Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Advanced Emissions Solutions, Inc. | ||
Entity Central Index Key | 0001515156 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 18,514,078 | ||
Entity Public Float | $ 181.9 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash, cash equivalents and restricted cash | $ 18,577 | $ 30,693 |
Receivables, net | 9,554 | 1,113 |
Receivables, related party | 4,284 | 3,247 |
Inventories | 21,791 | 74 |
Prepaid expenses and other assets | 5,570 | 1,761 |
Total current assets | 59,776 | 36,888 |
Restricted cash, long-term | 5,195 | 0 |
Property and equipment, net of accumulated depreciation of $1,499 and $1,486, respectively | 42,697 | 410 |
Intangible assets, net | 4,830 | 805 |
Equity method investments | 6,634 | 4,351 |
Deferred tax assets | 32,539 | 38,661 |
Other long-term assets | 7,993 | 1,503 |
Total Assets | 159,664 | 82,618 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 6,235 | 1,000 |
Accrued payroll and related liabilities | 8,279 | 1,384 |
Current portion of borrowings | 24,067 | 0 |
Other current liabilities | 2,138 | 4,494 |
Total current liabilities | 40,719 | 6,878 |
Long-term portion of borrowings | 50,058 | 0 |
Other long-term liabilities | 940 | 2,285 |
Total Liabilities | 91,717 | 9,163 |
Commitments and contingencies (Notes 7 and 8) | ||
Stockholders’ equity: | ||
Preferred stock: par value of $.001 per share, 50,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock: par value of $.001 per share, 100,000,000 shares authorized, 22,640,677 and 22,465,821 shares issued and 18,576,489 and 20,752,055 shares outstanding at December 31, 2018 and 2017, respectively | 23 | 22 |
Treasury stock, at cost: 4,064,188 and 1,713,766 shares as of December 31, 2018 and 2017, respectively | (41,740) | (16,397) |
Additional paid-in capital | 96,750 | 105,308 |
Retained earnings (accumulated deficit) | 12,914 | (15,478) |
Total stockholders’ equity | 67,947 | 73,455 |
Total Liabilities and Stockholders’ equity | $ 159,664 | $ 82,618 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization | $ 1,499 | $ 1,486 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 22,640,677 | 22,465,821 |
Common stock, shares outstanding (in shares) | 18,576,489 | 20,752,055 |
Treasury Stock (in shares) | 4,064,188 | 1,713,766 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||
Total revenues | $ 23,945 | $ 45,364 |
Operating expenses: | ||
Payroll and benefits | 10,639 | 7,669 |
Rent and occupancy | 1,141 | 795 |
Legal and professional fees | 8,230 | 4,354 |
General and administrative | 3,359 | 4,014 |
Depreciation, amortization, depletion, and accretion | 723 | 789 |
Total operating expenses | 30,345 | 49,506 |
Operating loss | (6,400) | (4,142) |
Other income (expense): | ||
Earnings from equity method investments | 54,208 | 53,843 |
Interest income | 239 | 54 |
Interest expense | (2,151) | (3,024) |
Litigation settlement and royalty indemnity expense, net | 0 | 3,269 |
Other | (19) | 2,025 |
Total other income | 52,277 | 56,167 |
Income before income tax expense | 45,877 | 52,025 |
Income tax expense | 10,423 | 24,152 |
Net income | $ 35,454 | $ 27,873 |
Earnings (loss) per common share: | ||
Basic (in dollars per share) | $ 1.78 | $ 1.30 |
Diluted (in dollars per share) | $ 1.76 | $ 1.29 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 19,901 | 21,367 |
Diluted (in shares) | 20,033 | 21,413 |
Cash dividends declared per common share outstanding (in dollars per share) | $ 1 | $ 0.75 |
Consumables | ||
Revenues: | ||
Total revenues | $ 8,733 | $ 4,246 |
Operating expenses: | ||
Cost of revenue | 6,606 | 3,434 |
License royalties, related party | ||
Revenues: | ||
Total revenues | 15,140 | 9,672 |
Equipment sales | ||
Revenues: | ||
Total revenues | 72 | 31,446 |
Operating expenses: | ||
Cost of revenue | $ (353) | $ 28,451 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings/(Accumulated Deficit) |
Beginning Balances (in shares) at Dec. 31, 2016 | 22,322,022 | 0 | |||
Beginning Balances at Dec. 31, 2016 | $ 76,165 | $ 22 | $ 0 | $ 119,494 | $ (43,351) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 199,734 | ||||
Stock-based compensation | 2,209 | 2,209 | |||
Repurchase of shares to satisfy tax withholdings (in shares) | (55,935) | ||||
Repurchase of shares to satisfy tax withholdings | (566) | $ (3,400) | (566) | ||
Dividends declared on common stock | (15,829) | (15,829) | |||
Repurchase of common shares (in hares) | (1,713,766) | ||||
Repurchase of common shares | (16,397) | $ (16,397) | |||
Net income | 27,873 | 27,873 | |||
Ending Balances (in shares) at Dec. 31, 2017 | 22,465,821 | (1,713,766) | |||
Ending Balances at Dec. 31, 2017 | 73,455 | $ 22 | $ (16,397) | 105,308 | (15,478) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of change in accounting principle (Note 6) | 2,950 | 2,950 | |||
Stock-based compensation (in shares) | 217,174 | ||||
Stock-based compensation | 2,490 | $ 1 | 2,489 | ||
Issuance of stock upon exercise of options, net (in shares) | 18,667 | ||||
Issuance of stock upon exercise of options, net | 0 | ||||
Repurchase of shares to satisfy tax withholdings (in shares) | (60,985) | ||||
Repurchase of shares to satisfy tax withholdings | (769) | $ (25,300) | (769) | ||
Dividends declared on common stock | (20,290) | (10,278) | (10,012) | ||
Repurchase of common shares (in hares) | (2,350,422) | ||||
Repurchase of common shares | (25,343) | $ (25,343) | |||
Net income | 35,454 | 35,454 | |||
Ending Balances (in shares) at Dec. 31, 2018 | 22,640,677 | (4,064,188) | |||
Ending Balances at Dec. 31, 2018 | $ 67,947 | $ 23 | $ (41,740) | $ 96,750 | $ 12,914 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 35,454 | $ 27,873 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Increase (decrease) in valuation allowance on deferred tax assets | 4,462 | (474) |
Depreciation, amortization, depletion, and accretion | 723 | 789 |
Amortization of debt issuance costs | 94 | 109 |
Provision for accounts receivable and other receivables | 153 | 385 |
Share-based compensation expense, net | 2,490 | 2,209 |
Earnings from equity method investments | (54,208) | (53,843) |
Other non-cash items, net | 136 | 508 |
Changes in operating assets and liabilities, net of effects of acquired businesses: | ||
Receivables | (1,847) | 6,743 |
Related party receivables | (1,037) | (1,313) |
Prepaid expenses and other assets | (757) | (351) |
Costs incurred on uncompleted contracts | 15,945 | 27,048 |
Inventories | 237 | 0 |
Deferred tax asset, net | 771 | 23,208 |
Other long-term assets | (753) | 41 |
Accounts payable | (197) | (920) |
Accrued payroll and related liabilities | (59) | (738) |
Other current liabilities | (869) | (1,586) |
Billings on uncompleted contracts | (15,945) | (30,140) |
Other long-term liabilities | (182) | 154 |
Legal settlements and accruals | 0 | (16,088) |
Distributions from equity method investees, return on investment | 5,500 | 4,638 |
Net cash used in operating activities | (9,889) | (11,748) |
Cash flows from investing activities | ||
Distributions from equity method investees in excess of cumulative earnings | 47,175 | 48,875 |
Acquisition of business, net of cash acquired | (62,501) | 0 |
Acquisition of property, equipment, and intangible assets, net | (467) | (428) |
Purchase of and contributions to equity method investee | (750) | (61) |
Net cash (used in) provided by investing activities | (16,543) | 48,386 |
Cash flows from financing activities | ||
Borrowings, net of debt discount - related party | 67,900 | 0 |
Debt issuance costs paid | (2,036) | 0 |
Dividends paid | (20,165) | (15,690) |
Repurchase of common shares | (25,343) | (16,397) |
Repurchase of shares to satisfy tax withholdings | (769) | (566) |
Borrowings on Line of Credit | 0 | 808 |
Repayments on Line of Credit | 0 | (808) |
Short-term borrowing loan costs | 0 | (236) |
Other | (76) | 0 |
Net cash provided by (used in) financing activities | 19,511 | (32,889) |
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (6,921) | 3,749 |
Cash, Cash Equivalents and Restricted Cash, beginning of year | 30,693 | 26,944 |
Cash, Cash Equivalents and Restricted Cash, end of year | 23,772 | 30,693 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,400 | 3,644 |
Cash paid for income taxes, net of refunds received | 7,460 | 1,672 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Acquisition consideration payable | 661 | 0 |
Dividends payable | $ 125 | $ 139 |
Summary of Operations and Signi
Summary of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Operations and Significant Accounting Policies | Summary of Operations and Significant Accounting Policies Nature of Operations Advanced Emissions Solutions, Inc. ("ADES" or the "Company") is a Delaware corporation with its principal office located in Highlands Ranch, Colorado and operations located in Louisiana. The Company is principally engaged in consumable mercury control options including powdered activated carbon (“PAC”) and chemical technologies. The Company's proprietary environmental technologies in the power generation and industrial ("PGI") market enable customers to reduce emissions of mercury and other pollutants, maximize utilization levels and improve operating efficiencies to meet the challenges of existing and pending emission control regulations. The Company generates substantial earnings and tax credits under Section 45 ("Section 45 tax credits") of the Internal Revenue Code ("IRC") from its equity investments in certain entities and earns royalties for technologies that are licensed to Tinuum Group, LLC, a Colorado limited liability company ("Tinuum Group"). Such technologies allow Tinuum Group to provide their customers with various solutions to enhance combustion and reduced emissions of nitrogen oxide ("NO x ") and mercury from coal burned to generate electrical power. The Company’s sales occur principally throughout the United States. See Note 14 for additional information regarding the Company's operating segments. On December 7, 2018 (the "Acquisition Date"), the Company acquired (the "Carbon Solutions Acquisition") 100% of the equity interests of ADA Carbon Solutions, LLC (“Carbon Solutions”). Carbon Solutions is a manufacturer and seller of activated carbon ("AC") and the North American leader in mercury capture using PAC for the coal-fired power plant, industrial and water treatment markets. Carbon Solutions also owns an associated lignite mine that supplies the raw material for the powdered activated carbon plant. Carbon Solutions was formed in 2008 as a 50/50 joint venture by the Company and Energy Capital Partners LLC. The Company relinquished its ownership in 2011 as part of a legal settlement agreement as described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The Company acquired Carbon Solutions primarily to expand the Company's product offerings within the mercury control industry and other complimentary AC markets. Principles of Consolidation The Consolidated Financial Statements include accounts of wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. All investments in partially owned entities for which the Company has greater-than-20% ownership are accounted for using the equity method based on the legal form of the Company's ownership percentage and the applicable ownership percentage of the entity and are included in the Equity method investments line item in the Consolidated Balance Sheets . As of December 31, 2018 , the Company holds equity interests of 42.5% and 50.0% in Tinuum Group and Tinuum Services, LLC ("Tinuum Services"), respectively. Tinuum Group is deemed to be variable interest entity ("VIE") under the VIE model of consolidation, but the Company does not consolidate Tinuum Group as it is not deemed to be its primary beneficiary. Cash, cash equivalents and restricted cash Cash, cash equivalents include bank deposits and other highly liquid investments purchased with an original maturity of three months or less. As of December 31, 2018 , restricted cash primarily consisted of minimum cash balance requirements under the Term Loan and Security Agreement (the "Senior Term Loan") and is classified according to the period at which it will no longer be restricted. As of December 31, 2017 , all cash and cash equivalents were unrestricted and all cash requirements for contractual performance guarantees and payments were satisfied under the borrowing availability of the 2013 Loan and Security Agreement (the "Line of Credit"). Inventories Inventories are stated at the lower of average cost or net realizable value and consist principally of raw materials and finished goods related to the Company's PAC and chemical product offerings. The cost of inventory is determined using the average cost method. Inventory acquired was measured at fair value as of the Acquisition Date. Inventories are periodically reviewed for both potential obsolescence and potential declines in anticipated selling prices. In this review, the Company makes assumptions about the future demand for and market value of the inventory, and based on these assumptions estimates the amount of any obsolete, unmarketable, slow moving or overvalued inventory. The Company will write down the value of inventories by an amount equal to the difference between the cost of the inventory and its estimated net realizable value. Additional details regarding Inventory balances are included in Note 3 . Intangible Assets Intangible assets consist of patents, licensed technology, customer relationships, developed technologies and trade names. The Company has developed technologies resulting in patents being granted by the U.S. Patent and Trademark Office. Legal costs associated with securing the patent are capitalized and amortized over the legal or useful life beginning on the patent filing date. The remaining intangible assets were recorded at fair value in connection with the Carbon Solutions Acquisition. The following table details the components of the Company's intangible assets: As of December 31, 2018 2017 (in thousands, except years) Weighted average amortization (in years) Initial Cost Net of Accumulated Amortization Initial Cost Net of Accumulated Amortization Customer relationships 5 $ 2,100 $ 2,071 $ — $ — Patents 16 1,244 891 1,079 805 Developed technology 5 1,600 1,578 — — Trade name 2 300 290 — — Total $ 5,244 $ 4,830 $ 1,079 $ 805 Included in the Consolidated Statements of Operations is amortization expense related to intangible assets of $0.2 million and $0.1 million for the years ended December 31, 2018 and 2017 , respectively. The estimated future amortization expense for existing intangible assets as of December 31, 2018 is expected to be $0.9 million for each of the five succeeding fiscal years. Investments The investments in entities in which the Company does not have a controlling interest (financial or operating), but where it has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and the Company's ownership level. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s Consolidated Balance Sheets and Consolidated Statements of Operations ; however, the Company’s share of the earnings or losses of the investee company is reported in the Earnings from equity method investments line item in the Consolidated Statements of Operations , and the Company’s carrying value in an equity method investee company is reported in the Equity method investments line in the Consolidated Balance Sheets . When the Company receives distributions in excess of the carrying value of the investment and has not guaranteed any obligations of the investee, nor is it required to provide additional funding to the investee, the Company recognizes such excess distributions as equity method earnings in the period the distributions occur. When the investee subsequently reports income, the Company does not record its share of such income until it equals the amount of distributions in excess of carrying value that were previously recognized in income. During the years ended December 31, 2018 and 2017 , the Company had no guarantees or requirements to provide additional funding to investees. Additionally, when the Company's carrying value in an equity method investment is zero and the Company has not guaranteed any obligations of the investee, nor is it required to provide additional funding to the investee, the Company will not recognize its share of any reported losses by the investee until future earnings are generated to offset previously unrecognized losses. As a result, equity income or loss reported on the Company's Consolidated Statements of Operations for certain equity method investees may differ from a mathematical calculation of net income or loss attributable to its equity interest based upon the percentage ownership of the Company's equity interest and the net income or loss attributable to equity owners as shown on the investee company's statements of operations. Likewise, distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” within Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” within Investing cash flows. See Note 5 for additional information regarding the Company's equity method investments. Investments in partially-owned subsidiaries for which the Company has less-than-20% ownership are accounted for in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") applicable to equity investments that do not qualify for the equity method of accounting. The Company evaluates these types of investments for changes in fair value and, if there is change, recognizes the change in the Consolidated Statement of Operations. If no such events or changes in circumstances have occurred related to these types of investments, the fair value is estimated only if practicable to do so. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and includes leasehold improvements. Depreciation on assets is computed using the straight-line method over the lesser of the estimated useful lives of the related assets or the lease term (ranging from 1 to 31 years). Maintenance and repairs that do not extend the useful life of the respective asset are charged to Operating expenses as incurred. When assets are retired, or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation and any resulting gain or loss is credited or charged to income. The Company performs an evaluation of the recoverability of the carrying value of its property, plant and equipment to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Amortization of capital leased assets is included in depreciation expense and is calculated using the straight-line method over the term of the lease. Other Assets Mine Development Costs Mine development costs are stated at cost less accumulated depletion and include acquisition costs, the cost of other development work and mitigation costs. Costs are amortized over the estimated life of the related mine reserves, which is 18 years. The Company performs an evaluation of the recoverability of the carrying value of mine development costs to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Mine development costs acquired in the Carbon Solutions Acquisition were measured at fair value as of the Acquisition Date. Mine development costs are reported in the "Other assets" line item on the Consolidated Balance Sheet. Spare Parts Spare parts include critical spares required to support plant operations. Parts and supply costs are determined using the lower of cost or estimated replacement cost. Parts are recorded as maintenance expenses in the period in which they are consumed. Spare parts acquired in the Carbon Solutions Acquisition were measured at fair value as of the Acquisition Date. Spare parts are reported in the "Other assets" line item on the Consolidated Balance Sheet. Revenue Recognition On January 1, 2018, the Company adopted ASC 606 - Revenue from Contracts with Customers ("ASC 606") using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of initially applying ASC 606 to the opening balance of the Accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See further discussion of the impact of the adoption of ASC 606 in Note 6 . Effective with the Acquisition Date, Carbon Solutions adopted ASC 606 using the modified retrospective method applied to those contracts that were not completed as of December 7, 2018. There was no impact to the consolidated financial statements of the Company upon Carbon Solutions’ adoption of ASC 606, except for a reclassification from revenues to cost of revenue for Carbon Solutions for freight costs billed to its customers in conjunction with product sales, which historically were recorded as revenues. This reclassification of freight costs billed to customers to cost of revenue results in an offset to Carbon Solutions' actual freight costs recorded in cost of revenue and has no impact to Carbon Solutions' operating results. This presentation is consistent with ADES' policy of reporting freight costs, net of freight costs billed to customers, under cost of revenue. ADES adopted this policy effective with its adoption of ASC 606 on January 1, 2018. The Company recognizes revenue from a contract with a customer when a performance obligation under the terms of a contract with a customer is satisfied, which is when the customer controls the promised goods or services that are transferred in satisfaction of the performance obligation. Revenue is measured as the amount of consideration that is expected to be received in exchange for transferring goods or providing services, and the transaction price is generally fixed and generally does not contain variable or noncash consideration. In addition, the Company’s contracts with customers generally do not contain customer refund or return provisions or other similar obligations. Transfer of control and satisfaction of performance obligations are further discussed in each of the revenue components listed below. The Company uses estimates and judgments in determining the nature and timing of satisfaction of performance obligations, the standalone selling price ("SSP") of performance obligations and the allocation of the transaction price to multiple performance obligations. The Company’s principal revenue components are Consumables sales and License royalties. Consumables Consumables are comprised of the sale of AC and chemicals for mercury capture for the coal-fired power plant, industrial and water treatment markets. Customer contracts for consumables are short duration and performance obligations generally do not extend beyond one year. Certain customer contracts for consumables are comprised of evaluation tests of the Company's consumables' effectiveness and efficiency in reducing emissions. These contracts entail the delivery of consumables to the customer and the Company's evaluation of results of emissions reduction over the term of the contract. Under these types of arrangements, which are generally for durations that are short term, the Company has determined that the customer is simultaneously receiving benefits of emissions reduction from the consumption of the consumables over the testing period and this represents a single performance obligation that is satisfied over time. This determination may require significant judgment. The Company recognizes revenue over time using an input model that is generally based on the cost of consumables used by the customer during the testing period. The use of an input model and the use of total costs as the measure of progress in the satisfaction of the performance obligations may require significant judgment. In addition, under these types of contracts, the Company has determined that the services performed and related costs incurred by the Company during the testing period represent costs to fulfill a contract. License royalties, related party The Company generates revenues from royalties ("M-45 Royalties") earned under a licensing arrangement ("M-45 License") of its M-45 TM and M-45-PC TM emissions control technologies ("M-45 Technology") between the Company and Tinuum Group. The Company recognizes M-45 Royalties at a point in time based on the use of the M-45 Technology at certain RC facilities or through Tinuum Group’s use of licensed technology for rates in excess of amounts allowed for RC application. The amount of M-45 Royalties recognized is generally based on a percentage of pre-tax margins (as defined in the M-45 License) of the RC facilities using the M-45 Technology. Equipment sales Prior to 2017, the Company entered into construction-type contracts that entailed the design and construction of emissions control systems ("extended equipment contracts"). Revenues from such extended equipment contracts were recorded using the percentage of completion, cost to cost method based on costs incurred to date compared with total estimated contract costs. However, if the Company did not have sufficient information to estimate either costs incurred or total estimated costs for extended equipment contracts at the time contracts were entered into, the completed contract method was used. Under the completed contract method, revenues and costs from extended equipment contracts are deferred and recognized when contract obligations are substantially complete. The Company defined substantially complete as delivery of equipment and start-up at the customer site or, as applicable to dry sorbent injection (“DSI”) systems contracts, the completion of any major warranty service period. Provisions for estimated losses on uncompleted contracts were recognized when it was determined that a loss was probable. For the year ended December 31, 2017, the Company did not have sufficient information to measure ongoing performance for its extended equipment contracts and accounted for these contracts under the completed contract method. For uncompleted contracts as of December 31, 2017, the Company reported deferred revenue and related costs in the Costs in excess of billings on uncompleted contracts or Billings in excess of costs on uncompleted contracts in the Consolidated Balance Sheets . Historically, the Company also entered into other non-extended equipment contracts for which the Company recognized revenues as services to build equipment systems were performed or as equipment was delivered. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations, which are comprised of the sale of chemicals, equipment and services performed as part of an emissions reduction arrangement. For such arrangements, the Company allocates revenue to each performance obligation based on its relative SSP. When a directly observable SSP for a performance obligation is not available, the Company primarily estimates SSPs based on the expected cost plus a margin method. These estimates as well as the timing of the satisfaction of performance obligations associated with the services component represent significant judgments made by the Company. These arrangements are generally short duration and performance obligations generally do not extend beyond one year. Contract Assets and Liabilities Contract assets are comprised of unbilled receivables and are included in Receivables, net in the Condensed Consolidated Balance Sheet. Unbilled receivables represent a conditional right to consideration in exchange for goods or services transferred to a customer. Trade receivables represent an unconditional right to consideration in exchange for goods or services transferred to a customer. The Company invoices its customers in accordance with the terms of the contract. Credit terms are generally net 30 from the date of invoice. The timing between the satisfaction of performance obligations and when payment is due from the customer is generally not significant. The Company records allowances for doubtful trade receivables when it is probable that the balances will not be collected. Bad debt expense is included within the General and administrative line item in the Consolidated Statements of Operations. Contract liabilities are comprised of deferred revenue, which represents an obligation to transfer goods or services to a customer for which the Company has received consideration from the customer and, if deliverable within one year or less, is included in Other current liabilities in the Condensed Consolidated Balance Sheet and, if deliverable outside of one year, is included in Other long-term liabilities in the Condensed Consolidated Balance Sheet. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Sales and other taxes that are collected concurrently with revenue-producing activities are excluded from revenue. The Company has elected to account for freight costs as activities to fulfill the promise to transfer the goods, and therefore these activities are also not assessed as a separate service to customers. The Company accounts for all shipping and handling activities that occur after control of the related good transfers as fulfillment activities. These activities are included in Cost of Revenue line items of the Condensed Consolidated Statement of Operations. The Company generally expenses sales commissions when incurred because the amortization period of the asset that the Company would have recognized is one year or less. These costs are recorded within sales and marketing expenses within the General and administrative line item of the Condensed Consolidated Statement of Operations. Cost of Revenue Costs of revenue include all labor, fringe benefits, subcontract labor, additive and coal costs, materials, equipment, supplies, travel costs and any other costs and expenses directly related to the Company’s production of revenues. The Company records estimated contract losses, if any, in the period they are determined. Payroll and Benefits Payroll and benefits costs include direct payroll, personnel related fringe benefits, sales and administrative staff labor costs and stock compensation expense. Payroll and benefits costs exclude direct labor included in Cost of revenue. Rent and Occupancy Rent and occupancy costs include rent, insurance and other occupancy-related expenses. Legal and Professional Legal and professional costs include external legal, audit and consulting expenses. General and Administrative General and administrative costs include director fees and expenses, bad debt expense, impairments and other general costs of conducting business. Research and development costs, net of reimbursements from cost-sharing arrangements, are charged to expense in the period incurred and are reported in the General and administrative line item in the Consolidated Statements of Operations . Asset Retirement Obligations Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The estimated reclamation obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at the mine site in accordance with ASC guidance for asset retirement obligations. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The Company recognizes deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest expense due to the Company's share of Tinuum Group's equity method earnings for Refined Coal ("RC") facilities, in which the lease income or sale is treated as installment sales for tax purposes. IRS section 453A requires taxpayers using the installment method to pay an interest charge on the portion of the tax liability that is deferred under the installment method. The Company recognizes IRS section 453A interest ("453A interest") and other interest and penalties related to unrecognized tax benefits in the Interest expense line item in the Consolidated Statements of Operations . Stock-Based Compensation Stock-based compensation expense is measured at the grant date based on the estimated fair value of the stock-based award and is generally expensed on a straight-line basis over the requisite service period and/or performance period of the award. Forfeitures are recognized when incurred. These costs are recorded in the Payroll and benefits or General and administrative , for director related expense, line items in the Consolidated Statements of Operations . Dividends When a sufficient amount of available earnings exists at the time of declaration, dividends are charged as a reduction to Retained earnings in the Consolidated Balance Sheets when declared. If sufficient Retained earnings is not available, dividends declared are charged as a reduction to Additional paid-in capital in the Consolidated Balance Sheets . Earnings (Loss) Per Share Basic earnings (loss) per share is computed using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for common stock and any participating securities according to dividend and participating rights in undistributed earnings. The Company's restricted stock awards ("RSA's") granted prior to December 31, 2016 contain non-forfeitable rights to dividends or dividend equivalents and are deemed to be participating securities. RSA's granted subsequent to December 31, 2016 do not contain non-forfeitable rights to dividends and are not deemed to be participating securities. Under the two-class method, net income (loss) for the period is allocated between common stockholders and the holders of the participating securities based on the weighted-average of common shares outstanding during the period, excluding participating, unvested RSA's ("common shares"), and the weighted-average number of participating, unvested RSA's outstanding during the period, respectively. The allocated, undistributed income for the period is then divided by the weighted-average number of common shares and participating, unvested RSA's outstanding during the period to determine basic earnings per common share and participating security for the period, respectively. Pursuant to U.S. GAAP, the Company has elected not to separately present basic or diluted earnings per share attributable to participating securities in the Consolidated Statements of Operations. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share, while considering other potentially dilutive securities. Potentially dilutive securities consist of both unvested, participating and non-participating RSA's, as well as outstanding options to purchase common stock ("Stock Options") and contingent performance stock units ("PSU's") (collectively, "Potential dilutive shares"). The dilutive effect, if any, for non-participating RSA's, Stock Options and PSU's is determined using the greater of dilution as calculated under the treasury stock method or the two-class method. Potential dilutive shares are excluded from diluted earnings (loss) per share when their effect is anti-dilutive. When there is a net loss for a period, all Potential dilutive shares are anti-dilutive and are excluded from the calculation of diluted loss per share for that period. Each PSU represents a contingent right to receive shares of the Company’s common stock, and the number of shares may range from zero to two times the number of PSU's granted on the award date depending upon the price performance of the Company's common stock as measured against a general index and a specific peer group index over requisite performance periods. The number of Potential dilutive shares related to PSU's is based on the number of shares of the Company's common stock, if any, that would be issuable at the end of the respective reporting period, assuming that the end of the reporting period is the end of the contingency period applicable to such PSU's. See Note 10 for additional information related to PSU's. The following table sets forth the calculations of basic and diluted earnings (loss) per common share: Years Ended December 31, (in thousands, except per share amounts) 2018 2017 Net income $ 35,454 $ 27,873 Less: Dividends and undistributed income allocated to participating securities 112 171 Income attributable to common stockholders $ 35,342 $ 27,702 Basic weighted-average number of common shares outstanding 19,901 21,367 Add: dilutive effect of equity instruments 132 46 Diluted weighted-average shares outstanding 20,033 21,413 Earnings per share - basic $ 1.78 $ 1.30 Earnings per share - diluted $ 1.76 $ 1.29 For the years ended December 31, 2018 and 2017 , options to purchase 0.3 million and 0.3 million shares of common stock for each of the years presented were outstanding, however were not included in the computation of diluted net income per share because the exercise price exceeded the average price of the underlying shares and the effect would have been anti-dilutive. For the years ended December 31, 2018 and 2017 , options to purchase of zero and 0.2 million shares of common stock, respectively, which vest based on the Company achieving specified performance targets, were outstanding, but not included in the computation of diluted net income per share because they were determined not to be contingently issuable. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. The Company makes assumptions on the following significant financial statement components including: • business combinations; • the carrying value of its long-lived assets; • stock compensation costs; • asset retirement obligation; and • income taxes, including the valuation allowance for deferred tax assets and uncertain tax positions. Risks and Uncertainties The Company’s earnings are significantly affected by equity earnings it receives from Tinuum Group. Tinuum Group has 19 invested RC facilities of |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition As described in Note 1 , on the Acquisition Date, the Company completed the Carbon Solutions Acquisition for a total purchase price of $75.0 million (the "Purchase Price"). The results of Carbon Solutions have been included in the Company’s consolidated financial statements since the Acquisition Date. The fair value of the purchase consideration totaled $66.5 million and consisted of cash of $65.8 million and an additional purchase adjustment amount payable to Carbon Solutions' secured lender of $0.7 million , which was paid in March 2019. The Purchase Price was adjusted by assumed debt and contractual commitments of $11.8 million , and less cash acquired of $3.3 million . The Company also paid $4.5 million in acquisition-related costs (or transaction costs) during the year ended December 31, 2018 that are included in Legal and professional fees line item in the Consolidated Statement of Operations. The Company funded the cash consideration from cash on hand and the proceeds from the Senior Term Loan in the principal amount of $70.0 million , as more fully described in Note 7 . The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the Acquisition Date: Fair value of assets acquired: Purchase Price Allocation Cash $ 3,284 Receivables 6,409 Inventories 22,100 Prepaid expenses and other current assets 2,992 Spare parts 3,359 Property, plant and equipment 43,033 Mine leases and development 2,500 Intangible assets 4,000 Other assets 168 Amount attributable to assets acquired 87,845 Fair value of liabilities assumed: Accounts payable 4,771 Accrued liabilities 7,354 Equipment leases payable 8,211 Mine reclamation liability 626 Other liabilities 437 Amount attributable to liabilities assumed 21,399 Net assets acquired $ 66,446 The following table represents the intangible assets identified as part of the Carbon Solutions Acquisition: (in thousands) Amount Weighted Average Useful Life (years) Customer relationships $ 2,100 5 Developed technology 1,600 5 Trade name 300 2 Total intangibles acquired $ 4,000 The amounts of revenues and income before income taxes for the period from the Acquisition Date to December 31, 2018 for Carbon Solutions are as follows: (in thousands) Year ended December 31, 2018 Revenues $ 5,580 Net loss $ (391 ) Unaudited Pro Forma Financial Information The following represents the pro forma effects of the Carbon Solutions Acquisition as if it had occurred on January 1, 2017. The pro forma pre-tax income for each of the two years presented has been calculated after applying the Company’s accounting policies in effect for those years. In addition, pro forma net income for each of the two years presented includes: (1) the impact on Carbon Solutions of the adoption of ASC 606 effective January 1, 2018, which resulted in a reclassification of $5.9 million from Revenues to Cost of Revenue for freight costs billed to customers, with no impact to income from operations; (2) the reduction in depletion, depreciation and amortization resulting from the purchase price adjustments to Property, plant and equipment and Mine development costs; (3) the adjustment to interest expense from the combination of the Senior Term Loan that was used to fund the Carbon Solutions Acquisition and the elimination of certain debt of Carbon Solutions as a result of pay-offs by the Company as of the Acquisition Date; and (4) the removal of $9.7 million and $0.9 million in transaction costs incurred in 2018 and 2017, respectively, together with the income tax effect on (1) through (4). The pro forma results do not include any anticipated synergies or other expected benefits of the Carbon Solutions Acquisition. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the Carbon Solutions Acquisition been consummated as of January 1, 2017. Years ended December 31, (in thousands) 2018 2017 Revenues $ 78,591 $ 110,663 Net income $ 31,562 $ 32,524 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The following table summarizes the Company's inventories recorded at the lower of average cost or net realizable value as of December 31, 2018 and 2017 : As of December 31, (in thousands) 2018 2017 Product inventory (1) $ 19,523 $ 74 Raw material inventory 2,388 — Reserves (120 ) — $ 21,791 $ 74 (1) As of December 31, 2018, this amount includes $5.0 million attributed to the increase in fair value of inventory acquired. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The carrying basis and accumulated depreciation of property, plant and equipment at December 31, 2018 and 2017 are: Life in Years As of December 31, (in thousands) 2018 2017 Land and land improvements 0-31 $ 2,302 $ — Plant and operating equipment 2-31 32,999 — Furniture and fixtures 1-7 701 262 Machinery and equipment 1-31 1,277 1,429 Leasehold improvements 1-3 249 205 Construction in progress 6,668 — 44,196 1,896 Less accumulated depreciation (1,499 ) (1,486 ) Total property, plant and equipment, net $ 42,697 $ 410 Included in plant and operating equipment as of December 31, 2018 is mining equipment financed under various lease facilities, and obligations due under these facilities are included in capital lease obligations in the Consolidated Balance Sheet. The total amount recorded as capital lease mining assets as of December 31, 2018 was $8.1 million , net of accumulated depreciation of $0.1 million . Depreciation expense for the years ended December 31, 2018 and 2017 was $0.5 million and $0.7 million , respectively. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Tinuum Group, LLC As of December 31, 2018 and 2017 , the Company’s ownership in Tinuum Group was 42.5% . Tinuum Group supplies technology, equipment and technical services to cyclone-fired and other boiler users, but its primary purpose is to place into operation facilities that produce and sell RC that lower emissions and therefore qualifies for Section 45 tax credits. NexGen Refined Coal, LLC ("NexGen") and GSFS Investments I Corp. (“GSFS”), an affiliate of The Goldman Sachs Group, Inc. ("GS"), own the remaining 42.5% and 15.0% , respectively of Tinuum Group. GSFS' ownership interest is in the form of Class B units that do not have voting rights but provide certain preferences over ADA and NexGen as to liquidation and profit distribution, including a guaranteed 15% annual return on GSFS' unrecovered investment balance, which is calculated as the original GSFS investment, plus a 15% annual return thereon, less any distributions, including the allocation of Section 45 tax credits to the members. In February 2018, the unrecovered investment balance associated with the Class B units was repaid in full. The Company has determined that Tinuum Group is a VIE, however, the Company does not have the power to direct the activities that most significantly impact Tinuum Group's economic performance and has therefore accounted for the investment under the equity method of accounting. The Company determined the voting partners of Tinuum Group have identical voting rights, equity control interests and board control interests, and therefore, concluded that the power to direct the activities that most significantly impact Tinuum Group's economic performance was shared. The following tables summarize the assets, liabilities and results of operations of Tinuum Group: As of December 31, (in thousands) 2018 2017 Current assets $ 54,958 $ 31,605 Non-current assets $ 92,991 $ 75,055 Current liabilities $ 50,908 $ 48,280 Non-current liabilities $ 14,446 $ 8,350 Redeemable Class B equity $ — $ 821 Members equity attributable to Class A members $ 49,102 $ 40,452 Members equity attributable to Class B members $ 16,983 $ — Noncontrolling interests $ 16,510 $ 8,757 Years Ended December 31, (in thousands) 2018 2017 Gross profit $ 107,135 $ 95,552 Operating, selling, general and administrative expenses 23,662 22,958 Income from operations 83,473 72,594 Other expenses (5,674 ) (4,520 ) Class B preferred return (12 ) (1,712 ) Loss attributable to noncontrolling interest 58,013 43,474 Net income available to Class A and B members $ 135,800 $ 109,836 ADES equity earnings from Tinuum Group $ 47,175 $ 48,875 As shown above, the Company reported earnings from its equity investment in Tinuum Group of $47.2 million and $48.9 million for the years ended December 31, 2018 and 2017 , respectively. As shown in the table below, the Company’s carrying value in Tinuum Group was reduced to zero for all years presented as cumulative cash distributions received from Tinuum Group exceeded the Company's pro-rata share of cumulative earnings in Tinuum Group. The carrying value of the Company's investment in Tinuum Group shall remain zero as long as the cumulative amount of distributions received from Tinuum Group continues to exceed the Company's cumulative pro-rata share of Tinuum Group's net income available to Class A members. For periods during which the ending balance of the Company's investment in Tinuum Group is zero , the Company only recognizes equity earnings from Tinuum Group to the extent that cash distributions are received from Tinuum Group during the period. For periods during which the ending balance of the Company's investment is greater than zero (e.g., when the cumulative earnings in Tinuum Group exceeds cumulative cash distributions received), the Company recognizes its pro-rata share of Tinuum Group's net income available to Class A members for the period, less any amount necessary to recover the cumulative earnings short-fall balance as of the end of the immediately preceding period. As of December 31, 2018 , the Company's carrying value in Tinuum Group has been reduced to zero , as the cumulative cash distributions received from Tinuum Group have exceeded the Company's pro-rata share of cumulative earnings in Tinuum Group. If Tinuum Group subsequently reports net income, the Company will not record its pro-rata share of such net income until the cumulative share of pro-rata income equals or exceeds the amount of its cumulative income recognized due to the receipt of cash distributions. Until such time, the Company will only report income from Tinuum Group to the extent of cash distributions received during the period. Thus, the amount of equity earnings or loss reported on the Consolidated Statement of Operations may differ from a mathematical calculation of earnings or loss attributable to the equity interest based upon the factor of the equity interest and the net income or loss available to Class A members as shown on Tinuum Group’s statement of operations. Additionally, for periods during which the carrying value of the Company's investment in Tinuum Group is greater than zero, distributions from Tinuum Group are reported on the Consolidated Statements of Cash Flows as "Distributions from equity method investees, return on investment" within Operating cash flows. For periods during which the carrying value of the Company's investment in Tinuum Group is zero, such cash distributions are reported on the Consolidated Statements of Cash Flows as "Distributions from equity method investees in excess of investment basis" within Investing cash flows. The following table presents the Company's investment balance, equity earnings, cash distributions and cash distributions in excess of the investment balance for the years ended December 31, 2017 and December 31, 2018 ( in thousands ): Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity loss in (excess) of investment balance Beginning balance 12/31/2016 $ — $ — $ — $ (9,894 ) ADES proportionate share of net income from Tinuum Group (1) 2017 activity $ 46,551 $ 46,551 $ — $ — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2017 activity (9,894 ) (9,894 ) — 9,894 Cash distributions from Tinuum Group 2017 activity (48,875 ) — 48,875 — Adjustment for current year cash distributions in excess of investment balance 2017 activity 12,218 12,218 — (12,218 ) Total investment balance, equity earnings (loss) and cash distributions 12/31/2017 $ — $ 48,875 $ 48,875 $ (12,218 ) ADES proportionate share of net income from Tinuum Group (1) 2018 activity $ 57,721 $ 57,721 $ — $ — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2018 activity (12,218 ) (12,218 ) — 12,218 Cash distributions from Tinuum Group 2018 activity (47,175 ) — 47,175 — Adjustment for current year cash distributions in excess of investment balance 2018 activity 1,672 1,672 — (1,672 ) Total investment balance, equity earnings and cash distributions 12/31/2018 $ — $ 47,175 $ 47,175 $ (1,672 ) (1) The amounts of the Company's 42.5% proportionate share of net income as shown in the table above differ from mathematical calculations of the Company’s 42.5% equity interest in Tinuum Group multiplied by the amounts of Net Income available to Class A members as shown in the table above of Tinuum Group's results of operations due to adjustments related to the Class B preferred return. Additional information related to Tinuum Group pursuant to Regulation S-X Rule 3-09 ("Rule 3-09") of the Securities and Exchange Act of 1934 (the "Exchange Act") is included within Item 15 - "Exhibits and Financial Statement Schedules" ("Item 15") of this Report. Tinuum Services, LLC In 2010, the Company, together with NexGen, formed Tinuum Services for the purpose of operating and maintaining RC facilities, including those RC facilities leased or sold to third parties. The Company has determined that Tinuum Services is not a VIE and has evaluated the consolidation analysis under the Voting Interest Model. The Company has a 50% voting and economic interest in Tinuum Services, which is equivalent to the voting and economic interest of NexGen. Therefore, as the Company does not hold greater than 50% of the outstanding voting interests, either directly or indirectly, it has accounted for the investment under the equity method of accounting. As of December 31, 2018 and 2017 , the Company’s 50% investment in Tinuum Services was $6.6 million and $4.3 million , respectively. The following tables summarize the assets, liabilities and results of operations of Tinuum Services: As of December 31, (in thousands) 2018 2017 Current assets $ 300,288 $ 546,681 Non-current assets $ 100,233 $ 98,640 Current liabilities $ 219,959 $ 178,376 Non-current liabilities $ 66,760 $ 75,717 Equity $ 13,134 $ 8,569 Noncontrolling interests $ 100,668 $ 382,659 Years Ended December 31, (in thousands) 2018 2017 Gross loss $ (85,377 ) $ (64,796 ) Operating, selling, general and administrative expenses 173,500 147,917 Loss from operations (258,877 ) (212,713 ) Other expenses 37 (68 ) Loss attributable to noncontrolling interest 272,905 222,707 Net income $ 14,065 $ 9,926 ADES equity earnings from Tinuum Services $ 7,033 $ 4,963 Included within the Consolidated Statement of Operations of Tinuum Services for the years ended December 31, 2018 and 2017 were losses related to VIE entities that are consolidated within Tinuum Services of $272.9 million and $222.7 million , respectively. These losses do not impact the Company's equity earnings from Tinuum Services as 100% of those losses are attributable to a noncontrolling interest and eliminated in the calculations of Tinuum Services' net income attributable to the Company's interest. The following table details the carrying value of the Company's respective equity method investments included within the Equity method investments line item on the Consolidated Balance Sheets and indicates the Company's maximum exposure to loss: As of December 31, (in thousands) 2018 2017 Equity method investment in Tinuum Group $ — $ — Equity method investment in Tinuum Services 6,567 4,284 Equity method investment in other 67 67 Total equity method investments $ 6,634 $ 4,351 The Company evaluates the investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. No impairments were recorded during the years ended December 31, 2018 and 2017 . The following table details the components of the Company's respective earnings or loss from equity method investments included within the Earnings from equity method investments line item on the Consolidated Statements of Operations : Year ended December 31, (in thousands) 2018 2017 Earnings from Tinuum Group $ 47,175 $ 48,875 Earnings from Tinuum Services 7,033 4,963 Earnings from other — 5 Earnings from equity method investments $ 54,208 $ 53,843 The following table details the components of the cash distributions from the Company's respective equity method investments included within the Consolidated Statements of Cash Flows . Distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” within Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero ; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” within Investing cash flows. Year ended December 31, (in thousands) 2018 2017 Distributions from equity method investees, return on investment Tinuum Services $ 5,500 $ 4,638 Included in Operating Cash Flows $ 5,500 $ 4,638 Distributions from equity method investees in excess of cumulative earnings Tinuum Group $ 47,175 $ 48,875 Included in Investing Cash Flows $ 47,175 $ 48,875 During the years ended December 31, 2018 and 2017 , the Company, in the aggregate, made purchases of and contributions to equity method investments of $0.8 million and $0.1 million , respectively. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Adoption of ASC 606 The financial statement impact from the adoption of ASC 606 as of January 1, 2018 was due to the following: • The recognition of revenues and related cost of revenue from Equipment Sales for three uncompleted DSI systems contracts as of December 31, 2017, which were accounted for under the guidance in ASC 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts ("ASC 605-35"). Under ASC 605-35, the Company accounted for revenues and associated cost of revenue for equipment systems from inception of the contract under the completed contract method and recognized revenue and cost of revenue when the equipment systems were deemed substantially complete. As of December 31, 2017, none of the DSI systems had met the revenue recognition criteria under the completed contract method. As of January 1, 2018, the Company determined that the performance obligation associated with each DSI system has been satisfied under ASC 606 guidance. • The recognition of revenues and related cost of revenue for a licensing arrangement with a related party (the "Licensing Arrangement") in which the Company satisfied its performance obligation under ASC 606 as of January 1, 2018. As a result, the Company’s deferred revenue and related deferred project costs on the three DSI systems and the Licensing Arrangement, and the resultant income tax effects, were recognized through a cumulative effect adjustment to the Accumulated deficit as of January 1, 2018. In addition, the Company recorded a contract asset in the amount of $0.3 million related to one DSI system contract for which the Company completed its performance obligations but was not contractually able to bill the customer until the end of the warranty period. The cumulative effect of the change from the adoption of ASC 606 to the Consolidated Balance Sheet as of January 1, 2018 is shown in the table that follows: Balance as of Impact of Balance as of (in thousands) December 31, 2017 Adoption January 1, 2018 Balance Sheet Receivables, net $ 1,113 $ 339 $ 1,452 Deferred tax assets $ 38,661 $ (889 ) $ 37,772 Other long-term assets $ 1,503 $ (322 ) $ 1,181 Other current liabilities $ 4,494 $ (1,821 ) $ 2,673 Other long-term liabilities $ 2,285 $ (2,000 ) $ 285 Accumulated deficit $ (15,478 ) $ 2,950 $ (12,528 ) The following tables show the impact of the adoption of ASC 606 on the Consolidated Balance Sheet and Consolidated Statement of Operations as of and for the year ended December 31, 2018 , respectively: Balance as Reported Impact of Balance as Adjusted (in thousands) December 31, 2018 Adoption December 31, 2018 Balance Sheet Receivables, net $ 9,554 $ — $ 9,554 Deferred tax assets $ 32,539 $ 425 $ 32,964 Other long-term assets $ 7,993 $ 322 $ 8,315 Other current liabilities $ 2,138 $ — $ 2,138 Other long-term liabilities $ 940 $ 2,000 $ 2,940 Retained earnings $ 12,914 $ (1,253 ) $ 11,661 For the year ended As Reported Impact of As Adjusted (in thousands) December 31, 2018 Adoption December 31, 2018 Statement of Operations Revenues: Equipment sales $ 72 $ 18,115 $ 18,187 License royalties, related party $ 15,140 $ (15,140 ) $ — Total revenues $ 23,945 $ 2,975 $ 26,920 Operating expenses: Equipment sales cost of revenue $ (353 ) $ 15,945 $ 15,592 Total operating expenses $ 30,345 $ 15,945 $ 46,290 Operating loss $ (6,400 ) $ (12,970 ) $ (19,370 ) Other income (expense) Royalties, related party $ — $ 15,140 $ 15,140 Total other income (expense) $ 52,277 $ 15,140 $ 67,417 Income before income tax expense $ 45,877 $ 2,170 $ 48,047 Income tax expense 10,423 464 10,887 Net income $ 35,454 $ 1,706 $ 37,160 As of and for the year ended December 31, 2018 , the significant difference between the financial statement balances reported compared to the financial statement balances without the adoption of ASC 606 were as follows: • Equipment sales -As of adoption, the Company derecognized contract assets of $15.9 million and contract liabilities of $17.8 million and recorded a contract asset of $0.3 million related to the three DSI systems contracts that met the revenue recognition requirements under ASC 606. After tax, the net adjustment for the three DSI systems was $1.7 million . Under revenue recognition guidance in effect prior to the adoption of ASC 606, all three of the DSI systems contracts would have met revenue recognition criteria as of December 31, 2018 , and for the year ended December 31, 2018 , the Company would have recognized $18.1 million of Equipment sales and $15.9 million of Equipment sales cost of revenue, respectively. • Licensing Arrangement - As of adoption, the Company derecognized a contract liability of $2.0 million and a contract asset of $0.3 million related to the Licensing Arrangement, which met the revenue recognition requirements under ASC 606. After tax, the net adjustment for this contract was $1.3 million . Under revenue recognition guidance in effect prior to the adoption of ASC 606, this contract would not have met revenue recognition criteria as of December 31, 2018 . • Royalties, related party - As of adoption, and based on guidance provided in ASC 606 related to licensing arrangements where royalties are earned on a usage-based royalty arrangement, for the year ended December 31, 2018 , as well as the corresponding periods from the prior year, the Company has reported the M-45 Royalties earned from Tinuum Group as revenues rather than as non-operating income under financial statement presentation guidance in effect prior to the adoption of ASC 606. This reclassification had no impact to the Company’s income before income tax expense or net income for all periods presented. Trade receivables, net The following table shows the components of Trade receivables, net: As of December 31, (in thousands) 2018 2017 Trade receivables $ 10,121 $ 1,240 Less: Allowance for doubtful accounts (567 ) (127 ) Trade receivables, net $ 9,554 $ 1,113 During the years ended December 31, 2018 and 2017 , the Company recognized $0.2 million and zero , respectively, related to specific accounts whose ultimate collection was in doubt. During the first quarter of 2018, the Company settled a previously recorded commitment for additional work related to a contract with a customer, which resulted in a reduction to Equipment sales cost of revenue, exclusive of depreciation and amortization of $0.3 million and bad debt expense of $0.2 million . Bad debt expense is included within the General and administrative line item in the Consolidated Statements of Operations . Disaggregation of Revenue During the year ended December 31, 2018 , all performance obligations related to revenues recognized were satisfied at a point in time. The Company disaggregates its revenues by its major components as well as between its two operating segments, which are further discussed