Breaking News

French Planes Carry Out First Strikes on Iraq Islamic State Targets
Tweet TWEET

ADA-ES Announces First Quarter 2013 Results

ADA-ES Announces First Quarter 2013 Results

HIGHLANDS RANCH, Colo., May 8, 2013 (GLOBE NEWSWIRE) -- ADA-ES, Inc.
(Nasdaq:ADES) ("ADA") today announced financial results for the first quarter
ended March 31, 2013.

OVERVIEW OF 2013 FIRST QUARTER RESULTS

  *Refined Coal ("RC") revenues from payments related to our leased and sold
    RC facilities were up 127% from the first quarter of 2012 and up 25% from
    the fourth quarter of 2012. In the quarter, RC facilities operated by
    ADA's joint venture Clean Coal Solutions, LLC ("Clean Coal") generated
    $12.6 million in credits to be used to offset future taxes (ADA owns 42.5%
    of Clean Coal).
  *Emission Control ("EC") revenues were up more than threefold from the
    first quarter of 2012 and double the amount from the fourth quarter of
    2012. EC backlog as of March 31, 2013 increased to $32.7 million, up from
    $25.3 million at December 31, 2012 and $4.6 million at March 31, 2012.
  *Cash and cash equivalents increased to $22 million, up from $9.7 million
    at December 31, 2012.
  *Successfully tested our M-45-PC ^TM technology at four power plants.
  *Consolidated gross margin of $9.7 million, or 14% of revenues compared to
    $4 million or 22% of revenue in 2012. The lower margin percentage in the
    first quarter of 2013 is due to the inclusion of coal purchases and sales
    and operating costs associated with RC facilities operated for Clean
    Coal's own account ("retained tons").
  *For the first quarter of 2013, our net loss was $2.2 million or $0.22 per
    diluted share as compared to a net loss of $2.4 million or $0.24 per
    diluted share for first quarter of 2012.

FIRST QUARTER OPERATIONAL ACHIEVEMENTS, OVERVIEW OF SEGMENTS & OUTLOOK

Dr. Michael D. Durham, President and CEO of ADA stated, "In the first quarter
we saw continued success in both our major business areas, Refined Coal and
Emission Control. We will maintain focus on executing on opportunities that we
expect will create significant revenue growth and cash flows for the Company
over the next months and coming years. We are positioning ourselves for
continued long-term success and are developing technologies for expected
future markets.

In the first quarter, we achieved a number of important milestones that will
serve as the foundation for our growth in 2013 and beyond. Clean Coal, ADA's
joint venture with NexGen Resources Corporation and an affiliate of The
Goldman Sachs Group, closed on the sale of an RC facility at a plant that
annually burns about 4 million tons of coal per year. This transaction also
brought $20 million in upfront payments to Clean Coal, with another $5 million
to be paid upon receipt of a Private Letter Ruling from the IRS. We also
completed contracts to restructure our agreements on our RC facilities with an
affiliate of Goldman Sachs and also successfully tested our M-45-PC ^TM
technology at four power plants. In the Emission Control segment we have won
additional significant projects. We look forward to continued success
throughout 2013 and beyond."

Refined Coal

Total RC revenues in the first quarter of 2013 were $58.1 million including
$12.2 million in revenues from lease and sale of five RC facilities and $45
million related to the resale of coal for RC facilities operated by Clean
Coal.Gross margin for the segment was $6.7 million or 10% of total revenues
for the first quarter of 2013 compared to $3.1 million and 17% in the first
quarter of 2012 reflecting the higher tonnage treated by RC facilities
retained by Clean Coal. Commenting on the outlook for Refined Coal, Dr. Durham
noted, "We are pleased to have closed with an RC investor for a fifth facility
and we expect annual revenues of more than $50 million per year from these
five facilities alone. We continue to expect to close two more facilities in
the coming months as well as a number of additional RC facilities throughout
this year and into 2014."

Emission Control

EC revenues in the first quarter of 2013 were $8.8 million, up more than
threefold from a year ago due mainly to increased equipment and consulting
revenues as the market for the Mercury and Air Toxics Standards ("MATS") rule
is well underway.

Dr. Durham noted, "The market for equipment to meet the federal MATS rules is
accelerating and evolving as we expected. ADA has taken a number of steps to
prepare for this market, and we are pleased with the success to date in this
competitive commercial market. Last week we announced that we recently
received additional awards and letters of intent to award for approximately
$30 million in ACI and DSI systems from multiple utilities.Since the MATS
market commenced in 2011, ADA has won or received letters of intent to award
contracts currently valued at approximately $75 million for DSI and ACI
systems.We are currently working on bids or discussing potential projects for
ACI and DSI systems in excess of $180 million.

