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."

SOURCE Ridgeline Energy Services Inc.