in Note 14 to the consolidated financial statements. The following tables disaggregate revenues by major source for the year ended December 31, 2018 (in thousands): Year ended December 31, 2018 Segment PGI RC Other Total Revenue component — Consumables $ 8,628 $ — 105 $ 8,733 License royalties, related party — 15,140 — 15,140 Equipment sales 72 — — 72 Revenues from customers 8,700 15,140 105 23,945 Earnings from equity method investments — 54,208 — 54,208 Total revenues and earnings from equity method investments $ 8,700 $ 69,348 $ 105 $ 78,153 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Years ended December 31, (in thousands) 2018 Senior Term Loan due December 2021, related party $ 70,000 Less net unamortized debt issuance costs (1,990 ) Less net unamortized debt discount (2,052 ) Senior Term Loan due December 2021, net 65,958 Capital lease obligations 8,167 Line of Credit — 74,125 Less: Current maturities (24,067 ) Total long-term borrowings $ 50,058 Senior Term Loan In December 2018, the Company, and ADA-ES, Inc. ("ADA"), a wholly-owned subsidiary, and certain other subsidiaries of the Company as guarantors, The Bank of New York Mellon as administrative agent, and Apollo Credit Strategies Master Fund Ltd and Apollo A-N Credit Fund (Delaware) L.P. (collectively "Apollo”), affiliates of a beneficial owner of greater than five percent of the Company's common stock and a related party, entered into the Senior Term Loan in the amount of $70.0 million , less original issue discount of $2.1 million . Proceeds from the Senior Term Loan were used to fund the Carbon Solutions Acquisition as disclosed in Note 2 . The Company also paid debt issuance costs of $2.0 million related to the Senior Term Loan. The Senior Term Loan has a term of 36 months and bears interest at a rate equal to 3-month LIBOR (subject to a 1.5% floor) + 4.75% per annum, which is adjusted quarterly to the current 3-month LIBOR rate, and interest is payable quarterly in arrears. Quarterly principal payments of $6 million are required beginning in March 2019, and the Company may prepay the Senior Term Loan at any time without penalty. The Senior Term Loan is secured by substantially all of the assets of the Company, including the cash flows from Tinuum Group and Tinuum Services (collectively, the "Tinuum Entities"), but excluding the Company's equity interests in the Tinuum entities. The Senior Term Loan includes, among others, the following covenants: (1) Beginning December 31, 2018 and as of the end of each fiscal quarter thereafter, the Company must maintain a minimum cash balance of $5.0 million and shall not permit "expected future net cash flows from the refined coal business" (as defined in the Senior Term Loan) to be less than 1.75 times the outstanding principal amount of the Senior Term Loan; (2) Beginning in January 2019, annual collective dividends and buybacks of Company shares in an aggregate amount, not to exceed $30 million , is permitted so long as (a) no default or event of default exists under the Senior Term Loan and (b) expected future net cash flows from the refined coal business as of the end of the most recent fiscal quarter exceed $100 million . The following table presents the future aggregate annual maturities of the Company’s Senior Term Loan excluding unamortized discounts and deferred financing cost: Year ended December 31, (in thousands) Principal Amount 2019 $ 24,000 2020 24,000 2021 22,000 2022 — 2023 — Thereafter — Total $ 70,000 Line of Credit In September 2013, ADA, as borrower, and the Company, as guarantor, entered into the Line of Credit with a bank (the "Lender") for an aggregate principal amount of $10 million that was secured by certain amounts due to the Company from certain Tinuum Group RC leases. The Line of Credit has been amended 13 times from the period from December 2, 2013 through December 31, 2018, including two amendments executed in 2018. On September 30, 2018, ADA, as borrower, the Company, as guarantor, and the Lender entered into an amendment (the "Twelfth Amendment") to the Line of Credit. The Twelfth Amendment decreased the Line of Credit to $5.0 million due to decreased collateral requirements, extended the maturity date of the Line of Credit to September 30, 2020 and permitted the Line of Credit to be used as collateral (in place of restricted cash) for letters of credit ("LC's") up to $5.0 million related to equipment projects and certain other agreements. Under the Twelfth Amendment, there was no minimum cash balance requirement based on the Company meeting certain conditions and maintaining minimum trailing twelve-month EBITDA (earnings before interest, taxes, depreciation and amortization), as previously defined in the "Eleventh Amendment" to the Line of Credit, of $24.0 million . On December 7, 2018, ADA, as borrower, the Company, as guarantor, and the Lender entered into an amendment to the Line of Credit, which provided, among other things, for ADA to be able to enter into the Senior Term Loan as a guarantor so long as the principal amount of the Senior Term Loan does not exceed $70.0 million . Additionally, the financial covenants in the Line of Credit were amended and restated to be consistent with the aforementioned Senior Term Loan covenants, including maintaining a minimum cash balance of $5.0 million . As of December 31, 2018 , there were no outstanding borrowings under the Line of Credit. Other During March 2017, a customer drew on a letter of credit ("LC") related to an equipment system in the amount of $0.8 million ("LC Draw"), which was funded by borrowing availability under the Line of Credit. The Company subsequently repaid the LC Draw to the Lender as of March 31, 2017. The Company is contesting the LC Draw and is pursuing legal actions to recover the entire amount of the LC Draw from the customer. The Company recorded an asset for the LC Draw net of estimated allowance of $0.4 million , which is included in Other long-term assets on the Consolidated Balance Sheets. As of December 31, 2018 , there were no outstanding borrowings under LC's. As of December 31, 2017, there was one LC outstanding in the amount of $3.5 million related to an obligation under a settlement agreement as further discussed in Note 8 . In January 2018, this LC was terminated by all parties to the LC as a result of the full the settlement of the obligation on December 29, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is from time to time subject to, and is presently involved in, various pending or threatened legal actions and proceedings, including those that arise in the ordinary course of its business. Such matters are subject to many uncertainties and outcomes, the financial impacts of which are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its consolidated financial statements for costs related to claims, settlements, and judgments where management has assessed that a loss is probable, and an amount can be reasonably estimated. The Company’s significant legal proceedings are discussed below. Indemnity Settlement Agreement In December 2017, prior to the Carbon Solutions Acquisition, the Company, Carbon Solutions and the former parent company of Carbon Solutions agreed to terminate certain provisions of the Indemnity Settlement Agreement (the " Indemnity Termination Agreement"). Pursuant to an agreement executed concurrently with the Indemnity Termination Agreement, the Company, Norit International B.V. ("Norit") and an affiliate of Norit (collectively referred to as “Norit”) agreed to a final payment in the amount of $3.3 million (the "Settlement Payment") to settle all outstanding royalty obligations (the "Royalty Award") owed under the terms of a settlement agreement executed in 2011 between the Company and Norit (the "Norit Settlement Agreement"). This amount was paid by the Company on December 29, 2017. Under the Indemnity Termination Agreement, and upon payment of the Settlement Payment, the Company was relieved of certain financial and indemnity obligations required by the terms of the Norit Settlement Agreement, including the obligation to maintain LC's securing future royalty payment obligations. As of December 31, 2017, $3.5 million in LC's related to the Royalty Award were outstanding, but were canceled by all parties in January 2018, pursuant to the Indemnity Termination Agreement. Advanced Emission Solutions, Inc. Profit Sharing Retirement Plan The Advanced Emissions Solutions, Inc. Profit Sharing Retirement Plan (the “401(k) Plan”) is subject to the jurisdiction of the Internal Revenue Service ("IRS") and the Department of Labor ("DOL"). In February 2018, as part of an agreement reached with the DOL from its investigation, which had commenced in 2016, in the 401(k) Plan and the Company as the Plan Sponsor, the Company agreed to make a restorative payment to the 401(k) Plan in the amount of $1.0 million as an estimate of lost earnings for 401(k) Plan participants as of January 1, 2015. The Company determined this contingency to be both probable and reasonably estimable and accrued $1.0 million as of December 31, 2017 . The liability and related charge were recorded in the Other current liabilities line item on the Consolidated Balance Sheet and in the Other line item in the Consolidated Statements of Operations for the year ended December 31, 2017 , respectively. On June 1, 2018, the Company made the restorative payment of $1.0 million to the 401(k) Plan. On September 7, 2018, the Company received notification that the DOL had closed its investigation and no further action was required by the Company. Other Commitments and Contingencies Tinuum Group The Company also has certain limited obligations contingent upon future events in connection with the activities of Tinuum Group. The Company, NexGen and two entities affiliated with NexGen have provided GSFS with limited guaranties (the “Tinuum Group Party Guaranties”) related to certain losses it may suffer as a result of inaccuracies or breach of representations and covenants. The Company also is a party to a contribution agreement with NexGen under which any party called upon to pay on a Tinuum Group Party Guaranty is entitled to receive contribution from the other party equal to 50% of the amount paid. No liability or expense provision has been recorded by the Company related to this contingent obligation as the Company believes that it is not probable that a loss will occur with respect to Tinuum Group Party Guaranties. Purchase Obligations The Company does not have any future purchase obligations as of December 31, 2018 . U.S. Department of Energy ("DOE") Audits Certain of the Company's completed and current contracts awarded by the DOE and related industry participants remain subject to adjustments as a result of future government audits. The Company's historical experience with these audits has not resulted in significant adverse adjustments to amounts previously received; however, the Company currently remains subject to audits for the years 2014 and later. Lease Obligations The Company leases certain of its mining, plant and operating equipment, as well as office equipment and vehicles under capital and operating lease agreements, of which original lease terms ranged from one to seven years. Certain of these leases have options permitting renewals for additional periods and buy-out options. In addition to minimum fixed payments, a number of leases contain annual escalation clauses that are related to increases in the inflation index. Annual minimum commitments under the leases as of December 31, 2018 are as follows: Years Ending December 31, Operating Lease Commitments (in thousands) Capital 2019 $ 3,619 $ 1,749 2020 2,273 1,707 2021 1,632 1,802 2022 310 951 2023 221 951 Thereafter — 2,482 Total minimum lease payments $ 8,055 9,642 Less amounts representing interest (1,475 ) Present value of minimum capital lease payments $ 8,167 Rent expense incurred for the years ended is as follows: Years Ended December 31, (in thousands) 2018 2017 Rent expense (1) $ 302 $ (60 ) (1) During the year ended December 31, 2017 , the Company accelerated deferred rent and tenant improvement allowances in connection with the termination of the lease agreement of its former corporate office. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders Equity The Company has two classes of capital stock authorized, common stock and preferred stock, which are described as follows: Preferred Stock The Company's Board of Directors (the "Board') is authorized to provide out of the unissued shares of Preferred Stock and to fix the number of shares constituting a series of Preferred Stock and, with respect to each series, to fix the number of shares and designation of such series, the voting powers, if any, the preferences and relative, participating, option or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series. As of December 31, 2018 and 2017 , there were no shares of Preferred Stock designated or outstanding. Common Stock Holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Additionally, holders of common stock are entitled to receive dividends when and if declared by the Board, subject to any statutory or contractual restrictions on payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding shares of preferred stock. Upon dissolution, liquidation or the sale of all or substantially all of the Company's assets, after payment in full of any amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of common stock will be entitled to receive the Company's remaining assets for distribution on a pro rata basis. Stock Repurchase Tender Offer On May 5, 2017 , the Board authorized the commencement of a modified Dutch Auction tender offer ("Tender Offer") to purchase for cash up to 925,000 shares of the Company's common stock at a price per share of not less than $9.40 nor greater than $10.80 , for a maximum aggregate purchase price of $10.0 million , with an option to purchase an additional 2% of the outstanding shares of common stock if the Tender Offer was oversubscribed. The Tender Offer expired on June 6, 2017 and a total of 2,858,425 shares were validly tendered and not properly withdrawn at or below the final purchase price of $9.40 per share. Because the Tender Offer was oversubscribed, the Company purchased a prorated portion of the shares properly tendered by each tendering stockholder (other than "odd lot" holders whose shares were purchased on a priority basis) at the final per share purchase price. Accordingly, the Company acquired 1,370,891 shares of its common stock ("Tendered Shares") at a price of $9.40 per share, for a total cost of approximately $12.9 million , excluding fees and other expenses related to the Tender Offer. The Tendered Shares represented approximately 6.2% of the Company's outstanding shares prior to the Tender Offer. The Tendered Shares included the 925,000 shares the Company initially offered to purchase and 445,891 additional shares that the Company elected to purchase pursuant to its right to purchase up to an additional 2% of its outstanding shares of common stock. The Company recorded the Tendered Shares at cost, which included fees and expenses related to the Tender Offer, and reported the Tendered Shares as Treasury Stock on the Condensed Consolidated Balance Sheet as of December 31, 2018 . The Company’s Board and executive officers did not participate in the Tender Offer, except for one director of the Board, who is a manager of a financial institution and holds dispositive powers over the shares of the Company's common stock held by the financial institution that tendered 70,178 of its shares of the Company's common stock. Stock Repurchase Programs In November 2018, the Board authorized the Company to purchase up to $20.0 million of its outstanding common stock. This stock repurchase program will remain in effect until December 31, 2019 unless otherwise modified by the Board. Previously, the Board had authorized the Company to purchase up to $20.0 million of its outstanding common stock under a separate repurchase program that was in effect until July 31, 2018. During the years ended December 31, 2018 and 2017 , under the collective stock repurchase programs authorized by the Board, the Company purchased 2,350,422 and 342,875 shares of its common stock for cash of $25.3 million and $3.4 million , inclusive of commissions and fees, respectively. Of these amounts, $15.6 million was purchased in single blocks through privately negotiated transactions. Quarterly Cash Dividend Dividends declared to holders of the Company's common shares during the years ended December 31, 2018 and December 31, 2017 were $20.3 million and $15.8 million , respectively. A portion of the dividends remains accrued subsequent to the payment dates and represents dividends accumulated on nonvested shares of common stock held by employees of the Company that contain forfeitable dividend rights that are not payable until the underlying shares of common stock vest. These amounts are included in both Other current liabilities and Other long-term liabilities on the Consolidated Balance Sheet as of December 31, 2018 and 2017 . Dividends declared and paid quarterly per share on all outstanding shares of common stock during the years ended December 31, 2018 and 2017 were as follows: 2018 2017 Per share Date paid Per share Date paid Dividends declared during quarter ended: March 31 $ 0.25 March 8, 2018 $ — — June 30 0.25 June 8, 2018 0.25 July 17, 2017 September 30 0.25 September 6, 2018 0.25 September 7, 2017 December 31 0.25 December 6, 2018 0.25 December 6, 2017 $ 1.00 $ 0.75 Tax Asset Protection Plan United States federal income tax rules, and Section 382 of the Internal Revenue Code in particular, could substantially limit the use of net operating losses and other tax assets if ADES experiences an "ownership change" (as defined in the Internal Revenue Code). In general, an ownership change occurs if there is a cumulative change in the ownership of ADES by "5 percent stockholders" that exceeds 50 percentage points over a rolling three-year period. On May 5, 2017, the Board approved the declaration of a dividend of rights to purchase Series B Junior Participating Preferred Stock for each outstanding share of common stock as part of a tax asset protection plan (the "Tax Asset Protection Plan") designed to protect the Company’s ability to utilize its net operating losses and tax credits. The Tax Asset Protection Plan is intended to act as a deterrent to any person acquiring beneficial ownership of 4.99% or more of the Company’s outstanding common stock. On April 6, 2018, the Board approved the First Amendment to the Tax Asset Protection Plan (the "Amendment") that amends the Tax Asset Protection Plan dated May 5, 2017 (the "TAPP"). The Amendment amends the definition of "Final Expiration Date" under the TAPP to extend the duration of the TAPP and makes associated changes in connection therewith. At the Company's 2018 annual meeting, the Company's stockholders approved the Amendment, thus the Final Expiration Date will be the close of business on December 31, 2019. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Plans The Company currently has incentive plans, including the Amended and Restated 2010 Non-Management Compensation and Incentive Plan, as amended (the “2010 Plan”) and the 2017 Omnibus Incentive Plan (the “2017 Plan”) as described below. Collectively, these plans are called the “Stock Plans" and permit the Company to issue stock-based awards, including common stock, restricted stock, stock options and other rights and benefits under the plans to employees, directors and non-employees. The 2010 Plan - During 2010, the Company adopted the 2010 Plan which permits grants of stock awards to employees, which may be shares, rights to purchase restricted stock, bonuses of restricted stock, or other rights or benefits under the plan. The Company reserved 600,000 shares of its common stock for these purposes. The Plan was amended and restated as of July 19, 2012 to make non-material changes to assure Internal Revenue Code Section 409A compliance. Upon the adoption of the 2017 Plan in June 2017, the Company no longer grants any awards from the 2010 Plan. The 2017 Plan - During 2017, the Company adopted the 2017 Plan which permits grants of awards to employees, directors and non-employees, which may be shares, rights to purchase restricted stock, bonuses of restricted stock, or other rights or benefits under the plan. The Company reserved 2,000,000 shares of its common stock under the 2017 Plan. Expense RSA's - Restricted Stock Awards ("RSA's") are typically granted with vesting terms of three years. The fair value of RSA's is determined based on the closing price of the Company’s common stock on the authorization date of the grant multiplied by the number of shares subject to the stock award. Compensation expense for RSA's is generally recognized over the vesting term on a straight-line basis. Stock Options - Stock options generally vest over three years or upon satisfaction of performance-based conditions and have a contractual limit of five years from the date of grant to exercise. The fair value of stock options granted is determined on the date of grant using the Black-Scholes option pricing model and the related expense is recognized on a straight-line basis over the entire vesting period. No stock options were granted during the years ended December 31, 2018 and 2017 . When options are granted, the Company uses historical data to estimate inputs used in the Black-Scholes option pricing model. Risk-free interest rate - The risk-free interest rate for stock options granted during the period was determined by using a zero-coupon U.S. Treasury rate for the periods that coincided with the expected terms listed above. Dividends - As historically no dividends had been paid as of the date by which grants occurred, no dividend yield was included in the calculations when the outstanding options were granted. Expected volatility - To calculate expected volatility, the historical volatility of the Company's common stock was used. Expected term - The Company’s expected term of options was based upon historical exercise behavior and consideration of the options' vesting and contractual terms. RSU's - Restricted Stock Units ("RSU's") are typically granted with vesting terms of one year. The fair value of RSU's is determined based on the closing price of the Company’s common stock on the authorization date of the grant multiplied by the number of shares subject to the stock award. Compensation expense is generally recognized over the service period of the award on a straight-line basis. PSU's - Performance share units ("PSU's") vest based on the grantee’s continuous service with the Company, performance measures or a combination of both. Each PSU represents a contingent right to receive shares of the Company’s common stock if the Company meets certain performance measures over the requisite period. Vesting of the PSU's, if at all, occurs no later than January 2 after the conclusion of the third year of the performance period, subject to the grantee’s continuous service and the achievement of certain pre-established performance goals. Amounts vested are measured as of December 31, immediately prior to the end of the service period, unless the PSU's vest sooner at the target amount as a result of certain transactions pursuant to Section 11 of the Amended and Restated 2007 Equity Incentive Plan, as amended ("2007 Plan"). The number of shares of common stock a participant receives will be increased (up to 200 percent of target levels) or reduced (down to zero ) based on the level of achievement of performance goals. The number of PSU's that may be earned by a participant is determined at the end of the performance period based on the relative placement of the Company’s total stockholder return (“TSR”) for that period with approximately 75% of the award based on the relative performance of the Company’s TSR performance compared to the respective TSRs of a specified group of peer companies and the remaining portion of the award based on the Company’s TSR performance compared to the Russell 3000 Index. Compensation expense is recognized for PSU awards on a straight-line basis over a 3 -year service period based on the estimated fair value at the date of grant using a Monte Carlo simulation model. No PSU's were granted during the years ended December 31, 2018 or 2017 . When PSU's are granted, the Company uses historical data to estimate inputs used in the Monte Carlo pricing model. Risk-free interest rate - The risk-free interest rate for PSU's granted during the period was determined by using a zero-coupon U.S. Treasury rate for the periods that coincided with the expected terms listed above. Dividends - As historically no dividends had been paid as of the date by which grants occurred, no dividend yield was included in the calculations. Expected volatility - To calculate expected volatility, the historical volatility of the Company's common stock was used. Performance period - The Company’s performance period is based upon the vesting term of the Company’s PSU awards. The Company recorded the following compensation expense related to the Stock Plans and the 2007 Plan: Years Ended December 31, (in thousands) 2018 2017 RSA expense $ 2,222 $ 1,400 Stock option expense 58 672 RSU expense 210 — PSU expense — 137 Total stock-based compensation expense $ 2,490 $ 2,209 The Company recorded stock-based compensation expense related to awards granted to the Board in the General and administrative expense line and all other awards within the Payroll and benefit expense line in the Consolidated Statements of Operations. During the year ended December 31, 2018 , the Company modified the terms of awards granted to 13 employees in connection with its restructuring plans and termination of the impacted employees discussed in Note 18 . These modifications resulted in the accelerated vesting and incremental expense related to certain performance-based awards and restricted stock awards. As a result, during 2018 , the Company recognized incremental stock-based compensation of $0.8 million , which was included in the Payroll and benefits line item in the Consolidated Statements of Operations. There were no material modifications to awards during the year ended December 31, 2017 . The amount of unrecognized compensation cost as of December 31, 2018 , and the expected weighted-average period over which the cost will be recognized is as follows: As of December 31, 2018 (in thousands) Unrecognized Compensation Cost Expected Weighted-Average Period of Recognition (in years) RSA expense $ 1,767 1.58 Total unrecognized stock-based compensation expense $ 1,767 1.58 Activity Restricted Stock A summary of the status and activity of RSA's and RSU's is presented in the following table: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands, except for share and per share amounts) Awards Units RSA's RSU's For the year ended December 31, 2018 Non-vested at January 1, 2018 276,607 — $ 9.03 $ — Granted 205,998 20,000 $ 11.00 $ 10.52 Vested (200,618 ) — $ 9.79 $ — Forfeited (1,135 ) — $ 10.44 $ — Non-vested at December 31, 2018 280,852 20,000 $ 9.92 $ 10.52 The weighted-average grant date fair value of RSA's granted or modified during the years ended December 31, 2018 and 2017 was $11.00 and $9.50 , respectively. The weighted-average grant date fair value of RSU's granted or modified during the years ended December 31, 2018 and 2017 was $10.52 and zero , respectively. The total grant-date fair value of RSA's vested during the years ended December 31, 2018 and 2017 was $2.0 million and $1.7 million , respectively. There were no RSU's vested during the years ended December 31, 2018 and 2017 . The aggregate intrinsic value of non-vested RSA's and RSU's outstanding as of December 31, 2018 was $3.0 million and $0.2 million , respectively. Stock Options A summary of option activity under the Stock Plans is presented below: (in thousands, except for share and per share amounts) Number of Weighted- Aggregate Intrinsic Value Weighted- For the year ended December 31, 2018 Options outstanding at January 1, 2018 622,446 $ 11.64 Options granted — $ — Options exercised (92,666 ) $ 8.25 Options expired / forfeited — $ — Options outstanding at December 31, 2018 529,780 $ 12.23 $ 296 1.46 Options vested and exercisable at December 31, 2018 529,780 $ 12.23 $ 296 1.46 The weighted-average grant-date fair value of options vesting during the years ended December 31, 2018 and 2017 was $0.3 million and $0.7 million , respectively. The weighted-average grant-date fair value of options exercised during the year ended December 31, 2018 was $0.3 million . The Company did not receive cash from the exercise of stock options during the year ended December 31, 2018 as 67,715 shares were withheld as payment of the exercise price. There were no options exercised during the year ended December 31, 2017 . Cash flows resulting from excess tax benefits, if any, are classified as part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for vested RSA's, settled PSU's and exercised options in excess of the deferred tax asset attributable to stock compensation costs for such equity awards. The Company recorded no excess tax benefits for the years ended December 31, 2018 and 2017 . PSU's A summary of the status and activity of non-vested PSU's is presented in the following table: (in thousands, except for per share amounts) Units Weighted-Average For year ended December 31, 2018 Non-vested at beginning of year 19,406 $ 25.20 Granted (1) — $ — Vested (1) (19,406 ) $ 25.20 Forfeited / Canceled (1) — $ — Non-vested at end of year — $ — (1) The number of units shown in the table above are based on target performance. The final number of shares of common stock issued may vary depending on the achievement of market conditions established within the awards, which could result in the actual number of shares issued ranging from zero to a maximum of two times the number of units shown in the above table. There were no PSU's granted during the years ended December 31, 2018 and 2017 . PSU's outstanding remained unvested until the third anniversary date of their issuance, at which time the actual number of vested shares was determined based upon the actual price performances of the Company’s common stock relative to a broad stock index and a peer group performance index. The following table shows the PSU's that were settled by issuing the Company's common stock relative to a peer group performance index and broad stock index. Year of Grant Net Number of Issued Shares upon Vesting Shares Withheld to Settle Tax Withholding Obligations TSR Multiple Range Russell 3000 Multiple Low High Low High For the year ended December 31, 2018 2015 12,311 4,061 112.50 112.50 — — For the year ended December 31, 2017 2014 6,476 3,573 0.75 1.00 — — 2015 3,869 2,310 0.60 0.60 — — |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Supplemental Balance Sheet Information The following table summarizes the components of Prepaid expenses and other assets and Other long-term assets as presented in the Consolidated Balance Sheets : As of December 31, (in thousands) 2018 2017 Other current assets: Prepaid expenses $ 1,233 $ 1,678 Prepaid income taxes 2,940 — Other 1,397 83 $ 5,570 $ 1,761 Other long-term assets: Spare parts $ 3,278 $ — Mine development costs, net 2,531 — Long-term receivable, net 408 — Deposits 269 223 Highview investment 552 552 Other long-term assets 955 728 $ 7,993 $ 1,503 Included within Other long-term assets is the Company's investment ("Highview Investment") in Highview Enterprises Limited ("Highview"). In November 2014, the Company acquired an 8% ownership interest in the common stock of Highview for $2.8 million in cash. The Company accounts for the Highview Investment as an investment recorded at cost, less impairment, plus or minus observable changes in price for identical or similar investments of the same issuer. The Highview Investment is evaluated for impairment upon an indicator of impairment such as an event or change in circumstances that may have a significant adverse effect on the fair value of the investment. As of December 31, 2017 , the Company recorded an impairment charge of $0.5 million based on an estimated fair value of £1.00 per share, compared to the carrying value prior to the impairment charge of £2.00 per share. The estimated fair value as of December 31, 2017 was based on an equity raise that was completed during the first quarter of 2017 at a price of £1.00 per share. There were no changes to the carrying value of the Highview Investment during the year ended December 31, 2018 , as there were no indicators of impairment or observable price changes for equity issued by Highview. The following table details the components of Other current liabilities and Other long-term liabilities as presented in the Consolidated Balance Sheets : As of December 31, (in thousands) 2018 2017 Other current liabilities: Accrued interest $ 407 $ — Sales and other taxes payable 479 207 Estimated Company contribution to 401(k) Plan — 1,000 Accrued losses on equipment contracts — 69 Billings in excess of costs on uncompleted contracts — 1,830 Warranty liabilities 12 316 Other 1,240 1,072 $ 2,138 $ 4,494 Other long-term liabilities: Deferred revenue, related party $ — $ 2,000 Deferred rent 106 192 Mine reclamation liability 624 — Other long-term liabilities 210 93 $ 940 $ 2,285 The tables below detail components of Other current liabilities as presented above: Included within Other current liabilities is the Company's asset retirement obligation. Changes in the Company's asset retirement obligation were as follows: As of December 31, (in thousands) 2018 2017 Asset retirement obligation, beginning of year $ — $ 1,312 Asset retirement obligation assumed in Carbon Solutions Acquisition 626 — Accretion 2 37 Liabilities settled (4 ) (527 ) Changes due to scope and timing of reclamation — (822 ) Asset retirement obligations, end of year $ 624 $ — As part of the Carbon Solutions Acquisition, the Company assumed an asset retirement obligation related to the Company's lignite mine, the Five Forks Mine. The Company recorded the liability at its estimated the fair value and periodically adjusts to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The Company’s mining activities are subject to various domestic laws and regulations governing the protection of the environment. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on current legal and regulatory requirements. The Company previously had recorded an asset retirement obligation related to a pilot facility it installed for conducting research activities. The Company settled its asset retirement obligation during the year ended December 31, 2017 for less than its estimate as the scope of the asset retirement obligation was reduced. The change in estimate was recorded within the Research and development, net line item of the Consolidated Statements of Operations as the asset retirement obligation related to a research project of which expenses were originally recorded within the same line item. Prior to the adoption of ASC 606 on January 1, 2018, costs incurred on uncompleted contracts represented the gross costs as of the balance sheet dates. Billings on uncompleted contracts represented the gross billings as of the balance sheet dates. Costs and billings are netted on an individual contract basis, with contracts that were in a net cost position aggregated and presented as Prepaid expenses and other assets in the Consolidated Balance Sheets , and contracts that were in a net billing position aggregated and presented as Billing in excess of costs on uncompleted contracts in the Consolidated Balance Sheets . The below table shows the components of these items: As of December 31, (in thousands) 2017 Costs incurred on uncompleted contracts (gross) $ 15,945 Billings on uncompleted contracts (gross) (17,775 ) $ (1,830 ) Included in the accompanying balance sheets under the following captions (1): Costs in excess of billings on uncompleted contracts (2) $ — Billings in excess of costs on uncompleted contracts (3) (1,830 ) $ (1,830 ) (1) Amounts presented after netting of costs and billings on an individual contract basis. (2) Costs in excess of billings on uncompleted contracts was included in the Prepaid expenses and other assets caption on the Consolidated Balance Sheets. (3) Billings in excess of costs on uncompleted contracts was included in the Other current liabilities caption on the Consolidated Balance Sheets. For discussion on the impact of adopting ASC 606, see Note 6 . Supplemental Consolidated Statements of Operations Information The following table details the components of Interest expense in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2018 2017 453A interest $ 1,585 $ 2,555 Interest on Senior Term Loan 460 — Line of Credit interest and letters of credit fees — 417 Other 106 52 $ 2,151 $ 3,024 The following table details the components of Other in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2018 2017 Impairment of Highview investment $ — $ (464 ) Settlement agreement (1) — 3,500 Company contribution to 401(k) Plan — (1,000 ) Other (19 ) (11 ) $ (19 ) $ 2,025 (1) On November 6, 2017, the Company entered into a settlement agreement with a former third-party service provider and as part of the settlement the Company received cash in the amount of $ 3.5 million . This amount was paid to the Company during the fourth quarter of 2017. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value of Financial Instruments The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, deposits and accrued expenses, approximate fair value due to the short maturity of these instruments. Accordingly, these instruments are not presented in the table below. The following table provides the estimated fair values of the remaining financial instruments: As of December 31, 2018 As of December 31, 2017 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Instruments: Highview Investment $ 552 $ 552 $ 552 $ 552 Highview Obligation $ 213 $ 213 $ 210 $ 210 Concentration of credit risk As of December 31, 2018 , the Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. The Company holds cash and cash equivalents at five financial institutions as of December 31, 2018. If those institutions were to be unable to perform its obligations, the Company would be at risk regarding the amount of investment in excess of the federal deposit insurance corporation limits ( $250 thousand ) that would be returned to the Company. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2018 and December 31, 2017 , the Company had no material financial instruments carried and measured at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company completed the Carbon Solutions Acquisition, in which the fair value of the purchase consideration totaled $66.5 million . The Company's estimated fair values of the assets acquired and liabilities assumed are disclosed in Note 2 . As discussed in Note 11 , during the year ended December 31, 2017 , the Company recorded impairment charges of approximately $0.5 million , to reduce the carrying value of the Highview Investment to its estimated fair value. The fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017 (the "Enactment Date"), the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act made broad and complex changes to the U.S. tax code and key provisions applicable to the Company, or certain of Tinuum Group's existing or potential customers, for 2018 included the following: (1) reduction of the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) elimination of the corporate alternative minimum tax (AMT); (3) a new limitation on deductible interest expense; (4) limitations on the deductibility of certain executive compensation; (5) limitations on the use of federal tax credits ("FTCs") to reduce the U.S. income tax liability; (6) limitations on net operating losses (“NOL’s”) generated after December 31, 2017, to 80 percent of taxable income; and the introduction of the Base Erosion Anti-Abuse Tax (“BEAT”) for tax years beginning after December 31, 2017. As of the Enactment Date, the Company recorded an adjustment to its recorded deferred tax assets and deferred tax liabilities as a result of the reduction of the U.S. federal corporate rate from 35 percent to 21 percent, which resulted in a reduction of $5.8 million to net deferred tax assets as of the Enactment Date for those temporary differences expected to reverse after the Enactment Date. The reduction in the net deferred assets resulted in the recognition of $5.8 million of deferred tax expense for the year ended December 31, 2017 . During 2018, the Company did not make any accounting adjustments related to the Tax Act. The provision for income taxes consists of the following: Years Ended December 31, (in thousands, except for rate) 2018 2017 Current portion of income tax expense: Federal $ 882 $ 519 State and other 4,308 894 5,190 1,413 Deferred portion of income tax expense (benefit): Federal 4,766 23,003 State and other 467 (264 ) 5,233 22,739 Total income tax expense $ 10,423 $ 24,152 Effective tax rate 23 % 46 % For the year ended December 31, 2018 , the Company recorded income tax expense of $10.4 million compared to income tax expense of $24.2 million for 2017 . The income tax expense for the year ended December 31, 2018 includes $4.5 million due to an increase in the valuation allowance recorded against deferred tax assets. Income tax expense during the year ended December 31, 2017 included $5.8 million associated with the reduction of the net deferred tax assets as of the Enactment Date of the Tax Act. Excluding the impact of the Tax Act, the Company would have recorded a tax benefit of approximately $14.0 million during the fourth quarter of 2017 due to a reduction in the valuation allowance recorded against the deferred tax assets. However, after the impact of the Tax Act, the Company recorded tax expense of $11.5 million . Income tax expense differs from the amount that would be computed by applying the U.S. statutory federal income tax rates of 21% and 35% for the years ended December 31, 2018 and 2017 , respectively, to income before income taxes as a result of the following: Years Ended December 31, (in thousands) 2018 2017 Federal statutory rate $ 9,634 $ 18,209 State income taxes, net of federal benefit 3,625 1,721 Permanent differences 130 777 Tax credits (7,031 ) (1,949 ) Valuation allowances 4,462 (474 ) Changes in tax rates (464 ) 5,818 Stock-based compensation (216 ) 303 Other 283 (253 ) Expense for the provision for income taxes $ 10,423 $ 24,152 Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and their reported amounts in the accompanying Consolidated Balance Sheets. These temporary differences result in taxable or deductible amounts in future years. Details of the Company’s deferred tax assets and liabilities are summarized as follows: As of December 31, (in thousands) 2018 2017 Deferred tax assets Tax credits $ 104,553 $ 100,367 Deferred revenues and loss contract provisions — 906 Employee related liabilities 1,515 393 Intangible assets 1,623 914 Equity method investments 9,588 8,457 Net operating loss carryforwards 2,479 2,004 Other investments 583 563 Other 380 648 Total deferred tax assets 120,721 114,252 Less valuation allowance (79,898 ) (75,436 ) Deferred tax assets 40,823 38,816 Less: Deferred tax liabilities Property and equipment and other (8,284 ) (155 ) Total deferred tax liabilities (8,284 ) (155 ) Net deferred tax assets $ 32,539 $ 38,661 Accounting for income taxes requires that companies assess whether a valuation allowance should be recorded against their deferred tax asset based on an assessment of the amount of the deferred tax asset that is “more likely than not” to be realized. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company assesses the valuation allowance recorded against deferred tax assets at each reporting date. The determination of whether a valuation allowance for deferred tax assets is appropriate requires the evaluation of positive and negative evidence that can be objectively verified. Consideration must be given to all sources of taxable income available to realize a deferred tax asset, including, as applicable, the future reversal of existing temporary differences, future taxable income forecasts exclusive of the reversal of temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. In estimating taxes, the Company assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. As of December 31, 2018 , the Company concluded it is more likely than not the Company will generate sufficient taxable income within the applicable NOL and tax credit carry-forward periods to realize $32.5 million of its net deferred tax assets, and therefore, increased its valuation allowance by $4.5 million . In reaching this conclusion, the Company most significantly considered: (1) forecasts of continued future taxable income, (2) changes to forecasts of future utilization of DTA's and (3) impacts of additional RC invested facilities during 2018 . The following table presents the approximate amount of state net operating loss carryforwards and federal tax credit carryforwards available to reduce future taxable income, along with the respective range of years that the net operating loss and tax credit carryforwards would expire if not utilized: As of December 31, (in thousands) 2018 Beginning expiration year Ending expiration year State net operating loss carryforwards $ 52,126 2032 2038 Federal tax credit carryforwards $ 104,553 2032 2038 The following table sets forth a reconciliation of the beginning and ending unrecognized tax benefits on a gross basis for the years ended December 31, 2018 and 2017 : Years Ended December 31, (in thousands) 2018 2017 Balance as of January 1 $ 54 $ 54 Increases for tax positions of current year — — Balance as of December 31 $ 54 $ 54 The Company did not record any adjustments or recognize interest expense for uncertain tax positions for the years ended December 31, 2018 and 2017 . Interest and penalties related to uncertain tax positions are accrued and included in the Interest expense line item in the Consolidated Statements of Operations . Additionally, the Company recognizes interest expense related to the tax treatment of RC facilities at Tinuum Group in the Interest expense line item in the Consolidated Statements of Operations. Additional information related to these interest amounts is included in Note 11 . The Company files income tax returns in the U.S. and in various states. The Company is no longer subject to U.S. federal examinations by tax authorities for years before 2014 . The Company is generally no longer subject to state examinations by tax authorities for years before 2013 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company's chief operating decision maker ("CODM"), or a decision making group, in deciding how to allocate resources and in assessing financial performance. As of December 31, 2018 , the Company's CODM was the Company's CEO. The Company's operating and reportable segments are organized by products and services provided. As of December 31, 2018, the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Power Generation and Industrials ("PGI"). The majority of Carbon Solutions operations has been included within the PGI segment; whereas a portion has been included within All Other and Corporate. The business segment measurements provided to and evaluated by the CODM are computed in accordance with the principles listed below: • The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except as described below. • Segment revenues include equity method earnings and losses from the Company's equity method investments. • Segment operating income (loss) includes segment revenues and allocation of certain "Corporate general and administrative expenses," which includes Payroll and benefits , Rent and occupancy , Legal and professional fees , and General and administrative . • RC segment operating income includes interest expense directly attributable to the RC segment. As of December 31, 2018 and December 31, 2017 , substantially all of the Company's material assets are located in the U.S. and all significant customers are U.S. companies. The following table presents the Company's operating segment results for the years ended December 31, 2018 and 2017 : Years Ended December 31, (in thousands) 2018 2017 Revenues: Refined Coal: Earnings in equity method investments $ 54,208 $ 53,843 Royalties, related party 15,140 9,672 69,348 63,515 Power Generation and Industrials: Equipment sales 72 31,446 Consumables 8,628 4,246 8,700 35,692 Total segment reporting revenues 78,048 99,207 Adjustments to reconcile to reported revenues: Earnings in equity method investments (54,208 ) (53,843 ) Corporate and other 105 — Total reported revenues $ 23,945 $ 45,364 Segment operating income (loss) Refined Coal (1) $ 65,454 $ 59,908 Power Generation and Industrials (2) (2,621 ) 379 Total segment operating income $ 62,833 $ 60,287 (1) Included within the RC segment operating income for the years ended December 31, 2018 and 2017 is 453A interest expense of $1.6 million and $2.6 million , respectively. Also included within the RC segment operating income for the year ended December 31, 2018 was $0.4 million of severance expense. (2) Included within the PGI segment operating income for the year ended December 31, 2018 was approximately $1.0 million of amortization expense related to the fair value of inventory. Also included within the PGI segment operating income for the year ended December 31, 2018 was $1.0 million of severance expense. A reconciliation of reportable segment operating income to the Company's consolidated net income is as follows: Years Ended December 31, (in thousands) 2018 2017 Segment operating income Total reported segment operating income $ 62,833 $ 60,287 Corporate and other operating income 2 — Consolidated operating income 62,835 60,287 Adjustments to reconcile to net income attributable to the Company Corporate payroll and benefits (4,970 ) (5,565 ) Corporate rent and occupancy (616 ) (293 ) Corporate legal and professional fees (7,978 ) (4,010 ) Corporate general and administrative (3,011 ) (3,400 ) Corporate depreciation and amortization (134 ) (342 ) Corporate interest (expense) income, net (521 ) (432 ) Other income (expense), net 272 5,780 Income tax expense (10,423 ) (24,152 ) Net income $ 35,454 $ 27,873 Corporate general and administrative expenses include certain costs that benefit the business as a whole but are not directly related to one of the Company's segments. Such costs include, but are not limited to, accounting and human resources staff, information systems costs, legal fees, facility costs, audit fees and corporate governance expenses. A reconciliation of reportable segment assets to the Company's consolidated assets is as follows: As of December 31, (in thousands) 2018 2017 Assets: Refined Coal (1) $ 11,468 $ 8,092 Power Generation and Industrial 85,786 3,755 Total segment assets 97,254 11,847 All Other and Corporate (2) 62,410 70,771 Consolidated $ 159,664 $ 82,618 (1) Includes $6.6 million of investments in equity method investees. (2) Includes the Company's net deferred tax assets of $32.5 million . |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2018 | |
Major Customers Disclosure [Abstract] | |
Major Customers | Major Customers Revenues from external customers who represent 10% or more of the Company’s revenues for the years ended December 31, 2018 and 2017 were as follows: Years ended December 31, Customer Revenue Type Segment(s) 2018 2017 A License royalties, related party RC 63% 21% B Equipment sales PGI —% 48% |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Accounts Receivable The following table shows the Company's receivable balance associated with related parties as of December 31, 2018 and 2017 : As of December 31, (in thousands) 2018 2017 Receivable from related party - Tinuum Group $ 4,284 $ 3,247 Revenues The following table shows the other income recognized with related parties during the years ended December 31, 2018 and 2017 : Years Ended December 31, (in thousands) 2018 2017 Royalties, related party - Tinuum Group $ 15,140 $ 9,672 The above Tinuum Group royalties are included within the License royalties, related party line in the Consolidated Statements of Operations . |
Defined Contributions Savings P
Defined Contributions Savings Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Defined Contributions Savings Plan | Defined Contribution Savings Plans The Company sponsors two qualified defined contribution savings plans (collectively the "401(k) Plans") that allow participation by eligible employees who may defer a portion of their gross pay. The Company makes contributions to the 401(k) Plans based on percentages of an employee's eligible compensation as specified in the 401(k) Plans, and such employer contributions are in the form of cash. The following table presents the amount of the Company's contributions made to the 401(k) Plan, which is reflected within the Payroll and benefits line item in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2018 2017 401(k) Plans employer contributions $ 139 $ 56 Due to the usage of forfeitures within the 401(k) Plan to offset the Company's contribution related to the year ended December 31, 2017, there was an increase in employer contributions made to the 401(k) Plan for the year ended December 31, 2018 . As discussed in Note 8 , the Company made an additional employer contribution of $1.0 million in June 2018 to one of its 401(k) Plans as part of an agreement with the DOL that required a restorative payment to be made to that 401(k) Plan. The Company had accrued this amount as of December 31, 2017 and the liability was included in Other current liabilities on the Consolidated Balance Sheet as of December 31, 2017 and the related expense was reflected within the Other income (expense): Other line item in the Consolidated Statement of Operations for the year ended December 31, 2017. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In December 2018, the Company recorded restructuring charges in connection with the departures of certain executives of Carbon Solutions in conjunction with the Carbon Solutions Acquisition. As part of the Carbon Solutions Acquisition, the Company also assumed a salary severance liability for an additional executive of Carbon Solutions in the amount of $0.6 million . Additionally, the Company recorded restructuring charges in 2018 in connection with a reduction in force that commenced in May 2018 as part of the Company's further alignment of the business with strategic objectives, which included the departure of certain executive officers. These charges related to cash severance arrangements with departing employees and executives, as well as stock-based compensation charges related to the acceleration of vesting of certain stock awards. During the year ended December 31, 2017 , the Company did not record material restructuring charges. A summary of the net pretax charges incurred by segment is as follows: Pretax Charge (in thousands, except employee data) Approximate Number of Employees Refined Coal PGI All Other and Corporate Total Year ended December 31, 2018 Restructuring charges 16 $ 448 $ 996 $ 1,685 $ 3,129 Changes in estimates — — — — Total pretax charge, net of reversals $ 448 $ 996 $ 1,685 $ 3,129 The following table summarizes the Company's utilization of restructuring accruals for the years ended December 31, 2018 and 2017 : (in thousands) Employee Severance Facility Closures Beginning accrual as of January 1, 2017 $ 452 $ 247 Expense provision (1) 56 — Cash payments and other (1) (508 ) (250 ) Change in estimates (1) — 3 Accrual as of December 31, 2017 — — Expense provision (1) 3,129 — Cash payments and other (1) (1,491 ) — Severance liability acquired 570 — Accrual as of December 31, 2018 $ 2,208 $ — (1) For the year ended December 31, 2018 , included within the Expense provision and Cash payments and other line items in the above table is stock-based compensation of $0.8 million resulting from the accelerated vesting of modified equity-based compensation awards for certain terminated employees. Restructuring accruals related to personnel are included within the Accrued payroll and related liabilities line item in the Consolidated Balance Sheets . Restructuring expenses related to personnel are included within the Payroll and benefits and Research and development, net line items in the Consolidated Statements of Operations . Restructuring accruals related to facilities are included within the Other current liabilities line item in the Consolidated Balance Sheets . Restructuring expenses related to facilities are included within the Rent and occupancy line item in the Consolidated Statements of Operations . |
Quarterly Financial Results (un
Quarterly Financial Results (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (unaudited) | Quarterly Financial Results (unaudited) Summarized quarterly results for the two years ended December 31, 2018 and December 31, 2017 are as follows: For the Quarter Ended (in thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Revenues $ 10,626 (1) $ 5,147 $ 4,273 $ 3,899 Cost of revenues, exclusive of operating expenses shown below 4,032 (1) 954 704 563 Other operating expenses 9,745 (1), (2) 4,161 5,138 5,048 Operating (loss) income (3,151 ) 32 (1,569 ) (1,712 ) Earnings from equity method investments 16,351 9,715 15,889 12,253 Other income (expenses), net (930 ) (313 ) (378 ) (310 ) Income before income tax expense 12,270 (1), (2) 9,434 13,942 10,231 Income tax expense (benefit) 5,272 (3) 3,931 (1,349 ) 2,569 Net income $ 6,998 $ 5,503 $ 15,291 $ 7,662 Earnings per common share – basic $ 0.36 $ 0.28 $ 0.76 $ 0.37 Earnings per common share – diluted $ 0.36 $ 0.28 $ 0.75 $ 0.37 Weighted-average number of common shares outstanding Basic 19,339 19,726 20,062 20,502 Diluted 19,439 19,876 20,195 20,584 For the Quarter Ended (in thousands, except per share data) December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Revenues $ 3,791 $ 5,098 $ 27,331 $ 9,144 Cost of revenues, exclusive of operating expenses shown below 648 2,041 23,295 5,901 Other operating expenses 4,205 4,197 4,020 5,199 Operating (loss) income (1,062 ) (1,140 ) 16 (1,956 ) Earnings from equity method investments 17,754 12,120 10,155 13,814 Other income (expenses), net 1,831 (1,602 ) (121 ) 2,216 Income before income tax expense 18,523 9,378 10,050 14,074 Income tax expense 11,538 (4) 3,586 3,642 5,386 Net income $ 6,985 $ 5,792 $ 6,408 $ 8,688 Earnings per common share – basic $ 0.34 $ 0.28 $ 0.29 $ 0.39 Earnings per common share – diluted $ 0.33 $ 0.28 $ 0.29 $ 0.39 Weighted-average number of common shares outstanding Basic 20,767 20,808 21,866 22,056 Diluted 20,864 20,854 21,880 22,243 (1) During the fourth quarter of 2018, the Company completed the Carbon Solutions Acquisition and the operating results for the fourth quarter of 2018 include the operations of Carbon Solutions for the period from December 7 to December 31, 2018. For this period, Carbon Solutions contributed $5.6 million to Revenues, $3.4 million to Cost of Revenue, $2.6 million to Other Operating Expenses and $0.4 million to Loss before income tax expense. (2) During the fourth quarter of 2018, the Company incurred $3.4 million in transaction costs and $1.1 million in severance charges for executives related to the Carbon Solutions Acquisition that were recorded in Other Operating Expenses. (3) During the fourth quarter of 2018, the Company recorded income tax expense of $5.3 million primarily due to an increase of $4.5 million to the valuation allowance on its deferred tax assets. (4) During the fourth quarter of 2017, the Company recorded income tax expense of $11.5 million primarily related to statutory federal and state taxes of $5.7 million at the statutory rates, and the impact of the Tax Act, which increased the Company's income tax expense by $ 5.8 million . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Unless disclosed elsewhere within the notes to the Consolidated Financial Statements, the following are the significant matters that occurred subsequent to December 31, 2018. Invested RC Facility On January 16, 2019, the Company announced that Tinuum Group completed a transaction for an additional RC facility. The RC facility is located at a coal plant that has historically burned in excess of 3.5 million tons of coal per year and is royalty bearing to ADES. With this addition, Tinuum Group has 20 invested facilities in full-time operation. Dividends On February 5, 2019, the Board declared a quarterly dividend of $0.25 per share of common stock, which was paid on March 7, 2019 to stockholders of record at the close of business on February 19, 2019. |
Summary of Operations and Sig_2
