ADES » Topics » ADA-ES REPORTS FOURTH QUARTER AND YEAR END 2008 RESULTS

This excerpt taken from the ADES 8-K filed Mar 25, 2009.

ADA-ES REPORTS FOURTH QUARTER AND YEAR END 2008 RESULTS

Littleton, CO – March 25, 2009 – ADA-ES, Inc. (NASDAQ:ADES) today announced financial results for the fourth quarter and year ended December 31, 2008. See attached tables.

For the 2008 fourth quarter, total revenues were $3.3 million as compared to $4.8 million in the fourth quarter of 2007, with the decline due to reduced revenues from DOE and industry-supported mercury programs. Gross margins for the final quarters of 2008 and 2007 were 26%. The Company reported a net loss for the fourth quarter of $3.6 million or $0.59 per diluted share compared to a breakeven fourth quarter in 2007.

As previously reported, ADA had approximately $3 million in aggregate non-cash charges taken in the fourth quarter of 2008. Of this amount:

 

   

$1.6 million relates to a goodwill impairment of its flue gas conditioning operations;

 

   

$1.2 million relates to the development of our Activated Carbon (“AC”) production and processing facilities; and

 

   

$170,000 is related to accelerated vesting of stock options.

For 2008, total revenues were $16.2 million as compared to $19.2 million in the prior year. Gross margin increased to 33%, compared to 31% for 2007 due to the new and improved design of ADA’s ACI equipment that simplifies field installation and reduces system costs. ADA reported an operating loss of $6.7 million in 2008 compared to $777,000 in 2007. The increase was primarily due to the aforementioned $3.0 million of non-cash charges as well as continued activities related to ADA’s growth strategies and its plans to vertically integrate into the production and supply of AC. Cash flow used by operations in 2008 was $4.4 million as compared to cash flow provided by operations of $1.6 million in 2007.

Dr. Michael D. Durham, President and CEO of ADA-ES stated, “In 2008, we achieved major milestones on several business fronts related to advancing our clean coal technology business objectives which encompass mercury emissions control and CO2 capture for coal-fired power plants. These include:

 

   

We began construction of an AC manufacturing plant in Red River Parish, Louisiana in August. We are currently on schedule and budget to begin partial operation in the second quarter of 2010 and be fully operational by the end of the third quarter of 2010.

 

   

Signed multi-year, off-take contracts to supply AC to major utilities, with an aggregate value in excess of $160 million, representing approximately 32% of the plant’s planned capacity.

 

   

Commenced construction of a 30,000 sq. ft. Greenfield facility in Natchitoches Parish, Louisiana to process up to 8,000 lbs/hour of powdered AC. This interim facility will serve as a materials processing and storage site as well as a loading and transfer center for truck trailers, rail cars and barge. This site will begin delivering AC to customers in the second quarter of 2009.


ADA-ES News Release

March 25, 2009

   - 2 -

 

   

Signed 7 ACI System contracts in 2008 and 3 thus far in 2009, bringing the total number of ACI systems sold or installed by ADA to 39. The uncompleted portion of outstanding contracts at 12/31/08 amounts to $6.9 million in gross revenue, of which we expect to realize approximately $5.9 million in 2009 and the rest in 2010.

 

   

Started work on the DOE project to develop clean coal technology that will capture carbon dioxide from coal-fired power plants. ADA is the prime contractor for the $3.2 million project.”

Dr. Durham continued, “With regard to the final point, the newly enacted American Recovery and Reinvestment Act allocated $3.4 billion for carbon capture and storage. Although ADA currently has funding from DOE and power generators to support testing of our solid sorbent-based carbon capture technology, funding on the order of $50 to $100 million will be required to perform a scale-up of the technology. We expect that funding for larger-scale demonstrations of our technology will soon be made available from the stimulus bill through competitive DOE procurement activity.”

Dr. Durham noted, “In February 2009, the EPA withdrew its appeal of the CAMR ruling, and is moving forward on a stringent maximum achievable control technology (“MACT”) regulation for mercury. Such activity by EPA as well as bills expected to be introduced in Congress should help reduce some of the uncertainty that has slowed procurement activities by our customers. A strict Federal mercury rule is expected to further expand the market for ACI systems by several hundred systems and result in a market for activated carbon in excess of a billion dollars per year.”

He continued, “We closed the year with working capital of $18.6 million, no long-term debt and shareholders’ equity of over $31 million.”

Dr. Durham concluded, “We continue to stay focused on investing in our infrastructure to meet the rapidly growing market demand in mercury emission control. Through ADA Carbon Solutions, we are currently providing AC to customers on a continuous basis from our processing facility and are ahead of schedule on construction of our approximately 150 million pound per year AC manufacturing plant. We are continuing to compete on close to $500 million in RFPs for AC. With regulatory deadlines approaching, we expect that new contracts will be awarded over the next several months.”

