RDX Announces Fiscal 2014 Revenues of $33.7 Million and Adjusted EBITDA of $553,449

Announces Conference Call to be held on Thursday, August 14^th at 10:00 a.m. Eastern Time

SCOTTSDALE, AZ and CALGARY, AB, July 30, 2014 /CNW/ - 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 fiscal year ending March 31, 2014.

Fiscal 2014 highlights:

• Revenues more than doubled from $16.4MM to $33.7MM
• Adjusted EBITDA improved from a loss of $4.34MM to positive $553,449

Recent operating highlights:

• Sold excess Santa Fe Springs real estate holdings for $12.5MM
• Increased balance sheet cash to $6MM from Santa Fe Springs and franchise sales
• Converted to methyl ester fuel refining and direct ion exchange refining
• Began direct service program for waste water producers that includes transportation
• Started work to expand waste water operations in Virginia, New York, Ohio, and Arizona
• Completed first pipeline right of way in Odessa, Texas for the delivery of water to oil and gas operators
• Completing initial survey work and planning for new pipeline and treatment facilities in Midwest Wyoming

Dennis M. Danzik, Chief Executive Officer of RDX, stated, "We are extremely pleased with both our financial and operational performance in fiscal 2014. As expected, we again achieved significant growth by more than doubling revenues and reporting the Company's first positive adjusted EBITDA.    In addition, we are extremely well positioned to continue this strong growth for the foreseeable future. As a company, we utilized our fourth quarter as a cleanup period to correct the many challenges at the Carthage facility that were created prior to our acquisition of the facility. RDX's refined fuel now exceeds our customers and regulators expectations. In fact, Omega Proteins has chosen to highlight our energy products in several press releases. We expect to see more of our customers recognizing RDX in a very positive light over the next several months."

"In the coming months, we expect to move the Company forward through the aggressive sale of additional franchise operations in Arizona, Texas, Ohio, Virginia, and Georgia. We also have active negotiations taking place in Canada and Europe."

Mr. Danzik continued, "RDX has demonstrated its ability to acquire and integrate underperforming assets, install our proprietary technologies, direct sound engineering practices, enhance operations, implement strict financial controls, and thereby improve both revenue and profitability.   In the face of this type of growth, controlling finances and budgets is difficult, but the management and staff at RDX are performing well. RDX has developed a highly scalable business model that will enable us to maintain strong growth and enhance profitability in the months and years ahead."

Conference Call

The Company will host a business update conference call on Thursday, August 14^th at 10:00 a.m. Eastern Time.  Interested parties can access the conference call by dialing (877)-407-0778 for U.S. callers or [phone] 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, August 21, 2014, and can be accessed by dialing (877)-660-6853 (U.S. callers) or [phone] (international callers) and entering conference ID: 13588068. A webcast replay of the conference call will be accessible on the Company's website at http://www.rdxh2o.com/ for 90 days.

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 year ended March 31, 2014 and 2013:

													Year Ended March 31,
													2014				2013
Net loss - continuing operations												$	(14,127,000)			$	(12,599,000)
									Interest and other finance costs				1,444,000				100,000
									Taxes				229,000				4,000
									Amortization (in cost of revenue)				4,314,000				1,323,000
									Amortization (in operating costs)				3,430,000				3,254,000
EBITDA													(4,710,000)				(7,918,000)
									Share-based payment expense				245,000				1,268,000
									Loss on disposal and impairment of equipment				2,086,000				1,903,000
									Foreign exchange loss on CWT notes payable				1,694,000				-
									Change in fair value of PTEC earn-out and note payable				98,000				(254,000)
									Gain on forgiveness of indebtedness				(643,000)				-
									Other expense (income)				157,000				(92,000)
Adjusted EBITDA													(1,073,000)				(5,093,000)
									Bad debt expense				1,626,000				750,000
Adjusted EBITDA, net of bad debt expense												$	553,000			$	(4,343,000)

