Business
Advanced Emissions Solutions Reports Third Quarter 2022 Results
Consumables revenue up 27% year-to-date driven by increased volumes and pricing initiatives Announced proposed merger with Arq to further vertically
About this update from Arq, Inc.
[{"type":"text","content":" Consumables revenue up 27% year-to-date driven by increased volumes and pricing initiatives Announced proposed merger with Arq to further vertically integrate portfolio of assets and leverage bituminous feedstock to better compete in new markets GREENWOOD VILLAGE, Colo., Nov. 08, 2022 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (NASDAQ: ADES) (the \"Company\" or \"ADES\") today filed its Quarterly Report on Form 10-Q and reported financial results for the quarter ended September 30, 2022, including information about its equity investments in Tinuum Group, LLC and Tinuum Services, LLC (collectively \"Tinuum\"), of which ADES owns 42.5% and 50%, respectively. Third Quarter Highlights Third quarter consumables revenue was $28.4 million compared to $26.7 million in the prior year period.Third quarter net loss was $2.4 million compared to net income of $24.3 million in the prior year period, which reflects the wind down of the Tinuum investments at the end of 2021.Third quarter Consolidated Adjusted EBITDA (loss) was $0.5 million compared to $28.5 million in the prior year period, as the prior year period includes $27.0 million of Consolidated Adjusted EBITDA from the Tinuum investments.Cash balances as of September 30, 2022, including restricted cash, totaled $85.8 million, compared to $88.8 million as of December 31, 2021. The Company's only debt outstanding are finance lease obligations which total $4.9 million.Production volume of activated carbon products at our Red River plant exceeded historical volumes.The Company announced entering into a definitive transaction agreement with Arq Limited (“Arq”), pursuant to which Arq and ADES will combine their respective businesses.The Company also announced sale of Marshall Mine, LLC to Caddo Creek Resources Company, LLC (“Caddo Creek”), which, upon closing will eliminate its existing asset retirement obligation for Marshall Mine and is likely to result in the release of a portion of the Company’s restricted cash balance. The Transaction is expected to close during the first half of 2023. “Our consumables revenue grew 7% compared to the prior year as macroeconomic dynamics continue to support strong demand for our activated carbon products. In addition, we continue to execute on pricing initiatives designed to improve the economic terms of customer contracts,” said Greg Marken...