Advanced Emissions Solutions, Inc. (NASDAQ: ADES) (the "Company" or
"ADES") today filed its Quarterly Report on Form 10-Q and reported
financial results for the third quarter ended September 30,
2020, including information about its equity investments in Tinuum
Group, LLC ("Tinuum Group") and Tinuum Services, LLC ("Tinuum
Services") (collectively "Tinuum"), of which ADES owns 42.5% and
50%, respectively.
Tinuum & Refined Coal (“RC”)
Highlights
- Tinuum distributions to ADES for the third quarter were $9.7
million compared to $18.7 million in the prior year
- Royalty earnings from Tinuum Group in the third quarter were
$3.6 million compared to $4.4 million in the prior year
- RC Segment operating income in the third quarter was $12.8
million compared to $18.2 million in the prior year
- RC Segment Adjusted EBITDA in the third quarter was $13.1
million compared to $22.7 million in the prior year
- During July 2020, Tinuum completed two additional RC
transactions
- Based on 21 invested RC facilities as of September 30,
2020, expected future net RC cash flows to ADES are projected to be
between $90 million and $110 million through year end 2021
- During October 2020, Tinuum completed one additional RC
transaction, potentially adding $5.0 million to $7.0 million in
cash flows to ADES through year end 2021
Power Generation and Industrials ("PGI")
Highlights
- Recognized third quarter segment revenue of $13.4 million
compared to $14.0 million in the prior year
- Segment operating loss in the third quarter was $1.3 million
compared to an operating loss of $1.0 million in the prior
year
- Segment Adjusted EBITDA in the third quarter was $0.2 million,
compared to a segment Adjusted EBITDA of $1.0 million in the prior
year
ADES Consolidated
Highlights
- Consolidated revenue was $19.5 million during the third quarter
compared to $19.1 million in the prior year
- Consolidated net income was $5.0 million for the third quarter
compared to net income of $3.9 million in 2019; pretax income was
$5.8 million in the third quarter compared to $10.5 million in
2019
- Consolidated Adjusted EBITDA was $8.7 million, compared to
$18.5 million in the prior year
- Made quarterly principal payment of $6.0 million on the
Company's term loan, and reduced the principal balance to $22.0
million
- Ended the third quarter with a cash balance, inclusive of
restricted cash, of $25.0 million, an increase of $7.9 million
since December 31, 2019
- As previously announced, the Company has entered into a 15-year
master supply agreement with Cabot to supply lignite activated
carbon products, including powder activated carbon and granular
activated carbon, for the treatment of water, air, food and
beverages, pharmaceuticals and other liquids and gases. We expect
our production to ramp up incrementally during a 4-5 quarter
transition period, which when completed is expected to yield the
following net impacts to our current operations:
- Incremental annual revenue growth of 30% - 40%;
- Incremental annual EBITDA growth of $10 million to $15 million;
and
- Diversified end markets will reduce our power generation
exposure to less than 50% of product portfolio.
“In the midst of a difficult operating
environment, we made substantial progress towards laying the
foundation for the Company’s post-Refined Coal future," said Greg
Marken, Interim CEO of ADES. “This work culminated in the
previously announced 15-year supply agreement with Cabot
Corporation at the end of the quarter, which is a critical step
towards driving material incremental non-mercury volume and to
better capture the low-cost manufacturing capabilities of our Red
River plant. Over the past several quarters, we have discussed our
expectations for market rebalancing, and we would not be surprised
to see further industry rationalization. With our strong balance
sheet and projected cash flows, we expect to be well-positioned to
potentially capitalize on these opportunities as they arise and
enhance our competitive offering in this market."
Marken continued, “Meanwhile, we remain
committed to bolstering our cash flow profile and prioritizing our
cash and liquidity positions. The Tinuum team secured tax-equity
investors for two additional Refined Coal facilities in the third
quarter as well as an additional transaction in October. We also
reduced our other operating expenses by roughly 24% in the third
quarter. As we enter the fourth quarter, we expect to see
improvements within our PGI segment from the impacts of colder
seasons and the Cabot supply agreement. However, as previously
discussed, we expect that we will not begin to see the full impacts
of the supply agreement to revenues, margins and our cost structure
until 2021, as we work through a transition period within the
agreement."
