RDX Reports Record 2Q Earnings
7:32a ET November 21, 2013 (PR NewsWire)
2Q Revenue Increases Six Fold to $ 11.81 Million 2Q Adjusted EBITDA $ 2.33 Million 2Q Net Income of $ 1.15 Million
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
danzikdirect@rdxh2o.com
"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 - $ 0.01 $ (0.02) $ (0.02) $ (0.04)
continuing operations
Basic and diluted income (loss) per share - - 0.01 - -
discontinued operations
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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