Business
Arq Reports Second Quarter 2024 Results
Ongoing improvement to ASP and profitability of foundational PAC business 52% of Red River’s GAC nameplate capacity now contracted nearly six months ahead of
About this update from Arq, Inc.
[{"type":"text","content":"Ongoing improvement to ASP and profitability of foundational PAC business 52% of Red River’s GAC nameplate capacity now contracted nearly six months ahead of first production Red River expansion remains on target for first GAC deliveries in Q1 2025 GREENWOOD VILLAGE, Colo., Aug. 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 quarter ended June 30, 2024. Financial Highlights Generated revenue of $25.4 million in Q2 2024, up 24% over the prior year period, driven by enhanced contract terms including higher average selling prices (“ASP”) and positive changes in product mixIncreased ASP in Q2 2024 by approximately 16% over the prior year period, reflecting the fifth consecutive quarter of double-digit YoY percentage growth in ASPImproved gross margin to 32% in Q2 2024, an improvement of more than 700 basis points vs. 25% in the prior year period, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost managementReported Net loss of $2.0 million in Q2 2024, reflecting a significant improvement over the prior year period loss of $5.9 millionAdjusted EBITDA of $0.5 million in Q2 2024 vs. Adjusted EBITDA loss of $3.0 million in the prior year period(1)Exited Q2 2024 with cash and restricted cash of $37.2 millionCapital expenditure forecasts for full year 2024 remain at $60 - $70 million (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Note on Non-GAAP Financial Measures” for the definitions of non-GAAP financial measures. Recent Business Highlights Secured additional granular activated carbon (\"GAC\") supply contracts bringing total contracted volume to 13 million pounds per year (when fully scaled up to ultimate run-rate requirements), representing 52% of Red River’s expanded nameplate GAC capacity of 25 million pounds.Arq was added to the Russell 3000 and Russell 2000 Indices effective July 2024. Inclusion demonstrates Arq’s evolution and transformation while increasing visibility and prominence within the investment community.Completed a $15 million private placement of common stock (\"PIPE raise\") with an institutional ...