The following excerpt is from the company's SEC filing.

Company remains focused on maximizing refined coal distributions and driving improved performance in its emissions control business

HIGHLANDS RANCH, Colorado, May 10, 2016 - Advanced Emissions Solutions, Inc. (OTC PINK:ADES) (the “Company” or “ADES”) today filed its Quarterly Report on Form 10-Q and reported financial results for the first quarter ended March 31, 2016, including information about its joint-venture partnerships, Clean Coal Solutions, LLC (“CCS”) and Clean Coal Solutions Services, LLC (“CCSS”), of which ADES owns 42.5% and 50%, respectively.

First Quarter CCS & Refined Coal (“RC”) Highlights

CCS & CCSS distributions to ADES were $4.9 million versus $0.1 million in Q1 2015

Royalty earnings from CCS were $1.2 million

CCS invested and retained tonnage were 8.9 million and 0.8 million tons, respectively

RC Segment operating income increased to $7.9 million

Preparing to transition an investor from a lower tonnage RC facility to a higher tonnage RC facility, which is expected to result in a $7.0 million payment to ADES during the second quarter

First Quarter ADES and Emissions Control (“EC”) Highlights

Drove consolidated revenue of $22.4 million, an increase of 3%

Reduced operating costs exclusive of cost of sales by 35% to $8.4 million and implemented plan to further reduce expenses substantially by end of 2016

Achieved consolidated net income of $4.4 million

Pipeline for ACI Systems and M-Prove™ Technology agreements continues to improve

L. Heath Sampson, President and CEO of ADES commented, “We executed very well against our strategic priorities during the first quarter and were happy to deliver positive net income. We also expect to transition one of our RC investors from a low output facility to a higher output facility, resulting in an increase in distributions from CCS. We continue to have numerous conversations with potential RC investors and feel confident our pipeline will translate into the onboarding of new investors in the coming quarters. On the Emissions Control side, we have seen growing momentum in our ACI systems and chemicals business recently and expect to close several significant sales during the second quarter. Lastly, we continued to execute against our cost containment efforts and remain on track to remove significant cost out of the business by the end of 2016.”

First quarter revenues were $22.4 million, an increase of 3% compared with $21.8 million in the first quarter of 2015, the result of additional Emissions Control equipment contracts completed in the quarter. First quarter operating expenses, exclusive of cost of sales, were $8.4 million, a decrease of 35% compared to $12.9 million in the first quarter of 2015, due to previous restructuring and business alignment initiatives, which were offset somewhat by an increase in the costs to service equipment contracts

First quarter earnings from equity method investments were $5.6 million, compared to $0.3 million for the first quarter of 2015. First quarter royalty payments from CCS were $1.2 million, a decrease of 46% compared to $2.2 million in the first quarter of 2015, due to the temporary suspension of operations for certain retained RC facilities. First quarter expenses related to the RC business were $1.0 million, a decrease of 48% compared to $1.9 million in the first quarter of 2015, due to lower expenses from the RCM6 facility following its sale and lower 453A interest expense. RC segment operating income was $7.9 million, compared to segment operating income of $0.7 million in the first quarter of 2015.

First quarter consolidated interest expense was $2.0 million, compared to $1.8 million in the first quarter of 2015. The increase was driven by interest expense related to the Company’s short-term borrowings, offset by decreases in RCM6 and 453A interest expense.

Consolidated net income for the first quarter was $4.4 million, compared to a net loss of $6.1 million for the first quarter of 2015, primarily driven by equity income recognition from the RC business.

As of March 31, 2016, the Company had cash and cash equivalents of $5.5 million, a decrease of 41% compared to $9.3 million as of December 31, 2015, which was driven by a number of factors, a major component of which were debt principal payments of $3.0 million. The Company also had $11.8 million in short term and long term restricted cash and outstanding principal on its credit agreement of $10.9 million.

Sampson concluded,

“With the filing of our first quarter financials, we are tracking towards being relisted on

The Nasdaq Stock Market LLC (“NASDAQ”) Global Market tier, a crucial step for our Company. Our focus remains on securing additional tax equity investors for our Refined Coal offerings and our new commercial strategies have significantly enhanced our pipeline. Additionally, we will continue to validate the worth of our Emissions Control products through our commercialization strategy, made easier by a simpler and leaner business profile resulting from ongoing cost containment initiatives. Throughout all of these initiatives, we will maintain transparency with our stockholders through our strategic alternatives review process. We look forward to updating you on future developments within our Company.”

