Achieves Fiscal 2013 Revenues of $30.5
Million
Fourth Quarter 2013 Revenue of $12.5
Million
CALGARY,
July 25, 2013 /CNW/ - 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.