Mar 10, 2021 4:56 PM
Tinuum & Refined Coal (“RC”) Highlights
Advanced Purification Technologies (“APT”) Highlights
ADES Consolidated Highlights
“Our fourth quarter saw continued progress toward our post-RC future as we began to fulfill our commitments related to our previously announced 15-year Supply Agreement with Cabot," said
Marken concluded, “Tinuum also closed two transactions with existing RC tax-equity investors in the fourth quarter. After accounting for the distributions collected from Tinuum during the fourth quarter, we expect our total net, after-tax RC cash flows to range between
Fourth quarter revenues and costs of revenues were
Fourth quarter royalty earnings from
Fourth quarter other operating expenses were
Fourth quarter earnings from equity method investments were
Fourth quarter interest expense was
Fourth quarter income tax expense was
Fourth quarter net income was
Fourth quarter consolidated adjusted EBITDA was
Long-Term Borrowings
As of
Conference Call and Webcast Information
The Company has scheduled a conference call to begin at
About
| CarbPure Technologies | |
| Tinuum |
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, our expectations about the potential growth for our APT business and expectations for profitability to increase as plant capacity utilization increases. 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, timing of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the success of our technical and commercial infrastructure in opening and competing new markets; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; impact of competition; our inability to commercialize our APT technologies on favorable terms; loss of key personnel; availability of materials and equipment for our businesses; intellectual property infringement claims from third parties; as well as other factors relating to our business, as described in our filings with the
Source:
Investor Contact:
312-445-2870
ADES@alpha-ir.com
TABLE 1
Consolidated Balance Sheets
| As of | ||||||||
| (in thousands, except share data) | 2020 | 2019 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash, cash equivalents and restricted cash | $ | 30,932 | $ | 12,080 | ||||
| Receivables, net | 13,125 | 7,430 | ||||||
| Receivables, related party | 3,453 | 4,246 | ||||||
| Inventories, net | 9,882 | 15,460 | ||||||
| Prepaid expenses and other current assets | 4,597 | 7,832 | ||||||
| Total current assets | 61,989 | 47,048 | ||||||
| Restricted cash, long-term | 5,000 | 5,000 | ||||||
| Property, plant and equipment, net of accumulated depreciation of | 29,433 | 44,001 | ||||||
| Intangible assets, net | 1,964 | 4,169 | ||||||
| Equity method investments | 7,692 | 39,155 | ||||||
| Deferred tax assets, net | 10,604 | 14,095 | ||||||
| Other long-term assets, net | 29,989 | 20,331 | ||||||
| Total Assets | $ | 146,671 | $ | 173,799 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,849 | $ | 8,046 | ||||
| Accrued payroll and related liabilities | 3,257 | 3,024 | ||||||
| Current portion of long-term debt | 18,441 | 23,932 | ||||||
| Other current liabilities | 12,996 | 4,311 | ||||||
| Total current liabilities | 42,543 | 39,313 | ||||||
| Long-term debt, net of current portion | 5,445 | 20,434 | ||||||
| Other long-term liabilities | 13,473 | 5,760 | ||||||
| Total Liabilities | 61,461 | 65,507 | ||||||
| Commitments and contingencies (Notes 14) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock: par value of | — | — | ||||||
| Common stock: par value of | 23 | 23 | ||||||
| (47,692 | ) | (47,533 | ) | |||||
| Additional paid-in capital | 100,425 | 98,466 | ||||||
| Retained earnings | 32,454 | 57,336 | ||||||
| Total stockholders’ equity | 85,210 | 108,292 | ||||||
| Total Liabilities and Stockholders’ equity | $ | 146,671 | $ | 173,799 | ||||
TABLE 2
Consolidated Statements of Operations
| Years Ended | ||||||||
