Arq, Inc. · NASDAQ:ARQ

Arq — Advanced Emissions Solutions — Q3 2022 Earnings Presentation

14 slides from Arq's earnings presentation, Nov 9, 2022

  1. Slide 1: Third Quarter 2022 Earnings Results Call

    Advanced Emissions Solutions, Inc. Advancing Cleaner Energy Third Quarter 2022 Earnings Results Call November 9, 2022 1

  2. Slide 2: Safe Harbor

    2 Safe Harbor This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this presentation, the words “can,” “will,” “intends,” “expects,” “b

  3. Slide 3: Safe Harbor Additional Information

    3 Safe Harbor Additional Information In connection with the proposed business combination with Arq (the “Transaction”), Elbert Holdings, Inc. (“New ADES”), a wholly owned subsidiary of ADES, filed a registration statement on Form S-4 with the SEC (the “Registration Statement”), which includes a prel

  4. Slide 4: Third Quarter Highlights

    Third Quarter Highlights (1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Appendix for definitions and reconciliations. Capital Allocation & Balance Sheet OutlookConsolidated Results Consumables revenue was $28.4M compared to $26.7M in 2021 Consumables gross margin was 24.1% compared to 2

  5. Slide 5: Financial Highlights

    Financial Highlights $28.4 $26.7 $79.6 $62.6 Consumables Revenue ($2.4) $24.3 ($5.8) $54.6 Net Income (Loss) ($0.5) $28.5 $2.5 $75.8 Adjusted EBITDA(1) (1) Consolidated Adjusted EBITDA is a non-GAAP measure. See Appendix for definitions and reconciliations. Consumables revenue grew 7% and 27% compar

  6. Slide 6: Merger with Arq Creates a Vertically Integrated Environmental Technology Company

    Merger with Arq Creates a Vertically Integrated Environmental Technology Company 6 Expand Growth Opportunities1 Sustainable Competitive Advantage2 Enhance Long-term Profitability3• GAC Market Development: provides opportunity to address more than 80% of the North American AC Market (up from 35% curr

  7. Slide 7: 2022 Priorities

    2022 Priorities ENHANCE LONG-TERM PROFITABILITY AT RED RIVER PLANT: • Capitalize on highly efficient and low-cost, world class manufacturing facilities • Pursue optimal customer mix to leverage enhanced value creation through new customer contracts • Structurally upgrade customer contracting terms t

  8. Slide 8: Appendix

    4 APPENDIX Ds =) = aaa’

  9. Slide 9: A: 10-Q Balance Sheet

    Appendix A: 10-Q Balance Sheet(1) (1) See complete, unaudited Condensed Consolidated Financial Statements and Notes related thereto within the Quarterly Report on Form 10-Q for the period ended September 30, 2022. 9

  10. Slide 10: B: 10-Q Income Statement

    Appendix B: 10-Q Income Statement(1) (1) See complete, unaudited Condensed Consolidated Financial Statements and Notes related thereto within the Quarterly Report on Form 10-Q for the period ended September 30, 2022. 10

  11. Slide 11: C: 10-Q Cash Flow

    Appendix C: 10-Q Cash Flow(1) (1) See complete, unaudited Condensed Consolidated Financial Statements and Notes related thereto within the Quarterly Report on Form 10-Q for the period ended September 30, 2022. 11

  12. Slide 12: C: 10-Q Cash Flow (continued)

    Appendix C: 10-Q Cash Flow (continued)(1) (1) See complete, unaudited Condensed Consolidated Financial Statements and Notes related thereto within the Quarterly Report on Form 10-Q for the period ended September 30, 2022. 12

  13. Slide 13: D: Non-GAAP Financial Measure & Consolidated Adjusted EBITDA Reconciliation

    Appendix D: Non-GAAP Financial Measure & Consolidated Adjusted EBITDA Reconciliation to Net (Loss) Income Note on Non-GAAP Financial Measures To supplement the Company's financial information presented in accordance with U.S. generally accepted accounting principles, or GAAP, this investor presentat

  14. Slide 14: E: Consolidated Adjusted EBITDA Reconciliation to Net (Loss) Income

    Appendix E: Consolidated Adjusted EBITDA Reconciliation to Net (Loss) Income 14 Additional Information This presentation relates to a proposed business combination between ADES and Arq. In connection with the proposed Transactions, New ADES filed a Registration Statement on Form S-4 with the SEC, wh

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