Equity:                  
  Share capital (Note 17)   61,152,093     50,323,292
  Warrants (Note 18)   1,732,272     1,794,102
  Contributed surplus (Note 19)   1,192,629     1,103,803
  Accumulated other comprehensive income   31,163     -
  Accumulated deficit   (21,604,634)     (18,615,472)
                       
Total equity   42,503,523     34,605,725
                     
Total liabilities and equity $  45,929,428    $  38,138,712
                     

 

RIDGELINE ENERGY SERVICES INC. 
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND 
COMPREHENSIVE INCOME (LOSS)
(IN CANADIAN DOLLARS)
            Three Months Ended June 30,
        2012     2011
           
Revenue $ 3,402,869    $ 3,518,396
Cost of revenue   3,136,225     1,976,753
                 
Gross profit   266,644     1,541,643
                     
Operating expenses:              
  General and administrative   2,317,431     639,355
  Share-based payment expense (Note 17)   277,359     109,364
  Amortization   642,825     29,749
                       
Total operating expenses   3,237,615     778,468
           
Income (loss) from operations   (2,970,971)     763,175
                       
Other income (expense):                
  Finance costs   (18,191)     (19,400)
                 
Total other expense   (18,191)     (19,400)
                     
Income (loss) before tax   (2,989,162)     743,775
Income tax expense (Note 12)   -     196,000
           
Net income (loss) $  (2,989,162)   547,775
                   
Attributable to:              
  Ridgeline Energy Services Inc. $  (2,989,162)   (471,705)
  Non-controlling interests   -     1,019,480
           
  Total $  (2,989,162)   $ 547,775
            
Basic and diluted loss per share attributable to          
  Ridgeline Energy Services Inc. (Note 24) $ (0.03)   $  (0.01)
             
Weighted average number of common shares outstanding (Note 24)   114,165,655     52,013,708
                   
Comprehensive income (loss):            
  Net income (loss) $  (2,989,162)   $  547,775
  Foreign currency translation adjustments   31,163     -
                   
  Comprehensive income (loss) $  (2,957,999)    $ 547,775

 

 

SOURCE Ridgeline Energy Services Inc.




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