| (in thousands, except per share data) | 2020 | 2019 | ||||||
| Revenues: | ||||||||
| Consumables | $ | 48,122 | $ | 53,187 | ||||
| License royalties, related party | 13,440 | 16,899 | ||||||
| Other | 15 | — | ||||||
| Total revenues | 61,577 | 70,086 | ||||||
| Operating expenses: | ||||||||
| Consumables cost of revenue, exclusive of depreciation and amortization | 45,176 | 49,443 | ||||||
| Other cost of revenue, exclusive of depreciation and amortization | (563 | ) | — | |||||
| Payroll and benefits | 10,621 | 10,094 | ||||||
| Legal and professional fees | 5,585 | 9,948 | ||||||
| General and administrative | 8,228 | 8,123 | ||||||
| Depreciation, amortization, depletion and accretion | 8,537 | 7,371 | ||||||
| Impairment of long-lived assets | 26,103 | — | ||||||
| Gain on settlement | (1,129 | ) | — | |||||
| Total operating expenses | 102,558 | 84,979 | ||||||
| Operating loss | (40,981 | ) | (14,893 | ) | ||||
| Other income (expense): | ||||||||
| Earnings from equity method investments | 30,978 | 69,176 | ||||||
| Interest expense | (3,920 | ) | (7,174 | ) | ||||
| Other | 132 | 427 | ||||||
| Total other income | 27,190 | 62,429 | ||||||
| (Loss) income before income tax expense | (13,791 | ) | 47,536 | |||||
| Income tax expense | 6,511 | 11,999 | ||||||
| Net (loss) income | $ | (20,302 | ) | $ | 35,537 | |||
| (Loss) earnings per common share (Note 1): | ||||||||
| Basic | $ | (1.12 | ) | $ | 1.96 | |||
| Diluted | $ | (1.12 | ) | $ | 1.93 | |||
| Weighted-average number of common shares outstanding: | ||||||||
| Basic | 18,044 | 18,154 | ||||||
| Diluted | 18,044 | 18,372 | ||||||
| Cash dividends declared per common share outstanding: | $ | 0.25 | $ | 1.00 | ||||
TABLE 3
Consolidated Statements of Cash Flows
| Years Ended | ||||||||
| (in thousands) | 2020 | 2019 | ||||||
| Cash flows from operating activities | ||||||||
| Net (loss) income | $ | (20,302 | ) | $ | 35,537 | |||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
| Deferred income tax expense | 3,491 | 8,655 | ||||||
| Depreciation, amortization, depletion and accretion | 8,537 | 7,371 | ||||||
| Amortization of debt discount and debt issuance costs | 1,418 | 1,678 | ||||||
| Operating lease expense | 3,559 | 3,192 | ||||||
| Impairment of long-lived assets | 26,103 | — | ||||||
| Gain on settlement | (1,129 | ) | — | |||||
| Recovery of accounts receivable and other receivables | (990 | ) | — | |||||
| Stock-based compensation expense | 2,496 | 2,011 | ||||||
| Earnings from equity method investments | (30,978 | ) | (69,176 | ) | ||||
| Other non-cash items, net | 192 | 638 | ||||||
| Changes in operating assets and liabilities, net of effects of acquired businesses: | ||||||||
| Receivables, net | (2,541 | ) | 2,124 | |||||
| Related party receivables | 794 | 37 | ||||||
| Prepaid expenses and other current assets | 3,234 | (2,200 | ) | |||||
| Inventories, net | 4,748 | 5,505 | ||||||
| Other long-term assets, net | (1,005 | ) | (262 | ) | ||||
| Accounts payable | (196 | ) | 2,218 | |||||
| Accrued payroll and related liabilities | 233 | (5,255 | ) | |||||
| Other current liabilities | (520 | ) | (261 | ) | ||||
| Operating lease liabilities | (2,200 | ) | (3,180 | ) | ||||
| Other long-term liabilities | (2,916 | ) | (258 | ) | ||||
| Distributions from equity method investees, return on investment | 62,441 | 73,888 | ||||||
| Net cash provided by operating activities | $ | 54,469 | $ | 62,262 | ||||
| Cash flows from investing activities | ||||||||
| Acquisition of property, plant, equipment, and intangible assets, net | (6,685 | ) | (7,851 | ) | ||||
| Mine development costs | (1,202 | ) | (4,726 | ) | ||||
| Acquisition of business, net of cash acquired | — | (661 | ) | |||||
| Net cash used in investing activities | (7,887 | ) | (13,238 | ) | ||||
| Cash flows from financing activities | ||||||||
| Principal payments on term loan | (24,000 | ) | (30,000 | ) | ||||
