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Advanced Emissions Solutions Comments on Tax Reform Legislation and Increases Outlook for Future Expected Cash Flows; Announces Timing of Q4 2017 Earnings Call

Feb 21, 2018 7:35 PM

HIGHLANDS RANCH, Colo., Feb. 21, 2018 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc.'s (NASDAQ:ADES) (the “Company" or “ADES”) today commented on the recently enacted Tax Cuts & Jobs Act and its expected implications for the Company. The Tax Cuts & Jobs Act (“Tax Act”) was signed into law on December 22, 2017 and prior to its final passage, the tax bill underwent numerous revisions and amendments that had implications for ADES.

L. Heath Sampson, President and CEO of ADES, commented, “There were a number of significant changes within the recently enacted Tax Act. Overall, we were pleased with the final Tax Act and its reinforcement of tax credits derived from the production and sale of refined coal, which is critical to our equity investment in Tinuum Group, LLC (“Tinuum”). The reaffirmation of these tax credits is an acknowledgment of the critical role they play in advancing our country’s clean energy initiatives. Within the legislation itself, we, along with Tinuum, view the removal of the corporate alternative minimum tax (“AMT”) as a positive.

"While the impact of the Base Erosion Anti-Abuse Tax (“BEAT”) has some ambiguity, discussion with our current investors has confirmed their continued conviction of their investments in refined coal. Investors that are impacted by BEAT are still able to appropriately use refined coal tax credits; however, their margin related to those credits may be impacted."

Sampson concluded, “Despite some temporary uncertainty around this BEAT provision for a few investors, the clarity of this tax legislation and the removal of the corporate AMT provide a net positive for Tinuum's business. The Tax Act eliminates the market uncertainty of what tax reform would bring. It provides additional clarity to the large majority of potential investors in Tinuum's pipeline, and has the potential to open up new prospective tax-equity investors in Tinuum’s ongoing focus to lease or sell its remaining refined coal facilities. Lower corporate tax rates do reduce the total project margins available in a refined coal transaction as the expenses of the projects are worth less in tax benefits. We do note that for some of Tinuum's projects, there are minor one-time rent reduction provisions to account for tax reform. Having said that, as a result of these one-time adjustments, the two additional refined coal facilities Tinuum sold during the fourth quarter of 2017 and our confidence based on this legislation and Tinuum's ongoing conversations with its current investors, we are updating our forecast of expected future cash flows at ADES from our Tinuum investments, net of taxes and applicable interest charges as of December 31, 2017, to a range between $275 million and $300 million through 2021. This is an increase of over 20% compared to our prior estimate at the end of September 2017, even after receiving $16.5 million in distributions from our Tinuum investments in the fourth quarter of 2017. We look forward to providing more details on these developments, as well as insight into our cashflows, capital allocation process, and overall business strategy and status on our upcoming earnings call on March 13, 2018.”

The Company expects to release its fourth quarter 2017 financial results and file its Annual Report on Form 10-K for the year ended December 31, 2017 after market close on Monday, March 12, 2018. The conference call to discuss the Company's financial performance is scheduled to begin at 9:00 a.m. Eastern Time on Tuesday, March 13, 2018. The conference call webcast information will be available via the Investor Resources section of ADES's website at Interested parties may also participate in the call by dialing: (833) 227-5845 (Domestic) or (647) 689-4072 (International) conference ID 8970009. 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-ES, Inc. (“ADA”) is a wholly-owned subsidiary of Advanced Emissions Solutions, Inc. (“ADES”) that provides emissions control solutions for coal-fired power generation and industrial boiler industries. With more than 25 years of experience developing advanced mercury control solutions, ADA delivers proprietary environmental technologies, equipment and specialty chemicals that enable coal-fueled boilers to meet emissions regulations. These solutions enhance existing air pollution control equipment, maximizing capacity and improving operating efficiencies. Our track record includes securing more than 40 US and international patents for emissions control technology and systems and selling the most activated carbon injection systems for power plant mercury control in North America. For more information on ADA, and its products and services, visit

Tinuum Group, LLC (“Tinuum Group”) is a 42.5% owned joint venture by ADA that provides ADA’s patented Refined Coal (“RC”) CyClean™ technology to enhance combustion of and reduce emissions of NOx and mercury from coals in cyclone boilers and ADA’s patented M-45™ and M-45-PC™ technologies for Circulating Fluidized boilers and Pulverized Coal boilers respectively.

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 statements or expectations regarding projection on future cash flows from the Company's investment in Tinuum, and expectations about potential transactions with tax-equity investors. These statements are based on current expectations, estimates, projections, beliefs and assumptions of the Company’s management. Such statements involve significant 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, the timing and amount of investment in Tinuum by tax-equity investors, investors’ view of BEAT as regulatory guidance is clarified, 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 or appropriate funds that benefit our business; changes in laws and regulations, prices, economic conditions and market demand; impact of competition; availability, cost of and demand for alternative energy sources and other technologies; inability to sell or lease additional RC facilities; termination of or amendments to the contracts for sale or lease of RC facilities; decreases in the production of RC; and other factors discussed in greater detail in the Company’s filings with the Securities and Exchange Commission (“SEC”). You are cautioned not to place undue reliance on such statements and to consult the Company’s SEC filings for additional risks and uncertainties that may apply to the Company’s business and the ownership of its securities. The Company’s forward-looking statements are presented as of the date made, and the Company disclaims any duty to update such statements unless required by law to do so.

Source: Advanced Emissions Solutions, Inc.

Investor Contact:

Alpha IR Group
Ryan Coleman or Chris Hodges

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Source: Advanced Emissions Solutions, Inc.