Workflow
Advanced Emissions Solutions(ADES) - 2024 Q1 - Quarterly Results
ADESAdvanced Emissions Solutions(ADES)2024-05-08 20:36

Revenue Performance - Revenue for Q1 2024 totaled 21.7million,a421.7 million, a 4% increase from 20.8 million in the prior year period, despite a 6% reduction in volumes[3] - Total revenue for the three months ended March 31, 2024, was 21,740,000,representinganincreaseof4.521,740,000, representing an increase of 4.5% compared to 20,805,000 for the same period in 2023[17] Pricing and Margins - Average selling price (ASP) increased by approximately 16% year-over-year, marking the fourth consecutive quarter of double-digit growth in ASP[3] - Gross margin improved to 37% in Q1 2024, more than double the 17% reported in the prior year period, driven by higher ASP and operational cost management[3] Loss and Adjusted EBITDA - Net loss for Q1 2024 was 3.4million,significantlyimprovedfromanetlossof3.4 million, significantly improved from a net loss of 7.5 million in the prior year period[6] - Adjusted EBITDA loss narrowed to 1.1millioninQ12024,comparedtoalossof1.1 million in Q1 2024, compared to a loss of 7.7 million in the prior year period[3] - Operating loss improved to (2,980,000)forQ12024,comparedto(2,980,000) for Q1 2024, compared to (7,827,000) in Q1 2023, reflecting a reduction of 61.9%[17] - Net loss for the three months ended March 31, 2024, was (3,419,000),asignificantimprovementfrom(3,419,000), a significant improvement from (7,508,000) in the prior year, marking a 54.4% reduction[17] - Adjusted EBITDA loss for Q1 2024 was (1,144,000),comparedto(1,144,000), compared to (7,683,000) in Q1 2023, indicating a significant improvement[20] Capital Expenditures and Forecast - Capital expenditures for Q1 2024 totaled 9.6million,upfrom9.6 million, up from 3.5 million in the prior year, driven by ongoing facility expansions[8] - The company updated its full-year 2024 capex forecast to a range of 60−70million,reflectinganincreaseduetohighersteelandconcretecostsfortheRedRiverexpansion[9]ExpansionandContracts−ThefirstsupplycontractforGranularActivatedCarbon(GAC)wasexecuted,totalingaforecasted5millionpounds/year,withdeliveryexpectedtocommenceinQ12025[4]−TheRedRiverexpansionremainsonscheduleforfirstproductioninQ42024,withanexpectedpaybackperiodof3yearsorless[5]RegulatoryImpact−TheEPA′snewregulationsonPFAScompoundsareexpectedtodrivestrongerdemandforthecompany′sGACproducts[4]AssetandLiabilityManagement−Totalcurrentassetsdecreasedto60-70 million, reflecting an increase due to higher steel and concrete costs for the Red River expansion[9] Expansion and Contracts - The first supply contract for Granular Activated Carbon (GAC) was executed, totaling a forecasted 5 million pounds/year, with delivery expected to commence in Q1 2025[4] - The Red River expansion remains on schedule for first production in Q4 2024, with an expected payback period of 3 years or less[5] Regulatory Impact - The EPA's new regulations on PFAS compounds are expected to drive stronger demand for the company's GAC products[4] Asset and Liability Management - Total current assets decreased to 72,038,000 as of March 31, 2024, down from 86,461,000attheendof2023,adeclineof16.786,461,000 at the end of 2023, a decline of 16.7%[15] - Total liabilities decreased to 54,634,000 as of March 31, 2024, down from 57,102,000attheendof2023,areductionof4.157,102,000 at the end of 2023, a reduction of 4.1%[15] - Cash and restricted cash at the end of the period was 44,019,000, down from 79,090,000attheendofMarch2023,adecreaseof44.479,090,000 at the end of March 2023, a decrease of 44.4%[18] Cash Flow - The company reported a net cash provided by operating activities of 526,000 for Q1 2024, contrasting with $(17,705,000) in the same period last year[18]