RDX Reports Record 3QTR Earnings
Third Quarter Revenue Increases 151% to $ 13.2 Million
3QTR Revenue Increases to $ 13.21 Million
3QTR Adjusted EBITDA $ 3.72 Million
3QTR Net Income of $ 904,000
SCOTTSDALE, AZ, Feb. 27, 2014 /PRNewswire/ -
Recent operating highlights:
- Company now on an annualized revenue run rate greater than $ 50MM.
- Company now on an annualized EBITDA run rate of approximately $ 13MM.
- Strong demand forecast for all business segments for fiscal 2015.
- Announces launch of new BlueDot Industrial Franchise Program with plans to open at least 40 locations in Fiscal 2015 and at 300 locations by 2016
- Sold equipment into additional five operating BlueDot facilities. Now six BlueDots total.
- Worked successfully through seasonality of fuel business and now ready to sign long term energy contracts with existing and new customers beginning in March.
- Delivered profitable results in light of seasonality of energy. Worked to eliminate seasonality in energy sales for fiscal 2015.
- Invested over $ 2MM in four new fuel micro-finishing plants for energy customers.
- Conducted successful trials for planned regional municipal water treatment operations.
- Signed contract and opened escrow on excess real estate in Santa Fe Springs, California.
- Developing RDX Europe business plan. Results to be announced in March.
- Developing RDX Canada business plan. Results to be announced in March.
- Successfully ran new methyl-ester based fuel to produce higher quality fuel product.
- Started remediation program for Santa Fe Springs facility.
Dennis Danzik, Chief Executive Officer of RDX, stated, "I am pleased to report another solid quarter of both top and bottom line growth. Our revenues increased over 150 percent from the same period last year and we achieved over $3.7 million of adjusted EBITDA for the quarter. As a result, we are now pacing at approximately $13 million of EBITDA on an annualized basis. In addition, we continue to strengthen our balance sheet.
"We are now generating solid cash flow, which has allowed us to begin our company stock buy-back program, purchasing approximately 400,000 shares in the open market during the quarter. Our primary focus is driving shareholder value, and we are succeeding in this mission as evidenced by our strong growth, strict financial discipline, increased profitability and improved balance sheet."
The Company will host a business update conference call today, Thursday, February 27th at 11:00 a.m. Eastern Time. Interested parties can access the conference call by dialing 877-407-0778 for U.S. callers or 201-689-8565 for international callers, or listen via a live Internet webcast on the Company's website at www.rdxh2o.com .
A teleconference replay of the conference call will be available approximately one hour following the call, through midnight Thursday, March 13, 2014, and can be accessed by dialing 877-660-6853 (U.S. callers) or 201-612-7415 (international callers) and entering conference ID: 13577169. A webcast replay of the conference call will be accessible on the Company's website at www.rdxh2o.com for 90 days.
About RDX Technologies Corporation
RDX Technologies Corporation 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. The Company trades on the TSX Venture Exchange under the symbol "RDX", 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
[email protected]
"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)
UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
(IN CANADIAN DOLLARS)
Earnings Before Interest, Taxes, and Amortization
The Company's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). The following table calculates earnings before interest, taxes, and amortization (EBITDA) and Adjusted EBITDA, which are not measures determined in accordance with IFRS or accounting principles generally accepted in the United States ("US GAAP"), for the three and nine months ended December 31, 2013 and 2012:
| Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||
| Net Income (loss) - continuing operations | $ | 904,000 | $ | (1,589,000) | $ | (2,530,000) | $ | (6,598,000) | |||||||
| Interest and other finance costs | 362,000 | 22,000 | 1,036,000 | 57,000 | |||||||||||
| Taxes | - | - | - | 53,000 | |||||||||||
| Amortization (in cost of revenue) | 1,166,000 | 178,000 | 3,152,000 | 465,000 | |||||||||||
| Amortization (in operating costs) | 864,000 | 870,000 | 2,593,000 | 2,257,000 | |||||||||||
| EBITDA | 3,296,000 | (519,000) | 4,251,000 | (3,766,000) | |||||||||||
| Share-based payment expense | 161,000 | 405,000 | 278,000 | 925,000 | |||||||||||
| Foreign exchange gain on CWT notes payable | 702,000 | - | 860,000 | - | |||||||||||
| Change in fair value of PTEC earn-out | 49,000 | (254,000) | (154,000) | (254,000) | |||||||||||
| Gain on forgiveness of indebtedness | (407,000) | - | (528,000) | - | |||||||||||
| Other income | (77,000) | (25,000) | (34,000) | (72,000) | |||||||||||
| Adjusted EBITDA | 3,724,000 | (393,000) | 4,673,000 | (3,167,000) | |||||||||||
We believe that presenting EBITDA and Adjusted EBITDA are useful to investors because they provide important information concerning our operating performance exclusive of certain non-cash and other costs. EBITDA and Adjusted EBITDA demonstrate our ability to execute our financial strategy, which includes reinvesting in waste water related capital assets to ensure a high level of product quality, investing in capital assets to facilitate growth in our energy business, repurchasing our common stock, and maintaining and improving our market position through business optimization. These measures have limitations. Although amortization and share-based payment expenses are considered operating costs in accordance with IFRS and US GAAP, they represent the allocation of non-cash costs generally associated with long-lived assets acquired or constructed in prior years and non-cash compensation primarily for our employees. Our definition of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies.
| RDX TECHNOLOGIES CORPORATION | ||||||||||||
| (FORMERLY RIDGELINE ENERGY SERVICES INC.) | ||||||||||||
| UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||||||
| (IN CANADIAN DOLLARS) | ||||||||||||
| December 31, | March 31, | |||||||||||
| 2013 | 2013 | |||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash | $ | 998,093 | $ | 1,336,478 | ||||||||
| Trade and other receivables, net | 14,117,810 | 7,695,442 | ||||||||||
| Accrued revenue | - | 539,395 | ||||||||||
| Inventory, net | 2,355,749 | 1,154,134 | ||||||||||
| Prepaid expenses and other current assets | 1,290,483 | 663,401 | ||||||||||
| Total current assets | 18,762,135 | 11,388,850 | ||||||||||
| Restricted cash | 85,225 | 159,771 | ||||||||||
| Property, plant and equipment, net | 50,325,505 | 27,548,066 | ||||||||||
| Intangible assets | 16,459,913 | 18,404,007 | ||||||||||
| Goodwill | 8,407,525 | 2,668,952 | ||||||||||
| Other assets | 6,549,879 | 5,715,018 | ||||||||||
| Total assets | $ | 100,590,182 | $ | 65,884,664 | ||||||||
| Liabilities and Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 3,696,467 | $ | 5,715,945 | ||||||||
| Accrued expenses | 6,752,589 | 6,323,559 | ||||||||||
| Income tax payable | - | 5,067 | ||||||||||
| Notes payable, current portion | 5,456,454 | 151,069 | ||||||||||
| Obligations under finance lease, current portion | 91,040 | 92,328 | ||||||||||
| Total current liabilities | 15,996,550 | 12,287,968 | ||||||||||
| Notes payable, non-current portion | 17,600,150 | 1,248,116 | ||||||||||
| Obligations under finance lease, non-current portion | 229,619 | 289,379 | ||||||||||
| Santa Fe Springs purchase price payable | 5,771,550 | 5,513,251 | ||||||||||