CO2 Capture

CO2 Capture revenues in the first quarter of 2013 increased to $1.4 million
due to the timing of scheduled activities. As of March 31, 2013, ADA had DOE
contracts in progress, including anticipated industry cost share, totaling
approximately $11.3 million.The Company expects to recognize approximately
$8.3 million from these contracts in the remainder of 2013 and the balance
through 2014.

Dr. Durham went on to say, "ADA's work continues on a $20.5 million program
supporting the development of our re-generable solid-sorbent technology to
capture carbon dioxide from coal-fired power plants and industrial sources. We
have initiated the fabrication and construction phase of a 1 megawatt Carbon
Dioxide ("CO2") Capture Pilot Plant with testing scheduled for early 2014.We
are also evaluating alternative applications for the carbon capture technology
that could have market potential ahead of regulations on power plants such as
enhanced oil recovery."

BALANCE SHEET HIGHLIGHTS

As of March 31, 2013, cash and cash equivalents totaled $21.9 million versus
$9.7 million at year-end 2012. The increase in cash was primarily due to the
upfront payment as part of the closing of the sale of an RC facility and lower
retained RC tonnage in the current quarter compared to the fourth quarter of
2012.

Conference Call

Management will conduct a conference call focusing on the financial results
and recent developments at 5:00 PM ET on Wednesday, May 8, 2013. Interested
parties may participate in the call by dialing (877) 709-8150 (Domestic) or
(201) 689-8354 (International). Please call in 10 minutes before the call is
scheduled to begin, and ask for the ADES call. The conference call will also
be webcast live via the Investor Information section of ADA's website at
www.adaes.com. To listen to the live call please go to the website at least 15
minutes early to register and download and install any necessary audio
software. If you are unable to listen live, the conference call will be
archived on the website.

About ADA

ADA is a leader in clean coal technology and the associated specialty
chemicals, serving the coal-fueled power plant industry. Our proprietary
environmental technologies and specialty chemicals enable power plants to
enhance existing air pollution control equipment, minimize mercury, CO2and
other emissions, maximize capacity, and improve operating efficiencies, to
meet the challenges of existing and pending emission control regulations.

With respect to mercury emissions:

  *Through our consolidated subsidiary, Clean Coal Solutions, LLC ("Clean
    Coal"), we provide our patented Refined Coal ("RC") CyClean™ technology to
    enhance combustion of and reduce emissions of NOx and mercury from coals
    in cyclone boilers and our patent pending M-45™ and M-45-PC™ technologies
    for Circulating Fluidized Boilers and Pulverized Coal boilers
    respectively.
  *We supply Activated Carbon Injection ("ACI") and Dry Sorbent Injection
    ("DSI") systems, mercury measurement instrumentation, and related
    services.
  *Under an exclusive development and licensing agreement with Arch Coal, we
    are developing and commercializing an "enhanced coal" technology, which we
    market under the name "M-Prove, ™" that reduces emissions of mercury and
    other metals.

In addition, we are developing CO[2] emissions technologies under projects
funded by the U.S. Department of Energy ("DOE") and industry participants.

Cautions Concerning Forward-looking Statements

This press release contains, and the conference call referenced in this press
release will include 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, but are not limited to, statements or expectations regarding future
revenues and cash flows, growth of our RC business, timing of the closing of
contracts for the lease or sale of RC facilities, future markets and contracts
for ACI and DSI systems, future market share 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, government funding, economic conditions and
market demand; timing of laws, regulations and any legal challenges to or
repeal of them;failure of the RC facilities to produce coal that qualifies
for tax credits; termination of or amendments to the contracts for RC
facilities; decreases in the production of RC; failure to lease or sell the
remaining RC facilities on a timely basis; our inability to ramp up operations
to effectively address expected growth in our target markets; inability to
commercialize our technologies on favorable terms; impact of competition;
availability, cost of and demand for alternative tax credit vehicles and other
technologies; technical, start-up and operational difficulties; availability
of raw materials and equipment; loss of key personnel; intellectual property
infringement claims from third parties; and other factors discussed in greater
detail in our filings with the Securities and Exchange Commission (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.