Summary of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | The Consolidated Financial Statements include accounts of wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. All investments in partially owned entities for which the Company has greater-than-20% ownership are accounted for using the equity method based on the legal form of the Company's ownership percentage and the applicable ownership percentage of the entity and are included in the Equity method investments line item in the Consolidated Balance Sheets . As of December 31, 2018 , the Company holds equity interests of 42.5% and 50.0% in Tinuum Group and Tinuum Services, LLC ("Tinuum Services"), respectively. Tinuum Group is deemed to be variable interest entity ("VIE") under the VIE model of consolidation, but the Company does not consolidate Tinuum Group as it is not deemed to be its primary beneficiary. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents include bank deposits and other highly liquid investments purchased with an original maturity of three months or less. As of December 31, 2018 , restricted cash primarily consisted of minimum cash balance requirements under the Term Loan and Security Agreement (the "Senior Term Loan") and is classified according to the period at which it will no longer be restricted. As of December 31, 2017 , all cash and cash equivalents were unrestricted and all cash requirements for contractual performance guarantees and payments were satisfied under the borrowing availability of the 2013 Loan and Security Agreement (the "Line of Credit"). |
Inventories | Inventories are stated at the lower of average cost or net realizable value and consist principally of raw materials and finished goods related to the Company's PAC and chemical product offerings. The cost of inventory is determined using the average cost method. Inventory acquired was measured at fair value as of the Acquisition Date. Inventories are periodically reviewed for both potential obsolescence and potential declines in anticipated selling prices. In this review, the Company makes assumptions about the future demand for and market value of the inventory, and based on these assumptions estimates the amount of any obsolete, unmarketable, slow moving or overvalued inventory. The Company will write down the value of inventories by an amount equal to the difference between the cost of the inventory and its estimated net realizable value. |
Intangible assets | Intangible assets consist of patents, licensed technology, customer relationships, developed technologies and trade names. The Company has developed technologies resulting in patents being granted by the U.S. Patent and Trademark Office. Legal costs associated with securing the patent are capitalized and amortized over the legal or useful life beginning on the patent filing date. The remaining intangible assets were recorded at fair value in connection with the Carbon Solutions Acquisition. |
Investments | The investments in entities in which the Company does not have a controlling interest (financial or operating), but where it has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and the Company's ownership level. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s Consolidated Balance Sheets and Consolidated Statements of Operations ; however, the Company’s share of the earnings or losses of the investee company is reported in the Earnings from equity method investments line item in the Consolidated Statements of Operations , and the Company’s carrying value in an equity method investee company is reported in the Equity method investments line in the Consolidated Balance Sheets . When the Company receives distributions in excess of the carrying value of the investment and has not guaranteed any obligations of the investee, nor is it required to provide additional funding to the investee, the Company recognizes such excess distributions as equity method earnings in the period the distributions occur. When the investee subsequently reports income, the Company does not record its share of such income until it equals the amount of distributions in excess of carrying value that were previously recognized in income. During the years ended December 31, 2018 and 2017 , the Company had no guarantees or requirements to provide additional funding to investees. Additionally, when the Company's carrying value in an equity method investment is zero and the Company has not guaranteed any obligations of the investee, nor is it required to provide additional funding to the investee, the Company will not recognize its share of any reported losses by the investee until future earnings are generated to offset previously unrecognized losses. As a result, equity income or loss reported on the Company's Consolidated Statements of Operations for certain equity method investees may differ from a mathematical calculation of net income or loss attributable to its equity interest based upon the percentage ownership of the Company's equity interest and the net income or loss attributable to equity owners as shown on the investee company's statements of operations. Likewise, distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” within Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” within Investing cash flows. |
Property, Plant and Equipment | Property, plant and equipment is stated at cost less accumulated depreciation and includes leasehold improvements. Depreciation on assets is computed using the straight-line method over the lesser of the estimated useful lives of the related assets or the lease term (ranging from 1 to 31 years). Maintenance and repairs that do not extend the useful life of the respective asset are charged to Operating expenses as incurred. When assets are retired, or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation and any resulting gain or loss is credited or charged to income. The Company performs an evaluation of the recoverability of the carrying value of its property, plant and equipment to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Amortization of capital leased assets is included in depreciation expense and is calculated using the straight-line method over the term of the lease. |
Other Assets | Mine Development Costs Mine development costs are stated at cost less accumulated depletion and include acquisition costs, the cost of other development work and mitigation costs. Costs are amortized over the estimated life of the related mine reserves, which is 18 years. The Company performs an evaluation of the recoverability of the carrying value of mine development costs to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Mine development costs acquired in the Carbon Solutions Acquisition were measured at fair value as of the Acquisition Date. Mine development costs are reported in the "Other assets" line item on the Consolidated Balance Sheet. Spare Parts Spare parts include critical spares required to support plant operations. Parts and supply costs are determined using the lower of cost or estimated replacement cost. Parts are recorded as maintenance expenses in the period in which they are consumed. Spare parts acquired in the Carbon Solutions Acquisition were measured at fair value as of the Acquisition Date. Spare parts are reported in the "Other assets" line item on the Consolidated Balance Sheet. |
Revenue Recognition | On January 1, 2018, the Company adopted ASC 606 - Revenue from Contracts with Customers ("ASC 606") using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of initially applying ASC 606 to the opening balance of the Accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See further discussion of the impact of the adoption of ASC 606 in Note 6 . Effective with the Acquisition Date, Carbon Solutions adopted ASC 606 using the modified retrospective method applied to those contracts that were not completed as of December 7, 2018. There was no impact to the consolidated financial statements of the Company upon Carbon Solutions’ adoption of ASC 606, except for a reclassification from revenues to cost of revenue for Carbon Solutions for freight costs billed to its customers in conjunction with product sales, which historically were recorded as revenues. This reclassification of freight costs billed to customers to cost of revenue results in an offset to Carbon Solutions' actual freight costs recorded in cost of revenue and has no impact to Carbon Solutions' operating results. This presentation is consistent with ADES' policy of reporting freight costs, net of freight costs billed to customers, under cost of revenue. ADES adopted this policy effective with its adoption of ASC 606 on January 1, 2018. The Company recognizes revenue from a contract with a customer when a performance obligation under the terms of a contract with a customer is satisfied, which is when the customer controls the promised goods or services that are transferred in satisfaction of the performance obligation. Revenue is measured as the amount of consideration that is expected to be received in exchange for transferring goods or providing services, and the transaction price is generally fixed and generally does not contain variable or noncash consideration. In addition, the Company’s contracts with customers generally do not contain customer refund or return provisions or other similar obligations. Transfer of control and satisfaction of performance obligations are further discussed in each of the revenue components listed below. The Company uses estimates and judgments in determining the nature and timing of satisfaction of performance obligations, the standalone selling price ("SSP") of performance obligations and the allocation of the transaction price to multiple performance obligations. The Company’s principal revenue components are Consumables sales and License royalties. Consumables Consumables are comprised of the sale of AC and chemicals for mercury capture for the coal-fired power plant, industrial and water treatment markets. Customer contracts for consumables are short duration and performance obligations generally do not extend beyond one year. Certain customer contracts for consumables are comprised of evaluation tests of the Company's consumables' effectiveness and efficiency in reducing emissions. These contracts entail the delivery of consumables to the customer and the Company's evaluation of results of emissions reduction over the term of the contract. Under these types of arrangements, which are generally for durations that are short term, the Company has determined that the customer is simultaneously receiving benefits of emissions reduction from the consumption of the consumables over the testing period and this represents a single performance obligation that is satisfied over time. This determination may require significant judgment. The Company recognizes revenue over time using an input model that is generally based on the cost of consumables used by the customer during the testing period. The use of an input model and the use of total costs as the measure of progress in the satisfaction of the performance obligations may require significant judgment. In addition, under these types of contracts, the Company has determined that the services performed and related costs incurred by the Company during the testing period represent costs to fulfill a contract. License royalties, related party The Company generates revenues from royalties ("M-45 Royalties") earned under a licensing arrangement ("M-45 License") of its M-45 TM and M-45-PC TM emissions control technologies ("M-45 Technology") between the Company and Tinuum Group. The Company recognizes M-45 Royalties at a point in time based on the use of the M-45 Technology at certain RC facilities or through Tinuum Group’s use of licensed technology for rates in excess of amounts allowed for RC application. The amount of M-45 Royalties recognized is generally based on a percentage of pre-tax margins (as defined in the M-45 License) of the RC facilities using the M-45 Technology. Equipment sales Prior to 2017, the Company entered into construction-type contracts that entailed the design and construction of emissions control systems ("extended equipment contracts"). Revenues from such extended equipment contracts were recorded using the percentage of completion, cost to cost method based on costs incurred to date compared with total estimated contract costs. However, if the Company did not have sufficient information to estimate either costs incurred or total estimated costs for extended equipment contracts at the time contracts were entered into, the completed contract method was used. Under the completed contract method, revenues and costs from extended equipment contracts are deferred and recognized when contract obligations are substantially complete. The Company defined substantially complete as delivery of equipment and start-up at the customer site or, as applicable to dry sorbent injection (“DSI”) systems contracts, the completion of any major warranty service period. Provisions for estimated losses on uncompleted contracts were recognized when it was determined that a loss was probable. For the year ended December 31, 2017, the Company did not have sufficient information to measure ongoing performance for its extended equipment contracts and accounted for these contracts under the completed contract method. For uncompleted contracts as of December 31, 2017, the Company reported deferred revenue and related costs in the Costs in excess of billings on uncompleted contracts or Billings in excess of costs on uncompleted contracts in the Consolidated Balance Sheets . Historically, the Company also entered into other non-extended equipment contracts for which the Company recognized revenues as services to build equipment systems were performed or as equipment was delivered. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations, which are comprised of the sale of chemicals, equipment and services performed as part of an emissions reduction arrangement. For such arrangements, the Company allocates revenue to each performance obligation based on its relative SSP. When a directly observable SSP for a performance obligation is not available, the Company primarily estimates SSPs based on the expected cost plus a margin method. These estimates as well as the timing of the satisfaction of performance obligations associated with the services component represent significant judgments made by the Company. These arrangements are generally short duration and performance obligations generally do not extend beyond one year. Contract Assets and Liabilities Contract assets are comprised of unbilled receivables and are included in Receivables, net in the Condensed Consolidated Balance Sheet. Unbilled receivables represent a conditional right to consideration in exchange for goods or services transferred to a customer. Trade receivables represent an unconditional right to consideration in exchange for goods or services transferred to a customer. The Company invoices its customers in accordance with the terms of the contract. Credit terms are generally net 30 from the date of invoice. The timing between the satisfaction of performance obligations and when payment is due from the customer is generally not significant. The Company records allowances for doubtful trade receivables when it is probable that the balances will not be collected. Bad debt expense is included within the General and administrative line item in the Consolidated Statements of Operations. Contract liabilities are comprised of deferred revenue, which represents an obligation to transfer goods or services to a customer for which the Company has received consideration from the customer and, if deliverable within one year or less, is included in Other current liabilities in the Condensed Consolidated Balance Sheet and, if deliverable outside of one year, is included in Other long-term liabilities in the Condensed Consolidated Balance Sheet. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Sales and other taxes that are collected concurrently with revenue-producing activities are excluded from revenue. The Company has elected to account for freight costs as activities to fulfill the promise to transfer the goods, and therefore these activities are also not assessed as a separate service to customers. The Company accounts for all shipping and handling activities that occur after control of the related good transfers as fulfillment activities. These activities are included in Cost of Revenue line items of the Condensed Consolidated Statement of Operations. The Company generally expenses sales commissions when incurred because the amortization period of the asset that the Company would have recognized is one year or less. These costs are recorded within sales and marketing expenses within the General and administrative line item of the Condensed Consolidated Statement of Operations. Cost of Revenue Costs of revenue include all labor, fringe benefits, subcontract labor, additive and coal costs, materials, equipment, supplies, travel costs and any other costs and expenses directly related to the Company’s production of revenues. The Company records estimated contract losses, if any, in the period they are determined. |
Expenses | Payroll and Benefits Payroll and benefits costs include direct payroll, personnel related fringe benefits, sales and administrative staff labor costs and stock compensation expense. Payroll and benefits costs exclude direct labor included in Cost of revenue. Rent and Occupancy Rent and occupancy costs include rent, insurance and other occupancy-related expenses. Legal and Professional Legal and professional costs include external legal, audit and consulting expenses. General and Administrative General and administrative costs include director fees and expenses, bad debt expense, impairments and other general costs of conducting business. |
Research and Development | Research and development costs, net of reimbursements from cost-sharing arrangements, are charged to expense in the period incurred and are reported in the General and administrative line item in the Consolidated Statements of Operations . |
Asset Retirement Obligations | Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The estimated reclamation obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at the mine site in accordance with ASC guidance for asset retirement obligations. |
Income Taxes | The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The Company recognizes deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest expense due to the Company's share of Tinuum Group's equity method earnings for Refined Coal ("RC") facilities, in which the lease income or sale is treated as installment sales for tax purposes. IRS section 453A requires taxpayers using the installment method to pay an interest charge on the portion of the tax liability that is deferred under the installment method. The Company recognizes IRS section 453A interest ("453A interest") and other interest and penalties related to unrecognized tax benefits in the Interest expense line item in the Consolidated Statements of Operations . |
Stock-Based Compensation | Stock-based compensation expense is measured at the grant date based on the estimated fair value of the stock-based award and is generally expensed on a straight-line basis over the requisite service period and/or performance period of the award. Forfeitures are recognized when incurred. These costs are recorded in the Payroll and benefits or General and administrative , for director related expense, line items in the Consolidated Statements of Operations . |
Dividends | When a sufficient amount of available earnings exists at the time of declaration, dividends are charged as a reduction to Retained earnings in the Consolidated Balance Sheets when declared. If sufficient Retained earnings is not available, dividends declared are charged as a reduction to Additional paid-in capital in the Consolidated Balance Sheets . |
Earnings (Loss) Per Share | Basic earnings (loss) per share is computed using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for common stock and any participating securities according to dividend and participating rights in undistributed earnings. The Company's restricted stock awards ("RSA's") granted prior to December 31, 2016 contain non-forfeitable rights to dividends or dividend equivalents and are deemed to be participating securities. RSA's granted subsequent to December 31, 2016 do not contain non-forfeitable rights to dividends and are not deemed to be participating securities. Under the two-class method, net income (loss) for the period is allocated between common stockholders and the holders of the participating securities based on the weighted-average of common shares outstanding during the period, excluding participating, unvested RSA's ("common shares"), and the weighted-average number of participating, unvested RSA's outstanding during the period, respectively. The allocated, undistributed income for the period is then divided by the weighted-average number of common shares and participating, unvested RSA's outstanding during the period to determine basic earnings per common share and participating security for the period, respectively. Pursuant to U.S. GAAP, the Company has elected not to separately present basic or diluted earnings per share attributable to participating securities in the Consolidated Statements of Operations. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share, while considering other potentially dilutive securities. Potentially dilutive securities consist of both unvested, participating and non-participating RSA's, as well as outstanding options to purchase common stock ("Stock Options") and contingent performance stock units ("PSU's") (collectively, "Potential dilutive shares"). The dilutive effect, if any, for non-participating RSA's, Stock Options and PSU's is determined using the greater of dilution as calculated under the treasury stock method or the two-class method. Potential dilutive shares are excluded from diluted earnings (loss) per share when their effect is anti-dilutive. When there is a net loss for a period, all Potential dilutive shares are anti-dilutive and are excluded from the calculation of diluted loss per share for that period. Each PSU represents a contingent right to receive shares of the Company’s common stock, and the number of shares may range from zero to two times the number of PSU's granted on the award date depending upon the price performance of the Company's common stock as measured against a general index and a specific peer group index over requisite performance periods. The number of Potential dilutive shares related to PSU's is based on the number of shares of the Company's common stock, if any, that would be issuable at the end of the respective reporting period, assuming that the end of the reporting period is the end of the contingency period applicable to such PSU's. See Note 10 for additional information related to PSU's. |
Use of Estimates | The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. The Company makes assumptions on the following significant financial statement components including: • business combinations; • the carrying value of its long-lived assets; • stock compensation costs; • asset retirement obligation; and • income taxes, including the valuation allowance for deferred tax assets and uncertain tax positions. |
Risks and Uncertainties | The Company’s earnings are significantly affected by equity earnings it receives from Tinuum Group. Tinuum Group has 19 invested RC facilities of which 11 are leased to a single customer. A majority of these leases are periodically renewed and the loss of this customer by Tinuum Group would have a significant adverse impact on its financial position, results of operations and cash flows, which in turn would have material adverse impact on the Company’s financial position, results of operations and cash flows. Concentration of credit risk As of December 31, 2018 , the Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. The Company holds cash and cash equivalents at five financial institutions as of December 31, 2018. If those institutions were to be unable to perform its obligations, the Company would be at risk regarding the amount of investment in excess of the federal deposit insurance corporation limits ( $250 thousand ) that would be returned to the Company. |
Reclassifications | Certain balances have been reclassified from prior years to conform to the current year presentation. |
New Accounting Guidance | In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires lessees to recognize a right of use asset and related lease liability for those leases classified as operating leases at the commencement date and have lease terms of more than 12 months. This topic retains the distinction between finance leases and operating leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, and must be applied under a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) : Targeted Improvements ("ASU 2018-11"). The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new lease requirements by allowing entities to initially apply the requirements by recognizing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which the entity adopts the new lease requirements would continue to be in accordance with current U.S. GAAP (Topic 840). An entity electing this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments do not change the existing disclosure requirements in Topic 840. The Company intends to adopt ASC 2016-02 effective January 1, 2019 using the additional (and optional) transition method provided under ASU 2018-11. As of the date of this filing, the Company has materially completed its assessment of ASU 2016-02 and related amendments for the impact to the financial statements as of the adoption date, completed a detailed review of existing lease agreements, continued its review of controls and procedures that may need to be revised or added from the adoption of ASU 2016-02 and completed the documentation of the standard's financial statement impact at adoption and financial statement disclosure changes. Based on the Company's current assessment of ASU 2016-02, it has determined that at adoption it will record approximately $6.9 million of "right of use" assets and $7.0 million of incremental lease liabilities with no impact to the opening balance of Retained earnings; however, the Company is continuing to evaluate ASU 2016-02's potential additional impact to the opening balance sheet as of January 1, 2019. Additionally, Tinuum Group plans to adopt ASU 2014-09 (Topic 606), Revenue from Contracts with Customers (“ASU 2014-09”) and ASU 2016-02 as of January 1, 2019. As a result of Tinuum Group’s adoption, the Company expects to record a cumulative adjustment of $37.2 million related to the Company's percentage of Tinuum Group's cumulative effect adjustment that will increase the Company's Retained earnings as of January 1, 2019. The Company expects that this adjustment will result in no longer having cumulative cash distributions that exceed our cumulative pro-rata share of Tinuum Group's net income. Additionally, the Company expects that we will recognize equity earnings by recording our pro-rata share of Tinuum Group’s net income rather than based upon cash distributions on a go-forward basis. Upon adoption, the Company will assess the impact of the adjustment to its income tax position. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, and must be adopted under a modified retrospective method approach. Entities may adopt ASU 2016-13 earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those years. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company's financial statements and disclosures. The Company does not believe this standard will have a material impact on the Company's financial statements and disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). The amendments in ASU 2018-13 improve the effectiveness of fair value measurement disclosures and modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement ("Topic 820"), based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. The Company is currently evaluating the provisions of this Update and assessing its impact on the Company's financial statement disclosures. The Company does not believe this standard will have a material impact on the Company's financial statement disclosures. |
Fair Value of Financial Instruments | The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, deposits and accrued expenses, approximate fair value due to the short maturity of these instruments. |
Segment Reporting | Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company's chief operating decision maker ("CODM"), or a decision making group, in deciding how to allocate resources and in assessing financial performance. As of December 31, 2018 , the Company's CODM was the Company's CEO. The Company's operating and reportable segments are organized by products and services provided. As of December 31, 2018, the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Power Generation and Industrials ("PGI"). The majority of Carbon Solutions operations has been included within the PGI segment; whereas a portion has been included within All Other and Corporate. The business segment measurements provided to and evaluated by the CODM are computed in accordance with the principles listed below: • The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except as described below. • Segment revenues include equity method earnings and losses from the Company's equity method investments. • Segment operating income (loss) includes segment revenues and allocation of certain "Corporate general and administrative expenses," which includes Payroll and benefits , Rent and occupancy , Legal and professional fees , and General and administrative . • RC segment operating income includes interest expense directly attributable to the RC segment Corporate general and administrative expenses include certain costs that benefit the business as a whole but are not directly related to one of the Company's segments. Such costs include, but are not limited to, accounting and human resources staff, information systems costs, legal fees, facility costs, audit fees and corporate governance expenses. |
Summary of Operations and Sig_3
Summary of Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table details the components of the Company's intangible assets: As of December 31, 2018 2017 (in thousands, except years) Weighted average amortization (in years) Initial Cost Net of Accumulated Amortization Initial Cost Net of Accumulated Amortization Customer relationships 5 $ 2,100 $ 2,071 $ — $ — Patents 16 1,244 891 1,079 805 Developed technology 5 1,600 1,578 — — Trade name 2 300 290 — — Total $ 5,244 $ 4,830 $ 1,079 $ 805 |
