Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Advanced Emissions Solutions, Inc. | |
Entity Central Index Key | 0001515156 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 18,649,297 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 20,670 | $ 18,577 |
Receivables, net | 7,772 | 9,554 |
Receivables, related parties | 4,220 | 4,284 |
Inventories | 18,053 | 21,791 |
Prepaid expenses and other assets | 5,504 | 5,570 |
Total current assets | 56,219 | 59,776 |
Restricted cash, long-term | 5,195 | 5,195 |
Property, plant and equipment, net of accumulated depreciation of $2,830 and $1,499, respectively | 42,423 | 42,697 |
Intangible assets, net | 4,608 | 4,830 |
Equity method investments | 46,068 | 6,634 |
Deferred tax assets | 24,802 | 32,539 |
Other long-term assets | 14,496 | 7,993 |
Total Assets | 193,811 | 159,664 |
Current liabilities: | ||
Accounts payable | 4,785 | 6,235 |
Accrued payroll and related liabilities | 3,779 | 8,279 |
Current portion of long-term debt | 24,166 | 24,067 |
Other current liabilities | 7,095 | 2,138 |
Total current liabilities | 39,825 | 40,719 |
Long-term debt | 43,999 | 50,058 |
Other long-term liabilities | 4,071 | 940 |
Total Liabilities | 87,895 | 91,717 |
Commitments and contingencies (Note 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, 22,836,435 and 22,640,677 shares issued, and 18,708,371 and 18,576,489 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 23 | 23 |
Treasury stock, at cost: 4,128,064 and 4,064,188 shares as of March 31, 2019 and December 31, 2018, respectively | (42,433) | (41,740) |
Additional paid-in capital | 96,822 | 96,750 |
Retained earnings | 51,504 | 12,914 |
Total stockholders’ equity | 105,916 | 67,947 |
Total Liabilities and Stockholders’ Equity | $ 193,811 | $ 159,664 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization | $ 2,830 | $ 1,499 |
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) | 22,836,435 | 22,640,677 |
Common stock, shares outstanding (in shares) | 18,708,371 | 18,576,489 |
Treasury stock (in shares) | 4,128,064 | 4,064,188 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 19,329 | $ 3,899 |
Operating expenses: | ||
Payroll and benefits | 2,556 | 2,214 |
Legal and professional fees | 1,976 | 1,548 |
General and administrative | 2,142 | 1,170 |
Depreciation, amortization, depletion and accretion | 2,102 | 116 |
Total operating expenses | 22,884 | 5,611 |
Operating loss | (3,555) | (1,712) |
Other income (expense): | ||
Earnings from equity method investments | 21,690 | 12,253 |
Interest income | 70 | 0 |
Interest expense | (2,104) | (336) |
Other | 0 | 26 |
Total other income | 19,656 | 11,943 |
Income before income tax expense | 16,101 | 10,231 |
Income tax expense | 1,699 | 2,569 |
Net income | $ 14,402 | $ 7,662 |
Earnings per common share (Note 1): | ||
Basic (in dollars per share) | $ 0.79 | $ 0.37 |
Diluted (in dollars per share) | $ 0.78 | $ 0.37 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 18,268 | 20,502 |
Diluted (in shares) | 18,433 | 20,584 |
Consumables | ||
Revenues: | ||
Total revenues | $ 15,109 | $ 621 |
Operating expenses: | ||
Cost of revenue | 14,108 | 711 |
License royalties, related party | ||
Revenues: | ||
Total revenues | 4,220 | 3,230 |
Other | ||
Revenues: | ||
Total revenues | 0 | 48 |
Operating expenses: | ||
Cost of revenue | $ 0 | $ (148) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings / (Accumulated Deficit) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of change in accounting principle | $ 2,950 | $ 2,950 | |||
Beginning Balance (in shares) at Dec. 31, 2017 | 22,465,821 | (1,713,766) | |||
Beginning Balance at Dec. 31, 2017 | 73,455 | $ 22 | $ (16,397) | $ 105,308 | (15,478) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 193,583 | ||||
Stock-based compensation | 336 | 335 | |||
Repurchase of common shares to satisfy minimum tax withholdings (in shares) | (22,375) | ||||
Repurchase of common shares to satisfy minimum tax withholdings | (267) | $ (1,600) | (267) | ||
Cash dividends declared on common stock, $0.25 per share | (5,189) | (5,189) | |||
Repurchase of common shares (in shares) | (149,217) | ||||
Repurchase of common shares | (1,642) | $ (1,642) | |||
Net income | 7,662 | 7,662 | |||
Ending Balance (in shares) at Mar. 31, 2018 | 22,637,029 | (1,862,983) | |||
Ending Balance at Mar. 31, 2018 | 77,305 | $ 23 | $ (18,039) | 100,187 | (4,866) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of change in accounting principle | 28,817 | 28,817 | |||
Beginning Balance (in shares) at Dec. 31, 2018 | 22,640,677 | (4,064,188) | |||
Beginning Balance at Dec. 31, 2018 | 67,947 | $ 23 | $ (41,740) | 96,750 | 12,914 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 218,465 | ||||
Stock-based compensation | 317 | 317 | |||
Repurchase of common shares to satisfy minimum tax withholdings (in shares) | (22,707) | ||||
Repurchase of common shares to satisfy minimum tax withholdings | (245) | $ (700) | (245) | ||
Cash dividends declared on common stock, $0.25 per share | (4,629) | (4,629) | |||
Repurchase of common shares (in shares) | (63,876) | ||||
Repurchase of common shares | (693) | $ (693) | |||
Net income | 14,402 | 14,402 | |||
Ending Balance (in shares) at Mar. 31, 2019 | 22,836,435 | (4,128,064) | |||
Ending Balance at Mar. 31, 2019 | $ 105,916 | $ 23 | $ (42,433) | $ 96,822 | $ 51,504 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share outstanding (in dollars per share) | $ 0.25 | $ 0.25 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 14,402 | $ 7,662 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Decrease in valuation allowance on deferred tax assets | (4,020) | 0 |
Depreciation, amortization, depletion and accretion | 2,102 | 116 |
Amortization of debt discount and debt issuance costs | 381 | 0 |
Stock-based compensation expense | 317 | 335 |
Earnings from equity method investments | (21,690) | (12,253) |
Other non-cash items, net | 75 | 163 |
Changes in operating assets and liabilities: | ||
Receivables | 1,782 | (223) |
Related party receivables | 63 | 17 |
Prepaid expenses and other assets | 80 | 185 |
Costs incurred on uncompleted contracts | 0 | 15,945 |
Inventories | 3,262 | 0 |
Deferred tax assets, net | 3,343 | 1,587 |
Other long-term assets | 773 | 0 |
Accounts payable | (789) | 297 |
Accrued payroll and related liabilities | (4,500) | (741) |
Other current liabilities | 2,154 | 638 |
Billings on uncompleted contracts | 0 | (15,945) |
Operating lease liabilities | (804) | 0 |
Other long-term liabilities | (401) | (44) |
Distributions from equity method investees, return on investment | 19,488 | 2,400 |
Net cash provided by operating activities | 16,018 | 139 |
Cash flows from investing activities | ||
Distributions from equity method investees in excess of cumulative earnings | 0 | 11,050 |
Acquisition of business | (661) | 0 |
Acquisition of property, plant, equipment, and intangible assets | (1,087) | (74) |
Mine development costs | (324) | 0 |
Net cash (used in) provided by investing activities | (2,072) | 10,976 |
Cash flows from financing activities | ||
Principal payments on term loan | (6,000) | 0 |
Principal payments on finance lease obligations | (344) | 0 |
Dividends paid | (4,571) | (5,142) |
Repurchase of common shares | (693) | (1,642) |
Repurchase of shares to satisfy tax withholdings | (245) | (267) |
Net cash used in financing activities | (11,853) | (7,051) |
Increase in Cash and Cash Equivalents and Restricted Cash | 2,093 | 4,064 |
Cash and Cash Equivalents and Restricted Cash, beginning of period | 23,772 | 30,693 |
