REVENUES SURGE OVER $9 MILLION
FOR 3rd QTR
76% INCREASE IN REVENUE OVER 2ND QTR 2013
GROSS PROFIT UP 25% AND POSITIVE EBITDA
CALGARY,
Feb. 19, 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 third quarter earnings for the period
ended December 31st
2012.
Revenues increased 76% over the previous quarter
from $5.33 million to $9.38 million an increase of $4.05 million for the quarter. The increase in
revenue over the period was primarily due to gains in the water
treatment revenues. EBITDA improved by $0.77
million from an adjusted negative $0.28 million to a positive $0.49 million. Loss for the quarter was
$0.78 million compared with a loss in
the 2nd quarter of $1.55
million. Gross profit increased to $2.86 million compared to $2.29 million in the 2nd quarter. The
drop in gross profit percentage from 43% as a percentage of revenue
to 31% was primarily due to the startup costs associated with the
Missouri operation, (CMT). CMT has
been in turn around mode since the Company started operating the
property in early December of last year. The Company has
implemented major operating changes to increase revenues and sees
an opportunity to produce strong gross profit margins in the
4th QTR.
Dennis M Danzik, Ridgeline CEO commented "Water,
Water, Water is the message of our Company. We secure it, We treat
it, and We manage it. This is a turning point in the Company as it
has moved to positive EBITDA results. The commitment to Research
and Development of our core technologies coupled with a strong
management team, and a market development plan that has produced
positive financial results putting the Company on a trajectory of
positive EBITDA growth. The CMT Missouri facility combined with the
Santa Fe Springs facility provide the Company with two major
operations that are successful and duplicable. They also provide
for recurring revenue that will be the engine for growth.
Our CMT operation and the addition of 13TON
complete the vertical track into the waste water collection,
treatment, discharge and energy related products. It also provides
evidence that both our Company's strategic and tactical business
plans are proven and Ridgeline is poised to aggressively grow our
now fully integrated water opportunities."
Tony Ker,
Ridgeline's Executive Chairman stated, "Ridgeline has taken four
years of hard work and the successful execution of carefully
selected opportunities by our management team. It is also about
staying our course, keeping our news timely and factual, and
continuing to recruit the most qualified and experienced people
possible."
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. Through its environmental consulting and remediation
divisions, Ridgeline Environment has built a reputation as an
established provider of environmental services to the Western
Canadian oil and gas industry. Ridgeline GreenFill provides soil
remediation and wet waste disposal services to the oil and gas
industry. The Company trades on the TSX Venture Exchange
under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt
Stock Exchange as "RL7".
Additional information is available on the Company's website at:
www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Tony Ker"
Tony Ker, CEO
"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. |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
(IN CANADIAN
DOLLARS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
March 31, |
|
|
|
|
|
|
2012 |
|
2012 |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash |
$ |
3,633,584 |
|
$ |
4,565,281 |
|
Trade and other
receivables |
|
5,776,321 |
|
|
2,835,225 |
|
Accrued revenue |
|
1,065,753 |
|
|
898,066 |
|
Inventory |
|
1,218,794 |
|
|
- |
|
Prepaid expenses and
other current assets |
|
787,986 |
|
|
575,350 |
|
|
|
|
|
|
|
|
Total current assets |
|
12,482,438 |
|
|
8,873,922 |
|
|
|
|
|
|
|
|
|
|
|
Restricted cash |
|
158,360 |
|
|
78,360 |
Property, plant and equipment, net |
|
12,574,014 |
|
|
8,038,728 |
Loan receivable |
|
- |
|
|
177,001 |
Intangible assets |
|
19,220,095 |
|
|
18,723,430 |