Calculations of Basic and Diluted Earnings Per Share | The following table sets forth the calculations of basic and diluted earnings (loss) per common share: Years Ended December 31, (in thousands, except per share amounts) 2018 2017 Net income $ 35,454 $ 27,873 Less: Dividends and undistributed income allocated to participating securities 112 171 Income attributable to common stockholders $ 35,342 $ 27,702 Basic weighted-average number of common shares outstanding 19,901 21,367 Add: dilutive effect of equity instruments 132 46 Diluted weighted-average shares outstanding 20,033 21,413 Earnings per share - basic $ 1.78 $ 1.30 Earnings per share - diluted $ 1.76 $ 1.29 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of Purchase Consideration and Allocation | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the Acquisition Date: Fair value of assets acquired: Purchase Price Allocation Cash $ 3,284 Receivables 6,409 Inventories 22,100 Prepaid expenses and other current assets 2,992 Spare parts 3,359 Property, plant and equipment 43,033 Mine leases and development 2,500 Intangible assets 4,000 Other assets 168 Amount attributable to assets acquired 87,845 Fair value of liabilities assumed: Accounts payable 4,771 Accrued liabilities 7,354 Equipment leases payable 8,211 Mine reclamation liability 626 Other liabilities 437 Amount attributable to liabilities assumed 21,399 Net assets acquired $ 66,446 The following table represents the intangible assets identified as part of the Carbon Solutions Acquisition: (in thousands) Amount Weighted Average Useful Life (years) Customer relationships $ 2,100 5 Developed technology 1,600 5 Trade name 300 2 Total intangibles acquired $ 4,000 |
Business Combination, Schedule of Revenue and Net Income | The amounts of revenues and income before income taxes for the period from the Acquisition Date to December 31, 2018 for Carbon Solutions are as follows: (in thousands) Year ended December 31, 2018 Revenues $ 5,580 Net loss $ (391 ) |
Business Acquisition, Pro Forma Information | The pro forma results do not include any anticipated synergies or other expected benefits of the Carbon Solutions Acquisition. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the Carbon Solutions Acquisition been consummated as of January 1, 2017. Years ended December 31, (in thousands) 2018 2017 Revenues $ 78,591 $ 110,663 Net income $ 31,562 $ 32,524 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table summarizes the Company's inventories recorded at the lower of average cost or net realizable value as of December 31, 2018 and 2017 : As of December 31, (in thousands) 2018 2017 Product inventory (1) $ 19,523 $ 74 Raw material inventory 2,388 — Reserves (120 ) — $ 21,791 $ 74 (1) As of December 31, 2018, this amount includes $5.0 million attributed to the increase in fair value of inventory acquired. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The carrying basis and accumulated depreciation of property, plant and equipment at December 31, 2018 and 2017 are: Life in Years As of December 31, (in thousands) 2018 2017 Land and land improvements 0-31 $ 2,302 $ — Plant and operating equipment 2-31 32,999 — Furniture and fixtures 1-7 701 262 Machinery and equipment 1-31 1,277 1,429 Leasehold improvements 1-3 249 205 Construction in progress 6,668 — 44,196 1,896 Less accumulated depreciation (1,499 ) (1,486 ) Total property, plant and equipment, net $ 42,697 $ 410 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following tables summarize the assets, liabilities and results of operations of Tinuum Group: As of December 31, (in thousands) 2018 2017 Current assets $ 54,958 $ 31,605 Non-current assets $ 92,991 $ 75,055 Current liabilities $ 50,908 $ 48,280 Non-current liabilities $ 14,446 $ 8,350 Redeemable Class B equity $ — $ 821 Members equity attributable to Class A members $ 49,102 $ 40,452 Members equity attributable to Class B members $ 16,983 $ — Noncontrolling interests $ 16,510 $ 8,757 Years Ended December 31, (in thousands) 2018 2017 Gross profit $ 107,135 $ 95,552 Operating, selling, general and administrative expenses 23,662 22,958 Income from operations 83,473 72,594 Other expenses (5,674 ) (4,520 ) Class B preferred return (12 ) (1,712 ) Loss attributable to noncontrolling interest 58,013 43,474 Net income available to Class A and B members $ 135,800 $ 109,836 ADES equity earnings from Tinuum Group $ 47,175 $ 48,875 The following tables summarize the assets, liabilities and results of operations of Tinuum Services: As of December 31, (in thousands) 2018 2017 Current assets $ 300,288 $ 546,681 Non-current assets $ 100,233 $ 98,640 Current liabilities $ 219,959 $ 178,376 Non-current liabilities $ 66,760 $ 75,717 Equity $ 13,134 $ 8,569 Noncontrolling interests $ 100,668 $ 382,659 Years Ended December 31, (in thousands) 2018 2017 Gross loss $ (85,377 ) $ (64,796 ) Operating, selling, general and administrative expenses 173,500 147,917 Loss from operations (258,877 ) (212,713 ) Other expenses 37 (68 ) Loss attributable to noncontrolling interest 272,905 222,707 Net income $ 14,065 $ 9,926 ADES equity earnings from Tinuum Services $ 7,033 $ 4,963 The following table details the components of the Company's respective earnings or loss from equity method investments included within the Earnings from equity method investments line item on the Consolidated Statements of Operations : Year ended December 31, (in thousands) 2018 2017 Earnings from Tinuum Group $ 47,175 $ 48,875 Earnings from Tinuum Services 7,033 4,963 Earnings from other — 5 Earnings from equity method investments $ 54,208 $ 53,843 The following table details the components of the cash distributions from the Company's respective equity method investments included within the Consolidated Statements of Cash Flows . Distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” within Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero ; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” within Investing cash flows. Year ended December 31, (in thousands) 2018 2017 Distributions from equity method investees, return on investment Tinuum Services $ 5,500 $ 4,638 Included in Operating Cash Flows $ 5,500 $ 4,638 Distributions from equity method investees in excess of cumulative earnings Tinuum Group $ 47,175 $ 48,875 Included in Investing Cash Flows $ 47,175 $ 48,875 The following table details the carrying value of the Company's respective equity method investments included within the Equity method investments line item on the Consolidated Balance Sheets and indicates the Company's maximum exposure to loss: As of December 31, (in thousands) 2018 2017 Equity method investment in Tinuum Group $ — $ — Equity method investment in Tinuum Services 6,567 4,284 Equity method investment in other 67 67 Total equity method investments $ 6,634 $ 4,351 The following table presents the Company's investment balance, equity earnings, cash distributions and cash distributions in excess of the investment balance for the years ended December 31, 2017 and December 31, 2018 ( in thousands ): Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity loss in (excess) of investment balance Beginning balance 12/31/2016 $ — $ — $ — $ (9,894 ) ADES proportionate share of net income from Tinuum Group (1) 2017 activity $ 46,551 $ 46,551 $ — $ — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2017 activity (9,894 ) (9,894 ) — 9,894 Cash distributions from Tinuum Group 2017 activity (48,875 ) — 48,875 — Adjustment for current year cash distributions in excess of investment balance 2017 activity 12,218 12,218 — (12,218 ) Total investment balance, equity earnings (loss) and cash distributions 12/31/2017 $ — $ 48,875 $ 48,875 $ (12,218 ) ADES proportionate share of net income from Tinuum Group (1) 2018 activity $ 57,721 $ 57,721 $ — $ — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2018 activity (12,218 ) (12,218 ) — 12,218 Cash distributions from Tinuum Group 2018 activity (47,175 ) — 47,175 — Adjustment for current year cash distributions in excess of investment balance 2018 activity 1,672 1,672 — (1,672 ) Total investment balance, equity earnings and cash distributions 12/31/2018 $ — $ 47,175 $ 47,175 $ (1,672 ) (1) The amounts of the Company's 42.5% proportionate share of net income as shown in the table above differ from mathematical calculations of the Company’s 42.5% equity interest in Tinuum Group multiplied by the amounts of Net Income available to Class A members as shown in the table above of Tinuum Group's results of operations due to adjustments related to the Class B preferred return. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the change from the adoption of ASC 606 to the Consolidated Balance Sheet as of January 1, 2018 is shown in the table that follows: Balance as of Impact of Balance as of (in thousands) December 31, 2017 Adoption January 1, 2018 Balance Sheet Receivables, net $ 1,113 $ 339 $ 1,452 Deferred tax assets $ 38,661 $ (889 ) $ 37,772 Other long-term assets $ 1,503 $ (322 ) $ 1,181 Other current liabilities $ 4,494 $ (1,821 ) $ 2,673 Other long-term liabilities $ 2,285 $ (2,000 ) $ 285 Accumulated deficit $ (15,478 ) $ 2,950 $ (12,528 ) The following tables show the impact of the adoption of ASC 606 on the Consolidated Balance Sheet and Consolidated Statement of Operations as of and for the year ended December 31, 2018 , respectively: Balance as Reported Impact of Balance as Adjusted (in thousands) December 31, 2018 Adoption December 31, 2018 Balance Sheet Receivables, net $ 9,554 $ — $ 9,554 Deferred tax assets $ 32,539 $ 425 $ 32,964 Other long-term assets $ 7,993 $ 322 $ 8,315 Other current liabilities $ 2,138 $ — $ 2,138 Other long-term liabilities $ 940 $ 2,000 $ 2,940 Retained earnings $ 12,914 $ (1,253 ) $ 11,661 For the year ended As Reported Impact of As Adjusted (in thousands) December 31, 2018 Adoption December 31, 2018 Statement of Operations Revenues: Equipment sales $ 72 $ 18,115 $ 18,187 License royalties, related party $ 15,140 $ (15,140 ) $ — Total revenues $ 23,945 $ 2,975 $ 26,920 Operating expenses: Equipment sales cost of revenue $ (353 ) $ 15,945 $ 15,592 Total operating expenses $ 30,345 $ 15,945 $ 46,290 Operating loss $ (6,400 ) $ (12,970 ) $ (19,370 ) Other income (expense) Royalties, related party $ — $ 15,140 $ 15,140 Total other income (expense) $ 52,277 $ 15,140 $ 67,417 Income before income tax expense $ 45,877 $ 2,170 $ 48,047 Income tax expense 10,423 464 10,887 Net income $ 35,454 $ 1,706 $ 37,160 |
Schedule of Receivables | The following table shows the components of Trade receivables, net: As of December 31, (in thousands) 2018 2017 Trade receivables $ 10,121 $ 1,240 Less: Allowance for doubtful accounts (567 ) (127 ) Trade receivables, net $ 9,554 $ 1,113 |
Schedule of Disaggregation of Revenue | The following tables disaggregate revenues by major source for the year ended December 31, 2018 (in thousands): Year ended December 31, 2018 Segment PGI RC Other Total Revenue component — Consumables $ 8,628 $ — 105 $ 8,733 License royalties, related party — 15,140 — 15,140 Equipment sales 72 — — 72 Revenues from customers 8,700 15,140 105 23,945 Earnings from equity method investments — 54,208 — 54,208 Total revenues and earnings from equity method investments $ 8,700 $ 69,348 $ 105 $ 78,153 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Years ended December 31, (in thousands) 2018 Senior Term Loan due December 2021, related party $ 70,000 Less net unamortized debt issuance costs (1,990 ) Less net unamortized debt discount (2,052 ) Senior Term Loan due December 2021, net 65,958 Capital lease obligations 8,167 Line of Credit — 74,125 Less: Current maturities (24,067 ) Total long-term borrowings $ 50,058 |
Schedule of Maturities of Long-term Debt | The following table presents the future aggregate annual maturities of the Company’s Senior Term Loan excluding unamortized discounts and deferred financing cost: Year ended December 31, (in thousands) Principal Amount 2019 $ 24,000 2020 24,000 2021 22,000 2022 — 2023 — Thereafter — Total $ 70,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rent Expense | Rent expense incurred for the years ended is as follows: Years Ended December 31, (in thousands) 2018 2017 Rent expense (1) $ 302 $ (60 ) (1) During the year ended December 31, 2017 , the Company accelerated deferred rent and tenant improvement allowances in connection with the termination of the lease agreement of its former corporate office. |
Schedule of Future Minimum Rental Payments for Operating Leases | Annual minimum commitments under the leases as of December 31, 2018 are as follows: Years Ending December 31, Operating Lease Commitments (in thousands) Capital 2019 $ 3,619 $ 1,749 2020 2,273 1,707 2021 1,632 1,802 2022 310 951 2023 221 951 Thereafter — 2,482 Total minimum lease payments $ 8,055 9,642 Less amounts representing interest (1,475 ) Present value of minimum capital lease payments $ 8,167 |
Schedule of Future Minimum Lease Payments for Capital Leases | Annual minimum commitments under the leases as of December 31, 2018 are as follows: Years Ending December 31, Operating Lease Commitments (in thousands) Capital 2019 $ 3,619 $ 1,749 2020 2,273 1,707 2021 1,632 1,802 2022 310 951 2023 221 951 Thereafter — 2,482 Total minimum lease payments $ 8,055 9,642 Less amounts representing interest (1,475 ) Present value of minimum capital lease payments $ 8,167 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Dividends Declared | Dividends declared and paid quarterly per share on all outstanding shares of common stock during the years ended December 31, 2018 and 2017 were as follows: 2018 2017 Per share Date paid Per share Date paid Dividends declared during quarter ended: March 31 $ 0.25 March 8, 2018 $ — — June 30 0.25 June 8, 2018 0.25 July 17, 2017 September 30 0.25 September 6, 2018 0.25 September 7, 2017 December 31 0.25 December 6, 2018 0.25 December 6, 2017 $ 1.00 $ 0.75 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Allocation of Compensation Expense | The Company recorded the following compensation expense related to the Stock Plans and the 2007 Plan: Years Ended December 31, (in thousands) 2018 2017 RSA expense $ 2,222 $ 1,400 Stock option expense 58 672 RSU expense 210 — PSU expense — 137 Total stock-based compensation expense $ 2,490 $ 2,209 |
Schedule of Unrecognized Compensation Cost | The amount of unrecognized compensation cost as of December 31, 2018 , and the expected weighted-average period over which the cost will be recognized is as follows: As of December 31, 2018 (in thousands) Unrecognized Compensation Cost Expected Weighted-Average Period of Recognition (in years) RSA expense $ 1,767 1.58 Total unrecognized stock-based compensation expense $ 1,767 1.58 |
Summary of Restricted Stock Activity | A summary of the status and activity of RSA's and RSU's is presented in the following table: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands, except for share and per share amounts) Awards Units RSA's RSU's For the year ended December 31, 2018 Non-vested at January 1, 2018 276,607 — $ 9.03 $ — Granted 205,998 20,000 $ 11.00 $ 10.52 Vested (200,618 ) — $ 9.79 $ — Forfeited (1,135 ) — $ 10.44 $ — Non-vested at December 31, 2018 280,852 20,000 $ 9.92 $ 10.52 |
Summary of Option Activity | A summary of option activity under the Stock Plans is presented below: (in thousands, except for share and per share amounts) Number of Weighted- Aggregate Intrinsic Value Weighted- For the year ended December 31, 2018 Options outstanding at January 1, 2018 622,446 $ 11.64 Options granted — $ — Options exercised (92,666 ) $ 8.25 Options expired / forfeited — $ — Options outstanding at December 31, 2018 529,780 $ 12.23 $ 296 1.46 Options vested and exercisable at December 31, 2018 529,780 $ 12.23 $ 296 1.46 |
Schedule of Equity Instruments, Other than Options Activity | A summary of the status and activity of non-vested PSU's is presented in the following table: (in thousands, except for per share amounts) Units Weighted-Average For year ended December 31, 2018 Non-vested at beginning of year 19,406 $ 25.20 Granted (1) — $ — Vested (1) (19,406 ) $ 25.20 Forfeited / Canceled (1) — $ — Non-vested at end of year — $ — (1) The number of units shown in the table above are based on target performance. The final number of shares of common stock issued may vary depending on the achievement of market conditions established within the awards, which could result in the actual number of shares issued ranging from zero to a maximum of two times the number of units shown in the above table. |
Schedule of Performance-Based Units, Settled | The following table shows the PSU's that were settled by issuing the Company's common stock relative to a peer group performance index and broad stock index. Year of Grant Net Number of Issued Shares upon Vesting Shares Withheld to Settle Tax Withholding Obligations TSR Multiple Range Russell 3000 Multiple Low High Low High For the year ended December 31, 2018 2015 12,311 4,061 112.50 112.50 — — For the year ended December 31, 2017 2014 6,476 3,573 0.75 1.00 — — 2015 3,869 2,310 0.60 0.60 — — |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets and Other assets | The following table summarizes the components of Prepaid expenses and other assets and Other long-term assets as presented in the Consolidated Balance Sheets : As of December 31, (in thousands) 2018 2017 Other current assets: Prepaid expenses $ 1,233 $ 1,678 Prepaid income taxes 2,940 — Other 1,397 83 $ 5,570 $ 1,761 Other long-term assets: Spare parts $ 3,278 $ — Mine development costs, net 2,531 — Long-term receivable, net 408 — Deposits 269 223 Highview investment 552 552 Other long-term assets 955 728 $ 7,993 $ 1,503 |
Schedule of Other Liabilities | The following table details the components of Other current liabilities and Other long-term liabilities as presented in the Consolidated Balance Sheets : As of December 31, (in thousands) 2018 2017 Other current liabilities: Accrued interest $ 407 $ — Sales and other taxes payable 479 207 Estimated Company contribution to 401(k) Plan — 1,000 Accrued losses on equipment contracts — 69 Billings in excess of costs on uncompleted contracts — 1,830 Warranty liabilities 12 316 Other 1,240 1,072 $ 2,138 $ 4,494 Other long-term liabilities: Deferred revenue, related party $ — $ 2,000 Deferred rent 106 192 Mine reclamation liability 624 — Other long-term liabilities 210 93 $ 940 $ 2,285 |
Schedule of Change in Asset Retirement Obligation | Included within Other current liabilities is the Company's asset retirement obligation. Changes in the Company's asset retirement obligation were as follows: As of December 31, (in thousands) 2018 2017 Asset retirement obligation, beginning of year $ — $ 1,312 Asset retirement obligation assumed in Carbon Solutions Acquisition 626 — Accretion 2 37 Liabilities settled (4 ) (527 ) Changes due to scope and timing of reclamation — (822 ) Asset retirement obligations, end of year $ 624 $ — |
Schedule of Deferred Project Costs and Revenue | The below table shows the components of these items: As of December 31, (in thousands) 2017 Costs incurred on uncompleted contracts (gross) $ 15,945 Billings on uncompleted contracts (gross) (17,775 ) $ (1,830 ) Included in the accompanying balance sheets under the following captions (1): Costs in excess of billings on uncompleted contracts (2) $ — Billings in excess of costs on uncompleted contracts (3) (1,830 ) $ (1,830 ) (1) Amounts presented after netting of costs and billings on an individual contract basis. (2) Costs in excess of billings on uncompleted contracts was included in the Prepaid expenses and other assets caption on the Consolidated Balance Sheets. (3) Billings in excess of costs on uncompleted contracts was included in the Other current liabilities caption on the Consolidated Balance Sheets. |
Schedule of Statement of Operations, Supplemental Disclosures | The following table details the components of Interest expense in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2018 2017 453A interest $ 1,585 $ 2,555 Interest on Senior Term Loan 460 — Line of Credit interest and letters of credit fees — 417 Other 106 52 $ 2,151 $ 3,024 The following table details the components of Other in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2018 2017 Impairment of Highview investment $ — $ (464 ) Settlement agreement (1) — 3,500 Company contribution to 401(k) Plan — (1,000 ) Other (19 ) (11 ) $ (19 ) $ 2,025 (1) On November 6, 2017, the Company entered into a settlement agreement with a former third-party service provider and as part of the settlement the Company received cash in the amount of $ 3.5 million . This amount was paid to the Company during the fourth quarter of 2017. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values of Remaining Financial Instruments | The following table provides the estimated fair values of the remaining financial instruments: As of December 31, 2018 As of December 31, 2017 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Instruments: Highview Investment $ 552 $ 552 $ 552 $ 552 Highview Obligation $ 213 $ 213 $ 210 $ 210 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Benefit (Expense) from Continuing Operations | The provision for income taxes consists of the following: Years Ended December 31, (in thousands, except for rate) 2018 2017 Current portion of income tax expense: Federal $ 882 $ 519 State and other 4,308 894 5,190 1,413 Deferred portion of income tax expense (benefit): Federal 4,766 23,003 State and other 467 (264 ) 5,233 22,739 Total income tax expense $ 10,423 $ 24,152 Effective tax rate 23 % 46 % |
Reconciliation of Expected Federal Income Taxes at Statutory Rates | Income tax expense differs from the amount that would be computed by applying the U.S. statutory federal income tax rates of 21% and 35% for the years ended December 31, 2018 and 2017 , respectively, to income before income taxes as a result of the following: Years Ended December 31, (in thousands) 2018 2017 Federal statutory rate $ 9,634 $ 18,209 State income taxes, net of federal benefit 3,625 1,721 Permanent differences 130 777 Tax credits (7,031 ) (1,949 ) Valuation allowances 4,462 (474 ) Changes in tax rates (464 ) 5,818 Stock-based compensation (216 ) 303 Other 283 (253 ) Expense for the provision for income taxes $ 10,423 $ 24,152 |
Deferred Tax Assets And Liabilities | Details of the Company’s deferred tax assets and liabilities are summarized as follows: As of December 31, (in thousands) 2018 2017 Deferred tax assets Tax credits $ 104,553 $ 100,367 Deferred revenues and loss contract provisions — 906 Employee related liabilities 1,515 393 Intangible assets 1,623 914 Equity method investments 9,588 8,457 Net operating loss carryforwards 2,479 2,004 Other investments 583 563 Other 380 648 Total deferred tax assets 120,721 114,252 Less valuation allowance (79,898 ) (75,436 ) Deferred tax assets 40,823 38,816 Less: Deferred tax liabilities Property and equipment and other (8,284 ) (155 ) Total deferred tax liabilities (8,284 ) (155 ) Net deferred tax assets $ 32,539 $ 38,661 |
Summary of Operating Loss Carryforwards and Tax Credit Carryforwards | The following table presents the approximate amount of state net operating loss carryforwards and federal tax credit carryforwards available to reduce future taxable income, along with the respective range of years that the net operating loss and tax credit carryforwards would expire if not utilized: As of December 31, (in thousands) 2018 Beginning expiration year Ending expiration year State net operating loss carryforwards $ 52,126 2032 2038 Federal tax credit carryforwards $ 104,553 2032 2038 |
Schedule of Unrecognized Tax Benefits | The following table sets forth a reconciliation of the beginning and ending unrecognized tax benefits on a gross basis for the years ended December 31, 2018 and 2017 : Years Ended December 31, (in thousands) 2018 2017 Balance as of January 1 $ 54 $ 54 Increases for tax positions of current year — — Balance as of December 31 $ 54 $ 54 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Operating Results | The following table presents the Company's operating segment results for the years ended December 31, 2018 and 2017 : Years Ended December 31, (in thousands) 2018 2017 Revenues: Refined Coal: Earnings in equity method investments $ 54,208 $ 53,843 Royalties, related party 15,140 9,672 69,348 63,515 Power Generation and Industrials: Equipment sales 72 31,446 Consumables 8,628 4,246 8,700 35,692 Total segment reporting revenues 78,048 99,207 Adjustments to reconcile to reported revenues: Earnings in equity method investments (54,208 ) (53,843 ) Corporate and other 105 — Total reported revenues $ 23,945 $ 45,364 Segment operating income (loss) Refined Coal (1) $ 65,454 $ 59,908 Power Generation and Industrials (2) (2,621 ) 379 Total segment operating income $ 62,833 $ 60,287 (1) Included within the RC segment operating income for the years ended December 31, 2018 and 2017 is 453A interest expense of $1.6 million and $2.6 million , respectively. Also included within the RC segment operating income for the year ended December 31, 2018 was $0.4 million of severance expense. (2) Included within the PGI segment operating income for the year ended December 31, 2018 was approximately $1.0 million of amortization expense related to the fair value of inventory. Also included within the PGI segment operating income for the year ended December 31, 2018 was $1.0 million of severance expense. |
Reconciliation of Reportable Segment Amounts to Consolidated Balances | A reconciliation of reportable segment operating income to the Company's consolidated net income is as follows: Years Ended December 31, (in thousands) 2018 2017 Segment operating income Total reported segment operating income $ 62,833 $ 60,287 Corporate and other operating income 2 — Consolidated operating income 62,835 60,287 Adjustments to reconcile to net income attributable to the Company Corporate payroll and benefits (4,970 ) (5,565 ) Corporate rent and occupancy (616 ) (293 ) Corporate legal and professional fees (7,978 ) (4,010 ) Corporate general and administrative (3,011 ) (3,400 ) Corporate depreciation and amortization (134 ) (342 ) Corporate interest (expense) income, net (521 ) (432 ) Other income (expense), net 272 5,780 Income tax expense (10,423 ) (24,152 ) Net income $ 35,454 $ 27,873 |
Reconciliation of Assets from Segment to Consolidated | A reconciliation of reportable segment assets to the Company's consolidated assets is as follows: As of December 31, (in thousands) 2018 2017 Assets: Refined Coal (1) $ 11,468 $ 8,092 Power Generation and Industrial 85,786 3,755 Total segment assets 97,254 11,847 All Other and Corporate (2) 62,410 70,771 Consolidated $ 159,664 $ 82,618 (1) Includes $6.6 million of investments in equity method investees. (2) Includes the Company's net deferred tax assets of $32.5 million . |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Major Customers Disclosure [Abstract] | |
Schedule of Sales by Major Customers | Revenues from external customers who represent 10% or more of the Company’s revenues for the years ended December 31, 2018 and 2017 were as follows: Years ended December 31, Customer Revenue Type Segment(s) 2018 2017 A License royalties, related party RC 63% 21% B Equipment sales PGI —% 48% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table shows the other income recognized with related parties during the years ended December 31, 2018 and 2017 : Years Ended December 31, (in thousands) 2018 2017 Royalties, related party - Tinuum Group $ 15,140 $ 9,672 The following table shows the Company's receivable balance associated with related parties as of December 31, 2018 and 2017 : As of December 31, (in thousands) 2018 2017 Receivable from related party - Tinuum Group $ 4,284 $ 3,247 |
Defined Contributions Savings_2
Defined Contributions Savings Plan (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Contributions and Recognized Expense | The following table presents the amount of the Company's contributions made to the 401(k) Plan, which is reflected within the Payroll and benefits line item in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2018 2017 401(k) Plans employer contributions $ 139 $ 56 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | A summary of the net pretax charges incurred by segment is as follows: Pretax Charge (in thousands, except employee data) Approximate Number of Employees Refined Coal PGI All Other and Corporate Total Year ended December 31, 2018 Restructuring charges 16 $ 448 $ 996 $ 1,685 $ 3,129 Changes in estimates — — — — Total pretax charge, net of reversals $ 448 $ 996 $ 1,685 $ 3,129 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the Company's utilization of restructuring accruals for the years ended December 31, 2018 and 2017 : (in thousands) Employee Severance Facility Closures Beginning accrual as of January 1, 2017 $ 452 $ 247 Expense provision (1) 56 — Cash payments and other (1) (508 ) (250 ) Change in estimates (1) — 3 Accrual as of December 31, 2017 — — Expense provision (1) 3,129 — Cash payments and other (1) (1,491 ) — Severance liability acquired 570 — Accrual as of December 31, 2018 $ 2,208 $ — (1) For the year ended December 31, 2018 , included within the Expense provision and Cash payments and other line items in the above table is stock-based compensation of $0.8 million resulting from the accelerated vesting of modified equity-based compensation awards for certain terminated employees. |
Quarterly Financial Results (_2