Cash and Cash Equivalents and Restricted Cash, end of period | 25,865 | 34,757 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Dividends declared, not paid | $ 58 | $ 46 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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 ("NOx") and mercury from coal burned to generate electrical power. The Company’s sales occur principally throughout the United States. See Note 13 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") used in mercury capture for the coal-fired power plant, industrial and water treatment markets. Carbon Solutions also owns an associated lignite mine that supplies the primary raw material for manufacturing powdered activated carbon. 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 complementary AC markets. Basis of Presentation The accompanying Condensed Consolidated Financial Statements of ADES are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and with Article 10 of Regulation S-X of the Securities and Exchange Commission. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The unaudited Condensed Consolidated Financial Statements of ADES in this quarterly report ("Quarterly Report") are presented on a consolidated basis and include ADES and its wholly-owned subsidiaries (collectively, the "Company"). Also included within the unaudited Condensed Consolidated Financial Statements are the Company's unconsolidated equity investments, Tinuum Group, Tinuum Services, LLC ("Tinuum Services"), and GWN Manager, LLC ("GWN Manager"), which are accounted for under the equity method of accounting, and Highview Enterprises Limited (the "Highview Investment"), which is accounted for in accordance with U.S. GAAP applicable to equity investments that do not qualify for the equity method of accounting. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts were eliminated for all periods presented in this Quarterly Report. In the opinion of management, these Condensed Consolidated Financial Statements include all normal and recurring adjustments considered necessary for a fair presentation of the results of operations, financial position, stockholders' equity and cash flows for the interim periods presented. These Condensed Consolidated Financial Statements of ADES should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). Significant accounting policies disclosed therein have not changed, except as described later in Note 1. Earnings Per Share Basic earnings per share is computed using the two-class method, which is an earnings allocation formula that determines earnings 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 for the period is allocated between common stockholders and the holders of the participating securities based on the weighted-average number 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 arrive at 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 Condensed 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 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. The following table sets forth the calculations of basic and diluted earnings per share: Three Months Ended March 31, (in thousands, except per share amounts) 2019 2018 Net income $ 14,402 $ 7,662 Less: Dividends and undistributed income allocated to participating securities 20 25 Income attributable to common stockholders $ 14,382 $ 7,637 Basic weighted-average common shares outstanding 18,268 20,502 Add: dilutive effect of equity instruments 165 82 Diluted weighted-average shares outstanding 18,433 20,584 Earnings per share - basic $ 0.79 $ 0.37 Earnings per share - diluted $ 0.78 $ 0.37 For the three months ended March 31, 2019 and 2018 , RSA's and Stock Options convertible to 0.3 million and 0.2 million shares, respectively, of common stock for each of the periods presented were outstanding but were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the three months ended March 31, 2018 , Stock Options to purchase 0.2 million of common stock, which vest based on the Company achieving specified performance targets, were outstanding, but were 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 financial statements in conformity with U.S. GAAP requires management to makes estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. There have been no changes in the Company’s critical accounting estimates from those that were disclosed in the 2018 Form 10-K. Actual results could differ from these estimates. Risks and Uncertainties The Company’s earnings are significantly affected by equity earnings it receives from Tinuum Group. As of March 31, 2019 , Tinuum Group has 20 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. Reclassifications Certain balances have been reclassified from the prior year to conform to the current year presentation. No reclassifications have any impact to income before income taxes or net income. New Accounting Standards Recently Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-2"), which created ASC Topic 842 - Leases ("ASC 842"), requiring 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. ASC 842 retains the distinction between finance leases (formerly defined as capital leases) and operating leases. On January 1, 2019, the Company adopted ASC 842 retrospectively beginning with the date of adoption. Under this adoption method, the application date is the beginning of the reporting period in which the Company first applies the provisions of ASC 842. Accordingly, the Company’s reporting for the comparative periods presented in the financial statements and related disclosures continues in accordance with legacy U.S. GAAP under ASC Topic 840 - Leases ("ASC 840"). The adoption of ASC 842 had no impact to the opening balance of retained earnings. As of the adoption date, the Company recorded $7.0 million and $7.0 million of "right of use" assets and incremental lease liabilities, respectively. The cumulative effect of the change from the adoption of ASC 842 to the Consolidated Balance Sheet as of January 1, 2019 is shown in the table that follows: Balance as of Impact of Balance as of (in thousands) December 31, 2018 Adoption January 1, 2019 Balance Sheet Other long-term assets $ 7,993 $ 6,956 $ 14,949 Other liabilities $ 50,058 $ 3,085 $ 53,143 Other long-term liabilities $ 940 $ 3,871 $ 4,811 See Note 6 for additional disclosures required under ASC 842 in the year of adoption. Additionally, Tinuum Group adopted 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 recorded a cumulative effect increase of $28.8 million to Retained earnings as of January 1, 2019 related to the Company's percentage of Tinuum Group's cumulative effect adjustment. As a result of this adjustment, the Company increased its investment balance in Tinuum Group in the amount of $37.2 million and established a deferred tax liability of $8.4 million . The Company no longer has cumulative cash distributions in excess of our cumulative pro-rata share of Tinuum Group's net income. Therefore, the Company recognized equity earnings by recording its pro-rata share of Tinuum Group’s net income rather than based upon cash distributions for the three months ended March 31, 2019. In June 2018, the FASB issued ASU No. 2018-07- Compensation-Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting , to align accounting for non-employee share-based payment transactions with the guidance for share-based payments to employees. Under the new standard, the measurement of equity-classified non-employee awards will be fixed at the grant date. The Company adopted this standard on January 1, 2019 and it did not have a material impact on the Company's financial statements and disclosures. Not Yet Adopted 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. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