Goodwill |
|
3,893,064 |
|
|
1,832,202 |
Deferred tax asset |
|
362,750 |
|
|
362,750 |
Other assets |
|
2,973,034 |
|
|
52,319 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
51,663,755 |
|
$ |
38,138,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Trade and other
payables |
$ |
7,744,819 |
|
$ |
2,353,806 |
|
Income tax payable |
|
491,561 |
|
|
676,391 |
|
Note payable, current
portion |
|
146,626 |
|
|
126,323 |
|
Obligations under finance
lease, current portion |
|
93,537 |
|
|
21,906 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities |
|
8,476,543 |
|
|
3,178,426 |
|
|
|
|
|
|
|
|
|
|
|
Note payable, non-current portion |
|
149,841 |
|
|
179,272 |
Obligations under finance lease, non-current
portion |
|
304,640 |
|
|
3,509 |
Deferred tax liability |
|
130,106 |
|
|
130,106 |
PTEC earn-out |
|
330,000 |
|
|
- |
Asset retirement obligations |
|
44,362 |
|
|
41,674 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
9,435,492 |
|
|
3,532,987 |
|
|
|
|
|
|
|
|
|
|
|
Commitments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
Share capital |
|
62,920,863 |
|
|
50,323,292 |
|
Warrants |
|
1,514,697 |
|
|
1,794,102 |
|
Contributed surplus |
|
2,004,802 |
|
|
1,103,803 |
|
Accumulated other
comprehensive income |
|
(100,292) |
|
|
- |
|
Accumulated deficit |
|
(24,111,807) |
|
|
(18,615,472) |
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
42,228,263 |
|
|
34,605,725 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
$ |
51,663,755 |
|
$ |
38,138,712 |
|
RIDGELINE ENERGY
SERVICES INC. |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(IN CANADIAN
DOLLARS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
9,376,921 |
|
$ |
5,433,342 |
|
$ |
18,110,961 |
|
$ |
12,173,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct expenses |
|
6,286,811 |
|
|
3,447,999 |
|
|
12,089,121 |
|
|
7,513,991 |
|
Amortization |
|
227,965 |
|
|
142,695 |
|
|
599,929 |
|
|
237,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenue |
|
6,514,776 |
|
|
3,590,694 |
|
|
12,689,050 |
|
|
7,751,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
2,862,145 |
|
|
1,842,648 |
|
|
5,421,911 |
|
|
4,421,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
2,624,150 |
|
|
1,693,700 |
|
|
7,751,579 |
|
|
3,737,449 |
|
Share-based payment expense |
|
405,257 |
|
|
162,251 |
|
|
924,444 |
|
|
410,069 |
|
Amortization |
|
869,536 |
|
|
47,100 |
|
|
2,257,656 |
|
|
115,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
3,898,943 |
|
|
1,903,051 |
|
|
10,933,679 |
|
|
4,262,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
(1,036,798) |
|
|
(60,403) |
|
|
(5,511,768) |
|
|
158,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
(23,476) |
|
|
(12,736) |
|
|
(61,471) |
|
|
(36,282) |
|
Change in fair value
of PTEC earn-out
and note payable |
|
|
253,800 |
|
|
- |
|
|
253,800 |
|
|
- |
|
Finance and other income |
|
25,341 |
|
|
6,481 |
|
|
72,926 |
|
|
15,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
255,665 |
|
|
(6,255) |
|
|
265,255 |
|
|
(21,085) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before tax |
|
(781,133) |
|
|
(66,658) |
|
|
(5,246,513) |
|
|
137,528 |
Income tax expense |
|
- |
|
|
414,689 |
|
|
72,821 |
|
|
554,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(781,133) |
|
$ |
(481,347) |
|
$ |
(5,319,334) |
|
$ |
(417,037) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ridgeline Energy Services Inc. |
$ |
(781,133) |
|
$ |
(147,494) |
|
$ |
(5,319,334) |
|
$ |
(897,725) |
|
Non-controlling interests |
|
- |
|
|
(333,853) |
|
|
- |
|
|
480,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
(781,133) |
|
$ |
(481,347) |
|
$ |
(5,319,334) |
|
$ |
(417,037) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share attributable to
Ridgeline Energy Services Inc |
$ |
(0.01) |
|
$ |
- |
|
$ |
(0.04) |
|
$ |
(0.02) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
common shares outstanding |
|
|
|
132,968,849 |
|
|
61,730,644 |
|
|
125,705,621 |
|
|
58,454,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Ridgeline Energy Services Inc.