Further Detail from Investor Conference Call on July 25, 2013
CALGARY, July 30, 2013 /PRNewswire/ - 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.