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. The Company funded the cash consideration from cash on hand and the proceeds from the Term Loan and Security Agreement (the "Senior Term Loan") in the principal amount of $70.0 million , as more fully described in Note 5 . During the three months ended March 31, 2019, there were no material adjustments to the estimated fair values of the assets acquired and liabilities assumed as of the Acquisition Date. 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 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 the period presented has been calculated after applying the Company’s accounting policies in effect for 2017 and 2018. In addition, pro forma net income for the period presented includes: (1) the impact on Carbon Solutions of the adoption of ASC 606 effective January 1, 2018, which resulted in a reclassification of $2.0 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 $1.0 million in transaction costs incurred for the three months ended March 31, 2018 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. Three Months Ended (in thousands) March 31, 2018 Revenues $ 18,495 Net income $ 3,727 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 : As of (in thousands) March 31, 2019 December 31, 2018 Product inventory (1) $ 16,721 $ 19,523 Raw material inventory 1,558 2,388 Allowance (226 ) (120 ) $ 18,053 $ 21,791 (1) As of March 31, 2019 and December 31, 2018, this amount includes $1.4 million and $5.0 million , respectively, attributed to the increase in fair value of inventory acquired from the Carbon Solutions Acquisition. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Tinuum Group, LLC The Company's ownership interest in Tinuum Group was 42.5% as of March 31, 2019 and December 31, 2018 . Tinuum Group supplies technology equipment and technical services at select coal-fired generators, but its primary purpose is to put into operation facilities that produce and sell RC that lower emissions and therefore qualify for Section 45 tax credits. Tinuum Group has been determined to be a variable interest entity ("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 that 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 table summarizes the results of operations of Tinuum Group: Three Months Ended March 31, (in thousands) 2019 2018 Gross profit $ 41,200 $ 26,413 Operating, selling, general and administrative expenses 6,582 6,007 Income from operations 34,618 20,406 Other income (expenses) 51 (1,869 ) Class B preferred return — (12 ) Loss attributable to noncontrolling interest 15,776 10,775 Net income available to members $ 50,445 $ 29,300 ADES equity earnings from Tinuum Group $ 19,767 $ 11,050 The difference between the Company's proportionate share of Tinuum Group's net income available to members (at its equity interest of 42.5% ) during the three months ended March 31, 2018, as presented in the table below, and the Company's earnings from its Tinuum Group equity method investment as reported in the Condensed Consolidated Statements of Operations relates to the Company receiving distributions in excess of the carrying value of the equity investment, and therefore recognizing such excess distributions as equity method earnings in the period the distributions occur, as discussed below. 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 its 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. For the three months ended March 31, 2019 and 2018 , the Company recognized equity earnings from Tinuum Group of $19.8 million and $11.1 million , respectively. As of March 31, 2019 and 2018 , the Company's carrying value in Tinuum Group was $40.2 million and zero , respectively. Thus, the amount of equity earnings or loss reported on the Company's Condensed Consolidated Statement of Operations may differ from a mathematical calculation of net income or loss attributable to the equity interest based upon the factor of the equity interest and the net income or loss attributable to 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 Condensed 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 Condensed Consolidated Statements of Cash Flows as "Distributions from equity method investees in excess of investment basis" within Investing cash flows. The following tables present the Company's investment balance, equity earnings and cash distributions in excess of the investment balance for the three months ended March 31, 2019 and 2018 ( in thousands ): Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2018 $ — $ — $ — $ (1,672 ) Impact of adoption of accounting standards (1) First Quarter 37,232 — — — ADES proportionate share of income from Tinuum Group First Quarter 21,439 21,439 — — Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) First Quarter (1,672 ) (1,672 ) — 1,672 Cash distributions from Tinuum Group First Quarter (16,788 ) — 16,788 — Total investment balance, equity earnings (loss) and cash distributions 03/31/19 $ 40,211 $ 19,767 $ 16,788 $ — Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2017 $ — $ — $ — $ (12,218 ) ADES proportionate share of income from Tinuum Group (2) First Quarter 12,458 12,458 — — Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) First Quarter (12,218 ) (12,218 ) — 12,218 Cash distributions from Tinuum Group First Quarter (11,050 ) — 11,050 — Adjustment for current year cash distributions in excess of investment balance First Quarter 10,810 10,810 — (10,810 ) Total investment balance, equity earnings (loss) and cash distributions 3/31/2018 $ — $ 11,050 $ 11,050 $ (10,810 ) (1) As discussed in Note 1 , Tinuum Group adopted ASC 606 and ASC 842 as of January 1, 2019. As a result of Tinuum Group’s adoption of these standards, the Company recorded a cumulative adjustment of $28.8 million , net of the impact of taxes, related to the Company's percentage of Tinuum Group's cumulative effect adjustment that increased the Company's Retained earnings as of January 1, 2019. (2) For the three months ended March 31, 2018 , the amount of the Company's 42.5% proportionate share of net income available to members as shown in the table above may differ from mathematical calculations of the Company’s 42.5% equity interest in Tinuum Group multiplied by the amounts of net income available to members as shown in the table above of Tinuum Group results of operations due to adjustments related to the Class B preferred return. Tinuum Services, LLC The Company has a 50% voting and economic interest in Tinuum Services, which is equivalent to the voting and economic interest of NexGen Refined Coal, LLC ("NexGen"). The Company has determined that Tinuum Services is not a VIE and has evaluated its consolidation analysis under the voting interest model. Because the Company does not own greater than 50% of the outstanding voting shares, either directly or indirectly, it has accounted for its investment in Tinuum Services under the equity method of accounting. The Company’s investment in Tinuum Services as of March 31, 2019 and December 31, 2018 was $5.8 million and $6.6 million , respectively. The following table summarizes the results of operations of Tinuum Services: Three Months Ended March 31, (in thousands) 2019 2018 Gross loss $ (24,735 ) $ (21,006 ) Operating, selling, general and administrative expenses 49,450 40,704 Loss from operations (74,185 ) (61,710 ) Other expenses (242 ) (58 ) Loss attributable to noncontrolling interest 78,270 64,176 Net income $ 3,843 $ 2,408 ADES equity earnings from Tinuum Services $ 1,922 $ 1,204 Included within the Consolidated Statements of Operations of Tinuum Services for the three months ended March 31, 2019 and 2018 , respectively, were losses related to VIE's of Tinuum Services. 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 components of the Company's respective equity method investments included within the Earnings from equity method investments line item on the Condensed Consolidated Statements of Operations : Three Months Ended March 31, (in thousands) 2019 2018 Earnings from Tinuum Group $ 19,767 $ 11,050 Earnings from Tinuum Services 1,922 1,204 Earnings from other 1 (1 ) Earnings from equity method investments $ 21,690 $ 12,253 The following table details the components of the cash distributions from the Company's respective equity method investments included in the Condensed Consolidated Statements of Cash Flows . Distributions from equity method investees are reported in the Condensed Consolidated Statements of Cash Flows as " Distributions from equity method investees, 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 from equity method investees in excess of cumulative earnings " within Investing cash flows. Three Months Ended March 31, (in thousands) 2019 2018 Distributions from equity method investees, return on investment Tinuum Group $ 16,788 $ — Tinuum Services 2,700 2,400 $ 19,488 $ 2,400 Distributions from equity method investees in excess of investment basis Tinuum Group $ — $ 11,050 $ — $ 11,050 |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations As of (in thousands) March 31, 2019 December 31, 2018 Senior Term Loan due December 2021, related party $ 64,000 $ 70,000 Less net unamortized debt issuance costs (1,803 ) (1,990 ) Less net unamortized debt discount (1,859 ) (2,052 ) Senior Term Loan due December 2021, net 60,338 65,958 Finance lease obligations (1) 7,827 8,167 68,165 74,125 Less: Current maturities (24,166 ) (24,067 ) Total long-term debt $ 43,999 $ 50,058 (1) For the year ended December 31, 2018, amounts relate to capital lease obligations. Senior Term Loan On December 7, 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 $6.0 million were 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 $30.0 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 $100.0 million . Line of Credit On September 30, 2018, ADA, as borrower, the Company, as guarantor, and a bank (the "Lender") entered into an amendment (the "Twelfth Amendment") to the 2013 Loan and Security Agreement (the "Line of Credit"). The Twelfth Amendment decreased the borrowing availability of 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 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 March 31, 2019 , there were no outstanding borrowings under the Line of Credit. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The financial statement impact from the adoption of ASC 842 as of January 1, 2019 is due to recording the ROU assets and related lease liabilities for operating lease commitments that were outstanding as of December 31, 2018. The Company has elected the transitional practical expedients allowed under ASC 842, which include among other things that the Company need not reassess: (1) whether any existing contracts are or contain leases, inclusive of land easements; (2) the lease classification or lease term for existing leases; and (3) initial direct costs for any existing leases. ASC 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of an identified asset means that an entity has both the right to obtain substantially all of the economic benefits from the use of an identified asset and the right to direct the use of that identified asset. The determination of whether a contract contains a lease may require significant assumptions and judgments. Historically, Carbon Solutions has used leasing to fund the majority of its capital needs for mining and manufacturing equipment. As of March 31, 2019 , the Company has obligations under finance and operating leases in the amounts of $7.8 million and $6.3 million , respectively. ROU assets under finance leases are primarily mining equipment used at the Company’s lignite mine, which provides the key raw materials for manufacturing the Company’s products. ROU assets under operating leases are primarily plant equipment used at the Company’s manufacturing facility, but also include other office equipment, vehicles and office facilities. As of March 31, 2019 , the Company has ROU assets, net of accumulated amortization under finance leases and operating leases of $7.5 million and $6.2 million , respectively. Certain of the finance and operating leases have options permitting renewals for additional periods and buy-out options. Renewal and buy-out options for applicable leases have not been included in the measurement of the respective lease liabilities as the Company is not reasonably certain that it will exercise the respective option or the lessor does not have an exclusive right to exercise the option. Variable lease payments represent payments made by a lessee for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commence date of a lease other than the passage of time. Variable lease payments that are based on an index or rate, calculated by using the index or rate that exists on the lease commencement date are included in the measurement of a lease liability. Certain of the Company’s operating leases for office facilities contain variable lease components that are not based on an index or rate and the Company recognizes these payments as lease expense in the period in which the obligation for those payments is incurred. The Company calculates lease liabilities based on the present value of lease payments discounted by the rate implicit in the lease or, if not readily determinable, the Company’s incremental borrowing rate. The Company records lease liabilities and related ROU assets for all leases that have a term of greater than one year. For short-term leases (leases with terms of less than one year), the Company expenses lease payments on a straight-line basis over the lease term. Finance leases Leases classified as capital leases under ASC 840 and the related assets and liabilities were carried forward at their carrying values of $8.1 million and $8.2 million , respectively, as of December 31, 2018, and were classified as finance leases as of January 1, 2019. ROU assets under finance leases and finance lease liabilities are included in Property, plant and equipment and Current portion and Long-term portion of borrowings, respectively, in the Condensed Consolidated Balance Sheet as of March 31, 2019 . Finance lease liabilities are subsequently measured by increasing the carrying amount to reflect interest expense on the finance lease liability and reducing the carrying amount of the lease liability to reflect lease payments made during the period. Interest on finance lease liabilities is determined in each period during the lease term as the amount that produces a constant periodic discount rate on the remaining balance of the lease liability. ROU assets under finance leases are amortized over the remaining lease term on a straight-line basis. Interest expense related to finance lease liabilities and amortization of ROU assets under finance leases are included in Interest expense and Depreciation, amortization, depletion and accretion, respectively, in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2019 . Operating leases Operating lease liabilities as of January 1, 2019 were calculated at the present value, using a discount rate of the lease, of the remaining minimum rental payments (as defined under ASC 840). As the rate implicit in all of the operating leases was not readily determinable, the Company determined its discount rate as of January 1, 2019 based on an estimate of its incremental borrowing rate. This rate was based on the Company’s effective borrowing rate on the Senior Term Loan, considering the collateral requirements contained therein, in effect as of January 1, 2019. ROU assets under operating leases as of January 1, 2019 were determined as the calculated value of the operating lease liabilities less accrued lease payments and accrued lease incentives. As of December 31, 2018, the total amount of accrued lease payments and accrued lease incentives was approximately $0.1 million . ROU assets under operating leases and operating lease liabilities are included in Other long-term assets and Other liabilities and Other long-term liabilities, respectively, in the Condensed Consolidated Balance Sheet as of March 31, 2019 . Operating lease liabilities are subsequently measured at the present value of the lease payments not yet paid discounted using the discount rate for the lease established at the inception date of the lease (or January 1, 2019 for operating leases in effect as of December 31, 2018). ROU assets under operating leases are subsequently measured at the amounts of the related operating lease liability, adjusted for, as applicable, prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs and impairment. Lease expense from operating leases is recognized as a single lease cost over the remaining lease term on a straight-line basis. Variable lease payments not included in operating lease liabilities are recognized as expense in the period in which the obligation for those payments is incurred. Lease expense for operating leases for the three months ended March 31, 2019 was $1.2 million , of which $1.1 million is included in Consumables - cost of revenue, exclusive of depreciation and amortization and $0.1 million is included in General and administrative in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2019 . Lease financial information as of and for the three months ended March 31, 2019 is provided in the following table: (in thousands) Lease Cost Finance lease cost: Amortization of right-of-use assets $ 536 Interest on lease liabilities 131 Operating lease cost 929 Short-term lease cost 171 Variable lease cost (1) 82 Total lease cost $ 1,849 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 949 Finance cash flows from finance leases $ 344 Right-of-use assets obtained in exchange for new operating lease liabilities $ 49 Weighted-average