Advanced Emissions Solutions(ADES) - 2024 Q2 - Quarterly Results

Revenue and Growth - Revenue for Q2 2024 was $25.4 million, a 24$20.4 million in the prior year period, driven by higher average selling prices and favorable product mix [3]. - Total revenue for Q2 2024 was $25,405, a 24.5$20,445 in Q2 2023 [20]. - Average selling price (ASP) increased by approximately 16% in Q2 2024, marking the fifth consecutive quarter of double-digit year-over-year growth [3]. - Total contracted volume for granular activated carbon (GAC) reached 13 million pounds per year, representing 52% of Red River's expanded nameplate capacity of 25 million pounds [4]. Profitability and Loss - Net loss narrowed to $2.0 million in Q2 2024, compared to a net loss of$5.9 million in the prior year period [3]. - Net loss for Q2 2024 was $1,968, compared to a net loss of$5,856 in Q2 2023, representing a 66.4% improvement [20]. - Operating loss decreased to $1,420 in Q2 2024 from$6,087 in Q2 2023, indicating a significant reduction in operating expenses [20]. - The net loss for the six months ended June 30, 2024, was $5.387 million, significantly improved from a loss of$13.364 million in the same period of 2023 [24]. EBITDA and Adjusted Metrics - Adjusted EBITDA was $0.5 million in Q2 2024, a significant improvement from an adjusted EBITDA loss of$3.0 million in the prior year [3]. - Adjusted EBITDA for the six months ended June 30, 2024, was a loss of $691,000, compared to a loss of$10.675 million for the same period in 2023 [24]. - EBITDA for the three months ended June 30, 2024, was $453,000, a significant improvement from a loss of$2.993 million in the same period of 2023 [24]. Cash and Liquidity - Cash and restricted cash as of June 30, 2024, totaled $37.2 million, down from$44.0 million as of March 31, 2024 [12]. - Cash and restricted cash at the end of Q2 2024 was $37,197, down from$67,583 at the end of Q2 2023, reflecting a decrease of 45% [21]. - The company reported a decrease in cash used in operating activities to $2,424 in the first half of 2024, down from$21,159 in the first half of 2023 [21]. Capital Expenditures and Investments - Capital expenditures for the first half of 2024 totaled $28.8 million, with full-year guidance remaining at$60 - $70 million [12]. - The company signed a non-binding term sheet to refinance its existing Term Loan, which would expand the size of the facility and enhance liquidity [5]. Assets and Liabilities - Total assets increased to$248,582 as of June 30, 2024, up from $235,502 as of December 31, 2023, marking a growth of 5.1$58,982 as of June 30, 2024, compared to $57,102 as of December 31, 2023, an increase of 3.3$929 in Q2 2024 from $774 in Q2 2023, a rise of 20.1$1.658 million, down from $2.428 million in the prior year [24]. - Interest expense for the three months ended June 30, 2024, was$606,000, compared to $308,000 in the same period of 2023 [24]. - Cash distributions from equity method investees for the six months ended June 30, 2024, were$462,000, while there were no distributions in the same period of 2023 [24]. - The company incurred $0.6 million and$4.9 million in transaction and integration costs related to the legacy Arq acquisition for the three and six months ended June 30, 2023, respectively [24]. - Legacy Arq payroll and benefit costs included in net loss were $0.8 million and$1.7 million for the three and six months ended June 30, 2023, respectively [24]. - The weighted-average number of common shares outstanding increased to 34,356 in Q2 2024 from 27,360 in Q2 2023, reflecting a 25.5% increase [20]. - The company reported a total stockholders' equity of $189,600 as of June 30, 2024, up from$178,400 as of December 31, 2023, an increase of 6.6% [18]. - The Corbin facility commenced commissioning in early Q2 2024, with production expected to ramp up in Q4 2024 [5]. - The company reported a gain on the sale of Marshall Mine, LLC, of $2.695 million in the six months ended June 30, 2023 [24].