Mr. Dennis Danzik reports
RDX REPORTS RECORD 3QTR EARNINGS
RDX Technologies Corp. has released its financial results for the third quarter ended Dec. 31, 2013.
Highlights:
- Third-quarter revenue increases 151 per cent to $13.2-million;
- Third-quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) $3.72-million;
- Third-quarter net income of $904,000.
Recent operating highlights:
- Company now on an annualized revenue run rate greater than $50-million;
- Company now on an annualized EBITDA run rate of approximately $13-million;
- Strong demand forecast for all business segments for fiscal 2015;
-
Announces launch of new BlueDot industrial franchise program with plans
to open at least 40 locations in fiscal 2015 and at 300 locations by
2016;
-
Sold equipment into additional five operating BlueDot facilities; now
six BlueDots total;
-
Worked successfully through seasonality of fuel business and now ready
to sign long-term energy contracts with existing and new customers
beginning in March;
-
Delivered profitable results in light of seasonality of energy; worked
to eliminate seasonality in energy sales for fiscal 2015;
-
Invested over $2-million in four new fuel microfinishing plants for energy
customers;
-
Conducted successful trials for planned regional municipal water
treatment operations;
- Signed contract and opened escrow on excess real estate in Santa Fe
Springs, Calif.;
-
Developing RDX Europe business plan; results to be announced in March;
-
Developing RDX Canada business plan; results to be announced in March;
-
Successfully ran new methyl-ester-based fuel to produce higher-quality
fuel product;
-
Started remediation program for Santa Fe Springs facility.
Dennis Danzik, chief executive officer of RDX, stated: "I am pleased to
report another solid quarter of both top- and bottom-line growth. Our
revenues increased over 150 per cent from the same period last year and
we achieved over $3.7-million of adjusted EBITDA for the quarter. As a
result, we are now pacing at approximately $13-million of EBITDA on an
annualized basis. In addition, we continue to strengthen our balance
sheet.
"We are now generating solid cash flow, which has allowed us to begin
our company stock buyback program, purchasing approximately 400,000
shares in the open market during the quarter. Our primary focus is
driving shareholder value, and we are succeeding in this mission as
evidenced by our strong growth, strict financial discipline, increased
profitability and improved balance sheet."
The company will host a business update conference call today, Thursday,
Feb. 27, at 11 a.m. Eastern Time. Interested parties can access
the conference call by dialling 877-407-0778 for U.S. callers or
201-689-8565 for international callers, or listen via a live Internet
webcast on the company's website.
A teleconference replay of the conference call will be available
approximately one hour following the call, through midnight Thursday,
March 13, 2014, and can be accessed by dialling 877-660-6853 (U.S.
callers) or 201-612-7415 (international callers) and entering
conference ID: 13577169. A webcast replay of the conference call will
be accessible on the company's website for 90 days.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three months ended Dec. 31, Nine months ended Dec. 31,
2013 2012 2013 2012
Revenue $ 13,211,269 $ 5,272,854 $ 31,985,182 $ 7,966,400
Cost of revenue
Direct expenses 8,260,066 3,564,118 21,953,641 4,981,800
Amortization 1,166,356 177,879 3,151,831 465,545
-------------- ------------- -------------- -------------
Total cost of revenue 9,426,422 3,741,997 25,105,472 5,447,345
-------------- ------------- -------------- -------------
Gross profit 3,784,847 1,530,857 6,879,710 2,519,055
Operating expenses
General and administrative 1,227,277 2,101,624 5,358,560 6,152,060
Share-based payment expense 161,499 405,256 278,487 924,444
Amortization 863,476 869,536 2,593,142 2,257,656
-------------- ------------- -------------- -------------
Total operating expenses 2,252,252 3,376,416 8,230,189 9,334,160
-------------- ------------- -------------- -------------
Income (loss) from operations 1,532,595 (1,845,559) (1,350,479) (6,815,105)
Other income (expense)
Finance costs (362,000) (21,680) (1,036,232) (56,653)
Foreign exchange (loss) on CWT notes payable (702,000) - (860,000) -
Change in fair value of PTEC earn-out (48,750) 253,800 153,750 253,800
Gain on forgiveness of indebtedness 407,466 - 528,039 -
Other income, net 76,749 24,847 35,398 72,432
-------------- ------------- -------------- -------------
Total other income (expense) (628,535) 256,967 (1,179,045) 269,579
-------------- ------------- -------------- -------------
Income (loss) before tax 904,060 (1,588,592) (2,529,524) (6,545,526)
Income tax expense - - - 52,635
-------------- ------------- -------------- -------------
Income (loss) from continuing operations 904,060 (1,588,592) (2,529,524) (6,598,161)
Income from discontinued operations - 807,459 922,443 1,278,827
-------------- ------------- -------------- -------------
Net income (loss) $ 904,060 $ (781,133) $ (1,607,081) $ (5,319,334)
============== ============= ============== =============
Basic and diluted income (loss) per share
-- continuing operations 0.01 (0.02) (0.02) (0.05)
Basic and diluted income (loss) per share
-- discontinued operations - 0.01 - 0.01
-------------- ------------- -------------- -------------
Basic and diluted income (loss) per share 0.01 (0.01) (0.01) (0.04)
Comprehensive income (loss)
Net income (loss) 904,060 (781,133) (1,607,081) (5,319,334)
Other comprehensive income (loss) -- item
that may be reclassified subsequently to earnings
Foreign currency translation adjustments 1,839,677 60,830 2,244,370 (100,292)
-------------- ------------- -------------- -------------
Comprehensive income (loss) 2,743,737 (720,303) 637,289 (5,419,626)
We seek Safe Harbor.
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