| Borrowings from Paycheck Protection Program Loan | 3,305 | — | ||||||
| Dividends paid | (4,979 | ) | (18,274 | ) | ||||
| Principal payments on finance lease obligations | (1,360 | ) | (1,354 | ) | ||||
| Repurchase of shares to satisfy tax withholdings | (537 | ) | (451 | ) | ||||
| Repurchase of common shares | (159 | ) | (5,793 | ) | ||||
| Other | — | 156 | ||||||
| Net cash used in financing activities | (27,730 | ) | (55,716 | ) | ||||
| Increase (decrease) in Cash, Cash Equivalents and Restricted Cash | 18,852 | (6,692 | ) | |||||
| Cash, Cash Equivalents and Restricted Cash, beginning of year | 17,080 | 23,772 | ||||||
| Cash, Cash Equivalents and Restricted Cash, end of year | $ | 35,932 | $ | 17,080 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 2,489 | $ | 5,650 | ||||
| Cash (received) paid for income taxes | $ | (84 | ) | $ | 4,308 | |||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Acquisition of property, plant and equipment under finance lease | $ | 158 | $ | — | ||||
| Dividends payable | $ | 32 | $ | 284 | ||||
Note on Non-GAAP Financial Measures
To supplement our financial information presented in accordance with GAAP, we are providing non-GAAP measures of certain financial performance. These non-GAAP measures include Consolidated EBITDA, Consolidated Adjusted EBITDA, RC Segment EBITDA, RC Segment Adjusted EBITDA, APT Segment EBITDA and APT Segment Adjusted EBITDA. We have included non-GAAP measures because management believes that they help to facilitate period to period comparisons of our operating results. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains and losses that may not be indicative of core operating results and business outlook. Management uses these non-GAAP measures in evaluating the performance of our business.
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 our results of operations in conjunction with the corresponding GAAP measures.
We define Consolidated EBITDA as net income adjusted for the impact of the following items that are either non-cash or that we do not consider representative of our ongoing operating performance: depreciation, amortization, depletion, accretion, interest expense, net and income tax expense. We define Consolidated Adjusted EBITDA as Consolidated EBITDA reduced by the non-cash impacts of equity earnings from equity method investments and gain on settlement, and increased by cash distributions from equity method investments, impairment of long-lived assets and amortization of upfront customer consideration that was recorded as a component of the Marshall Mine Acquisition ("Upfront Customer Consideration"). Because Consolidated Adjusted EBITDA omits certain non-cash items, we believe that the measure is less susceptible to variances that affect our operating performance.
As used by the Company, Segment Adjusted EBITDA is calculated as the “Segment EBITDA” for the Company’s respective segment and then further adjusted for each segment as described below. 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 and as further adjusted. In the case of the RC segment, that segment’s Segment EBITDA is reduced by the non-cash impact of equity earnings from equity method investments and increased by cash distributions from equity method investments. In the case of the APT segment, that segment’s Segment EBITDA is increased by the non-cash impact of impairment and amortization of Upfront Customer Consideration and reduced by the non-cash impact of gain on settlement.
When used in conjunction with GAAP financial measures, we believe these non-GAAP measures are supplemental measures of operating performance that explain our operating performance for our period to period comparisons and against our competitors' performance. Generally, we believe these non-GAAP measures are less susceptible to variances that affect our operating performance results.
