Welcome!

News Feed Item

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

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

SCOTTSDALE, AZ and CALGARY, AB, July 30, 2014 /PRNewswire/ - 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 14th at 10:00 a.m. Eastern Time.  Interested parties can access the conference call by dialing (877)-407-0778 for U.S. callers or +1 (201)-689-8565 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 +1 (201)-612-7415 (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

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.