Third Quarter 2020 Results
Third quarter revenues and costs of revenues
were $19.5 million and $15.0 million, respectively, compared with
$19.1 million and $11.9 million in the third quarter of 2019. The
increase in revenue was primarily the result of higher consumables
revenue, partially offset by lower royalty income.
Third quarter royalty earnings from Tinuum Group
were $3.6 million, compared to $4.4 million for the third quarter
of 2019. Royalty income is based upon a percentage of the per-ton,
pre-tax margin, inclusive of impacts related to depreciation
expense and other allocable expenses. The lower royalty earnings in
the third quarter were due to increased depreciation and lower rent
payments to Tinuum which also impacted the Company's equity
earnings. Royalty earnings are expected to be negatively impacted
due to these changes in both 2020 and 2021.
Third quarter other operating expenses were $7.3
million compared to $9.6 million in the third quarter of 2019. The
decrease was primarily driven by lower legal and professional fees
and lower payroll expense.
Third quarter earnings from equity method
investments were $9.5 million, compared to $14.4 million for the
third quarter of 2019. The decrease in earnings from equity method
investments during the third quarter was primarily due to lower
earnings from Tinuum Group resulting from higher depreciation on
all Tinuum Group RC facilities as a result of a reduction in their
estimated useful lives during the third quarter of 2019 and due to
Tinuum Group restructuring RC facility leases with its largest
customer, which decreased net lease payments and equity earnings
beginning in the three months ended September 30, 2019.
Third quarter interest expense was $0.9 million,
compared to $1.7 million in the third quarter of 2019. The decrease
in interest expense was primarily driven by a lower principal
amount outstanding on the term loan used to fund the Carbon
Solutions acquisition.
Third quarter income tax expense was $0.9
million, compared to $6.6 million in the third quarter of 2019. The
decrease in income tax expense was primarily driven by lower pretax
income in 2020 compared to 2019 and an increase in the valuation
allowance on deferred tax assets in 2019.
Third quarter net income was $5.0 million for
the third quarter compared to $3.9 million in 2019. The increase in
net income was driven by lower income tax expense in 2020 compared
to 2019.
Third quarter consolidated adjusted EBITDA was
$8.7 million compared to $18.5 million in 2019. The decrease in
consolidated adjusted EBITDA was driven by lower earnings from
equity method investments. See the note below on the use of the
Non-GAAP financial measure Adjusted EBITDA and a reconciliation to
the most comparable GAAP financial measure.
Long-Term Borrowings
As of September 30, 2020, the outstanding principal balance
of the Company's senior term loan was $22.0 million. The senior
term loan is subject to customary covenants as well as quarterly
principal payments of $6.0 million that began on March 1, 2019.
Conference Call and Webcast
Information
The Company has scheduled a conference call to
begin at 9:00 a.m. Eastern Time on Tuesday, November 10, 2020.
The conference call webcast information will be available via the
Investor Resources section of ADES's website at
www.advancedemissionssolutions.com. Interested parties may also
participate in the call by registering at
www.directeventreg.com/registration/event/3279504. A supplemental
investor presentation will be available on the Company's Investor
Resources section of the website prior to the start of the
conference call.
About Advanced Emissions Solutions,
Inc.Advanced Emissions Solutions, Inc. serves as the
holding entity for a family of companies that provide emissions
solutions to customers in the power generation and other
industries.
