Further Detail from Investor Conference Call on July 25, 2013
CALGARY,
July 30, 2013 /CNW/ - Ridgeline
Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE,
OTCQX: RGDEF, FSE: RL7) a water treatment and energy technology
company, today addresses specific questions resulting from the
investor conference call on July 25,
2013 and the March 31, 2013
consolidated financial statements filed last week on SEDAR.
Dennis M. Danzik, Chief Executive
Officer of Ridgeline Energy Services, stated, "Last week culminated
with announcements and discussions surrounding the cleanup and sale
of less productive divisions operated by our Company. These
included the environmental and soil remediation operations,
primarily located in Alberta
Canada. Last week after our fourth quarter and fiscal year
end 2013 earnings release conference call with our investors, the
Company received several calls that management determined should be
further clarified in the broadest manner possible, so I have chosen
to launch this detailed release to give some pinpoint clarity as to
specific questions regarding the Company's financial
condition."
The following is a summary to our most Received Questions:
1. Given the sale of the Company's Environment and
Greenfill divisions, is Ridgeline Energy Services, Inc. going to
become a private company and no longer trade on the Toronto Venture
Exchange?
No. Ridgeline Energy Services, Inc. which is a publicly
traded Canadian company will take on a name change to RDX
Technologies Corporation within the next several days after the
proper paperwork is filed with the stock exchange. All common
shares currently held by shareholders of the Company, traded under
"RLE" on the Venture Exchange, "RDGEF" on the OTCQX, and "RL7" on
the Frankfurt Stock Exchange, remain in place and fully
trading.
2. Is Ridgeline Energy Services, Inc. "RLE" currently in a
poor liquidity position?
No. RLE cash position has greatly improved since
March 31st of this year,
due to strict cash management programs and the sale of
underperforming assets. As of today our cash balance is in excess
of $ 3,000,000. This is up from the
approximately $ 1,300,000. as stated
in our year end financials.
3. Will Ridgeline Energy Services, Inc. be raising
capital through an equity raise?
No. Our Company is in a strong position to demonstrate
our ability to earn profits through our waste water treatment
operations in Santa Fe Springs
California and in Carthage
Missouri. The Company currently has no plans through our
second or third financial quarters to consider any capital raise
through the use of our equity.
4. Why will Ridgeline Energy Services, Inc. not need to
raise capital from an equity raise during fiscal 2014?
Simple, we will not be spending on any new capital
equipment projects. Our primary water treatment facilities in
California and in Missouri are fully operational and cash flow
positive. Our mission now is to focus on spending reductions,
especially at the SG&A level with a goal of spending less than
$ 350,000 per month while refining
our net profit from these two great facilities.
5. With the Company's current plans, Will Ridgeline
continue to grow?
Yes. But we will grow as a Company from our two primary
facilities through the end of this fiscal year. Each of our
properties in California and
Missouri has the ability to
produce tens of millions of dollars in revenue per property. The
revenue potential at these properties allows for enough growth for
this fiscal year.
6. Ridgeline Energy Services, Inc. has over $ 12,000,000 in "Trade Payables".
No. The Company did not have over $12,000,000 in "trade payables" as of
March 31, 2013 but rather had over
$12,000,000 in "trade and other
payables" as of March 31, 2013
which included deferred revenue, non-cash accruals, payables
related to the divisions being sold, and other liabilities. The
trade and other payables as of March 31,
2013 included the following:
a. |
Trade and other Payables (to
date) |
$ 6,500,000 |
b. |
Payables anticipated to be transferred
upon the sale of the Environment and Greenfill
divisions |
$ 3,289,000 |
c. |
Santa Fe Springs non-recurring acquisition related
costs |
$ 1,276,000 |
d. |
Deferred revenue and other non-cash
accruals
(i.e. straight line rent)
|
$ 935,000 |
Mr. Danzik continued, "As a publicly traded company, full
disclosure is of the utmost importance. Year end financials are
many times cryptic to the untrained, and in many instances highly
trained people need further clarity. As well, our financial year
end is now four months behind us. Doubling revenues year over year
for any company is challenging, and we are now set for our largest
revenue growth year."
"As I have stated, our mission is Water, and the benefit that
brings our customers and shareholders. Over the coming months, and
through this fiscal year, you will see our Company highly focused
on our current operations and shareholder value."
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. The Company
trades on the TSX Venture Exchange under the symbol "RLE", the
OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, CEO
danzikdirect@danzik.pro
"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.
SOURCE Ridgeline Energy Services Inc.