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly results for the two years ended December 31, 2018 and December 31, 2017 are as follows: For the Quarter Ended (in thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Revenues $ 10,626 (1) $ 5,147 $ 4,273 $ 3,899 Cost of revenues, exclusive of operating expenses shown below 4,032 (1) 954 704 563 Other operating expenses 9,745 (1), (2) 4,161 5,138 5,048 Operating (loss) income (3,151 ) 32 (1,569 ) (1,712 ) Earnings from equity method investments 16,351 9,715 15,889 12,253 Other income (expenses), net (930 ) (313 ) (378 ) (310 ) Income before income tax expense 12,270 (1), (2) 9,434 13,942 10,231 Income tax expense (benefit) 5,272 (3) 3,931 (1,349 ) 2,569 Net income $ 6,998 $ 5,503 $ 15,291 $ 7,662 Earnings per common share – basic $ 0.36 $ 0.28 $ 0.76 $ 0.37 Earnings per common share – diluted $ 0.36 $ 0.28 $ 0.75 $ 0.37 Weighted-average number of common shares outstanding Basic 19,339 19,726 20,062 20,502 Diluted 19,439 19,876 20,195 20,584 For the Quarter Ended (in thousands, except per share data) December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Revenues $ 3,791 $ 5,098 $ 27,331 $ 9,144 Cost of revenues, exclusive of operating expenses shown below 648 2,041 23,295 5,901 Other operating expenses 4,205 4,197 4,020 5,199 Operating (loss) income (1,062 ) (1,140 ) 16 (1,956 ) Earnings from equity method investments 17,754 12,120 10,155 13,814 Other income (expenses), net 1,831 (1,602 ) (121 ) 2,216 Income before income tax expense 18,523 9,378 10,050 14,074 Income tax expense 11,538 (4) 3,586 3,642 5,386 Net income $ 6,985 $ 5,792 $ 6,408 $ 8,688 Earnings per common share – basic $ 0.34 $ 0.28 $ 0.29 $ 0.39 Earnings per common share – diluted $ 0.33 $ 0.28 $ 0.29 $ 0.39 Weighted-average number of common shares outstanding Basic 20,767 20,808 21,866 22,056 Diluted 20,864 20,854 21,880 22,243 (1) During the fourth quarter of 2018, the Company completed the Carbon Solutions Acquisition and the operating results for the fourth quarter of 2018 include the operations of Carbon Solutions for the period from December 7 to December 31, 2018. For this period, Carbon Solutions contributed $5.6 million to Revenues, $3.4 million to Cost of Revenue, $2.6 million to Other Operating Expenses and $0.4 million to Loss before income tax expense. (2) During the fourth quarter of 2018, the Company incurred $3.4 million in transaction costs and $1.1 million in severance charges for executives related to the Carbon Solutions Acquisition that were recorded in Other Operating Expenses. (3) During the fourth quarter of 2018, the Company recorded income tax expense of $5.3 million primarily due to an increase of $4.5 million to the valuation allowance on its deferred tax assets. (4) During the fourth quarter of 2017, the Company recorded income tax expense of $11.5 million primarily related to statutory federal and state taxes of $5.7 million at the statutory rates, and the impact of the Tax Act, which increased the Company's income tax expense by $ 5.8 million . |
Summary of Operations and Sig_4
Summary of Operations and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Dec. 07, 2018 | Jan. 01, 2018 | Jan. 20, 2010 | |
Accounting Policies [Line Items] | ||||||
Amortization expense | $ 200 | $ 100 | ||||
Estimated future amortization, year one | 900 | |||||
Estimated future amortization, year two | 900 | |||||
Estimated future amortization, year three | 900 | |||||
Estimated future amortization, year four | 900 | |||||
Estimated future amortization, year five | 900 | |||||
Retained earnings (accumulated deficit) | 12,914 | $ (15,478) | $ (12,528) | |||
Accounting Standards Update 2016-02 | Forecast | ||||||
Accounting Policies [Line Items] | ||||||
Right-of-use asset | $ 6,900 | |||||
Operating lease, liability | (7,000) | |||||
ASU No. 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Accounting Policies [Line Items] | ||||||
Retained earnings (accumulated deficit) | $ 1,253 | $ 2,950 | ||||
ASU No. 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Forecast | ||||||
Accounting Policies [Line Items] | ||||||
Retained earnings (accumulated deficit) | $ 37,200 | |||||
Stock options | ||||||
Accounting Policies [Line Items] | ||||||
Total shares excluded from diluted shares outstanding (in shares) | 0.3 | 0.3 | ||||
Performance share units | ||||||
Accounting Policies [Line Items] | ||||||
Total shares excluded from diluted shares outstanding (in shares) | 0 | 0.2 | ||||
Mine Reserve | ||||||
Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 18 years | |||||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 1 year | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 31 years | |||||
Tinuum Group | ||||||
Accounting Policies [Line Items] | ||||||
Ownership interest, percent | 42.50% | 42.50% | ||||
Tinuum Services | ||||||
Accounting Policies [Line Items] | ||||||
Ownership interest, percent | 50.00% | 50.00% | ||||
ADA Carbon Solutions, LLC | ||||||
Accounting Policies [Line Items] | ||||||
Ownership interest, percent | 100.00% |
Summary of Operations and Sig_5
Summary of Operations and Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Initial Cost | $ 5,244 | $ 1,079 |
Net of Accumulated Amortization | $ 4,830 | 805 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 5 years | |
Initial Cost | $ 2,100 | 0 |
Net of Accumulated Amortization | $ 2,071 | 0 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 16 years | |
Initial Cost | $ 1,244 | 1,079 |
Net of Accumulated Amortization | $ 891 | 805 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 5 years | |
Initial Cost | $ 1,600 | 0 |
Net of Accumulated Amortization | $ 1,578 | 0 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 2 years | |
Initial Cost | $ 300 | 0 |
Net of Accumulated Amortization | $ 290 | $ 0 |
Summary of Operations and Sig_6
Summary of Operations and Significant Accounting Policies - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Net income | $ 6,998 | $ 5,503 | $ 15,291 | $ 7,662 | $ 6,985 | $ 5,792 | $ 6,408 | $ 8,688 | $ 35,454 | $ 27,873 |
Less: Dividends and undistributed income allocated to participating securities | 112 | 171 | ||||||||
Income attributable to common stockholders | $ 35,342 | $ 27,702 | ||||||||
Basic weighted-average number of common shares outstanding (in shares) | 19,339 | 19,726 | 20,062 | 20,502 | 20,767 | 20,808 | 21,866 | 22,056 | 19,901 | 21,367 |
Add: dilutive effect of equity instruments (in shares) | 132 | 46 | ||||||||
Diluted weighted-average number of common shares outstanding (in shares) | 19,439 | 19,876 | 20,195 | 20,584 | 20,864 | 20,854 | 21,880 | 22,243 | 20,033 | 21,413 |
Earnings (loss) per share - basic (in dollars per share) | $ 0.36 | $ 0.28 | $ 0.76 | $ 0.37 | $ 0.34 | $ 0.28 | $ 0.29 | $ 0.39 | $ 1.78 | $ 1.30 |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.36 | $ 0.28 | $ 0.75 | $ 0.37 | $ 0.33 | $ 0.28 | $ 0.29 | $ 0.39 | $ 1.76 | $ 1.29 |
Summary of Operations and Sig_7
Summary of Operations and Significant Accounting Policies - Risks and Uncertainties (Details) - Tinuum Group | Dec. 31, 2018debt_instrument |
Concentration Risk [Line Items] | |
Number of instruments held | 19 |
Single Customer | |
Concentration Risk [Line Items] | |
Number of instruments held | 11 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Dec. 07, 2018 | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||||||||
Acquisition related costs | $ 3,400 | ||||||||||||
Revenues | (10,626) | $ (5,147) | $ (4,273) | $ (3,899) | $ (3,791) | $ (5,098) | $ (27,331) | $ (9,144) | $ (23,945) | $ (45,364) | |||
Cost of revenue | 4,032 | $ 954 | $ 704 | $ 563 | 648 | $ 2,041 | $ 23,295 | $ 5,901 | |||||
PGI | ASU No. 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | $ 5,900 | ||||||||||||
Cost of revenue | $ 5,900 | ||||||||||||
ADA Carbon Solutions, LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Purchase price | $ 75,000 | ||||||||||||
Consideration transferred | 66,500 | ||||||||||||
Cash paid | 65,800 | ||||||||||||
Purchase adjustments payable | 700 | ||||||||||||
Assumed debt and contractual commitments | 11,800 | ||||||||||||
Cash acquired | (3,300) | ||||||||||||
Acquisition related costs | 4,500 | ||||||||||||
Revenues | $ (5,600) | ||||||||||||
Cost of revenue | 3,400 | ||||||||||||
Removal of transaction costs | $ 9,700 | $ 9,700 | $ (900) | $ 9,700 | $ (900) | ||||||||
ADA Carbon Solutions, LLC | Term Loan | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from issuance of debt | $ 70,000 |
Acquisition Acquisition - Alloc
Acquisition Acquisition - Allocation (Details) $ in Thousands | Dec. 07, 2018USD ($) |
Customer relationships | |
Fair value of assets acquired: | |
Intangible assets | $ 2,100 |
Fair value of liabilities assumed: | |
Weighted Average Useful Life (years) | 5 years |
Developed technology | |
Fair value of assets acquired: | |
Intangible assets | $ 1,600 |
Fair value of liabilities assumed: | |
Weighted Average Useful Life (years) | 5 years |
Trade name | |
Fair value of assets acquired: | |
Intangible assets | $ 300 |
Fair value of liabilities assumed: | |
Weighted Average Useful Life (years) | 2 years |
ADA Carbon Solutions, LLC | |
Fair value of assets acquired: | |
Cash | $ 3,284 |
Receivables | 6,409 |
Inventories | 22,100 |
Prepaid expenses and other current assets | 2,992 |
Spare parts | 3,359 |
Property, plant and equipment | 43,033 |
Mine leases and development | 2,500 |
Intangible assets | 4,000 |
Other assets | 168 |
Amount attributable to assets acquired | 87,845 |
Fair value of liabilities assumed: | |
Accounts payable | 4,771 |
Accrued liabilities | 7,354 |
Equipment leases payable | 8,211 |
Mine reclamation liability | 626 |
Other liabilities | 437 |
Amount attributable to liabilities assumed | 21,399 |
Net assets acquired | $ 66,446 |
Acquisition - Revenue and Net I
Acquisition - Revenue and Net Income (Details) - ADA Carbon Solutions, LLC $ in Thousands | 1 Months Ended |
Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Revenues | $ 5,580 |
Net loss | $ (391) |
Acquisition - Pro Forma (Detail
Acquisition - Pro Forma (Details) - ADA Carbon Solutions, LLC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 78,591 | $ 110,663 |
Net income | $ 31,562 | $ 32,524 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
Product inventory | $ 19,523 | $ 74 |
Raw material inventory | 2,388 | 0 |
Reserves | (120) | 0 |
Inventories | 21,791 | $ 74 |
Inventory acquired | $ 5,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 44,196 | $ 1,896 |
Less accumulated depreciation | (1,499) | (1,486) |
Total property, plant and equipment, net | $ 42,697 | 410 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 31 years | |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 2,302 | 0 |
Land and land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 31 years | |
Plant and operating equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 32,999 | 0 |
Plant and operating equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 2 years | |
Plant and operating equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 31 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 701 | 262 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 7 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1,277 | 1,429 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 31 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 249 | 205 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 3 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 6,668 | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 42,697 | $ 410 |
Accumulated depreciation | (1,499) | (1,486) |
Depreciation | 500 | $ 700 |
Capital Leases Mining Assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 8,100 | |
Accumulated depreciation | $ (100) |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 20, 2010 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Earnings from equity method investments | $ 16,351,000 | $ 9,715,000 | $ 15,889,000 | $ 12,253,000 | $ 17,754,000 | $ 12,120,000 | $ 10,155,000 | $ 13,814,000 | $ 54,208,000 | $ 53,843,000 | ||
Equity method investments | $ 6,634,000 | $ 4,351,000 | 6,634,000 | 4,351,000 | ||||||||
Impairment of equity method investments | 0 | 0 | $ 0 | |||||||||
Purchase of and contributions to equity method investments | $ 800,000 | $ 100,000 | ||||||||||
Tinuum Group | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest, percent | 42.50% | 42.50% | 42.50% | 42.50% | ||||||||
Preferred return to third party unitholders | 15.00% | |||||||||||
Earnings from equity method investments | $ 47,175,000 | $ 48,875,000 | ||||||||||
Equity method investments | $ 0 | $ 0 | 0 | 0 | 0 | |||||||
Losses related to VIEs, attributable to noncontrolling interest | 58,013,000 | 43,474,000 | ||||||||||
Tinuum Group | Cash distributions | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Earnings from equity method investments | (47,175,000) | (48,875,000) | ||||||||||
Equity method investments | $ 47,175,000 | 48,875,000 | $ 47,175,000 | 48,875,000 | $ 0 | |||||||
NexGen Refined Coal, LLC (NexGen) | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest, percent | 42.50% | 42.50% | ||||||||||
GSFS Investments I Corp. (GSFS) | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest, percent | 15.00% | 15.00% | ||||||||||
Tinuum Services | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest, percent | 50.00% | 50.00% | 50.00% | |||||||||
Earnings from equity method investments | $ 7,033,000 | 4,963,000 | ||||||||||
Equity method investments | $ 6,567,000 | $ 4,284,000 | 6,567,000 | 4,284,000 | ||||||||
Losses related to VIEs, attributable to noncontrolling interest | $ 272,905,000 | $ 222,707,000 | ||||||||||
Percent of Losses Removed from Net Income, Attributable to Noncontrolling Interest | 100.00% | 100.00% |
Equity Method Investments - Sum
Equity Method Investments - Summary of Equity Method Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
ADES equity earnings (loss) | $ 16,351,000 | $ 9,715,000 | $ 15,889,000 | $ 12,253,000 | $ 17,754,000 | $ 12,120,000 | $ 10,155,000 | $ 13,814,000 | $ 54,208,000 | $ 53,843,000 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | 6,634,000 | 4,351,000 | 6,634,000 | 4,351,000 | |||||||
Earnings from equity method investments | 16,351,000 | $ 9,715,000 | $ 15,889,000 | $ 12,253,000 | 17,754,000 | $ 12,120,000 | $ 10,155,000 | $ 13,814,000 | 54,208,000 | 53,843,000 | |
Distributions from equity method investees, return on investment | 5,500,000 | 4,638,000 | |||||||||
Included in Investing Cash Flows | 47,175,000 | 48,875,000 | |||||||||
Tinuum Group | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Current assets | 54,958,000 | 31,605,000 | 54,958,000 | 31,605,000 | |||||||
Non-current assets | 92,991,000 | 75,055,000 | 92,991,000 | 75,055,000 | |||||||
Current liabilities | 50,908,000 | 48,280,000 | 50,908,000 | 48,280,000 | |||||||
Non-current liabilities | 14,446,000 | 8,350,000 | 14,446,000 | 8,350,000 | |||||||
Redeemable Class B equity | 0 | 821,000 | 0 | 821,000 | |||||||
Noncontrolling interests | 16,510,000 | 8,757,000 | 16,510,000 | 8,757,000 | |||||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
Gross profit | 107,135,000 | 95,552,000 | |||||||||
Operating, selling, general and administrative expenses | 23,662,000 | 22,958,000 | |||||||||
Income (loss) from operations | 83,473,000 | 72,594,000 | |||||||||
Other expenses | (5,674,000) | (4,520,000) | |||||||||
Class B preferred return | (12,000) | (1,712,000) | |||||||||
Loss attributable to noncontrolling interest | 58,013,000 | 43,474,000 | |||||||||
Net income (loss) | 135,800,000 | 109,836,000 | |||||||||
ADES equity earnings (loss) | 47,175,000 | 48,875,000 | |||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | 0 | 0 | 0 | 0 | $ 0 | ||||||
Earnings from equity method investments | 47,175,000 | 48,875,000 | |||||||||
Distributions from equity method investees in excess of cumulative earnings | 47,175,000 | 48,875,000 | |||||||||
Included in Investing Cash Flows | 1,672,000 | 12,218,000 | |||||||||
Tinuum Group | Class A | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Members equity attributable to Class A members | 49,102,000 | 40,452,000 | 49,102,000 | 40,452,000 | |||||||
Tinuum Group | Class B | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Members equity attributable to Class A members | 16,983,000 | 0 | 16,983,000 | 0 | |||||||
Tinuum Services | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Current assets | 300,288,000 | 546,681,000 | 300,288,000 | 546,681,000 | |||||||
Non-current assets | 100,233,000 | 98,640,000 | 100,233,000 | 98,640,000 | |||||||
Current liabilities | 219,959,000 | 178,376,000 | 219,959,000 | 178,376,000 | |||||||
Non-current liabilities | 66,760,000 | 75,717,000 | 66,760,000 | 75,717,000 | |||||||
Equity | 13,134,000 | 8,569,000 | 13,134,000 | 8,569,000 | |||||||
Noncontrolling interests | 100,668,000 | 382,659,000 | 100,668,000 | 382,659,000 | |||||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
Gross profit | (85,377,000) | (64,796,000) | |||||||||
Operating, selling, general and administrative expenses | 173,500,000 | 147,917,000 | |||||||||
Income (loss) from operations | (258,877,000) | (212,713,000) | |||||||||
Other expenses | 37,000 | (68,000) | |||||||||
Loss attributable to noncontrolling interest | 272,905,000 | 222,707,000 | |||||||||
Net income (loss) | 14,065,000 | 9,926,000 | |||||||||
ADES equity earnings (loss) | 7,033,000 | 4,963,000 | |||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | 6,567,000 | 4,284,000 | 6,567,000 | 4,284,000 | |||||||
Earnings from equity method investments | 7,033,000 | 4,963,000 | |||||||||
Distributions from equity method investees, return on investment | 5,500,000 | 4,638,000 | |||||||||
Other | |||||||||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
ADES equity earnings (loss) | 0 | 5,000 | |||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | $ 67,000 | $ 67,000 | 67,000 | 67,000 | |||||||
Earnings from equity method investments | $ 0 | $ 5,000 |
Equity Method Investments - Rol
Equity Method Investments - Rollforward of CCS Investment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments [Roll Forward] | ||||||||||
Beginning balance | $ 4,351,000 | $ 4,351,000 | ||||||||
Cash distributions from Tinuum Group | $ (16,351,000) | $ (9,715,000) | $ (15,889,000) | (12,253,000) | $ (17,754,000) | $ (12,120,000) | $ (10,155,000) | $ (13,814,000) | (54,208,000) | $ (53,843,000) |
Adjustment for current year cash distributions in excess of investment balance | 47,175,000 | 48,875,000 | ||||||||
Beginning balance | 6,634,000 | 4,351,000 | 6,634,000 | 4,351,000 | ||||||
Tinuum Group | ||||||||||
Equity Method Investments [Roll Forward] | ||||||||||
Beginning balance | 0 | 0 | 0 | 0 | ||||||
ADES proportionate share of income from CCS | 57,721,000 | 46,551,000 | ||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | (12,218,000) | (9,894,000) | ||||||||
Cash distributions from Tinuum Group | (47,175,000) | (48,875,000) | ||||||||
Adjustment for current year cash distributions in excess of investment balance | 1,672,000 | 12,218,000 | ||||||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Ownership interest, percent | 42.50% | 42.50% | 42.50% | 42.50% | ||||||
Ownership interest multiplied by net income available to members, percent | 42.50% | 42.50% | ||||||||
Tinuum Group | ADES equity earnings (loss) | ||||||||||
Equity Method Investments [Roll Forward] | ||||||||||
Beginning balance | 48,875,000 | 0 | $ 48,875,000 | $ 0 | ||||||
ADES proportionate share of income from CCS | 57,721,000 | 46,551,000 | ||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | (12,218,000) | (9,894,000) | ||||||||
Cash distributions from Tinuum Group | 0 | 0 | ||||||||
Adjustment for current year cash distributions in excess of investment balance | 1,672,000 | 12,218,000 | ||||||||
Beginning balance | $ 47,175,000 | $ 48,875,000 | 47,175,000 | 48,875,000 | ||||||
Tinuum Group | Cash distributions | ||||||||||
Equity Method Investments [Roll Forward] | ||||||||||
Beginning balance | 48,875,000 | 0 | 48,875,000 | 0 | ||||||
ADES proportionate share of income from CCS | 0 | 0 | ||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | 0 | 0 | ||||||||
Cash distributions from Tinuum Group | 47,175,000 | 48,875,000 | ||||||||
Adjustment for current year cash distributions in excess of investment balance | 0 | 0 | ||||||||
Beginning balance | 47,175,000 | 48,875,000 | 47,175,000 | 48,875,000 | ||||||
Tinuum Group | Memo Account: Cash distributions and equity loss in (excess) of investment balance | ||||||||||
Equity Method Investments [Roll Forward] | ||||||||||
Beginning balance | $ (12,218,000) | $ (9,894,000) | (12,218,000) | (9,894,000) | ||||||
ADES proportionate share of income from CCS | 0 | 0 | ||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | (12,218,000) | (9,894,000) | ||||||||
Cash distributions from Tinuum Group | 0 | 0 | ||||||||
Adjustment for current year cash distributions in excess of investment balance | 1,672,000 | 12,218,000 | ||||||||
Beginning balance | $ 1,672,000 | $ (12,218,000) | $ 1,672,000 | $ (12,218,000) |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues | $ 23,945 | $ 45,364 | |||||||||
Cost of revenue | $ 4,032 | $ 954 | $ 704 | $ 563 | $ 648 | $ 2,041 | $ 23,295 | $ 5,901 | |||
Provision for debt expense | (200) | 0 | |||||||||
Reduction of sales, settlement of previous commitment | 300 | ||||||||||
Previous commitment with customer, settlement bad debt expense | $ 0 | ||||||||||
Number of operating segments | segment | 2 | ||||||||||
Equipment sales | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues | $ 72 | 31,446 | |||||||||
Cost of revenue | (353) | $ 28,451 | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues | 26,920 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | Equipment sales | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues | 18,187 | ||||||||||
Cost of revenue | 15,592 | ||||||||||
ASU No. 2014-09 | DSI Systems | Restatement adjustments | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Contract asset | $ (15,900) | ||||||||||
Contract liability | (17,800) | ||||||||||
ASU No. 2014-09 | Licensing Arrangement | Restatement adjustments | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Contract asset | (300) | ||||||||||
Contract liability | (2,000) | ||||||||||
ASU No. 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues | (2,975) | ||||||||||
ASU No. 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | DSI Systems | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Contract asset | $ 300 | ||||||||||
Total revenues | 1,700 | ||||||||||
ASU No. 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Equipment sales | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues | (18,115) | ||||||||||
Cost of revenue | (15,945) | ||||||||||
ASU No. 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | Licensing Arrangement | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues | $ 1,300 |
Revenues - Adoption of ASC 606
Revenues - Adoption of ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Balance Sheet | |||||||||||
Receivables, net | $ (9,554) | $ (1,113) | $ (9,554) | $ (1,113) | $ (1,452) | ||||||
Deferred tax assets | (32,539) | (38,661) | (32,539) | (38,661) | (37,772) | ||||||
Other long-term assets | (7,993) | (1,503) | (7,993) | (1,503) | (1,181) | ||||||
Other current liabilities | (2,138) | (4,494) | (2,138) | (4,494) | (2,673) | ||||||
Other long-term liabilities | (940) | (2,285) | (940) | (2,285) | (285) | ||||||
Retained earnings (accumulated deficit) | 12,914 | (15,478) | 12,914 | (15,478) | (12,528) | ||||||
Statement of Operations | |||||||||||
Total revenues | (23,945) | (45,364) | |||||||||
Operating expenses: | |||||||||||
Cost of revenue | (4,032) | $ (954) | $ (704) | $ (563) | (648) | $ (2,041) | $ (23,295) | $ (5,901) | |||
Total operating expenses | (30,345) | (49,506) | |||||||||
Segment operating income (loss) | (3,151) | 32 | (1,569) | (1,712) | (1,062) | (1,140) | 16 | (1,956) | (6,400) | (4,142) | |
Other income (expense): | |||||||||||
Total other income (expense) | (52,277) | (56,167) | |||||||||
Income before income tax expense | (12,270) | (9,434) | (13,942) | (10,231) | (18,523) | (9,378) | (10,050) | (14,074) | (45,877) | (52,025) | |
Income tax expense | (5,272) | (3,931) | 1,349 | (2,569) | (11,538) | (3,586) | (3,642) | (5,386) | (10,423) | (24,152) | |
Net income (loss) | (6,998) | $ (5,503) | $ (15,291) | $ (7,662) | $ (6,985) | $ (5,792) | $ (6,408) | $ (8,688) | (35,454) | (27,873) | |
Equipment sales | |||||||||||
Statement of Operations | |||||||||||
Total revenues | (72) | (31,446) | |||||||||
Operating expenses: | |||||||||||
Cost of revenue | 353 | (28,451) | |||||||||
License royalties, related party | |||||||||||
Statement of Operations | |||||||||||
Total revenues | (15,140) | $ (9,672) | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Balance Sheet | |||||||||||
Receivables, net | (9,554) | (9,554) | |||||||||
Deferred tax assets | (32,964) | (32,964) | |||||||||
Other long-term assets | (8,315) | (8,315) | |||||||||
Other current liabilities | (2,138) | (2,138) | |||||||||
Other long-term liabilities | (2,940) | (2,940) | |||||||||
Retained earnings (accumulated deficit) | 11,661 | 11,661 | |||||||||
Statement of Operations | |||||||||||
Total revenues | (26,920) | ||||||||||
Operating expenses: | |||||||||||
Total operating expenses | (46,290) | ||||||||||
Segment operating income (loss) | (19,370) | ||||||||||
Other income (expense): | |||||||||||
Royalties, related party | (15,140) | ||||||||||
Total other income (expense) | (67,417) | ||||||||||
Income before income tax expense | (48,047) | ||||||||||
Income tax expense | (10,887) | ||||||||||
Net income (loss) | (37,160) | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | Equipment sales | |||||||||||
Statement of Operations | |||||||||||
Total revenues | (18,187) | ||||||||||
Operating expenses: | |||||||||||
Cost of revenue | (15,592) | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | License royalties, related party | |||||||||||
Statement of Operations | |||||||||||
Total revenues | 0 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU No. 2014-09 | |||||||||||
Balance Sheet | |||||||||||
Receivables, net | 0 | 0 | (339) | ||||||||
Deferred tax assets | 425 | 425 | (889) | ||||||||
Other long-term assets | 322 | 322 | (322) | ||||||||
Other current liabilities | 0 | 0 | (1,821) | ||||||||
Other long-term liabilities | 2,000 | 2,000 | (2,000) | ||||||||
Retained earnings (accumulated deficit) | $ 1,253 | 1,253 | $ 2,950 | ||||||||
Statement of Operations | |||||||||||
Total revenues | 2,975 | ||||||||||
Operating expenses: | |||||||||||
Total operating expenses | 15,945 | ||||||||||
Segment operating income (loss) | 12,970 | ||||||||||
Other income (expense): | |||||||||||
Royalties, related party | 15,140 | ||||||||||
Total other income (expense) | 15,140 | ||||||||||
Income before income tax expense | 2,170 | ||||||||||
Income tax expense | 464 | ||||||||||
Net income (loss) | 1,706 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU No. 2014-09 | Equipment sales | |||||||||||
Statement of Operations | |||||||||||
Total revenues | 18,115 | ||||||||||
Operating expenses: | |||||||||||
Cost of revenue | 15,945 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU No. 2014-09 | License royalties, related party | |||||||||||
Statement of Operations | |||||||||||
Total revenues | $ (15,140) |
Revenues - Trade Receivables (D
Revenues - Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 10,121 | $ 1,240 | |
Less: Allowance for doubtful accounts | (567) | (127) | |
Trade receivables, net | $ 9,554 | $ 1,452 | $ 1,113 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | $ 23,945 | $ 45,364 | ||||||||
Earnings from equity method investments | $ 16,351 | $ 9,715 | $ 15,889 | $ 12,253 | $ 17,754 | $ 12,120 | $ 10,155 | $ 13,814 | 54,208 | 53,843 |
Revenues | $ 10,626 | $ 5,147 | $ 4,273 | $ 3,899 | $ 3,791 | $ 5,098 | $ 27,331 | $ 9,144 | 23,945 | 45,364 |
Total revenues and earnings from equity method investments | 78,153 | |||||||||
Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 78,048 | 99,207 | ||||||||
Consumables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 8,733 | |||||||||
License royalties, related party | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 15,140 | 9,672 | ||||||||
Equipment sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 72 | 31,446 | ||||||||
PGI | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 8,700 | |||||||||
Earnings from equity method investments | 0 | |||||||||
PGI | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 8,700 | 35,692 | ||||||||
PGI | Consumables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 8,628 | |||||||||
PGI | License royalties, related party | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 0 | |||||||||
PGI | Equipment sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 72 | |||||||||
PGI | Equipment sales | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 72 | 31,446 | ||||||||
Refined Coal | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 15,140 | |||||||||
Earnings from equity method investments | 54,208 | |||||||||
Refined Coal | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Earnings from equity method investments | 54,208 | 53,843 | ||||||||
Revenues | 69,348 | $ 63,515 | ||||||||
Refined Coal | Consumables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 0 | |||||||||
Refined Coal | License royalties, related party | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 15,140 | |||||||||
Refined Coal | Equipment sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 0 | |||||||||
Other | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 105 | |||||||||
Earnings from equity method investments | 0 | |||||||||
Other | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 105 | |||||||||
Other | Consumables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 105 | |||||||||
Other | License royalties, related party | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 0 | |||||||||
Other | Equipment sales | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | $ 0 |
Borrowings Borrowings - Schedul
Borrowings Borrowings - Schedule of Debt (Details) - USD ($) | Dec. 31, 2018 | Dec. 07, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 8,167,000 | ||
Long-term portion of borrowings | 50,058,000 | $ 0 | |
Line of Credit | 0 | ||
Long-term debt, including current maturities | 74,125,000 | ||
Less: Current maturities | (24,067,000) | ||
Total long-term borrowings | 50,058,000 | ||
Senior Term Loan | |||
Debt Instrument [Line Items] | |||
Senior Term Loan due December 2021, related party | 70,000,000 | ||
Less net unamortized debt issuance costs | (1,990,000) | $ (2,000,000) | |
Less net unamortized debt discount | (2,052,000) | ||
Long-term portion of borrowings | 65,958,000 | ||
Senior Term Loan | Affiliated Entity | |||
Debt Instrument [Line Items] | |||
Senior Term Loan due December 2021, related party | $ 70,000,000 |
Borrowings - Senior Term Loan (
Borrowings - Senior Term Loan (Details) | 1 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 07, 2018USD ($) | |
Senior Term Loan | ||
Debt Instrument [Line Items] | ||
Face amount | $ 70,000,000 | $ 70,000,000 |
Discount | 2,052,000 | |
Debt issuance costs | $ (1,990,000) | $ (2,000,000) |
Term | 36 months | |
Stated interest rate | 4.75% | |
Minimum cash balance required | $ 5,000,000 | |
Expected future net cash flows from refined coal business | 1.75 | |
Maximum annual collective dividends and buybacks | $ 30,000,000 | |
Minimum requirement from future net cash flows from refined coal business | 100,000,000 | |
Senior Term Loan | Beginning on March 1, 2019 | ||
Debt Instrument [Line Items] | ||
Quarterly payment, principal | $ 6,000,000 | |
