RDX Reports Record 2Q Earnings

2Q Revenue Increases Six Fold to $ 11.81 Million
2Q Adjusted EBITDA $ 2.33 Million
2Q Net Income of $ 1.15 Million

SCOTTSDALE, AZ, Nov. 21, 2013 /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 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

[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)
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 - continuing operations				$	0.01		$	(0.02)		$	(0.02)		$	(0.04)
Basic and diluted income (loss) per share - discontinued operations					-			0.01			-			-
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

David Waldman at Crescendo Communications

Investor Relations

[phone]

[email protected]