2Q Revenue Increases Six Fold to $ 11.81 Million
2Q Adjusted EBITDA $ 2.33 Million
2Q Net Income of $ 1.15 Million
SCOTTSDALE, AZ, Nov. 21, 2013 /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 the second quarter and six months ending September 30, 2013.
Recent operating highlights:
- Continued strong demand for both water and energy products.
- Diligently maintained margins at key properties and reduced overhead.
- Completed startup of new waste water treatment systems at Santa Fe Springs operation.
- All RDX water treatment systems at Santa Fe Springs are now fully permitted and operational.
- The permitted system at Santa Fe Springs is one of the largest discharge permits within the Los Angeles County Sanitation District.
- Completed conversion of fuel system to methyl-ester based, higher quality fuel product.
- Preparation to become U.S. reporting company moving forward with projected initial filings with SEC in fourth quarter of fiscal 2014.
- Organic growth of fuel effluent collection at Santa Fe Springs from 15,000 to over 40,000 Gallons per week.
- The Company, based on meeting its financial goals has started to accept new customer opportunities for the current quarter and next calendar quarter.
Dennis M. Danzik, Chief Executive Officer of RDX, stated, "We achieved record results through a focused effort during our second quarter, reflected by over $ 2 million of adjusted EBITDA for the second quarter. We concentrated on our primary properties, and stayed focused on shipped and billed product. Coming out of a reconstructive first quarter with the divestiture of our Canadian operations, was difficult. But with the diligent work of our team, and special recognition of the efforts by our Chairman, Tony Ker; the work was successfully completed, without losing revenue targets for the second quarter. "
"Our backlog demand continues to grow in all of our divisions. As a Company, we are dedicated to adding additional customers and increasing revenue, while strengthening our margins, and improving profitability. At the same time we continue to work on securing our cash position, and insure that we can deliver value add to each customer."
Mr. Danzik concluded, "Once again, we have accomplished our key performance targets. Our on property management has exceeded expectations, but our work is far from done. The next few financial quarters should allow RDX to grow, as well as present an opportunity to instill confidence in our investors. Consistency in maintaining our high product quality to our customers will provide consistency in our earnings. That process will over time build investor trust and confidence in our Company."
About RDX Technologies Corporation
RDX Technologies Corporation is a water treatment and energy technology company. The Company applies water treatment technology to provide waste water treatment services to a variety of industries. In addition, RDX technology allows for the mining of valuable materials from waste water streams. Most of the materials mined from waste water sources are currently converted to energy in the form of renewable fuels.
The Company also supplies a wide range of commercial scale water and refinery systems, machinery and products within the waste water, refining, and remediation industries.
The Company trades on the TSX Venture Exchange under the symbol "RDX", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".For further information please contact:
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, 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."
| RDX TECHNOLOGIES CORPORATION | ||||||
| (FORMERLY RIDGELINE ENERGY SERVICES, INC) | ||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||
| (IN CANADIAN DOLLARS) | ||||||
| Three Months Ended September 30, |
||||||
| 2013 | ||||||
| Net Income - continuing operations | $ | 733,000 | ||||
| Interest | 372,000 | |||||
| Taxes | - | |||||
| Amortization (in operating costs) | 1,066,000 | |||||
| Amortization (in cost of revenue) | 869,000 | |||||
| EBITDA | 3,040,000 | |||||
| Stock-based compensation | (68,000) | |||||
| Foreign exchange gain on note payable | (454,000) | |||||
| Change in fair value of PTEC earn-out | (113,000) | |||||
| Gain on forgiveness of indebtedness | (121,000) | |||||
| Other expense | 46,000 | |||||
| Adjusted EBITDA | 2,330,000 | |||||
| RDX TECHNOLOGIES CORPORATION | ||||||||||||||
| (FORMERLY RIDGELINE ENERGY SERVICES INC.) | ||||||||||||||
| INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
| (IN CANADIAN DOLLARS) | ||||||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||
| Revenue | $ | 11,806,880 | $ | 1,581,840 | $ | 18,773,913 | $ | 2,693,546 | ||||||
| Cost of revenue: | ||||||||||||||
| Direct expenses | 7,784,967 | 471,246 | 13,693,575 | 1,417,682 | ||||||||||
| Amortization | 1,065,620 | 144,972 | 1,985,475 | 287,666 | ||||||||||