Senior Term Loan | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Affiliated Entity | Minimum | ||
Debt Instrument [Line Items] | ||
Percent of common stock owned | 5.00% |
Borrowings - Senior Term Loan M
Borrowings - Senior Term Loan Maturities (Details) - Senior Term Loan $ in Thousands | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2019 | $ 24,000 |
2020 | 24,000 |
2021 | 22,000 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total | $ 70,000 |
Borrowings - Letters of Credit
Borrowings - Letters of Credit and Other (Details) - USD ($) | Dec. 31, 2018 | Dec. 07, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sep. 30, 2013 |
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | $ 10,000,000 | |||
Line of Credit | 0 | ||||
Letters of credit | 0 | $ 3,500,000 | |||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Minimum cash balance required | 5,000,000 | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Allowance | $ (400,000) | ||||
Equipment Systems, ACI | |||||
Debt Instrument [Line Items] | |||||
Letters of credit | $ 800,000 | ||||
Senior Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount | 70,000,000 | $ 70,000,000 | |||
Minimum cash balance required | 5,000,000 | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, used as collateral | 5,000,000 | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Requirements for EBITDA | $ 24,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Settlement and Royalty Indemnity (Details) - USD ($) | Dec. 29, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | |||
Letters of credit | $ 0 | $ 3,500,000 | |
Royalty Award | |||
Loss Contingencies [Line Items] | |||
Letters of credit | $ 3,500,000 | ||
Norit Litigation | |||
Loss Contingencies [Line Items] | |||
Payments for legal settlements | $ 3,300,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Profit Sharing Retirement Plan (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Feb. 28, 2018 | Jun. 01, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Payment for settlement | $ 1 | ||
Other current liabilities | |||
Loss Contingencies [Line Items] | |||
Liability, defined benefit plan | $ 1 | ||
401(k) Plans employer contributions | Other current liabilities | |||
Loss Contingencies [Line Items] | |||
Liability, defined benefit plan | $ 1 |
Commitments and Contingencies_3
Commitments and Contingencies - Tinuum Group and Consultant Obligation (Details) | Dec. 31, 2018 |
Tinuum Group | |
Related Party Transaction [Line Items] | |
Limited guarantees, percent | 50.00% |
Commitments and Contingencies_4
Commitments and Contingencies - Lease Obligations and Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Lease Commitments | ||
2019 | $ 3,619 | |
2020 | 2,273 | |
2021 | 1,632 | |
2022 | 310 | |
2023 | 221 | |
Thereafter | 0 | |
Total | 8,055 | |
Capital Lease Commitments | ||
2019 | 1,749 | |
2020 | 1,707 | |
2021 | 1,802 | |
2022 | 951 | |
2023 | 951 | |
Thereafter | 2,482 | |
Total | 9,642 | |
Less amounts representing interest | (1,475) | |
Present value of minimum capital lease payments | 8,167 | |
Rent expense | $ 302 | $ (60) |
Minimum | ||
Lease And Rental Expense [Line Items] | ||
Operating leases, term of contract | 1 year | |
Maximum | ||
Lease And Rental Expense [Line Items] | ||
Operating leases, term of contract | 7 years |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 06, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2018 | May 05, 2017 | May 04, 2017 | |
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Number of shares tendered and not properly withdrawn (in shares) | 2,858,425 | |||||
Tendered shares as percent of shares outstanding | 6.20% | |||||
Repurchase of shares | $ 769 | $ 566 | ||||
Dividends paid | $ 20,300 | $ 15,800 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares acquired (in shares) | 1,370,891 | |||||
Treasury stock acquired | $ 12,900 | |||||
Additional tendered shares acquires (in shares) | 445,891 | |||||
Repurchase of shares (in shares) | 2,350,422 | 342,875 | ||||
Repurchase of shares | $ 25,300 | $ 3,400 | ||||
Common Stock | Single Block through a Privately Negotiated Transaction | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of shares | $ 15,600 | |||||
Common Stock | Manager of a Financial Institution | ||||||
Class of Stock [Line Items] | ||||||
Shares acquired (in shares) | 70,178 | |||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Number of shares authorized to be repurchased (in shares) | 925,000 | |||||
Share price (amount per shares) | $ 10.8 | |||||
Authorized amount | $ 10,000 | |||||
Additional authorized amount (percent) | 2.00% | |||||
Requirement to own shares outstanding as percent | 4.99% | |||||
Maximum | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares authorized to be repurchased (in shares) | 20,000,000 | |||||
Minimum | ||||||
Class of Stock [Line Items] | ||||||
Share price (amount per shares) | $ 9.4 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||||||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0 | $ 1 | $ 0.75 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)employee$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of employees affected | employee | 13 | |
Net increase in share-based compensation | $ | $ 800,000 | |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 205,998 | |
Non vested shares granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | $ 11 | $ 9.50 |
Vested in period, value | $ | $ (2,000,000) | $ (1,700,000) |
Aggregate intrinsic value, nonvested | $ | $ 3,000,000 | |
Restricted stock awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Contractual term | 5 years | |
Options granted (in shares) | shares | 0 | 0 |
Shares issued as a result of options exercised | $ | $ 300,000 | $ 700,000 |
Weighted-average grant-date fair value | $ | $ 300,000 | |
Withheld as payment of exercise price | shares | 67,715 | |
Options exercised (in shares) | shares | 92,666 | 0 |
Excess tax benefit | $ | $ 0 | $ 0 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Granted (in shares) | shares | 20,000 | |
Non vested shares granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | $ 10.52 | $ 0 |
Vested in period, value | $ | $ 0 | $ 0 |
Aggregate intrinsic value, nonvested | $ | $ 200,000 | |
Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of common shares to be received by participant, percent | 200.00% | |
Maximum reduction in number of common shares to be received by participants, percent | 0.00% | |
Percent of award based on performance of total stockholder return | 75.00% | |
Service period | 3 years | |
Granted (in shares) | shares | 0 | 0 |
Non vested shares granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | $ 0 | |
2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for issuance (in shares) | shares | 600,000 | |
2017 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for issuance (in shares) | shares | 2,000,000 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 2,490 | $ 2,209 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 2,222 | 1,400 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 58 | 672 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 210 | 0 |
Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 0 | $ 137 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Unrecognized Compensation Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 1,767 |
Expected Weighted-Average Period of Recognition (in years) | 1 year 6 months 29 days |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation costs, equity instruments other than options | $ 1,767 |
Expected Weighted-Average Period of Recognition (in years) | 1 year 6 months 29 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Non-vested Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock awards | ||
Shares | ||
Non-vested at January 1, 2018 | 276,607 | |
Granted (in shares) | 205,998 | |
Vested (in shares) | (200,618) | |
Forfeited (in shares) | (1,135) | |
Non-vested at December 31, 2018 | 280,852 | 276,607 |
Weighted Average Grant Date Fair Value | ||
Non-vested shares, Weighted Average Grant Date Fair Value, at Januarey 1, 2018 (in usd per share) | $ 9.03 | |
Non vested shares granted, Weighted Average Grant Date Fair Value (in usd per share) | 11 | $ 9.50 |
Vested in period, Weighted Average Grant Date Fair Value (in usd per share) | 9.79 | |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | 10.44 | |
Non-vested shares, Weighted Average Grant Date Fair Value, at December 31, 2018 (in usd per share) | $ 9.92 | $ 9.03 |
Restricted stock units | ||
Shares | ||
Non-vested at January 1, 2018 | 0 | |
Granted (in shares) | 20,000 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Non-vested at December 31, 2018 | 20,000 | 0 |
Weighted Average Grant Date Fair Value | ||
Non-vested shares, Weighted Average Grant Date Fair Value, at Januarey 1, 2018 (in usd per share) | $ 0 | |
Non vested shares granted, Weighted Average Grant Date Fair Value (in usd per share) | 10.52 | $ 0 |
Vested in period, Weighted Average Grant Date Fair Value (in usd per share) | 0 | |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | 0 | |
Non-vested shares, Weighted Average Grant Date Fair Value, at December 31, 2018 (in usd per share) | $ 10.52 | $ 0 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options Outstanding and Exercisable | ||
Options outstanding, beginning of year (in shares) | 622,446 | |
Options granted (in shares) | 0 | 0 |
Options exercised (in shares) | (92,666) | 0 |
Options expired / forfeited (in shares) | 0 | |
Options outstanding, end of year (in shares) | 529,780 | 622,446 |
Options vested and exercisable (in shares) | 529,780 | |
Weighted Average Exercise Price | ||
Options outstanding, end of year (in usd per shares) | $ 11.64 | |
Options granted (in usd per shares) | 0 | |
Options exercised (in usd per shares) | 8.25 | |
Options expired / forfeited (in usd per shares) | 0 | |
Options outstanding, end of year (in usd per shares) | 12.23 | $ 11.64 |
Options vested and exercisable,Weighted Average Exercise Price (in usd per shares) | $ 12.23 | |
Options outstanding, end of year, Aggregate Intrinsic Value | $ 296 | |
Options outstanding, end of year, Weighted Average Remaining Contractual Term (in years) | 1 year 5 months 16 days | |
Options vested and exercisable, Aggregate Intrinsic Value | $ 296 | |
Options vested and exercisable, Weighted Average Remaining Contractual Term (in years) | 1 year 5 months 16 days |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Non-vested PSUs (Details) - Performance share units - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | ||
Non-vested at January 1, 2018 | 19,406 | |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (19,406) | |
Forfeited/Canceled (in shares) | 0 | |
Non-vested at December 31, 2018 | 0 | 19,406 |
Weighted Average Grant Date Fair Value | ||
Non-vested shares, Weighted Average Grant Date Fair Value, at Januarey 1, 2018 (in usd per share) | $ 25.20 | |
Non vested shares granted, Weighted Average Grant Date Fair Value (in usd per share) | 0 | |
Vested in period, Weighted Average Grant Date Fair Value (in usd per share) | 25.20 | |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | 0 | |
Non-vested shares, Weighted Average Grant Date Fair Value, at December 31, 2018 (in usd per share) | $ 0 | $ 25.20 |
Stock-Based Compensation - PSUs
Stock-Based Compensation - PSUs Settled (Details) - Performance share units | 12 Months Ended | |
Dec. 31, 2018shares | Dec. 31, 2017shares | |
2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Net Number of Issued Shares upon Vesting (in shares) | 6,476 | |
Shares Withheld to Settle Tax Withholding Obligations (in shares) | 3,573 | |
2014 | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR Multiple Range | 0.75 | |
Russell 3000 Multiple | 0 | |
2014 | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR Multiple Range | 1 | |
Russell 3000 Multiple | 0 | |
2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Net Number of Issued Shares upon Vesting (in shares) | 12,311 | 3,869 |
Shares Withheld to Settle Tax Withholding Obligations (in shares) | 4,061 | 2,310 |
2015 | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR Multiple Range | 112.50 | 0.60 |
Russell 3000 Multiple | 0 | 0 |
2015 | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR Multiple Range | 112.50 | 0.60 |
Russell 3000 Multiple | 0 | 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid expenses and other assets and Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other current assets: | |||
Prepaid expenses | $ 1,233 | $ 1,678 | |
Prepaid income taxes | 2,940 | 0 | |
Other | 1,397 | 83 | |
Other current assets | 5,570 | 1,761 | |
Other long-term assets: | |||
Spare parts | 3,278 | 0 | |
Mine development costs, net | 2,531 | 0 | |
Long-term receivable, net | 408 | 0 | |
Deposits | 269 | 223 | |
Highview investment | 552 | 552 | |
Other long-term assets | 955 | 728 | |
Total | $ 7,993 | $ 1,181 | $ 1,503 |
Supplemental Financial Inform_4
Supplemental Financial Information - Additional Information (Details) - Highview Enterprises Limited $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2014USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017£ / shares | |
Investment [Line Items] | |||
Ownership interest, percent | 8.00% | ||
Payments to acquire investments | $ | $ 2.8 | ||
Cost method investment | |||
Investment [Line Items] | |||
Asset impairment charges | $ | $ 0.5 | ||
Share price, estimated fair value (amount per share) | £ / shares | £ 1 | ||
Share price (amount per shares) | £ / shares | £ 2 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other current liabilities: | |||
Accrued interest | $ 407 | $ 0 | |
Sales and other taxes payable | 479 | 207 | |
Estimated Company contribution to 401(k) Plan | 0 | 1,000 | |
Accrued losses on equipment contracts | 0 | 69 | |
Billings in excess of costs on uncompleted contracts | 0 | 1,830 | |
Warranty liabilities | 12 | 316 | |
Other | 1,240 | 1,072 | |
Other current liabilities | 2,138 | $ 2,673 | 4,494 |
Other long-term liabilities: | |||
Deferred revenue, related party | 0 | 2,000 | |
Deferred rent | 106 | 192 | |
Mine reclamation liability | 624 | 0 | |
Other long-term liabilities | 210 | 93 | |
Total other long-term liabilities | $ 940 | $ 285 | $ 2,285 |
Supplemental Financial Inform_6
Supplemental Financial Information - Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning of year | $ 0 | $ 1,312 |
Asset retirement obligation assumed in Carbon Solutions Acquisition | 626 | 0 |
Accretion | 2 | 37 |
Liabilities settled | (4) | (527) |
Changes due to scope and timing of reclamation | 0 | (822) |
Asset retirement obligations, end of year | $ 624 | $ 0 |
Supplemental Financial Inform_7
Supplemental Financial Information - Cost and Billing (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Costs incurred on uncompleted contracts (gross) | $ 15,945 | |
Billings on uncompleted contracts (gross) | (17,775) | |
Total deferred revenue | (1,830) | |
Costs in excess of billings on uncompleted contracts | 0 | |
Billings in excess of costs on uncompleted contracts | $ 0 | $ (1,830) |
Supplemental Financial Inform_8
Supplemental Financial Information - Supplemental Income Statement - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
453A interest | $ 1,585 | $ 2,555 |
Interest on Senior Term Loan | 460 | 0 |
Line of Credit interest and letters of credit fees | 0 | 417 |
Other | 106 | 52 |
Interest expense | $ 2,151 | $ 3,024 |
Supplemental Financial Inform_9
Supplemental Financial Information - Supplemental Income Statement - Other (Details) - USD ($) $ in Thousands | Nov. 06, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Impairment of Highview investment | $ 0 | $ (464) | |
Settlement agreement | $ 3,500 | 0 | 3,500 |
Company contribution to 401(k) Plan | 0 | (1,000) | |
Other | (19) | (11) | |
Other nonoperating income (expense) | $ (19) | $ 2,025 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Financial Instruments: | ||
Highview Investment | $ 552 | $ 552 |
Highview Obligation | 213 | 210 |
Fair Value | ||
Financial Instruments: | ||
Highview Investment | 552 | 552 |
Highview Obligation | $ 213 | $ 210 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 07, 2018 | Dec. 31, 2017 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Time deposits, $250,000 or more | $ 250 | ||
Highview Enterprises Limited | Cost method investment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairment charges | $ 500 | ||
ADA Carbon Solutions, LLC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Consideration transferred | $ 66,500 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||||||||
Changes in tax rates | $ (464) | $ 5,818 | ||||||||
Tax Cuts and Jobs Act of 2017, change in deferred tax assets | $ 14,000 | 5,800 | ||||||||
Income tax expense | $ 5,272 | $ 3,931 | $ (1,349) | $ 2,569 | 11,538 | $ 3,586 | $ 3,642 | $ 5,386 | 10,423 | 24,152 |
Valuation allowances | 4,462 | (474) | ||||||||
Net deferred tax assets | 32,539 | 38,661 | 32,539 | 38,661 | ||||||
Release of valuation allowance | (4,500) | (4,500) | ||||||||
Deferred Tax Assets, Valuation Allowance | $ 79,898 | $ 75,436 | $ 79,898 | $ 75,436 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current portion of income tax expense: | ||||||||||
Federal | $ 882 | $ 519 | ||||||||
State and other | 4,308 | 894 | ||||||||
Current portion of income tax expense | $ 5,700 | 5,190 | 1,413 | |||||||
Deferred portion of income tax expense (benefit): | ||||||||||
Federal | 4,766 | 23,003 | ||||||||
State and other | 467 | (264) | ||||||||
Deferred portion of income tax (benefit) expense | 5,233 | 22,739 | ||||||||
Total income tax expense | $ 5,272 | $ 3,931 | $ (1,349) | $ 2,569 | $ 11,538 | $ 3,586 | $ 3,642 | $ 5,386 | $ 10,423 | $ 24,152 |
Effective tax rate | 23.00% | 46.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expected Federal Income Taxes at Statutory Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | ||||||||||
Federal statutory rate | $ 9,634 | $ 18,209 | ||||||||
State income taxes, net of federal benefit | 3,625 | 1,721 | ||||||||
Permanent differences | 130 | 777 | ||||||||
Tax credits | (7,031) | (1,949) | ||||||||
Valuation allowances | 4,462 | (474) | ||||||||
Changes in tax rates | (464) | 5,818 | ||||||||
Stock-based compensation | (216) | 303 | ||||||||
Other | 283 | (253) | ||||||||
Total income tax expense | $ 5,272 | $ 3,931 | $ (1,349) | $ 2,569 | $ 11,538 | $ 3,586 | $ 3,642 | $ 5,386 | $ 10,423 | $ 24,152 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Tax credits | $ 104,553 | $ 100,367 |
Deferred revenues and loss contract provisions | 0 | 906 |
Employee related liabilities | 1,515 | 393 |
Intangible assets | 1,623 | 914 |
Equity method investments | 9,588 | 8,457 |
Net operating loss carryforwards | 2,479 | 2,004 |
Other investments | 583 | 563 |
Other | 380 | 648 |
Total deferred tax assets | 120,721 | 114,252 |
Less valuation allowance | (79,898) | (75,436) |
Deferred tax assets | 40,823 | 38,816 |
Less: Deferred tax liabilities | ||
Property and equipment and other | (8,284) | (155) |
Total deferred tax liabilities | (8,284) | (155) |
Net deferred tax assets | $ 32,539 | $ 38,661 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards and Tax Credit Carryforwards (Details) $ in Thousands | Dec. 31, 2018USD ($) |
State | |
Income Taxes [Line Items] | |
Net operating loss carryforwards | $ 52,126 |
Federal | |
Income Taxes [Line Items] | |
Tax credit carryforwards | $ 104,553 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of January 1 | $ 54 | $ 54 |
Increases for tax positions of current year | 0 | 0 |
Balance as of December 31 | $ 54 | $ 54 |
Business Segment Information -
Business Segment Information - Segment Operating Results (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||
Number of reportable segments | segment | 2 | |||||||||
Revenues: | ||||||||||
Earnings from equity method investments | $ 16,351 | $ 9,715 | $ 15,889 | $ 12,253 | $ 17,754 | $ 12,120 | $ 10,155 | $ 13,814 | $ 54,208 | $ 53,843 |
Revenue component | 23,945 | 45,364 | ||||||||
Revenues | 10,626 | 5,147 | 4,273 | 3,899 | 3,791 | 5,098 | 27,331 | 9,144 | 23,945 | 45,364 |
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | (3,151) | $ 32 | $ (1,569) | $ (1,712) | $ (1,062) | $ (1,140) | $ 16 | $ (1,956) | (6,400) | (4,142) |
453A interest | 1,585 | 2,555 | ||||||||
Equipment sales | ||||||||||
Revenues: | ||||||||||
Revenue component | 72 | 31,446 | ||||||||
Consumables | ||||||||||
Revenues: | ||||||||||
Revenue component | 8,733 | 4,246 | ||||||||
Refined Coal | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | 54,208 | |||||||||
Revenue component | 15,140 | |||||||||
Refined Coal | Equipment sales | ||||||||||
Revenues: | ||||||||||
Revenue component | 0 | |||||||||
Power Generation and Industrial | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | 0 | |||||||||
Revenue component | 8,700 | |||||||||
Power Generation and Industrial | Equipment sales | ||||||||||
Revenues: | ||||||||||
Revenue component | 72 | |||||||||
Operating Segments | ||||||||||
Revenues: | ||||||||||
Revenues | 78,048 | 99,207 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | 62,833 | 60,287 | ||||||||
Operating Segments | Refined Coal | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | 54,208 | 53,843 | ||||||||
Royalties, related party | 15,140 | 9,672 | ||||||||
Revenues | 69,348 | 63,515 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | 65,454 | 59,908 | ||||||||
Severance expense | 400 | |||||||||
Operating Segments | Power Generation and Industrial | ||||||||||
Revenues: | ||||||||||
Revenues | 8,700 | 35,692 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | (2,621) | 379 | ||||||||
Severance expense | 1,000 | |||||||||
Amortization related to fair value of inventory | $ 1,000 | 1,000 | ||||||||
Operating Segments | Power Generation and Industrial | Equipment sales | ||||||||||
Revenues: | ||||||||||
Revenue component | 72 | 31,446 | ||||||||
Operating Segments | Power Generation and Industrial | Consumables | ||||||||||
Revenues: | ||||||||||
Revenue component | 8,628 | 4,246 | ||||||||
Intersegment Eliminations | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | (54,208) | (53,843) | ||||||||
All Other and Corporate | ||||||||||
Revenues: | ||||||||||
Revenues | 105 | 0 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | $ 2 | $ 0 |
Business Segment Information _2
Business Segment Information - Reconciliation of Reportable Segment Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | $ (3,151) | $ 32 | $ (1,569) | $ (1,712) | $ (1,062) | $ (1,140) | $ 16 | $ (1,956) | $ (6,400) | $ (4,142) |
Corporate payroll and benefits | (10,639) | (7,669) | ||||||||
Corporate rent and occupancy | (1,141) | (795) | ||||||||
Corporate legal and professional fees | (8,230) | (4,354) | ||||||||
Corporate general and administrative | (3,359) | (4,014) | ||||||||
Corporate depreciation and amortization | (723) | (789) | ||||||||
Corporate interest (expense) income, net | 239 | 54 | ||||||||
Other income (expense), net | (19) | 2,025 | ||||||||
Income tax expense | (5,272) | (3,931) | 1,349 | (2,569) | (11,538) | (3,586) | (3,642) | (5,386) | (10,423) | (24,152) |
Net income | $ 6,998 | $ 5,503 | $ 15,291 | $ 7,662 | $ 6,985 | $ 5,792 | $ 6,408 | $ 8,688 | 35,454 | 27,873 |
Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | 62,833 | 60,287 | ||||||||
All Other and Corporate | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | 2 | 0 | ||||||||
Segment Reconciling Items | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | 62,835 | 60,287 | ||||||||
Corporate payroll and benefits | (4,970) | (5,565) | ||||||||
Corporate rent and occupancy | (616) | (293) | ||||||||
Corporate legal and professional fees | (7,978) | (4,010) | ||||||||
Corporate general and administrative | (3,011) | (3,400) | ||||||||
Corporate depreciation and amortization | (134) | (342) | ||||||||
Corporate interest (expense) income, net | (521) | (432) | ||||||||
Other income (expense), net | 272 | 5,780 | ||||||||
Income tax expense | $ (10,423) | $ (24,152) |
Business Segment Information _3
Business Segment Information - Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | |||
Assets | $ 159,664 | $ 82,618 | |
Equity method investments | 6,634 | 4,351 | |
Deferred tax assets | 32,539 | $ 37,772 | 38,661 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 97,254 | 11,847 | |
Operating Segments | Refined Coal | |||
Segment Reporting Information [Line Items] | |||
Assets | 11,468 | 8,092 | |
Operating Segments | Power Generation and Industrial | |||
Segment Reporting Information [Line Items] | |||
Assets | 85,786 | 3,755 | |
All Other and Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 62,410 | $ 70,771 |
Major Customers (Details)
Major Customers (Details) - Sales - Operating Segments | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | RC | ||
Revenue, Major Customer [Line Items] | ||
Major customer percentage | 63.00% | 21.00% |
Customer B | PGI | ||
Revenue, Major Customer [Line Items] | ||
Major customer percentage | 0.00% | 48.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - Tinuum Group - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Receivable from related party | $ 4,284 | $ 3,247 |
Royalties, related party | $ 15,140 | $ 9,672 |
Defined Contributions Savings_3
Defined Contributions Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 01, 2018 | |
Other current liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability, defined benefit plan | $ 1,000 | ||
401(k) Plans employer contributions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer expense | $ 139 | $ 56 | |
401(k) Plans employer contributions | Other current liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability, defined benefit plan | $ 1,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 3,129 | |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 570 | |
Severance | ADA Carbon Solutions, LLC | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 600 |
Restructuring - Net Pretax Bene
Restructuring - Net Pretax Benefits (Charges), Incurred by Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | |
Approximate Number of Employees | employee | 16 |
Restructuring charges | $ 3,129 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | 3,129 |
All Other and Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,685 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | 1,685 |
Refined Coal | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 448 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | 448 |
PGI | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 996 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | $ 996 |
Restructuring - Utilization of
Restructuring - Utilization of Restructuring Accruals (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Severance liability acquired | $ 3,129 | |
Share-based compensation | 800 | |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Accrual, Beginning balance | 0 | $ 452 |
Expense provision | 3,129 | 56 |
Cash payments and other | (1,491) | (508) |
Change in estimates | 0 | |
Severance liability acquired | 570 | |
Accrual, Ending balance | 2,208 | 0 |
Facility Closures | ||
Restructuring Reserve [Roll Forward] | ||
Accrual, Beginning balance | 0 | 247 |
Expense provision | 0 | 0 |
Cash payments and other | 0 | (250) |
Change in estimates | 3 | |
Severance liability acquired | 0 | |
Accrual, Ending balance | $ 0 | $ 0 |
Quarterly Financial Results (_3
Quarterly Financial Results (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||||||||
Revenues | $ 10,626 | $ 5,147 | $ 4,273 | $ 3,899 | $ 3,791 | $ 5,098 | $ 27,331 | $ 9,144 | $ 23,945 | $ 45,364 | |
Cost of revenues, exclusive of operating expenses shown below | 4,032 | 954 | 704 | 563 | 648 | 2,041 | 23,295 | 5,901 | |||
Other operating expenses | 9,745 | 4,161 | 5,138 | 5,048 | 4,205 | 4,197 | 4,020 | 5,199 | |||
Operating (loss) income | (3,151) | 32 | (1,569) | (1,712) | (1,062) | (1,140) | 16 | (1,956) | (6,400) | (4,142) | |
Earnings from equity method investments | 16,351 | 9,715 | 15,889 | 12,253 | 17,754 | 12,120 | 10,155 | 13,814 | 54,208 | 53,843 | |
Other income (expenses), net | (930) | (313) | (378) | (310) | 1,831 | (1,602) | (121) | 2,216 | |||
Income before income tax expense | 12,270 | 9,434 | 13,942 | 10,231 | 18,523 | 9,378 | 10,050 | 14,074 | 45,877 | 52,025 | |
Income tax expense (benefit) | 5,272 | 3,931 | (1,349) | 2,569 | 11,538 | 3,586 | 3,642 | 5,386 | 10,423 | 24,152 | |
Net income | $ 6,998 | $ 5,503 | $ 15,291 | $ 7,662 | $ 6,985 | $ 5,792 | $ 6,408 | $ 8,688 | $ 35,454 | $ 27,873 | |
Net income (loss) per common share – basic (in dollars per share) | $ 0.36 | $ 0.28 | $ 0.76 | $ 0.37 | $ 0.34 | $ 0.28 | $ 0.29 | $ 0.39 | $ 1.78 | $ 1.30 | |
Net income (loss) per common share – diluted (in dollars per share) | $ 0.36 | $ 0.28 | $ 0.75 | $ 0.37 | $ 0.33 | $ 0.28 | $ 0.29 | $ 0.39 | $ 1.76 | $ 1.29 | |
Weighted-average number of common shares outstanding: | |||||||||||
Basic (in shares) | 19,339 | 19,726 | 20,062 | 20,502 | 20,767 | 20,808 | 21,866 | 22,056 | 19,901 | 21,367 | |
Diluted (in shares) | 19,439 | 19,876 | 20,195 | 20,584 | 20,864 | 20,854 | 21,880 | 22,243 | 20,033 | 21,413 | |
Acquisition related costs | $ 3,400 | ||||||||||
Release of valuation allowance | (4,500) | $ (4,500) | |||||||||
Current portion of income tax expense | $ 5,700 | 5,190 | $ 1,413 | ||||||||
Tax Cuts and Jobs Act of 2017, income tax expense | $ 5,800 | ||||||||||
ADA Carbon Solutions, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenues | $ 5,600 | ||||||||||
Cost of revenues, exclusive of operating expenses shown below | 3,400 | ||||||||||
Other operating expenses | 2,600 | ||||||||||
Income before income tax expense | $ (400) | ||||||||||
Weighted-average number of common shares outstanding: | |||||||||||
Acquisition related costs | $ 4,500 | ||||||||||
Severance charges | $ 1,100 |
Subsequent Events (Details)
Subsequent Events (Details) T in Millions | Feb. 05, 2019$ / shares | Jan. 16, 2019Tfacilities | Dec. 31, 2018$ / shares | Sep. 30, 2018$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Dec. 31, 2017$ / shares | Sep. 30, 2017$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares |
Subsequent Event [Line Items] | ||||||||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0 | $ 1 | $ 0.75 | ||
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividends declared (in dollars per share) | $ 0.25 | |||||||||||
Subsequent Event | Tinuum Group | Refined Coal | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Number of tons of coal burned per year | T | 3.5 | |||||||||||
Number of facilities in full-time operations | facilities | 20 |