ADA Carbon Solutions, LLC |
ADA brings together ADA Carbon Solutions, LLC, a leading provider
of powder activated carbon ("PAC") and ADA-ES, Inc., the providers
of ADA® M-Prove™ Technology. We provide products and services
to control mercury and other contaminants at coal-fired power
generators and other industrial companies. Our broad suite of
complementary products control contaminants and help our customers
meet their compliance objectives consistently and reliably. |
|
|
CarbPure Technologies LLC |
CarbPure Technologies LLC,
(“CarbPure”), formed in 2015 provides
high-quality PAC and granular activated carbon
ideally suited for treatment of potable water and wastewater. Our
affiliate company, ADA Carbon Solutions, LLC manufactures the
products for CarbPure. |
|
|
Tinuum Group, LLC |
Tinuum Group, LLC (“Tinuum
Group”) is a 42.5% owned joint venture by ADA that provides
patented Refined Coal (“RC”) technologies to enhance combustion of
and reduce emissions of NOx and mercury from coal-fired power
plants. |
Caution on Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, which provides a “safe harbor” for such
statements in certain circumstances. The forward-looking statements
include projection on future RC cash flows, expected revenue and
EBITDA growth associated with the Cabot supply agreement,
expectation of improved cost structure and plant utilization in the
PGI segment, as well as our expectations on further industry
rationalization. These forward-looking statements involve risks and
uncertainties. Actual events or results could differ materially
from those discussed in the forward-looking statements as a result
of various factors including, but not limited to, opportunities for
additional sales of our lignite activated carbon products and
end-market diversification, the rate of coal-fired power generation
in the United States, timing of new and pending regulations and any
legal challenges to or extensions of compliance dates of them; the
US government’s failure to promulgate regulations that benefit our
business; changes in laws and regulations, IRS interpretations or
guidance, accounting rules, any pending court decisions, prices,
economic conditions and market demand; impact of competition;
availability, cost of and demand for alternative energy sources and
other technologies; technical, start up and operational
difficulties; failure of the RC facilities to produce RC; inability
to sell or lease additional RC facilities; termination of or
amendments to the contracts for sale or lease of RC facilities;
competition within the industries in which we operate; decreases in
the production of RC; loss of key personnel; ongoing effects of the
COVID-19 pandemic and associated economic downturn on our
operations and prospects; as well as other factors relating to our
business, as described in our filings with the SEC, with particular
emphasis on the risk factor disclosures contained in those filings.
You are cautioned not to place undue reliance on the
forward-looking statements and to consult filings we have made and
will make with the SEC for additional discussion concerning risks
and uncertainties that may apply to our business and the ownership
of our securities. The forward-looking statements speak only as to
the date of this press release.
Source: Advanced Emissions Solutions, Inc.
Investor Contact:
Alpha IR GroupRyan Coleman or Chris
Hodges312-445-2870ADES@alpha-ir.com
TABLE 1
Advanced Emissions Solutions, Inc. and
SubsidiariesCondensed Consolidated Balance
Sheets(Unaudited)
|
|
As of |
(in
thousands, except share data) |
|
September 30, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
15,029 |
|
|
$ |
12,080 |
|
Receivables, net |
|
10,273 |
|
|
7,430 |
|
Receivables, related parties |
|
3,626 |
|
|
4,246 |
|
Inventories, net |
|
10,419 |
|
|
15,460 |
|
Prepaid expenses and other assets |
|
16,888 |
|
|
7,832 |
|
Total current assets |
|
56,235 |
|
|
47,048 |
|
Restricted cash,
long-term |
|
10,000 |
|
|
5,000 |
|
Property, plant and equipment,
