Mar 08, 2022 4:55 PM
Advanced Purification Technologies (“APT”) Highlights
Tinuum & Refined Coal (“RC”) Highlights
ADES Consolidated Highlights
“The strong demand environment for our APT segment persisted through the end of the year and drove a 45% increase in segment revenue in the fourth quarter compared to the prior year,” said
Marken concluded, “We are also updating our forecast for the expected after-tax net RC cash flows and wind down of Tinuum. Net of collections during the fourth quarter, we now expect 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
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 after-tax, net RC cash flows and results from the Company's review of strategic alternatives, among other matters. 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 outcome of the review of strategic alternatives, our ability to meet customer supply requirements, the rate of coal-fired power generation in
Source:
Investor Contact:
312-445-2870
ADES@alpha-ir.com
TABLE 1
Consolidated Balance Sheets
| As of | ||||||||
| (in thousands, except share data) | 2021 | 2020 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash, cash equivalents and restricted cast | $ | 78,753 | $ | 30,932 | ||||
| Receivables, net | 12,622 | 13,125 | ||||||
| Receivables, related party | 2,481 | 3,453 | ||||||
| Inventories, net | 7,850 | 9,882 | ||||||
| Prepaid expenses and other current assets | 6,661 | 4,597 | ||||||
| Total current assets | 108,367 | 61,989 | ||||||
| Restricted cash, long-term | 10,027 | 5,000 | ||||||
| Property, plant and equipment, net of accumulated depreciation of | 30,171 | 29,433 | ||||||
| Intangible assets, net | 1,237 | 1,964 | ||||||
| Equity method investments | 2,391 | 7,692 | ||||||
| Deferred tax assets, net | — | 10,604 | ||||||
| Other long-term assets, net | 33,243 | 29,989 | ||||||
| Total Assets | $ | 185,436 | $ | 146,671 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 10,009 | $ | 7,849 | ||||
| Accrued payroll and related liabilities | 6,477 | 3,257 | ||||||
| Current portion of long-term debt | 1,011 | 18,441 | ||||||
| Other current liabilities | 5,124 | 12,996 | ||||||
| Total current liabilities | 22,621 | 42,543 | ||||||
| Long-term debt, net of current portion | 3,152 | 5,445 | ||||||
| Other long-term liabilities | 12,362 | 13,473 | ||||||
| Total Liabilities | 38,135 | 61,461 | ||||||
| Commitments and contingencies (Note 14) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock: par value of | — | — | ||||||
| Common stock: par value of | 23 | 23 | ||||||
| (47,692 | ) | (47,692 | ) | |||||
| Additional paid-in capital | 102,106 | 100,425 | ||||||
| Retained earnings | 92,864 | 32,454 | ||||||
| Total stockholders’ equity | 147,301 | 85,210 | ||||||
| Total Liabilities and Stockholders’ equity | $ | 185,436 | $ | 146,671 | ||||
TABLE 2
Consolidated Statements of Operations
| Years Ended | ||||||||
| (in thousands, except per share data) | 2021 | 2020 | ||||||
| Revenues: | ||||||||
| Consumables | $ | 85,882 | $ | 53,908 | ||||
| License royalties, related party | 14,368 | 13,440 | ||||||
| Other | 44 | 15 | ||||||
| Total revenues | 100,294 | 67,363 | ||||||
| Operating expenses: | ||||||||
| Consumables cost of revenues, exclusive of depreciation and amortization | 65,576 | 50,962 | ||||||
| Other cost of revenues, exclusive of depreciation and amortization | — | (563 | ) | |||||
| Payroll and benefits | 11,315 | 10,621 | ||||||
| Legal and professional fees | 6,260 | 5,585 | ||||||
| General and administrative | 7,060 | 8,228 | ||||||
| Depreciation, amortization, depletion and accretion | 7,933 | 8,537 | ||||||
| Gain on change in estimate, asset retirement obligation | (2,702 | ) | — | |||||
| Impairment of long-lived assets | — | 26,103 | ||||||
| Gain on settlement | — | (1,129 | ) | |||||
| Total operating expenses | 95,442 | 108,344 | ||||||
| Operating income (loss) | 4,852 | (40,981 | ) | |||||
| Other income (expense): | ||||||||
| Earnings from equity method investments | 68,726 | 30,978 | ||||||
| Gain on extinguishment of debt | 3,345 | — | ||||||
| Interest expense | (1,490 | ) | (3,920 | ) | ||||
| Other | 640 | 132 | ||||||
| Total other income | 71,221 | 27,190 | ||||||
| Income (loss) before income tax expense | 76,073 | (13,791 | ) | |||||
| Income tax expense | 15,672 | 6,511 | ||||||
| Net income (loss) | $ | 60,401 | $ | (20,302 | ) | |||
| Earnings (loss) per common share (Note 1): | ||||||||
| Basic | $ | 3.31 | $ | (1.12 | ) | |||
