SCOTTSDALE, AZ and CALGARY, AB, March 3,
2015 /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 its fiscal third quarter ending December 31, 2014.
Q3 Fiscal 2015 highlights:
- Revenue from water treatment and machinery sales of
$3.6 million
- Adjusted EBITDA improved to $1.8
million
- Reduced overhead and streamlined expenses in response to lower
oil prices
Dennis M. Danzik, Chief Executive
Officer of RDX, stated, "We have responded to a number of changes
in our business, including the dramatic drop in oil prices, by
reducing overhead and streamlining expenses. As a result, we
achieved $1.8 million of adjusted
EBITDA for the quarter. Due to the difficult environment, we
are no longer providing financial guidance until we have better
visibility. However, we believe we have now turned the
corner and expect continued growth in revenue and positive cash
flow."
"Despite the drop in fuel prices, the cost of waste materials we
use to produce our fuel have fallen in price as well, and the
ability to treat waste water more economically is now again showing
strength. This has allowed us to remain profitable despite
the market, unlike many of our peers. In addition, the U.S.
government did not renew the biofuel tax credit, which puts us in
an even stronger competitive position. As a result, we believe we
will be extremely well positioned for an eventual rebound in the
oil market."
"Among the challenges we faced were fuel quality and
qualification problems at our acquired refinery in Carthage Missouri. We believe we
have now addressed these issues and are pursuing recourse against
the former owners. In addition, we have begun the permitting
process in Missouri, and
rebuilding of the refinery in order to meet Federal and State fuel
regulations. "
"Overall, we believe the business is back on track despite
factors that were out of our control. Our strategy going
forward is to operate as a leaner and more focused organization. We
have prioritized our sales efforts around waste water equipment
sales and services to municipalities and larger waste water
generators. We are putting our franchise initiatives on
temporary hold until oil prices return to a more normalized level.
Nevertheless, RDX believes that its business model represents a
substantial and scalable market opportunity for the company at the
right time. We are also focused on improving our balance sheet and
have paid off more than $1 million in
debt since October. In addition, our cash position is
improving, our machinery backlog is growing and we see substantiasl
untapped opportunities in the waste water market."
"I still believe in the RDX business model and am as confident
as ever. As evidence of my conviction, I am personally extending
RDX an additional loan of up to $950,000 for machinery expansion and near term
growth. By doing so, we have avoided issuing equity and
minimized dilution in light of the current share price. We
are 100 percent committed to delivering shareholder value.
Our RDX staff has worked tirelessly and have shown that they can
produce results, even in the face of historically poor market
conditions."
Market Update – The RDX Profit Model
The Company will host a business update on its website at
www.rdxh2o.com on Tuesday March
10th at 9AM Arizona
Time. RDX will provide more detail regarding the balance of
calendar year 2015 expectations for fiscal 2016. Any shareholder or
interested party can join the update without a dial in number.
Simply log in to participate in the program.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, CEO
danzik@rdxh2o.com
"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 RDX Technologies Corporation