Slide 1: Q1'16 Earnings Call
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. May 11, 2016 EVENT TITLE Q1’16 Earnings Call
Slide 2: Safe Harbor
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -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 c
Slide 3: First Quarter & Recent Highlights
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -3- First 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 Working to
Slide 4: First Quarter Financial Review
Financial data highlights: (in thousands) Three Months Ended March 31, 2016 2015 Revenues $ 22,357 $ 21,757 Operating expenses exclusive of cost of revenue (1) $ 8,357 $ 12,940 Earnings from equity method investments $ 5,577 $ 314 Royalties, related party $ 1,189 $ 2,194 Net income (loss) $ 4,376 $
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) (1) (In millions) Three Months Ended March 31, 2016 2015 GAAP Net Income (Loss) $4.4 ($6.1) Non-Cash Items ($0.6) ($2.0) EC M
Slide 6: Refined Coal
Refined Coal c q % i: 7" mt i t att ii i ‘al ry am Lf Miu di
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 in full-time operation Target remains 24 invested and 4 retained (~100 MT/year) 10 RC facilities installed (37.1 MT/year) 2016 2021 RC Facility
Slide 8: Refined Coal: Components of Earnings
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -8- Refined Coal: Components of Earnings Components of RC Segment Earnings (1) (In thousands) Three Months Ended March 31, 2016 2015 RC Segment Earnings CCS $ 5,443 $ 100 CCSS $ 691 $ 1,022 RCM6 $ (557) $ (8
Slide 9: Operating Tons: Invested vs. Retained
- 2 4 6 8 10 12 14 16 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Ton nag e (M M) © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -9- Operating Tons: Invested vs. Retained • Numbers within bar graph represent the number of per
Slide 10: Operating Tons: Royalty vs. Non-Royalty
Tonnage Count (#) - 2 4 6 8 10 12 14 16 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Ton nag e (M M) © 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -10- Operating Tons: Royalty vs. Non-Royalty Note: Numbers/counts within bar gr
Slide 11: Future Rent Payments – CCS Invested Facilities
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -11- Future Rent Payments – CCS Invested Facilities As of March 31, 2016, remaining payments to all CCS members from CCS’s current RC facilities leased or sold to tax equity investors are projected to be a
Slide 12: Non-Operating Tons
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -12- Non-Operating Tons(4) Note: Numbers/counts within bar graph represent the number of facilities per category as of the end of each quarter presented. (1) Q1 2016 is estimated based on an average of Febru
Slide 13: Emissions Control
Emissions Control
Slide 14: Emissions Control: Components of Earnings
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -14- Emissions Control: Components of Earnings Components of EC Segment Earnings(1) (In thousands) Three Months Ended March 31, 2016 2015 EC Segment Revenues Equipment sales $ 21,727 $ 21,115 Consulting serv
Slide 15: CCS and ADES: Cash Flow Update
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -15- CCS and ADES: Cash Flow Update Cash Flow Update (1) (In thousands) Three Months Ended March 31, 2016 2015 CCS Cash and cash equivalents, beginning of year $ 6,182 $ 3,870 Cash provided by (used in): Ope
Slide 16: 2016 Strategic Priorities
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -16- 2016 Strategic Priorities NASDAQ Relisting and SEC Compliance with Financial Filings Drive New RC Closings and Incremental Cash Flows Each new tax-equity investor, above the current, drives $3-6 m
Slide 17: Appendix
Appendix
Slide 18: Appendix A: Non-GAAP Disclosure
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -18- Appendix A: Non-GAAP Disclosure ADES Operating Expenses Exclusive of Cost of Revenue (in thousands) Footnotes : Ref. 2016 Ref. 2015 (1) Agrees to ADES Consolidated Statement of Operations in the 2016 Q1
Slide 19: Appendix B: Non-GAAP Disclosure
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -19- Appendix B: Non-GAAP Disclosure ADES Select Cash and Non-cash Components of Q1 2016 and 2015 Net Income (Loss) (in thousands) Ref. 2016 Ref. 2015 Footnotes : Net Income (Loss) (1) 4,376$ (1) (6,132)$ (1
Slide 20: Appendix C: Non-GAAP Disclosure
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -20- Appendix C: Non-GAAP Disclosure ADES Significant Components of Q1 2016 and 2015 RC Segment Earnings and Operating Income (in thousands) Ref. 2016 Ref. 2015 Footnotes : (1) Agrees to ADES Footnote 7 in t
Slide 21: Appendix D – Non-GAAP Disclosure
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -21- Appendix D – Non-GAAP Disclosure ADES Significant Components of Q1 2016 and 2015 EC Segment Revenues and Operating Income (loss) (in thousands) Ref. 2016 Ref. 2015 Footnotes : (1) Agrees to ADES Footnot
Slide 22: Appendix E: Supplemental Disclosure CCS and ADES Cash Flow Information
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -22- Appendix E: Supplemental Disclosure CCS and ADES Cash Flow Information (in thousands) Ref. 2016 Ref. 2015 Footnotes : CCS cash flows: Cash and cash equivalents, beginning of year (1) 6,182$ (1) 3,870$ C
Slide 23: Appendix F: 10-Q Balance Sheet
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -23- Appendix F: 10-Q Balance Sheet(1) As of (in thousands, except share data) March 31, 2016 December 31, 2015 ASSETS Current assets: Cash and cash equivalents $ 5,469 $ 9,265 Receivables, net 7,354 8,361 R
Slide 24: Appendix G: 10-Q Income Statement
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -24- Appendix G: 10-Q Income Statement(1) Three Months Ended March 31, (in thousands, except per share data and percentages) 2016 2015 Revenues: Equipment sales $ 21,727 $ 21,115 Consulting services 196 368
Slide 25: Appendix H: 10-Q Cash Flow
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -25- Appendix H: 10-Q Cash Flow(1) Three Months Ended March 31, (in thousands) 2016 2015 Cash flows from operating activities Net income (loss) $ 4,376 $ (6,132 ) Adjustments to reconcile net income (loss) t
Slide 26: Appendix H: 10-Q Cash Flow (continued)
© 2016 Advanced Emissions Solutions, Inc. All rights reserved. Confidential and Proprietary. -26- Appendix H: 10-Q Cash Flow (continued)(1) Three Months Ended March 31, (in thousands) 2016 2015 Cash flows from operating activities Net cash used in operating activities (1,823 ) (8,208 ) Cash flows fr