Conference Call and Webcast Information

The Company has scheduled a conference call to begin at 9:00 a.m. Eastern Time on Wednesday, May 11, 2016. The conference call will be webcast live via the Investor Information section of ADES's website at

www.advancedemissionssolutions.com

. Interested parties may also participate in the call by dialing (877) 709-8150 (Domestic) or (201) 689-8354 (International). A supplemental investor presentation will be available on the Company's investor relations website prior to the start of the conference call.

About Advanced Emissions Solutions, Inc.

Advanced Emissions Solutions, Inc. serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.

ADA-ES, Inc. (“ADA”) is a wholly-owned subsidiary of Advanced Emissions Solutions, Inc. (“ADES”) that provides emissions control solutions for coal-fired power generation and industrial boiler industries. With more than 25 years of experience developing advanced mercury control solutions, ADA delivers proprietary environmental technologies, equipment and specialty chemicals that enable coal-fueled boilers to meet emissions regulations. These solutions enhance existing air pollution control equipment, maximizing capacity and improving operating efficiencies. Our track record includes securing more than 30 US patents for emissions control technology and systems and selling the most activated carbon injection systems for power plant mercury control in North America. For more information on ADA, its products and services, visit www.adaes.com or the ADA Blog (http://blog.adaes.com/).

Clean Coal Solutions, LLC (“CCS”) is a 42.5% owned joint venture by ADA that provides ADA’s patented Refined Coal (“RC”) CyClean™ technology to enhance combustion of and reduce emissions of NOx and mercury from coals in cyclone boilers and ADA’s patent pending M-45™ and M-45-PC™ technologies for Circulating Fluidized boilers and Pulverized Coal boilers respectively.

Non-GAAP Disclosure:

Total operating expenses exclusive of cost of sales is a non-GAAP financial figure.  Total operating expenses, inclusive of cost of sales in accordance with U.S. GAAP, are included in the Condensed Consolidated Statement of Operations on page 6. Total operating costs were $25.7 million and $28.7 million during the three-months ended March 31, 2016 and 2015, respectively. Total costs of sales were $17.3 million and $15.7 million during the three-months ended March 31, 2016 and 2015, respectively.  This non-GAAP financial figure is being provided to investors as a supplement to the Company’s reported results because the Company believes that such supplemental information will assist investors in their understanding of the Company’s efforts to reduce EC Segment expenses and should not be considered in isolation, as a substitute for, or as superior to, financial measures calculated in accordance with U.S. GAAP, and the Company’s financial results calculated in accordance with U.S. GAAP and supplemental information regarding information otherwise disclosed in such financial statements should be carefully evaluated.  The Company’s management uses this non-GAAP measure for similar purposes.

Caution on Forward-Looking Statements

This press release contains 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. The forward-looking statements include statements or expectations regarding our ability to attract tax-equity investors and transition investors to higher tonnage RC facilities, the timing of closing sales or leases of RC facilities, expected cash flow from CCS, our sales pipeline and ability to sell products and increase revenue in the Emissions Control business, the expected results and timing of our cost containment initiatives and restructuring efforts, the success of our commercialization strategies in the Emissions Control business, the timing, implementation and success of strategic options under review, our ability to be relisted on NASDAQ, and related matters. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to changes in laws,

regulations and IRS interpretations or guidance; economic conditions and market demand; failure of the RC facilities to produce coal that qualifies for tax credits; decreases in the production of RC; availability, cost of and demand for alternative tax credit vehicles and other technologies; seasonality; the requirements of the Securities and Exchange Commission (“SEC”) and NASDAQ; customer expectations; the value of our products, technologies and intellectual property to customers and strategic investors; the outcome of our cost containment initiatives and restructuring efforts may not reduce costs as much as expected; and other factors discussed in greater detail in our filings with the SEC. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

Investor Contact:

Alpha IR Group

Nick Hughes or Chris Hodges

312-445-2870

ADES@alpha-ir.com

Advanced Emissions Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share data)

ASSETS

Current assets:

Cash and cash equivalents

Receivables, net

Receivables, related parties, net

Restricted cash

Costs in excess of billings on uncompleted contracts

Prepaid expenses and other assets

Total current assets

17,542

24,715

Restricted cash, long-term

10,359

10,980

Property and equipment, net of accumulated depreciation of $4,736 and $4,557, respectively

Investment securities, restricted, long-term

Cost method investment

Equity method investments

17,232

Other assets

Total Assets

41,583

60,775

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Accounts payable

Accrued payroll and related liabilities

Current portion of notes payable, net of discount, related parties

Billings in excess of costs on uncompleted contracts

Short-term borrowings, net of discount and deferred loan costs, related party

10,921

12,676

Settlement and royalty indemnity obligation

Other current liabilities

Total current liabilities

39,851

50,092

Long-term portion of notes payable, net of discount, related parties

13,512

Settlement and royalty indemnification, long-term

13,619

13,797

Advance deposit, related party

Other long-term liabilities

Total Liabilities

61,644

85,753

Commitments and contingencies

Stockholders’ deficit:

Preferred stock: par value of $.001 and no par value per share, respectively, 50,000,000 shares authorized, none outstanding

Common stock: par value of $.001 per share, 100,000,000 shares authorized, 22,009,349 and 21,943,872 shares issued, and 21,858,565 and 21,809,164 shares outstanding at March 31, 2015 and December 31, 2014, respectively

Additional paid-in capital

116,570

116,029

Accumulated deficit

(136,653

(141,029

Total stockholders’ deficit

(20,061

(24,978

Total Liabilities and Stockholders’ Deficit

Condensed Consolidated Statements of Operations

Three Months Ended March 31,

in thousands, except per share data and percentages

Revenues:

Equipment sales

21,727

21,115

Consulting services

Chemicals and other

Total revenues

22,357

21,757

Operating expenses:

Equipment sales cost of revenue, exclusive of depreciation and amortization

17,034

15,051

Consulting services cost of revenue, exclusive of depreciation and amortization

Chemical and other cost of revenue, exclusive of depreciation and amortization

Payroll and benefits

Rent and occupancy

Legal and professional fees

General and administrative

Research and development, net

Depreciation and amortization

25,668

28,655

Operating loss

(3,311

(6,898

Other income (expense):

Earnings from equity method investments

Royalties, related party

Interest expense

(1,964

(1,775

Gain on sale of equity method investment

Gain on settlement of note payable

Total other income (expense), net

Income (loss) before income tax expense

(6,088

Income tax expense

Net income (loss)

(6,132

Income (loss) per common share:

Diluted

Weighted-average number of common shares outstanding:

21,849

21,696

22,176

Condensed Consolidated Statements of Cash Flows

in thousands)

Cash flows from operating activities

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Amortization of debt issuance costs

Gain on settlement of debt

Impairment of property and equipment

Provision for bad debt expense and note receivable

Share-based compensation expense

(5,577

(2,078

Other non-cash items, net

Changes in operating assets and liabilities, net of effects of acquired businesses:

Related party receivables

Costs incurred on uncompleted contracts

14,613

Other long-term assets

(1,104

(1,071

Billings on uncompleted contracts

(17,021

(3,677

Settlement and royalty indemnification obligation

(1,228

Distributions from equity method investees, return on investment

Net cash used in operating activities

(1,823

(8,208

Cash flows from investing activities

Maturity of investment securities, restricted

Increase in restricted cash

(1,200

Acquisition of property and equipment

Proceeds from sale of property and equipment

Advance on note receivable

Acquisition of business

(2,124

Purchase of and contributions to equity method investees

Distributions from equity method investees in excess of cumulative earnings

Proceeds from sale of equity method investment

Net cash provided by (used in) investing activities

(4,303

Cash flows from financing activities

Repayments on short-term borrowings, related party

(1,750

Repayments on notes payable, related parties

(1,246

Repurchase of shares to satisfy minimum tax withholdings

Short-term borrowing loan costs

Net cash used in financing activities

(3,659

Decrease in Cash and Cash Equivalents

(3,796

(13,443

Cash and Cash Equivalents, beginning of period

25,181

Cash and Cash Equivalents, end of period

11,738

Supplemental disclosures of cash information:

Cash paid for interest

Cash paid (refunded) for income taxes

Supplemental disclosure of non-cash investing and financing activities:

Settlement of RCM6 note payable

13,234

Non-cash reduction of equity method investment

(11,156

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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