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.)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(IN CANADIAN DOLLARS)
									Year Ended March 31,
									2014				2013
Revenue								$	33,686,484			$	16,371,106
Cost of revenue:
						Direct expenses			26,279,349				11,666,167
						Amortization			4,314,581				1,323,097
Total cost of revenue									30,593,930				12,989,264
Gross profit									3,092,554				3,381,842
Operating expenses:
						General and administrative			8,480,415				9,798,041
						Share-based payment expense			245,551				1,268,334
						Amortization			3,429,679				3,253,634
						Loss on disposal and impairment of equipment			2,085,826				1,902,589
Total operating expenses									14,241,471				16,222,598
Loss from operations									(11,148,917)				(12,840,756)
Other income (expense):
						Finance costs			(1,444,065)				(100,512)
						Foreign exchange loss on CWT notes payable			(1,694,000)				-
						Change in fair value of PTEC earn-out and note payable			(97,500)				253,800
						Gain on forgiveness of indebtedness			643,012				-
						Other income (expense), net			(156,992)				92,476
Total other income (expense)									(2,749,545)				245,764
Loss before tax									(13,898,462)				(12,594,992)
Income tax expense									228,808				4,482
Loss from continuing operations									(14,127,270)				(12,599,474)
Income from discontinued operations									922,443				611,234
Net loss								$	(13,204,827)			$	(11,988,240)
Basic and diluted loss per share - continuing operations								$	(0.08)			$	(0.10)
Basic and diluted income per share - discontinued operations									-				0.01
Basic and diluted loss per share								$	(0.08)			$	(0.09)
Weighted average number of common shares outstanding									168,006,736				127,937,568
Comprehensive loss:
						Net loss from continuing operations		$	(13,204,827)			$	(11,988,240)
						Other comprehensive income - Item that may be reclassified subsequently to earnings:
						Foreign currency translation adjustments			4,526,463				106,144
Comprehensive loss								$	(8,678,364)			$	(11,882,096)

 

RDX TECHNOLOGIES CORPORATION
(Formerly Ridgeline Energy Services Inc.)
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN CANADIAN DOLLARS)
									March 31,
									2014				2013
Assets
Current assets:
						Cash		$	1,350,546			$	1,336,478
						Trade and other receivables, net			9,394,277				7,695,442
						Accrued revenue			-				539,395
						Inventory, net			2,111,043				1,154,134
						Prepaid expenses and other current assets			1,622,856				663,401
									14,478,722				11,388,850
						Santa Fe Springs assets held for sale			17,295,173				-
						Total current assets			31,773,895				11,388,850
Restricted cash									88,655				159,771
Property, plant and equipment, net									37,769,000				27,548,066
Maintenance parts									1,189,140				-
Intangible assets									15,672,666				18,404,007
Goodwill									8,737,155				2,668,952
Other assets									1,138,373				5,715,018
Total assets								$	96,368,884			$	65,884,664
Liabilities and Equity
Current liabilities:
						Accounts payable		$	4,294,210			$	5,715,945
						Accrued liabilities			8,876,029				6,323,559
						Income tax payable			-				5,067
						Notes payable, current portion			23,504,751				151,069
						Obligations under finance lease, current portion			96,755				92,328
									36,771,745				12,287,968
						Liabilities related to Santa Fe Springs assets held for sale			11,634,861				-
						Total current liabilities			48,406,606				12,287,968
Notes payable, non-current portion									1,011,348				1,248,116
Obligations under finance lease, non-current portion									219,335				289,379
Deferred tax liability									237,940				-
Santa Fe Springs purchase price payable									-				5,513,251
Environmental remediation liability									552,650				5,588,000
PTEC earn-out									427,500				330,000
Asset retirement obligations									-				58,234
						Total liabilities			50,855,379				25,314,948
Commitments and contingencies
Equity:
						Share capital			79,785,679				66,732,800
						Warrants			2,543,829				2,162,794
						Contributed surplus			2,536,930				2,348,691
						Accumulated other comprehensive income			4,632,607				106,144
						Accumulated deficit			(43,985,540)				(30,780,713)
Total equity									45,513,505				40,569,716
Total liabilities and equity								$	96,368,884			$	65,884,664

 

SOURCE: RDX Technologies Corporation

David Waldman at Crescendo Communications
[phone]
[email protected]