net of accumulated depreciation of $2,322 and $7,444,
respectively |
|
29,823 |
|
|
44,001 |
|
Intangible assets, net |
|
2,134 |
|
|
4,169 |
|
Equity method investments |
|
22,885 |
|
|
39,155 |
|
Deferred tax assets, net |
|
3,371 |
|
|
14,095 |
|
Other long-term assets,
net |
|
31,206 |
|
|
20,331 |
|
Total Assets |
|
$ |
155,654 |
|
|
$ |
173,799 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
7,530 |
|
|
$ |
8,046 |
|
Accrued payroll and related liabilities |
|
4,114 |
|
|
3,024 |
|
Current portion of long-term debt |
|
24,360 |
|
|
23,932 |
|
Other current liabilities |
|
4,102 |
|
|
4,311 |
|
Total current liabilities |
|
40,106 |
|
|
39,313 |
|
Long-term debt, net of current
portion |
|
5,486 |
|
|
20,434 |
|
Other long-term
liabilities |
|
25,712 |
|
|
5,760 |
|
Total Liabilities |
|
71,304 |
|
|
65,507 |
|
Commitments and
contingencies |
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock: par value of $.001 per share, 50,000,000 shares
authorized, none outstanding |
|
— |
|
|
— |
|
Common stock: par value of $.001 per share, 100,000,000 shares
authorized, 23,166,033 and 22,960,157 shares issued, and 18,547,887
and 18,362,624 shares outstanding at September 30, 2020 and
December 31, 2019, respectively |
|
23 |
|
|
23 |
|
Treasury stock, at cost: 4,618,146 and 4,597,533 shares as of
September 30, 2020 and December 31, 2019, respectively |
|
(47,692 |
) |
|
(47,533 |
) |
Additional paid-in capital |
|
100,005 |
|
|
98,466 |
|
Retained earnings |
|
32,014 |
|
|
57,336 |
|
Total stockholders’ equity |
|
84,350 |
|
|
108,292 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
155,654 |
|
|
$ |
173,799 |
|
|
|
|
|
|
|
|
|
|
TABLE 2
Advanced Emissions Solutions, Inc. and
SubsidiariesCondensed Consolidated Statements of
Operations(Unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in
thousands, except per share data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues: |
|
|
|
|
|
|
|
|
Consumables |
|
$ |
15,844 |
|
|
$ |
14,748 |
|
|
$ |
33,231 |
|
|
$ |
41,243 |
|
License royalties, related party |
|
3,627 |
|
|
4,385 |
|
|
9,986 |
|
|
12,796 |
|
Total revenues |
|
19,471 |
|
|
19,133 |
|
|
43,217 |
|
|
54,039 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Consumables cost of revenue, exclusive of depreciation and
amortization |
|
15,013 |
|
|
11,939 |
|
|
33,920 |
|
|
38,339 |
|
Payroll and benefits |
|
2,285 |
|
|
2,651 |
|
|
8,839 |
|
|
8,005 |
|
Legal and professional fees |
|
1,321 |
|
|
2,907 |
|
|
4,386 |
|
|
7,105 |
|
General and administrative |
|
1,900 |
|
|
1,984 |
|
|
6,693 |
|
|
5,894 |
|
Depreciation, amortization, depletion and accretion |
|
1,777 |
|
|
2,043 |
|
|
5,807 |
|
|
4,902 |
|
Impairment of long-lived assets |
|
— |
|
|
— |
|
|
26,103 |
|
|
— |
|
Total operating expenses |
|
22,296 |
|
|
21,524 |
|
|
85,748 |
|
|
64,245 |
|
Operating loss |
|
(2,825 |
) |
|
(2,391 |
) |
|
(42,531 |
) |
|
(10,206 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
Earnings from equity method investments |
|
9,518 |
|
|
14,426 |
|
|
25,959 |
|
|
57,051 |
|
Interest expense |
|
(881 |
) |
|
(1,729 |
) |
|
(3,053 |
) |
|
(5,820 |
) |
Other |
|
17 |
|
|
212 |
|
|
208 |
|
|
342 |
|
Total other income |
|
8,654 |
|
|
12,909 |
|
|
23,114 |
|
|
51,573 |
|
Income (loss) before income
tax expense |
|
5,829 |
|
|
10,518 |
|
|
(19,417 |
) |
|
41,367 |
|
Income tax expense |
|
854 |
|
|
6,595 |
|
|
1,315 |
|
|
14,928 |
|
Net income (loss) |
|
$ |
4,975 |
|
|
$ |
3,923 |
|
|
$ |
(20,732 |
) |
|
$ |
26,439 |
|
(Loss) earnings per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.27 |
|
|
$ |
0.22 |
|
|
$ |
(1.15 |
) |
|
$ |
1.45 |
|
Diluted |
|
$ |
0.27 |
|
|
$ |
0.21 |
|
|
$ |
(1.15 |
) |
|
$ |
1.44 |
|
Weighted-average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
18,093 |
|
|
18,112 |
|
|
18,014 |
|
|
18,184 |
|
Diluted |
|
18,103 |
|
|
18,339 |
|
|
18,014 |
|
|
18,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 3
Advanced Emissions Solutions, Inc. and
SubsidiariesCondensed Consolidated Statements of
Cash
Flows(Unaudited)
|
|
Nine Months Ended September 30, |