| Diluted | $ | 3.27 | $ | (1.12 | ) | |||
| Weighted-average number of common shares outstanding: | ||||||||
| Basic | 18,258 | 18,044 | ||||||
| Diluted | 18,461 | 18,044 | ||||||
| Cash dividends declared per common share outstanding: | $ | — | $ | 0.25 | ||||
TABLE 3
Consolidated Statements of Cash Flows
| Years Ended | ||||||||
| (in thousands) | 2021 | 2020 | ||||||
| Cash flows from operating activities | ||||||||
| Net income (loss) | $ | 60,401 | $ | (20,302 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Deferred income tax expense | 10,604 | 3,491 | ||||||
| Depreciation, amortization, depletion and accretion | 7,933 | 8,537 | ||||||
| Amortization of debt discount and debt issuance costs | 945 | 1,418 | ||||||
| Operating lease expense | 2,038 | 3,559 | ||||||
| Gain on extinguishment of debt | (3,345 | ) | — | |||||
| Gain on change in estimate, asset retirement obligation | (2,702 | ) | — | |||||
| Impairment of long-lived assets | — | 26,103 | ||||||
| Gain on settlement | — | (1,129 | ) | |||||
| Recovery of accounts receivable and other receivables | (36 | ) | (990 | ) | ||||
| Stock-based compensation expense | 1,927 | 2,496 | ||||||
| Earnings from equity method investments | (68,726 | ) | (30,978 | ) | ||||
| Other non-cash items, net | (173 | ) | 192 | |||||
| Changes in operating assets and liabilities, net of effects of acquired businesses: | ||||||||
| Receivables, net | 540 | (2,541 | ) | |||||
| Related party receivables | 972 | 794 | ||||||
| Prepaid expenses and other current assets | (2,064 | ) | 3,234 | |||||
| Inventories, net | 1,394 | 4,748 | ||||||
| Other long-term assets, net | 1,838 | (1,005 | ) | |||||
| Accounts payable | 1,977 | (196 | ) | |||||
| Accrued payroll and related liabilities | 3,220 | 233 | ||||||
| Other current liabilities | (8,279 | ) | (520 | ) | ||||
| Operating lease liabilities | (2,764 | ) | (2,200 | ) | ||||
| Other long-term liabilities | (2,645 | ) | (3,337 | ) | ||||
| Distributions from equity method investees, return on investment | 22,944 | 62,441 | ||||||
| Net cash provided by operating activities | $ | 25,999 | $ | 54,048 | ||||
| Cash flows from investing activities | ||||||||
| Distributions from equity method investees in excess of cumulative earnings | 51,082 | — | ||||||
| Acquisition of property, equipment and intangible assets, net | (6,201 | ) | (6,685 | ) | ||||
| Mine development costs | (1,398 | ) | (781 | ) | ||||
| Proceeds from sale of property and equipment | 895 | — | ||||||
| Net cash provided by (used in) investing activities | 44,378 | (7,466 | ) | |||||
| Cash flows from financing activities | ||||||||
| Principal payments on term loan | (16,000 | ) | (24,000 | ) | ||||
| Principal payments on finance lease obligations | (1,190 | ) | (1,360 | ) | ||||
| Dividends paid | (93 | ) | (4,979 | ) | ||||
| Borrowings from Paycheck Protection Program Loan | — | 3,305 | ||||||
| Repurchase of shares to satisfy tax withholdings | (246 | ) | (537 | ) | ||||
| Repurchase of common shares | — | (159 | ) | |||||
| Net cash used in financing activities | (17,529 | ) | (27,730 | ) | ||||
| Increase in Cash, Cash Equivalents and Restricted Cash | 52,848 | 18,852 | ||||||
| Cash, Cash Equivalents and Restricted Cash, beginning of year | 35,932 | 17,080 | ||||||
| Cash, Cash Equivalents and Restricted Cash, end of year | $ | 88,780 | $ | 35,932 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 524 | $ | 2,489 | ||||
| Cash paid (received) for income taxes | $ | 8,882 | $ | (84 | ) | |||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Change in accrued purchases for property and equipment | $ | 183 | $ | — | ||||
| Change in asset retirement obligation | $ | 121 | $ | 421 | ||||
| Acquisition of property and equipment under finance lease | $ | — | $ | 158 | ||||
| Dividends payable | $ | — | $ | 32 | ||||
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, amortization of upfront customer consideration that was recorded as a component of the Marshall Mine Acquisition ("Upfront Customer Consideration"), 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, gain on change in estimate of asset retirement obligations, gain on extinguishment of debt and gain on customer settlement, and increased by cash distributions from equity method investments and impairment of long-lived assets. Because Consolidated Adjusted EBITDA omits certain non-cash items, we believe that the measure is less susceptible to variances that affect our operating performance.