ADA-ES, Inc. and Subsidiaries
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)                                                                
                                                   For the Quarter Ended
                                                   March 31,
                                                   2013        2012
Revenues                                                       
Refined coal                                        $58,123   $15,174
Emission control                                    8,769      2,764
CO[2] capture                                       1,422       282
Total revenues                                      68,314     18,220
                                                              
Cost of Revenues                                               
Refined coal                                        51,469     12,043
Emission control                                    6,253      2,068
CO[2] capture                                       848        117
Total cost of revenues                              58,570     14,228
                                                              
Gross Margin before Depreciation and Amortization   9,744      3,992
                                                              
Other Costs and Expenses                                       
General and administrative                          7,313      3,639
Research and development                           703        564
Depreciation and amortization                       1,422      1,024
Total expenses                                      9,438      5,227
                                                              
Operating Income (Loss)                             306        (1,235)
                                                              
Other Income (Expense)                                         
Net equity in net income from unconsolidated entity 323        36
Other income including interest                     70         99
Interest expense                                    (383)      (470)
Settlement of litigation and arbitration award, net (673)      (284)
Total other income (expense)                        (663)      (619)
                                                              
Loss from Continuing Operations Before Income Taxes (357)      (1,854)
and Non-controlling Interest
                                                              
Income Taxes                                        --        --
                                                              
Net Loss Before Non-controlling Interest            (357)      (1,854)
                                                              
Non-controlling Interest                            (1,812)    (566)
                                                              
Net Loss Attributable to ADA-ES, Inc.               $(2,169)  $(2,420)
                                                              
Net Loss Per Common Share – Basic and Diluted       $(0.22)   $(0.24)
Attributable to ADA-ES, Inc.
                                                              
Weighted Average Common Shares Outstanding          10,050     9,999
                                                              
Weighted Average Diluted Common Shares Outstanding 10,050     9,999
                                                              
See accompanying notes to the Company's Form 10-Q.                         


ADA-ES, Inc. and Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except share data)
                                                     March 31,  December 31,
                                                     2013        2012
                                                     (Unaudited) 
ASSETS
Current Assets                                                   
Cash and cash equivalents                             $21,945   $9,737
Receivables, net of allowance for doubtful accounts   15,659     11,025
Investment in securities                              2,634      1,641
Prepaid expenses and other assets                     2,119       2,888
Total current assets                                  42,357     25,291
                                                                
Property and Equipment, at cost                      54,318     53,542
Less accumulated depreciation and amortization       (10,337)   (8,931)
Net property and equipment                            43,981     44,611
                                                                
Investment in unconsolidated entity                   2,173      1,850
Other assets                                          3,975      3,997
Total other assets                                    6,148      5,847
Total Assets                                          $92,486   $75,749
                                                                
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities                                              
Accounts payable                                      $8,964    $6,615
Accounts payable to related parties                   4,267      5,082
Accrued payroll and related liabilities               2,479      2,569
Line of credit                                       --        3,000
Current portion of notes payable                      564        559
Deposits                                              16,500     21,200
Deferred revenue and other liabilities                17,407     6,919
Settlement awards and related accrued liabilities     3,179      3,453
Total current liabilities                             53,360     49,397
                                                                
Long-term Liabilities                                            
Long-term portion of notes payable                    2,162      2,305
Settlement awards and indemnity liability             2,500      2,500
Deferred revenue                                      13,259     875
Accrued warranty and other liabilities                995        809
Total long-term liabilities                           18,916     6,489
Total Liabilities                                     72,276     55,886
                                                                
Commitments and Contingencies (Note 10)                          
                                                                
Temporary Equity - Non-controlling Interest Subject   60,000     60,000
to Possible Redemption
                                                                
Stockholders' Deficit                                            
ADA-ES, Inc. stockholders' deficit                               
Preferred stock: 50,000,000 shares authorized, none   --        --
outstanding
Common stock: no par value, 50,000,000 shares
authorized, 10,063,135and 10,028,269 shares issued    64,428     63,724
and outstanding, respectively
Accumulated deficit                                   (81,934)   (79,765)
Total ADA-ES, Inc. stockholders' deficit              (17,506)   (16,041)
Non-controlling interest                              (22,284)    (24,096)
Total Stockholders' Deficit                           (39,790)   (40,137)
Total Liabilities, Temporary Equity and Stockholders' $92,486   $75,749
Deficit
                                                                
See accompanying notes to the Company's Form 10-Q.              

CONTACT: Graham Mattison
         Vice President, Investor Relations
         (646) 319-1417
         graham.mattison@adaes.com
         www.adaes.com

company logo
 
Press spacebar to pause and continue. Press esc to stop.