| Total cost of revenue | 8,850,587 | 616,218 | 15,679,050 | 1,705,348 | ||||||||||
| Gross profit | 2,956,293 | 965,622 | 3,094,863 | 988,198 | ||||||||||
| Operating expenses: | ||||||||||||||
| General and administrative | 1,692,231 | 2,188,740 | 4,131,283 | 4,050,436 | ||||||||||
| Share-based payment expense | (67,735) | 241,828 | 116,988 | 519,188 | ||||||||||
| Amortization | 868,653 | 745,295 | 1,729,666 | 1,388,120 | ||||||||||
| Total operating expenses | 2,493,149 | 3,175,863 | 5,977,937 | 5,957,744 | ||||||||||
| Income (loss) from operations | 463,144 | (2,210,241) | (2,883,074) | (4,969,546) | ||||||||||
| Other income (expense): | ||||||||||||||
| Finance costs | (371,745) | (18,880) | (674,232) | (34,973) | ||||||||||
| Foreign exchange gain (loss) on CWT notes payable | 454,000 | - | (158,000) | - | ||||||||||
| Change in fair value of PTEC earn-out | 112,500 | - | 202,500 | - | ||||||||||
| Gain on forgiveness of indebtedness | 120,573 | - | 120,573 | - | ||||||||||
| Other income (expense), net | (45,758) | 47,585 | (41,351) | 47,585 | ||||||||||
| Total other income (expense) | 28,705 | (550,510) | 12,612 | |||||||||||
| Income (loss) before tax | 732,714 | (2,181,536) | (3,433,584) | (4,956,934) | ||||||||||
| Income tax expense | - | 52,635 | - | 52,635 | ||||||||||
| Income (loss) from continuing operations | 732,714 | (2,234,171) | (3,433,584) | (5,009,569) | ||||||||||
| Income from discontinued operations | 416,345 | 682,132 | 922,443 | 471,368 | ||||||||||
| Net income (loss) | $ | 1,149,059 | $ | (1,549,039) | $ | (2,511,141) | $ | (4,538,201) | ||||||
| Basic and diluted income (loss) per share - continuing operations |
$ | 0.01 | $ | (0.02) | $ | (0.02) | $ | (0.04) | ||||||
| Basic and diluted income (loss) per share - discontinued operations |
- | 0.01 | - | - | ||||||||||
| Basic and diluted income (loss) per share | $ | 0.01 | $ | (0.01) | $ | (0.02) | $ | 0.04 | ||||||
| Weighted average number of | ||||||||||||||
| common shares outstanding | 169,123,820 | 129,856,925 | 166,930,240 | 122,054,162 | ||||||||||
| Comprehensive income (loss): | ||||||||||||||
| Net income (loss) | $ | 1,149,059 | $ | (1,549,039) | $ | (2,511,141) | $ | (4,538,201) | ||||||
| Other comprehensive income (loss) - Item that may be reclassified subsequently to earnings: |
||||||||||||||
| Foreign currency translation adjustments | (1,142,263) | (192,285) | 404,693 | (161,122) | ||||||||||
| Comprehensive income (loss) | $ | 6,796 | $ | (1,741,324) | $ | (2,106,448) | $ | (4,699,323) | ||||||
| RDX TECHNOLOGIES CORPORATION | ||||||
| (FORMERLY RIDGELINE ENERGY SERVICES INC.) | ||||||
| UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
| (IN CANADIAN DOLLARS) | ||||||
| September 30, | March 31, | |||||
| 2013 | 2013 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 3,495,205 | $ | 1,336,478 | ||
| Trade and other receivables, net | 6,081,864 | 7,695,442 | ||||
| Accrued revenue | - | 539,395 | ||||
| Inventory, net | 2,441,826 | 1,154,134 | ||||
| Prepaid expenses and other current assets | 629,313 | 663,401 | ||||
| Total current assets | 12,648,208 | 11,388,850 | ||||
| Restricted cash | 82,413 | 159,771 | ||||
| Property, plant and equipment, net | 52,529,223 | 27,548,066 | ||||
| Intangible assets | 17,243,298 | 18,404,007 | ||||
| Goodwill | 8,130,068 | 2,668,952 | ||||
| Other assets | 5,785,331 | 5,715,018 | ||||
| Total assets | $ | 96,418,541 | $ | 65,884,664 | ||
| Liabilities and Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 3,948,234 | $ | 5,715,945 | ||
| Accrued expenses | 6,185,467 | 6,323,559 | ||||
| Income tax payable | - | 5,067 | ||||
| Notes payable, current portion | 3,378,319 | 151,069 | ||||
| Obligations under finance lease, current portion | 86,039 | 92,328 | ||||
| Total current liabilities | 13,598,059 | 12,287,968 | ||||
| Notes payable, non-current portion | 19,069,880 | 1,248,116 | ||||
| Obligations under finance lease, non-current portion | 239,713 | 289,379 | ||||
| Santa Fe Springs purchase price payable | 5,581,082 | 5,513,251 | ||||
| Environmental remediation liability | 5,656,750 | 5,588,000 | ||||
| PTEC earn-out | 127,500 | 330,000 | ||||
| Asset retirement obligations | - | 58,234 | ||||
| Total liabilities | 44,272,984 | 25,314,948 | ||||
| Commitments and contingencies | ||||||
| Equity: | ||||||
| Share capital | 79,964,218 | 66,732,800 | ||||
| Warrants | 2,543,829 | 2,162,794 | ||||
| Contributed surplus | 2,418,527 | 2,348,691 | ||||
| Accumulated other comprehensive income | 510,837 | 106,144 | ||||
| Accumulated deficit | (33,291,854) | (30,780,713) | ||||
| Total equity | 52,145,557 | 40,569,716 | ||||
| Total liabilities and equity | $ | 96,418,541 | $ | 65,884,664 | ||
SOURCE RDX Technologies Corporation
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