We define APT Segment EBITDA (loss) as APT Segment operating income (loss) 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, amortization of Upfront Customer Consideration and interest expense, net. We define APT Segment Adjusted EBITDA (loss) as APT Segment EBITDA (loss) reduced by gain on extinguishment of debt, gain on change in estimate of asset retirement obligation, gain on customer settlement and increased by impairment of long-lived assets.
We define RC Segment EBITDA as RC Segment operating 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 and interest expense. We define RC Segment Adjusted EBITDA as RC Segment EBITDA reduced by the non-cash impact of equity earnings from equity method investments and gain on extinguishment of debt and increased by cash distributions from equity method investments.
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 extinguishment of debt, gain on change in estimate, asset retirement obligation, 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 (Loss)
(Amounts in thousands)
| Three Months Ended | Year ended | |||||||||||||||
| (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income (loss) | $ | 5,821 | $ | 430 | $ | 60,401 | $ | (20,302 | ) | |||||||
| Depreciation, amortization, depletion and accretion | 1,778 | 2,730 | 7,933 | 8,537 | ||||||||||||
| Amortization of Upfront Customer Consideration | 127 | 158 | 508 | 158 | ||||||||||||
| Interest expense, net | (24 | ) | 819 | 1,164 | 3,793 | |||||||||||
| Income tax expense | 1,659 | 5,196 | 15,672 | 6,511 | ||||||||||||
| Consolidated EBITDA (loss) | 9,361 | 9,333 | 85,678 | (1,303 | ) | |||||||||||
| Cash distributions from equity method investees | 7,275 | 20,213 | 74,026 | 62,441 | ||||||||||||
| Equity earnings | (6,782 | ) | (5,019 | ) | (68,726 | ) | (30,978 | ) | ||||||||
| Gain on extinguishment of debt | — | — | (3,345 | ) | — | |||||||||||
| Gain on change in estimate, asset retirement obligation | (760 | ) | — | (2,702 | ) | — | ||||||||||
| Impairment | — | — | — | 26,103 | ||||||||||||
| Gain on settlement | — | (1,129 | ) | — | (1,129 | ) | ||||||||||
| Consolidated Adjusted EBITDA | $ | 9,094 | $ | 23,398 | $ | 84,931 | $ | 55,134 | ||||||||
TABLE 5
RC Segment Adjusted EBITDA Reconciliation to Segment Operating Income
(Amounts in thousands)
| Three Months Ended | Year ended | |||||||||||||||
| (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| RC Segment operating income | $ | 9,117 | $ | 8,235 | $ | 82,634 | $ | 42,689 | ||||||||
| Depreciation, amortization, depletion and accretion | (1 | ) | 32 | 40 | 116 | |||||||||||
| Interest expense | 1 | 77 | 12 | 331 | ||||||||||||
| RC Segment EBITDA | 9,117 | 8,344 | 82,686 | 43,136 | ||||||||||||
| Cash distributions from equity method investees | 7,275 | 20,213 | 74,026 | 62,441 | ||||||||||||
| Equity earnings | (6,782 | ) | (5,019 | ) | (68,726 | ) | (30,978 | ) | ||||||||
| Gain on extinguishment of debt | — | — | (97 | ) | — | |||||||||||
| RC Segment Adjusted EBITDA | $ | 9,610 | $ | 23,538 | $ | 87,889 | $ | 74,599 | ||||||||
TABLE 6
APT Segment Adjusted EBITDA Reconciliation to Segment Operating Income (Loss)
(Amounts in thousands)
| Three Months Ended | Year ended | |||||||||||||||
| (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| APT Segment operating income (loss) | $ | 785 | $ | 691 | $ | 5,649 | $ | (39,958 | ) | |||||||
| Depreciation, amortization, depletion and accretion | 1,682 | 2,484 | 7,388 | 7,870 | ||||||||||||
| Amortization of Upfront Customer Consideration | 127 | 158 | 508 | 158 | ||||||||||||
| Interest expense, net | 64 | 128 | 297 | 402 | ||||||||||||
| APT Segment EBITDA (loss) | 2,658 | 3,461 | 13,842 | (31,528 | ) | |||||||||||
| Gain on extinguishment of debt | — | — | (2,562 | ) | — | |||||||||||
| Gain on change in estimate, asset retirement obligation | (760 | ) | — | (2,702 | ) | — | ||||||||||
| Impairment | — | — | — | 26,103 | ||||||||||||
| Gain on settlement | — | (1,129 | ) | — | (1,129 | ) | ||||||||||
| APT Segment Adjusted EBITDA (loss) | $ | 1,898 | $ | 2,332 | $ | 8,578 | $ | (6,554 | ) | |||||||