(in
thousands) |
|
2020 |
|
2019 |
Cash flows from operating
activities |
|
|
|
|
Net (loss) income |
|
$ |
(20,732 |
) |
|
$ |
26,439 |
|
Adjustments to reconcile net
(loss) income to net cash provided by operating activities: |
|
|
|
|
Deferred income tax expense |
|
10,724 |
|
|
10,634 |
|
Depreciation, amortization, depletion and accretion |
|
5,807 |
|
|
4,902 |
|
Impairment of long-lived assets |
|
26,103 |
|
|
— |
|
Operating lease expense |
|
3,130 |
|
|
2,371 |
|
Amortization of debt discount and debt issuance costs |
|
1,064 |
|
|
1,324 |
|
Stock-based compensation expense |
|
2,070 |
|
|
1,326 |
|
Earnings from equity method investments |
|
(25,959 |
) |
|
(57,051 |
) |
Other non-cash items, net |
|
45 |
|
|
697 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Receivables and related party receivables |
|
(1,331 |
) |
|
2,685 |
|
Prepaid expenses and other assets |
|
(9,056 |
) |
|
(440 |
) |
Inventories, net |
|
4,688 |
|
|
4,566 |
|
Other long-term assets, net |
|
(1,908 |
) |
|
(43 |
) |
Accounts payable |
|
(1,123 |
) |
|
1,010 |
|
Accrued payroll and related liabilities |
|
1,089 |
|
|
(4,386 |
) |
Other current liabilities |
|
(220 |
) |
|
(278 |
) |
Operating lease liabilities |
|
(1,678 |
) |
|
(2,435 |
) |
Other long-term liabilities |
|
(23 |
) |
|
(529 |
) |
Distributions from equity method investees, return on
investment |
|
42,228 |
|
|
56,806 |
|
Net cash provided by operating activities |
|
34,918 |
|
|
47,598 |
|
Cash flows from investing
activities |
|
|
|
|
Acquisition of business |
|
— |
|
|
(661 |
) |
Acquisition of property, plant, equipment, and intangible assets,
net |
|
(4,879 |
) |
|
(6,430 |
) |
Mine development costs |
|
(723 |
) |
|
(2,083 |
) |
Net cash used in investing activities |
|
(5,602 |
) |
|
(9,174 |
) |
Cash flows from financing
activities |
|
|
|
|
Principal payments on term loan |
|
(18,000 |
) |
|
(24,000 |
) |
Principal payments on finance lease obligations |
|
(1,026 |
) |
|
(1,016 |
) |
Dividends paid |
|
(4,956 |
) |
|
(13,729 |
) |
Repurchase of common shares |
|
(159 |
) |
|
(2,926 |
) |
Repurchase of common shares to satisfy tax withholdings |
|
(531 |
) |
|
(370 |
) |
Borrowings from Paycheck Protection Program Loan |
|
3,305 |
|
|
— |
|
Net cash used in financing activities |
|
(21,367 |
) |
|
(42,041 |
) |
Increase (decrease) in Cash and Cash Equivalents and Restricted
Cash |
|
7,949 |
|
|
(3,617 |
) |
Cash and Cash Equivalents and
Restricted Cash, beginning of period |
|
17,080 |
|
|
23,772 |
|
Cash and Cash Equivalents and
Restricted Cash, end of period |
|
$ |
25,029 |
|
|
$ |
20,155 |
|
Supplemental disclosure of
non-cash investing and financing activities: |
|
|
|
|
Acquisition of property, plant and equipment through accounts
payable |
|
$ |
446 |
|
|
$ |
— |
|
Acquisition of property, plant and equipment through finance
lease |
|
$ |
158 |
|
|
$ |
— |
|
Dividends payable |
|
$ |
47 |
|
|
$ |
204 |
|
|
|
|
|
|
|
|
|
|
Note on Non-GAAP Financial Measures
To supplement the Company's financial information presented in
accordance with U.S. generally accepted accounting principles, or
GAAP, the Press Release includes non-GAAP measures of certain
financial performance. These non-GAAP measures include Consolidated
Adjusted EBITDA, Segment EBITDA, RC Segment Adjusted EBITDA and PGI
Segment Adjusted EBITDA. The Company included non-GAAP measures
because management believes that they help to facilitate comparison
of operating results between periods. The Company believes the
non-GAAP measures provide useful information to both management and
users of the financial statements by excluding certain expenses
that may not be indicative of core operating results and business
outlook. These non-GAAP measures are not in accordance with, or an
alternative to, measures prepared in accordance with GAAP and may
be different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. These measures
should only be used to evaluate the Company's results of operations
in conjunction with the corresponding GAAP measures.