remaining lease term - finance leases 4.9 years Weighted-average remaining lease term - operating leases 2.5 years Weighted-average discount rate - finance leases 6.1 % Weighted-average discount rate - operating leases 8.6 % (1) Primarily includes common area maintenance, property taxes and insurance payable to lessors. The following table summarizes the Company’s future lease payments under finance and operating leases as of March 31, 2019 : (in thousands) Operating Finance 2019 (remaining nine months) $ 2,823 $ 1,307 2020 2,328 1,707 2021 1,632 1,802 2022 310 951 2023 221 951 Thereafter — 2,482 Total lease payments 7,314 9,200 Less: Imputed interest (1,007 ) (1,374 ) Present value of lease payments $ 6,307 $ 7,826 Disclosures under ASC 840 Rent expense for the three months ended March 31, 2018 was $0.1 million and was included in General and administrative expense in the Condensed Consolidated Statement of Operations. As of December 31, 2018, mining equipment financed under capital leases in the amount of $8.1 million , net of accumulated amortization of $0.1 million , was included in Property, plant and equipment in the Condensed Consolidated Balance Sheet. The following table summarizes the Company’s future minimum non-cancellable lease payments due under capital and operating leases as of December 31, 2018: (in thousands) Operating 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: Imputed interest (1,475 ) Present value of minimum lease payments $ 8,167 |
Leases | Leases The financial statement impact from the adoption of ASC 842 as of January 1, 2019 is due to recording the ROU assets and related lease liabilities for operating lease commitments that were outstanding as of December 31, 2018. The Company has elected the transitional practical expedients allowed under ASC 842, which include among other things that the Company need not reassess: (1) whether any existing contracts are or contain leases, inclusive of land easements; (2) the lease classification or lease term for existing leases; and (3) initial direct costs for any existing leases. ASC 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of an identified asset means that an entity has both the right to obtain substantially all of the economic benefits from the use of an identified asset and the right to direct the use of that identified asset. The determination of whether a contract contains a lease may require significant assumptions and judgments. Historically, Carbon Solutions has used leasing to fund the majority of its capital needs for mining and manufacturing equipment. As of March 31, 2019 , the Company has obligations under finance and operating leases in the amounts of $7.8 million and $6.3 million , respectively. ROU assets under finance leases are primarily mining equipment used at the Company’s lignite mine, which provides the key raw materials for manufacturing the Company’s products. ROU assets under operating leases are primarily plant equipment used at the Company’s manufacturing facility, but also include other office equipment, vehicles and office facilities. As of March 31, 2019 , the Company has ROU assets, net of accumulated amortization under finance leases and operating leases of $7.5 million and $6.2 million , respectively. Certain of the finance and operating leases have options permitting renewals for additional periods and buy-out options. Renewal and buy-out options for applicable leases have not been included in the measurement of the respective lease liabilities as the Company is not reasonably certain that it will exercise the respective option or the lessor does not have an exclusive right to exercise the option. Variable lease payments represent payments made by a lessee for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commence date of a lease other than the passage of time. Variable lease payments that are based on an index or rate, calculated by using the index or rate that exists on the lease commencement date are included in the measurement of a lease liability. Certain of the Company’s operating leases for office facilities contain variable lease components that are not based on an index or rate and the Company recognizes these payments as lease expense in the period in which the obligation for those payments is incurred. The Company calculates lease liabilities based on the present value of lease payments discounted by the rate implicit in the lease or, if not readily determinable, the Company’s incremental borrowing rate. The Company records lease liabilities and related ROU assets for all leases that have a term of greater than one year. For short-term leases (leases with terms of less than one year), the Company expenses lease payments on a straight-line basis over the lease term. Finance leases Leases classified as capital leases under ASC 840 and the related assets and liabilities were carried forward at their carrying values of $8.1 million and $8.2 million , respectively, as of December 31, 2018, and were classified as finance leases as of January 1, 2019. ROU assets under finance leases and finance lease liabilities are included in Property, plant and equipment and Current portion and Long-term portion of borrowings, respectively, in the Condensed Consolidated Balance Sheet as of March 31, 2019 . Finance lease liabilities are subsequently measured by increasing the carrying amount to reflect interest expense on the finance lease liability and reducing the carrying amount of the lease liability to reflect lease payments made during the period. Interest on finance lease liabilities is determined in each period during the lease term as the amount that produces a constant periodic discount rate on the remaining balance of the lease liability. ROU assets under finance leases are amortized over the remaining lease term on a straight-line basis. Interest expense related to finance lease liabilities and amortization of ROU assets under finance leases are included in Interest expense and Depreciation, amortization, depletion and accretion, respectively, in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2019 . Operating leases Operating lease liabilities as of January 1, 2019 were calculated at the present value, using a discount rate of the lease, of the remaining minimum rental payments (as defined under ASC 840). As the rate implicit in all of the operating leases was not readily determinable, the Company determined its discount rate as of January 1, 2019 based on an estimate of its incremental borrowing rate. This rate was based on the Company’s effective borrowing rate on the Senior Term Loan, considering the collateral requirements contained therein, in effect as of January 1, 2019. ROU assets under operating leases as of January 1, 2019 were determined as the calculated value of the operating lease liabilities less accrued lease payments and accrued lease incentives. As of December 31, 2018, the total amount of accrued lease payments and accrued lease incentives was approximately $0.1 million . ROU assets under operating leases and operating lease liabilities are included in Other long-term assets and Other liabilities and Other long-term liabilities, respectively, in the Condensed Consolidated Balance Sheet as of March 31, 2019 . Operating lease liabilities are subsequently measured at the present value of the lease payments not yet paid discounted using the discount rate for the lease established at the inception date of the lease (or January 1, 2019 for operating leases in effect as of December 31, 2018). ROU assets under operating leases are subsequently measured at the amounts of the related operating lease liability, adjusted for, as applicable, prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs and impairment. Lease expense from operating leases is recognized as a single lease cost over the remaining lease term on a straight-line basis. Variable lease payments not included in operating lease liabilities are recognized as expense in the period in which the obligation for those payments is incurred. Lease expense for operating leases for the three months ended March 31, 2019 was $1.2 million , of which $1.1 million is included in Consumables - cost of revenue, exclusive of depreciation and amortization