Arq, Inc. · NASDAQ:ARQ

Arq — Advanced Emissions Solutions — Q2 2016 Earnings Presentation

25 slides from Arq's earnings presentation, Aug 10, 2016

  1. Slide 1: Q2'16 Earnings Call

    EVENT TITLE Q2’16 Earnings Call © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary.August 10, 2016

  2. Slide 2: Safe Harbor

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. 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 circu

  3. Slide 3: Second Quarter & Recent Highlights

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -3- Second Quarter & Recent Highlights ▪ Solid execution against strategic goals ▪ Distributions from the Refined Coal (“RC”) business increased year-over-year and were in-line with expectations ▪ Transition

  4. Slide 4: Financial data highlights and Second Quarter Financial Review

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. Financial data highlights: (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ 8,951 $ 14,895 $ 31,286 $ 36,652 Cost of revenues, exclusive of depreciation and

  5. Slide 5: Select Components of Net Income (Loss)

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -5- Select Components of Net Income (Loss) Select Components of Net Income (Loss) (In millions) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Consolidated Net Income (Loss) $ 7,86

  6. Slide 6: Refined Coal

    Refined Coal

  7. Slide 7: RC Facilities Today and Tomorrow

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -7- RC Facilities Today and Tomorrow POTENTIAL 28 RC facilities (~100 MT/year) 9 RC facilities - installed (31.0 MT/year) 2016 2021RC Facility information as of June 30, 2016 13 RC facilities leased/sold (39

  8. Slide 8: Current RC Environment

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -8- Current RC Environment ▪ Refined Coal has been around for many years and many large corporations have benefited; such as Goldman Sachs, WW Grainer, Waste Management, DTE Energy, Arthur Gallagher, Capital

  9. Slide 9: Refined Coal: Components of Earnings

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -9- Refined Coal: Components of Earnings Components of RC Segment Earnings (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 RC Segment Revenue CCS $ 12,832 $ 4,630 $ 1

  10. Slide 10: Operating Tons: Invested vs. Retained

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -10- Operating Tons: Invested vs. Retained Note: Numbers within bar graph and the "Count" row within the tables represent the number of facilities per category as of the end of each quarter presented. (1) To

  11. Slide 11: Operating Tons: Royalty vs. Non-Royalty

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -11- Operating Tons: Royalty vs. Non-Royalty Note: Numbers within bar graph and the "Count" row within the tables represent the number of facilities per category as of the end of each quarter presented. (1)

  12. Slide 12: Future Rent Payments – CCS Invested Facilities

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -12- Future Rent Payments – CCS Invested Facilities ▪ As of June 30, 2016, remaining payments to all CCS members from CCS’s current RC facilities leased or sold to tax equity investors are projected to be an

  13. Slide 13: Non-Operating Tons

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -13- Non-Operating Tons(5) Note: Numbers within bar graph and the "Count" row within the tables represent the number of facilities per category as of the end of each quarter presented. (1) Based on actual to

  14. Slide 14: Emissions Control

    Emissions Control

  15. Slide 15: IP Portfolio

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -15- IP Portfolio ▪ While the target market for M-Prove is larger than originally anticipated, with commercialization efforts showing results as plant testing increases and the pipeline continues to expand

  16. Slide 16: Emissions Control: Components of Earnings

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -16- Emissions Control: Components of Earnings Components of EC Segment Earnings (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 EC Segment Revenues Equipment sales $

  17. Slide 17: Corporate and Other: Summary

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -17- Corporate and Other: Summary Adjustments to reconcile to net loss attributable to ADES (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 RC segment operating incom

  18. Slide 18: CCS and ADES: Cash Flow Update

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -18- CCS and ADES: Cash Flow Update Cash Flow Update (In thousands) Six Months Ended June 30, 2016 2015 CCS Cash and cash equivalents, beginning of year $ 6,182 $ 3,870 Cash provided by (used in): Operating

  19. Slide 19: 2016 Strategic Priorities

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -19- 2016 Strategic Priorities ▪ We have made noticeable progress against many of the strategic priorities that we outlined on the 2015 10-K conference call ▪ Looking ahead, we continue to focus on closing n

  20. Slide 20: Appendix

    7 Appendix’ 7 4 »)

  21. Slide 21: Appendix A: Supplemental Disclosure

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -21- Appendix A: Supplemental Disclosure ADES Select Cash and Non-cash Components of the three and six months ended 2016 and 2015 Net Income (Loss) (in thousands) Three Months Ended June 30, Six Months Ended

  22. Slide 22: Appendix B: 10-Q Balance Sheet

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -22- Appendix B: 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 June 30

  23. Slide 23: Appendix C: 10-Q Income Statement

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -23- Appendix C: 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 June

  24. Slide 24: Appendix D: 10-Q Cash Flow

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -24- Appendix D: 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 June 30, 20

  25. Slide 25: Appendix D: 10-Q Cash Flow (continued)

    © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -25- Appendix D: 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

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