The Company has defined Consolidated Adjusted EBITDA as net
income, adjusted for the impact of the following items that are
either non-cash or that the Company does not consider
representative of its ongoing operating performance: depreciation,
amortization, depletion and accretion, interest expense, net,
income tax expense; then reduced by the non-cash impact of equity
earnings from equity method investments and increased by cash
distributions from equity method investments and impairment of
long-lived assets. The Company believes that the Consolidated
Adjusted EBITDA measure is less susceptible to variances that
affect the Company's operating performance.
Segment EBITDA is calculated as Segment operating income (loss)
adjusted for the impact of the following items that are either
non-cash or that the Company does not consider representative of
its ongoing operating performance: depreciation, amortization,
depletion and accretion and interest expense, net. When used in
conjunction with GAAP financial measures, Segment EBITDA is a
supplemental measure of operating performance that management
believes is a useful measure related the Company's PGI segment
performance and the PGI segment performance relative to the
performance of their respective competitors as well as performance
period over period. Additionally, the Company believes these
measures are less susceptible to variances that affect their
respective operating performance results.
The Company defined RC Segment Adjusted EBITDA as RC Segment
EBITDA reduced by the non-cash impact of equity earnings from
equity method investments and increased by cash distributions from
equity method investments.
The Company defined PGI Segment Adjusted EBITDA as PGI Segment
EBITDA increased by the non-cash impact of impairment.
The Company presents the non-GAAP measures because the Company
believes they are useful as supplemental measures in evaluating the
performance of the Company's operating performance and provide
greater transparency into the results of operations. The Company's
management uses Consolidated Adjusted EBITDA, RC Segment Adjusted
EBITDA and Segment EBITDA as factors in evaluating the performance
of its business.
The adjustments to Consolidated Adjusted EBITDA, RC Segment
Adjusted EBITDA and Segment EBITDA in future periods are generally
expected to be similar. Consolidated Adjusted EBITDA, RC Segment
Adjusted EBITDA and Segment EBITDA have limitations as analytical
tools, and you should not consider these measures in isolation or
as a substitute for analyzing the Company's results as reported
under GAAP.
TABLE 4
Advanced Emissions Solutions, Inc. and
SubsidiariesConsolidated Adjusted EBITDA
Reconciliation to Net Income(Amounts in
thousands)(Unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in
thousands) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income (loss) (1) (2) |
|
$ |
4,975 |
|
|
$ |
3,923 |
|
|
$ |
(20,732 |
) |
|
$ |
26,439 |
|
Depreciation, amortization, depletion and accretion |
|
1,777 |
|
|
2,043 |
|
|
5,807 |
|
|
4,902 |
|
Interest expense, net |
|
862 |
|
|
1,663 |
|
|
2,974 |
|
|
5,619 |
|
Income tax expense |
|
854 |
|
|
6,595 |
|
|
1,315 |
|
|
14,928 |
|
Consolidated EBITDA
(loss) |
|
8,468 |
|
|
14,224 |
|
|
(10,636 |
) |
|
51,888 |
|
Impairment |
|
— |
|
|
— |
|
|
26,103 |
|
|
— |
|
Equity earnings |
|
(9,518 |
) |
|
(14,426 |
) |
|
(25,959 |
) |
|
(57,051 |
) |
Cash distributions from equity method investees |
|
9,712 |
|
|
18,718 |
|
|
42,228 |
|
|
56,806 |
|
Consolidated Adjusted
EBITDA |
|
$ |
8,662 |
|
|
$ |
18,516 |
|
|
$ |
31,736 |
|
|
$ |
51,643 |
|
(1) Net income (loss) for the three and nine
months ended September 30, 2020 included zero and $0.4
million, respectively, related to sequestration of certain of our
employees at our manufacturing plant in Louisiana. These costs
included hazardous pay, lodging expense and other related costs for
60 days.
