Ridgeline Announces Positive 3rd QTR EBIDTA

REVENUES SURGE OVER $9 MILLION FOR 3^rd QTR

76% INCREASE IN REVENUE OVER 2^ND 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 31^st 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 2^nd quarter of $1.55 million. Gross profit increased to $2.86 million compared to $2.29 million in the 2^nd 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 4^th 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.

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