and $0.1 million is included in General and administrative in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2019 . Lease financial information as of and for the three months ended March 31, 2019 is provided in the following table: (in thousands) Lease Cost Finance lease cost: Amortization of right-of-use assets $ 536 Interest on lease liabilities 131 Operating lease cost 929 Short-term lease cost 171 Variable lease cost (1) 82 Total lease cost $ 1,849 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 949 Finance cash flows from finance leases $ 344 Right-of-use assets obtained in exchange for new operating lease liabilities $ 49 Weighted-average remaining lease term - finance leases 4.9 years Weighted-average remaining lease term - operating leases 2.5 years Weighted-average discount rate - finance leases 6.1 % Weighted-average discount rate - operating leases 8.6 % (1) Primarily includes common area maintenance, property taxes and insurance payable to lessors. The following table summarizes the Company’s future lease payments under finance and operating leases as of March 31, 2019 : (in thousands) Operating Finance 2019 (remaining nine months) $ 2,823 $ 1,307 2020 2,328 1,707 2021 1,632 1,802 2022 310 951 2023 221 951 Thereafter — 2,482 Total lease payments 7,314 9,200 Less: Imputed interest (1,007 ) (1,374 ) Present value of lease payments $ 6,307 $ 7,826 Disclosures under ASC 840 Rent expense for the three months ended March 31, 2018 was $0.1 million and was included in General and administrative expense in the Condensed Consolidated Statement of Operations. As of December 31, 2018, mining equipment financed under capital leases in the amount of $8.1 million , net of accumulated amortization of $0.1 million , was included in Property, plant and equipment in the Condensed Consolidated Balance Sheet. The following table summarizes the Company’s future minimum non-cancellable lease payments due under capital and operating leases as of December 31, 2018: (in thousands) Operating 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: Imputed interest (1,475 ) Present value of minimum lease payments $ 8,167 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues 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. 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. Trade receivables, net The following table shows the components of Trade receivables, net: As of (in thousands) March 31, 2019 December 31, 2018 Trade receivables $ 8,339 $ 10,121 Less: Allowance for doubtful accounts (567 ) (567 ) Trade receivables, net $ 7,772 $ 9,554 For the three months ended March 31, 2019 and 2018 , the Company recognized zero and $0.2 million , respectively, related to specific accounts whose ultimate collection was in doubt. During the three months ended March 31, 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 three months ended March 31, 2019 and 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 13 to the condensed consolidated financial statements. The following tables disaggregate revenues by major source for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 Segment PGI RC Other Total Revenue component Consumables $ 14,553 $ — $ 556 $ 15,109 License royalties, related party — 4,220 — 4,220 Revenues from customers 14,553 4,220 556 19,329 Earnings from equity method investments — 21,690 — 21,690 Total revenues and earnings from equity method investments $ 14,553 $ 25,910 $ 556 $ 41,019 Three Months Ended March 31, 2018 Segment PGI RC Other Total Revenue component Consumables $ 621 $ — $ — $ 621 License royalties, related party — 3,230 — 3,230 Other 48 — — 48 Revenues from customers 669 3,230 — 3,899 Earnings from equity method investments — 12,253 — 12,253 Total revenues and earnings from equity method investments $ 669 $ 15,483 $ — $ 16,152 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 to 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. There were no significant legal proceedings as of March 31, 2019 . Restricted Cash As of March 31, 2019 and December 31, 2018 , the Company had long-term restricted cash of $5.2 million and $5.2 million , respectively, which primarily consisted of minimum cash balance requirements under the Senior Term Loan. As of March 31, 2019 and December 31, 2018 , the Company had short-term restricted cash of $0.1 million and $0.1 million , respectively, related to other commitments. 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 an affiliate of the Goldman Sachs Group, Inc. 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 contributions 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Programs In November 2018, the Company's Board of Directors (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. For the three months ended March 31, 2019 and 2018 under the collective stock repurchase programs authorized by the Board, the Company purchased 63,876 and 149,217 shares of its common stock for cash of $0.7 million and $1.6 million , respectively, inclusive of commissions and fees. Quarterly Cash Dividend Dividends declared by the Board, and paid quarterly per share on all outstanding shares of common stock during the three months ended March 31, 2019 and 2018 were as follows: 2019 2018 Per share Date paid Per share Date paid Dividends declared during quarter ended: March 31 $ 0.25 March 7, 2019 $ 0.25 March 8, 2018 A portion of the dividends declared remains accrued subsequent to the payment dates and represents dividends accumulated on nonvested shares of common stock held by employees and directors 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 Condensed Consolidated Balance Sheet as of March 31, 2019 . Tax Asset Protection Plan U.S. 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 the Company 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 the Company 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 "First Amendment") that amends the Tax Asset Protection Plan dated May 5, 2017. The Amendment amends the definition of "Final Expiration Date" under the Tax Asset Protection Plan to extend the duration of the TAPP and makes associated changes in connection therewith. At the Company's 2018 annual meeting of stockholders, the Company's stockholders approved the Amendment, thus the Final Expiration Date will be the close of business on December 31, 2019. On April 5, 2019, the Board approved the Second Amendment to the Tax Asset Protection Plan (the "Second Amendment") that amends the Tax Asset Protection Plan dated May 5, 2017, as amended by the First Amendment to Tax Asset Protection Plan, dated April 6, 2018 (the “TAPP”) between the Company and the Rights Agent. The Second 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. Pursuant to the Second Amendment, the Final Expiration Date shall be the close of business on the earlier of (i) December 31, 2020 or (ii) December 31, 2019 if stockholder approval for the Second Amendment has not been obtained prior to such date. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company grants equity-based awards to employees, non-employee directors, and consultants that may include, but are not limited to RSA's, restricted stock units ("RSU's") and stock options. Stock-based compensation expense related to employees is included within the Payroll and benefits line item in the Condensed Consolidated Statements of Operations . Stock-based compensation expense related to non-employee directors and consultants is included within the General and administrative line item in the Condensed Consolidated Statements of Operations . Total stock-based compensation expense for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, (in thousands) 2019 2018 RSA expense $ 317 $ 277 Stock option expense — 58 Total stock-based compensation expense $ 317 $ 335 The amount of unrecognized compensation cost as of March 31, 2019 , and the expected weighted-average period over which the cost will be recognized is as follows: As of March 31, 2019 (in thousands) Unrecognized Compensation Cost Expected Weighted- RSA expense $ 3,818 2.13 Total unrecognized stock-based compensation expense $ 3,818 2.13 Restricted Stock Restricted stock is typically granted with vesting terms of three years. The fair value of RSA's and 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 