Business
Arq Reports Fourth Quarter & Full Year 2023 Results
Q4 2023 revenues from foundational Powder Activated Carbon business increase 20% YoY while gross margin improves to 50%, generating Adjusted EBITDA of $7.2
About this update from Arq, Inc.
[{"type":"text","content":"Q4 2023 revenues from foundational Powder Activated Carbon business increase 20% YoY while gross margin improves to 50%, generating Adjusted EBITDA of $7.2 million and Net Income of $3.3 million, while Granular Activated Carbon growth business remains on schedule for commissioning by Q4 2024 GREENWOOD VILLAGE, Colo., March 12, 2024 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ: ARQ) (the \"Company\" or \"Arq\"), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the fourth quarter and full year ended December 31, 2023. Financial Highlights Achieved positive net income of $3.3 million in Q4 2023, reflecting the first positive net income quarter since Q4 2021.Increased revenue to $28.1 million in Q4 2023, reflecting growth of 20% over the prior year period, driven by higher average selling prices, positive changes in product mix and $4.7 million of take-or-pay revenue, partially offset by natural gas pricing impacts to volume.Improved gross margin to 50% in Q4 2023, due to higher revenue, as well as continued focus on profitability over volume, cost management, and take-or-pay revenue.Achieved Q4 2023 Adjusted EBITDA of $7.2 million, reflecting the second consecutive quarter of positive Adjusted EBITDA (Q3 2023 Adjusted EBITDA of $0.9 million)(1).Exited 2023 with cash and restricted cash of $54.2 million.Capex for full year 2024 forecasted to be $55-60 million with Red River Phase 1 capex expected to be $45-50 million. Expected to be funded with cash on hand, cash generation, ongoing cost reduction initiatives, potential customer prepayments for GAC contracts, and a planned refinancing and potential expansion of our term loan. (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures. Recent Business Highlights Completed corporate rebrand and commenced trading under the new Nasdaq ticker \"ARQ\", reflecting strategic expansion and evolution to a leading North American environmental technology company.Further optimized Powder Activated Carbon (\"PAC\") portfolio by prioritizing profitability over volume, managing costs, improving product mix, and eliminating unfavorable contracts. Achieved positive PAC...