(2) Net income for the three and nine months
ended September 30, 2019 included adjustments of zero and $5.0
million, respectively, which increased cost of revenue due to a
step-up in basis of inventory acquired related to the acquisition
of Carbon Solutions.
TABLE 5
Advanced Emissions Solutions, Inc. and
SubsidiariesRC Segment Adjusted EBITDA
Reconciliation to Segment Operating Income(Amounts
in thousands)(Unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in
thousands) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
RC Segment operating income |
|
$ |
12,817 |
|
|
$ |
18,158 |
|
|
$ |
34,454 |
|
|
$ |
68,137 |
|
Depreciation, amortization, depletion and accretion |
|
26 |
|
|
25 |
|
|
84 |
|
|
55 |
|
Interest expense |
|
94 |
|
|
234 |
|
|
254 |
|
|
882 |
|
RC Segment EBITDA |
|
12,937 |
|
|
18,417 |
|
|
34,792 |
|
|
69,074 |
|
Equity earnings |
|
(9,518 |
) |
|
(14,426 |
) |
|
(25,959 |
) |
|
(57,051 |
) |
Cash distributions from equity method investees |
|
9,712 |
|
|
18,718 |
|
|
42,228 |
|
|
56,806 |
|
RC Segment Adjusted
EBITDA |
|
$ |
13,131 |
|
|
$ |
22,709 |
|
|
$ |
51,061 |
|
|
$ |
68,829 |
|
TABLE 6
Advanced Emissions Solutions, Inc. and
SubsidiariesPGI Segment EBITDA Reconciliation to
Segment Operating Loss(Amounts in
thousands)(Unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
(in
thousands) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
PGI Segment operating loss (1) (2) |
|
$ |
(1,270 |
) |
|
$ |
(977 |
) |
|
$ |
(33,584 |
) |
|
$ |
(8,301 |
) |
Depreciation, amortization, depletion and accretion |
|
1,427 |
|
|
1,853 |
|
|
4,851 |
|
|
4,498 |
|
Interest expense, net |
|
78 |
|
|
75 |
|
|
265 |
|
|
263 |
|
PGI Segment EBITDA (loss) |
|
235 |
|
|
951 |
|
|
(28,468 |
) |
|
(3,540 |
) |
Impairment |
|
— |
|
|
— |
|
|
23,232 |
|
|
— |
|
PGI Segment Adjusted EBITDA
(loss) |
|
$ |
235 |
|
|
$ |
951 |
|
|
$ |
(5,236 |
) |
|
$ |
(3,540 |
) |
(1) Included in segment operating loss for the three and nine
months ended September 30, 2020 was zero and $0.4 million,
respectively, related to sequestration of certain of our employees
at our manufacturing plant in Louisiana.
(2) Included in segment operating loss for the three and nine
months ended September 30, 2019 was approximately zero
and $4.7 million, respectively, of costs recognized as a result of
the step-up in inventory fair value recorded from the acquisition
of Carbon Solutions.
Advanced Emissions Solut... (NASDAQ:ADES)
Historical Stock Chart
From Feb 2024 to Mar 2024
Advanced Emissions Solut... (NASDAQ:ADES)
Historical Stock Chart
From Mar 2023 to Mar 2024