With the exception of impairment on long-lived assets and gain on settlement, the adjustments to Consolidated Adjusted EBITDA and APT Segment Adjusted EBITDA in future periods are generally expected to be similar. These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP.
TABLE 4
Consolidated Adjusted EBITDA Reconciliation to Net Income
(Amounts in thousands)
| Three Months Ended | Year ended | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net income (loss) (1) | $ | 430 | $ | 9,098 | $ | (20,302 | ) | $ | 35,537 | |||||||
| Depreciation, amortization, depletion and accretion | 2,730 | 2,469 | 8,537 | 7,371 | ||||||||||||
| Interest expense, net | 819 | 1,294 | 3,793 | 6,913 | ||||||||||||
| Income tax expense (benefit) | 5,196 | (2,929 | ) | 6,511 | 11,999 | |||||||||||
| Consolidated EBITDA (loss) | 9,175 | 9,932 | (1,461 | ) | 61,820 | |||||||||||
| Cash distributions from equity method investees | 20,213 | 17,082 | 62,441 | 73,888 | ||||||||||||
| Equity earnings | (5,019 | ) | (12,125 | ) | (30,978 | ) | (69,176 | ) | ||||||||
| Impairment | — | — | 26,103 | — | ||||||||||||
| Gain on settlement | (1,129 | ) | — | (1,129 | ) | — | ||||||||||
| Amortization of Upfront Customer Consideration | 158 | — | 158 | — | ||||||||||||
| Consolidated Adjusted EBITDA | $ | 23,398 | $ | 14,889 | $ | 55,134 | $ | 66,532 | ||||||||
(1) Net income for the year ended
TABLE 5
RC Segment Adjusted EBITDA Reconciliation to Segment Operating Income
(Amounts in thousands)
| Three Months Ended | Year ended | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| RC Segment operating income | $ | 8,235 | $ | 15,334 | $ | 42,689 | $ | 83,471 | ||||||||
| Depreciation, amortization, depletion and accretion | 32 | 28 | 116 | 83 | ||||||||||||
| Interest expense | 77 | 157 | 331 | 1,039 | ||||||||||||
| RC Segment EBITDA | 8,344 | 15,519 | 43,136 | 84,593 | ||||||||||||
| Cash distributions from equity method investees | 20,213 | 17,082 | 62,441 | 73,888 | ||||||||||||
| Equity earnings | (5,019 | ) | (12,125 | ) | (30,978 | ) | (69,176 | ) | ||||||||
| RC Segment Adjusted EBITDA | $ | 23,538 | $ | 20,476 | $ | 74,599 | $ | 89,305 | ||||||||
TABLE 6
APT Segment Adjusted EBITDA Reconciliation to Segment Operating Income
(Amounts in thousands)
| Three Months Ended | Year ended | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| APT Segment operating income (loss) (1) | $ | 691 | $ | (3,890 | ) | $ | (39,958 | ) | $ | (13,600 | ) | |||||
| Depreciation, amortization, depletion and accretion | 2,484 | 2,375 | 7,870 | 7,206 | ||||||||||||
| Interest expense, net | 128 | 97 | 402 | 368 | ||||||||||||
| APT Segment EBITDA (loss) | 3,303 | (1,418 | ) | (31,686 | ) | (6,026 | ) | |||||||||
| Impairment | — | — | 26,103 | — | ||||||||||||
| Gain on settlement | (1,129 | ) | — | (1,129 | ) | — | ||||||||||
| Amortization of Upfront Customer Consideration | 158 | — | 158 | — | ||||||||||||
| APT Segment Adjusted EBITDA (loss) | $ | 2,332 | $ | (1,418 | ) | $ | (6,554 | ) | $ | (6,026 | ) | |||||
(1) Segment operating loss for the year ended