| Environmental remediation liability | 5,849,800 | 5,588,000 | ||||||||||
| PTEC earn-out | 176,250 | 330,000 | ||||||||||
| Asset retirement obligations | - | 58,234 | ||||||||||
| Total liabilities | 45,623,919 | 25,314,948 | ||||||||||
| Commitments and contingencies | ||||||||||||
| Equity: | ||||||||||||
| Share capital | 79,926,718 | 66,732,800 | ||||||||||
| Warrants | 2,543,829 | 2,162,794 | ||||||||||
| Contributed surplus | 2,569,866 | 2,348,691 | ||||||||||
| Treasury stock, at cost (150,000 and nil common shares, respectively) | (36,780) | - | ||||||||||
| Accumulated other comprehensive income | 2,350,514 | 106,144 | ||||||||||
| Accumulated deficit | (32,387,794) | (30,780,713) | ||||||||||
| Total equity | 54,966,263 | 40,569,716 | ||||||||||
| Total liabilities and equity | $ | 100,590,182 | $ | 65,884,664 | ||||||||
| 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 December 31, | Nine Months Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue | $ | 13,211,269 | $ | 5,272,854 | $ | 31,985,182 | $ | 7,966,400 | ||||||||
| Cost of revenue: | ||||||||||||||||
| Direct expenses | 8,260,066 | 3,564,118 | 21,953,641 | 4,981,800 | ||||||||||||
| Amortization | 1,166,356 | 177,879 | 3,151,831 | 465,545 | ||||||||||||
| Total cost of revenue | 9,426,422 | 3,741,997 | 25,105,472 | 5,447,345 | ||||||||||||
| Gross profit | 3,784,847 | 1,530,857 | 6,879,710 | 2,519,055 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 1,227,277 | 2,101,624 | 5,358,560 | 6,152,060 | ||||||||||||
| Share-based payment expense | 161,499 | 405,256 | 278,487 | 924,444 | ||||||||||||
| Amortization | 863,476 | 869,536 | 2,593,142 | 2,257,656 | ||||||||||||
| Total operating expenses | 2,252,252 | 3,376,416 | 8,230,189 | 9,334,160 | ||||||||||||
| Income (loss) from operations | 1,532,595 | (1,845,559) | (1,350,479) | (6,815,105) | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Finance costs | (362,000) | (21,680) | (1,036,232) | (56,653) | ||||||||||||
| Foreign exchange loss on CWT notes payable | (702,000) | - | (860,000) | - | ||||||||||||
| Change in fair value of PTEC earn-out | (48,750) | 253,800 | 153,750 | 253,800 | ||||||||||||
| Gain on forgiveness of indebtedness | 407,466 | - | 528,039 | - | ||||||||||||
| Other income, net | 76,749 | 24,847 | 35,398 | 72,432 | ||||||||||||
| Total other income (expense) | (628,535) | 256,967 | (1,179,045) | 269,579 | ||||||||||||
| Income (loss) before tax | 904,060 | (1,588,592) | (2,529,524) | (6,545,526) | ||||||||||||
| Income tax expense | - | - | - | 52,635 | ||||||||||||
| Income (loss) from continuing operations | 904,060 | (1,588,592) | (2,529,524) | (6,598,161) | ||||||||||||
| Income from discontinued operations | - | 807,459 | 922,443 | 1,278,827 | ||||||||||||
| Net income (loss) | $ | 904,060 | $ | (781,133) | $ | (1,607,081) | $ | (5,319,334) | ||||||||
| Basic and diluted income (loss) per share - continuing operations | $ | 0.01 | $ | (0.02) | $ | (0.02) | $ | (0.05) | ||||||||
| Basic and diluted income (loss) per share - discontinued operations | - | 0.01 | - | 0.01 | ||||||||||||
| Basic and diluted income (loss) per share | $ | 0.01 | $ | (0.01) | $ | (0.01) | $ | (0.04) | ||||||||
| Weighted average number of common shares outstanding | 169,275,016 | 132,968,849 | 167,714,674 | 125,705,621 | ||||||||||||
| Comprehensive income (loss): | ||||||||||||||||
| Net income (loss) | $ | 904,060 | $ | (781,133) | $ | (1,607,081) | $ | (5,319,334) | ||||||||
| Other comprehensive income (loss) - Item that may be reclassified subsequently to earnings: |
||||||||||||||||
| Foreign currency translation adjustments | 1,839,677 | 60,830 | 2,244,370 | (100,292) | ||||||||||||
| Comprehensive income (loss) | $ | 2,743,737 | $ | (720,303) | $ | 637,289 | $ | (5,419,626) | ||||||||
SOURCE RDX Technologies Corporation
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