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Advanced Emissions Solutions(ADES) - 2023 Q4 - Annual Results
ADESAdvanced Emissions Solutions(ADES)2024-03-11 16:00

Revenue Performance - Q4 2023 revenues increased by 20% YoY to 28.1million,drivenbyhigheraveragesellingpricesandpositiveproductmixchanges[1]−Fullyear2023revenuestotaled28.1 million, driven by higher average selling prices and positive product mix changes[1] - Full year 2023 revenues totaled 99.2 million, down from 103.0millionintheprioryear,primarilyduetolowersalesfrompowergenerationcustomers[7]−TotalrevenueforQ42023was103.0 million in the prior year, primarily due to lower sales from power generation customers[7] - Total revenue for Q4 2023 was 28,104,000, an increase of 19.5% compared to 23,409,000inQ42022[13]ProfitabilityandIncome−Grossmarginimprovedto5023,409,000 in Q4 2022[13] Profitability and Income - Gross margin improved to 50% in Q4 2023, up from 25.4% in the prior year period, reflecting a focus on profitability and cost management[3] - Adjusted EBITDA for Q4 2023 was 7.2 million, compared to a loss of 1.2millionintheprioryearperiod,markingthesecondconsecutivequarterofpositiveAdjustedEBITDA[4]−Thecompanyachievedpositivenetincomeof1.2 million in the prior year period, marking the second consecutive quarter of positive Adjusted EBITDA[4] - The company achieved positive net income of 3.3 million in Q4 2023, the first positive net income quarter since Q4 2021[1] - Operating income for Q4 2023 was 3,104,000,comparedtoalossof3,104,000, compared to a loss of 3,374,000 in Q4 2022, marking a significant turnaround[13] - Net income for the year ended December 31, 2023, was a loss of 12,249,000,comparedtoalossof12,249,000, compared to a loss of 8,917,000 in 2022, indicating ongoing challenges[14] Capital Expenditures and Forecast - Capital expenditures for full year 2023 were 27.5million,significantlyhigherthan27.5 million, significantly higher than 8.9 million in the prior year, driven by strategic growth projects[5] - Full year 2024 capital expenditures are forecasted to be 55−60million,withRedRiverPhase1expectedtoaccountfor55-60 million, with Red River Phase 1 expected to account for 45-50 million of that total[6] - The company plans to fund 2024 capital expenditures through cash on hand, cash generation, and potential customer prepayments, with no plans to issue equity[6] Debt and Financial Health - Total debt as of December 31, 2023, was 20.9million,upfrom20.9 million, up from 4.6 million in the prior year, primarily due to a 10.0milliontermloanrelatedtotheacquisition[5]−Cashandrestrictedcashattheendof2023was10.0 million term loan related to the acquisition[5] - Cash and restricted cash at the end of 2023 was 54,153,000, down from 76,432,000attheendof2022[15]−Thecompanyreportedadecreaseintotalcurrentliabilitiesto76,432,000 at the end of 2022[15] - The company reported a decrease in total current liabilities to 23,048,000 in 2023 from 23,884,000in2022,indicatingimprovedshort−termfinancialhealth[12]−Thecompanyissuedcommonstock,generatingnetproceedsof23,884,000 in 2022, indicating improved short-term financial health[12] - The company issued common stock, generating net proceeds of 15,220,000 in 2023, which supports liquidity and operational funding[15] Asset Growth - Total assets increased to 235,502,000asofDecember31,2023,upfrom235,502,000 as of December 31, 2023, up from 181,164,000 in 2022, reflecting growth in the company's asset base[12] Strategic Initiatives - The company plans to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[16] - The Red River GAC facility expansion is on track for commissioning in Q4 2024, with ongoing strong demand for high-performance granular products[2] Shareholder Impact - The weighted-average number of common shares outstanding increased to 32,367,000 in 2023 from 18,506,000 in 2022, reflecting the impact of stock issuance[13]