for RSA's is generally recognized on a straight-line basis over the entire vesting period. Compensation expense for RSU's is generally recognized on a straight-line basis over the service period of the award. A summary of RSA and RSU activity under the Company's various stock compensation plans for the three months ended March 31, 2019 is presented below: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands, except for share and per share amounts) Awards Units RSA's RSU's Non-vested at January 1, 2019 280,852 20,000 $ 9.92 $ 10.52 Granted 218,465 — $ 10.84 $ — Vested (69,345 ) — $ 9.33 $ — Forfeited — — $ — $ — Non-vested at March 31, 2019 429,972 20,000 $ 10.48 $ 10.52 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. A summary of stock option activity for the three months ended March 31, 2019 is presented below: Number of Options Weighted-Average Aggregate Intrinsic Value (in thousands) Weighted-Average Options outstanding, January 1, 2019 529,780 $ 12.23 Options granted — — Options exercised — — Options expired / forfeited — — Options outstanding, March 31, 2019 529,780 $ 12.23 $ 508 1.21 Options exercisable, March 31, 2019 529,780 $ 12.23 $ 508 1.21 |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
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 Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Prepaid expenses and other assets: Prepaid expenses $ 1,400 $ 1,233 Prepaid income taxes 2,597 2,940 Other 1,507 1,397 $ 5,504 $ 5,570 Other long-term assets: Spare parts $ 3,255 $ 3,278 Mine development costs, net 2,802 2,531 Prepaid royalty expense, long-term 955 955 Highview Investment 552 552 Right of use assets, operating leases, net 6,230 — Other long-term assets 702 677 $ 14,496 $ 7,993 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. Mine development costs include acquisition costs, the cost of other development work and mitigation costs related to the Company's mining operations. 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. There were no indicators of impairment as of March 31, 2019. Included within Highview Investment is the Company's investment ("Highview Investment") in Highview Enterprises Limited ("Highview"), a London, England based developmental stage company specializing in power storage. 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 indicators of impairment such as an event or change in circumstances that may have a significant adverse effect on the fair value of the investment. There were no changes to the carrying value of the Highview Investment for the three months ended March 31, 2019 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 Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Other current liabilities: Accrued interest $ 727 $ 407 Income and other taxes payable 2,602 479 Current portion of operating lease obligations 3,004 — Other 762 1,252 $ 7,095 $ 2,138 Other long-term liabilities: Operating lease obligations, long-term $ 3,302 $ — Deferred rent — 106 Mine reclamation liability 684 624 Other long-term liabilities 85 210 $ 4,071 $ 940 Supplemental Condensed Consolidated Statements of Operations Information The following table details the components of Interest expense in the Condensed Consolidated Statements of Operations: Three Months Ended March 31, (in thousands) 2019 2018 453A interest $ 322 $ 336 Interest on Senior Term Loan 1,270 — Debt discount and debt issuance costs 381 — Other 131 — $ 2,104 $ 336 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2019 and 2018 , the Company's income tax expense and effective tax rates based on forecasted pre-tax income were: Three Months Ended March 31, (in thousands, except for rate) 2019 2018 Income tax expense $ 1,699 $ 2,569 Effective tax rate 11 % 25 % The effective tax rate for the three months ended March 31, 2019 was different from the federal statutory rate primarily due to a net reduction in the valuation allowance against deferred tax assets. Additionally, the effective tax rates for the three months ended March 31, 2019 and 2018 were different from the federal statutory rates as a result of state income tax expense, net of federal benefit. As of March 31, 2019 , we reduced the valuation allowance by $4.0 million primarily from changes in forecasts of future taxable income, which included the impact of an additional RC invested facility that was closed during the three months ended March 31, 2019 . The income tax expense recorded for the three months ended March 31, 2019 was comprised of estimated federal income tax expense of $0.8 million and estimated state income tax expense of $0.9 million . The income tax expense recorded for the three months ended March 31, 2018 was comprised of estimated federal income tax expense of $2.1 million and estimated state income tax expense of $0.5 million . 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 the 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 income taxes, the Company assesses the relative merits and risks of the appropriate income tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , the Company's CODM was the Company's CEO. The Company's operating and reportable segments are identified by products and services provided. As of March 31, 2019 , the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Power Generation and Industrials ("PGI"). 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 in the 2018 Form 10-K. • 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 include 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 March 31, 2019 and December 31, 2018 , 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 three months ended March 31, 2019 and 2018 : Three Months Ended March 31, (in thousands) 2019 2018 Revenues: Refined Coal: Earnings in equity method investments $ 21,690 $ 12,253 Royalties, related party 4,220 3,230 25,910 15,483 Power Generation and Industrials: Consumables 14,553 621 Other — 48 14,553 669 Total segment reporting revenues 40,463 16,152 Adjustments to reconcile to reported revenues: Earnings in equity method investments (21,690 ) (12,253 ) Corporate and other 556 — Total reported revenues $ 19,329 $ 3,899 Segment operating income (loss): Refined Coal (1) $ 25,383 $ 14,702 Power Generation and Industrials (2) (3,462 ) (938 ) Total segment operating income $ 21,921 $ 13,764 (1) Included within the RC segment operating income for the three months ended March 31, 2019 and 2018 is 453A interest expense of $0.3 million and $0.3 million , respectively. (2) Included within the PGI segment operating loss for the three months ended March 31, 2019 was $3.4 million of costs recognized as a result of the step-up in inventory fair value recorded from the Carbon Solutions Acquisition. Also included within the PGI segment operating loss for the three months ended March 31, 2019 was $2.0 million of depreciation, amortization, and depletion expense on mine and plant long-lived assets. A reconciliation of reportable segment operating income to the Company's consolidated net income is as follows: Three Months Ended March 31, (in thousands) 2019 2018 Total reported segment operating income $ 21,921 $ 13,764 Other operating loss (398 ) — 21,523 13,764 Adjustments to reconcile to net income attributable to the Company: Corporate payroll and benefits (432 ) (1,147 ) Corporate legal and professional fees (1,961 ) (1,448 ) Corporate general and administrative (1,434 ) (941 ) Corporate depreciation and amortization (13 ) (52 ) Corporate interest (expense) income, net (1,651 ) — Other income (expense), net 69 55 Income tax expense (1,699 ) (2,569 ) Net income $ 14,402 $ 7,662 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 (in thousands) March 31, December 31, Assets: Refined Coal (1) $ 50,802 $ 11,468 Power Generation and Industrials 82,818 85,786 Total segment assets 133,620 97,254 All Other and Corporate (2) 60,191 62,410 Consolidated $ 193,811 $ 159,664 (1) Includes $46.1 million and $6.6 million of investments in equity method investees, respectively. (2) Includes the Company's deferred tax assets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value of financial instruments The carrying amounts of financial instruments, including cash, cash equivalents and restricted cash, accounts receivable, accounts payable 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 March 31, 2019 As of December 31, 2018 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Instruments: Highview Investment $ 552 $ 552 $ 552 $ 552 Highview Obligation $ 219 $ 219 $ 213 $ 213 Concentration of credit risk 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 March 31, 2019 . If that institution was unable to perform its obligations, the Company would be at risk regarding the amount of cash and investments in excess of the Federal Deposit Insurance Corporation limits (currently $250 thousand ) that would be returned to the Company. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of March 31, 2019 and December 31, 2018 , the Company had no 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 . The fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