This excerpt taken from the ADES 8-K filed Mar 25, 2009.

ADA-ES REPORTS FOURTH QUARTER AND YEAR END 2008 RESULTS

Littleton, CO – March 25, 2009 – ADA-ES, Inc. (NASDAQ:ADES) today announced financial results for the fourth quarter and year ended December 31, 2008. See attached tables.

For the 2008 fourth quarter, total revenues were $3.3 million as compared to $4.8 million in the fourth quarter of 2007, with the decline due to reduced revenues from DOE and industry-supported mercury programs. Gross margins for the final quarters of 2008 and 2007 were 26%. The Company reported a net loss for the fourth quarter of $3.6 million or $0.54 per diluted share compared to a breakeven fourth quarter in 2007.

As previously reported, ADA had approximately $3 million in aggregate non-cash charges taken in the fourth quarter of 2008. Of this amount:

 

   

$1.6 million relates to a goodwill impairment of its flue gas conditioning operations;

 

   

$1.2 million relates to the development of our Activated Carbon (“AC”) production and processing facilities; and

 

   

$170,000 is related to accelerated vesting of stock options.

For 2008, total revenues were $16.2 million as compared to $19.2 million in the prior year. Gross margin increased to 33%, compared to 31% for 2007 due to the new and improved design of ADA’s ACI equipment that simplifies field installation and reduces system costs. ADA reported an operating loss of $6.7 million in 2008 compared to $777,000 in 2007. The increase was primarily due to the aforementioned $3.0 million of non-cash charges as well as continued activities related to ADA’s growth strategies and its plans to vertically integrate into the production and supply of AC. Cash flow used by operations in 2008 was $4.4 million as compared to cash flow provided by operations of $1.6 million in 2007.

Dr. Michael D. Durham, President and CEO of ADA-ES stated, “In 2008, we achieved major milestones on several business fronts related to advancing our clean coal technology business objectives which encompass mercury emissions control and CO2 capture for coal-fired power plants. These include:

 

   

We began construction of an AC manufacturing plant in Red River Parish, Louisiana in August. We are currently on schedule and budget to begin partial operation in the second quarter of 2010 and be fully operational by the end of the third quarter of 2010.

 

   

Signed multi-year, off-take contracts to supply AC to major utilities, with an aggregate value in excess of $160 million, representing approximately 32% of the plant’s planned capacity.

 

   

Commenced construction of a 30,000 sq. ft. Greenfield facility in Natchitoches Parish, Louisiana to process up to 8,000 lbs/hour of powdered AC. This interim facility will serve as a materials processing and storage site as well as a loading and transfer center for truck trailers, rail cars and barge. This site will begin delivering AC to customers in the second quarter of 2009.


ADA-ES News Release

March 25, 2009

   - 2 -

 

   

Signed 7 ACI System contracts in 2008 and 3 thus far in 2009, bringing the total number of ACI systems sold or installed by ADA to 39. The uncompleted portion of outstanding contracts at 12/31/08 amounts to $6.9 million in gross revenue, of which we expect to realize approximately $5.9 million in 2009 and the rest in 2010.

 

   

Started work on the DOE project to develop clean coal technology that will capture carbon dioxide from coal-fired power plants. ADA is the prime contractor for the $3.2 million project.”

Dr. Durham continued, “With regard to the final point, the newly enacted American Recovery and Reinvestment Act allocated $3.4 billion for carbon capture and storage. Although ADA currently has funding from DOE and power generators to support testing of our solid sorbent-based carbon capture technology, funding on the order of $50 to $100 million will be required to perform a scale-up of the technology. We expect that funding for larger-scale demonstrations of our technology will soon be made available from the stimulus bill through competitive DOE procurement activity.”

Dr. Durham noted, “In February 2009, the EPA withdrew its appeal of the CAMR ruling, and is moving forward on a stringent maximum achievable control technology (“MACT”) regulation for mercury. Such activity by EPA as well as bills expected to be introduced in Congress should help reduce some of the uncertainty that has slowed procurement activities by our customers. A strict Federal mercury rule is expected to further expand the market for ACI systems by several hundred systems and result in a market for activated carbon in excess of a billion dollars per year.”

He continued, “We closed the year with working capital of $18.6 million, no long-term debt and shareholders’ equity of over $31 million.”

Dr. Durham concluded, “We continue to stay focused on investing in our infrastructure to meet the rapidly growing market demand in mercury emission control. Through ADA Carbon Solutions, we are currently providing AC to customers on a continuous basis from our processing facility and are ahead of schedule on construction of our approximately 150 million pound per year AC manufacturing plant. We are continuing to compete on close to $500 million in RFPs for AC. With regulatory deadlines approaching, we expect that new contracts will be awarded over the next several months.”

EXCERPTS ON THIS PAGE:

8-K
Mar 25, 2009
8-K
Mar 25, 2009

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