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. Restructuring charges, net of change in estimates, were $0.1 million during the three months ended March 31, 2019 . There were no material restructuring charges during the three months ended March 31, 2018 . The following table summarizes the Company's change in restructuring accruals for the three months ended March 31, 2019 : (in thousands) Employee Severance Remaining accrual as of December 31, 2018 $ 2,208 Expense provision 172 Cash payments and other (740 ) Change in estimates (104 ) Remaining accrual as of March 31, 2019 $ 1,536 Restructuring accruals are included within the Accrued payroll and related liabilities line item in the Condensed Consolidated Balance Sheets . Restructuring expenses are included within the Payroll and benefits line item in the Condensed Consolidated Statements of Operations . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Unless disclosed elsewhere within the notes to the Condensed Consolidated Financial Statements, the following are the significant matters that occurred subsequent to March 31, 2019 . Dividends On May 6, 2019 , the Company's Board declared a quarterly dividend of $0.25 per share of common stock, which is payable on June 7, 2019 to stockholders of record at the close of business on May 20, 2019 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying Condensed Consolidated Financial Statements of ADES are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and with Article 10 of Regulation S-X of the Securities and Exchange Commission. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The unaudited Condensed Consolidated Financial Statements of ADES in this quarterly report ("Quarterly Report") are presented on a consolidated basis and include ADES and its wholly-owned subsidiaries (collectively, the "Company"). Also included within the unaudited Condensed Consolidated Financial Statements are the Company's unconsolidated equity investments, Tinuum Group, Tinuum Services, LLC ("Tinuum Services"), and GWN Manager, LLC ("GWN Manager"), which are accounted for under the equity method of accounting, and Highview Enterprises Limited (the "Highview Investment"), which is accounted for in accordance with U.S. GAAP applicable to equity investments that do not qualify for the equity method of accounting. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts were eliminated for all periods presented in this Quarterly Report. In the opinion of management, these Condensed Consolidated Financial Statements include all normal and recurring adjustments considered necessary for a fair presentation of the results of operations, financial position, stockholders' equity and cash flows for the interim periods presented. These Condensed Consolidated Financial Statements of ADES should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K"). |
Earnings Per Share | Basic earnings per share is computed using the two-class method, which is an earnings allocation formula that determines earnings 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 for the period is allocated between common stockholders and the holders of the participating securities based on the weighted-average number 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 arrive at 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 Condensed 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 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. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to makes estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. There have been no changes in the Company’s critical accounting estimates from those that were disclosed in the 2018 Form 10-K. Actual results could differ from these estimates. |
Risks and Uncertainties | The Company’s earnings are significantly affected by equity earnings it receives from Tinuum Group. As of March 31, 2019 , Tinuum Group has 20 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. 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 March 31, 2019 . If that institution was unable to perform its obligations, the Company would be at risk regarding the amount of cash and investments in excess of the Federal Deposit Insurance Corporation limits (currently $250 thousand ) that would be returned to the Company. |
Reclassifications | Certain balances have been reclassified from the prior year to conform to the current year presentation. No reclassifications have any impact to income before income taxes or net income. |
New Accounting Guidance | Recently Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-2"), which created ASC Topic 842 - Leases ("ASC 842"), requiring 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. ASC 842 retains the distinction between finance leases (formerly defined as capital leases) and operating leases. On January 1, 2019, the Company adopted ASC 842 retrospectively beginning with the date of adoption. Under this adoption method, the application date is the beginning of the reporting period in which the Company first applies the provisions of ASC 842. Accordingly, the Company’s reporting for the comparative periods presented in the financial statements and related disclosures continues in accordance with legacy U.S. GAAP under ASC Topic 840 - Leases ("ASC 840"). The adoption of ASC 842 had no impact to the opening balance of retained earnings. As of the adoption date, the Company recorded $7.0 million and $7.0 million of "right of use" assets and incremental lease liabilities, respectively. The cumulative effect of the change from the adoption of ASC 842 to the Consolidated Balance Sheet as of January 1, 2019 is shown in the table that follows: Balance as of Impact of Balance as of (in thousands) December 31, 2018 Adoption January 1, 2019 Balance Sheet Other long-term assets $ 7,993 $ 6,956 $ 14,949 Other liabilities $ 50,058 $ 3,085 $ 53,143 Other long-term liabilities $ 940 $ 3,871 $ 4,811 See Note 6 for additional disclosures required under ASC 842 in the year of adoption. Additionally, Tinuum Group adopted 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 recorded a cumulative effect increase of $28.8 million to Retained earnings as of January 1, 2019 related to the Company's percentage of Tinuum Group's cumulative effect adjustment. As a result of this adjustment, the Company increased its investment balance in Tinuum Group in the amount of $37.2 million and established a deferred tax liability of $8.4 million . The Company no longer has cumulative cash distributions in excess of our cumulative pro-rata share of Tinuum Group's net income. Therefore, the Company recognized equity earnings by recording its pro-rata share of Tinuum Group’s net income rather than based upon cash distributions for the three months ended March 31, 2019. In June 2018, the FASB issued ASU No. 2018-07- Compensation-Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting , to align accounting for non-employee share-based payment transactions with the guidance for share-based payments to employees. Under the new standard, the measurement of equity-classified non-employee awards will be fixed at the grant date. The Company adopted this standard on January 1, 2019 and it did not have a material impact on the Company's financial statements and disclosures. Not Yet Adopted 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, cash equivalents and restricted cash, accounts receivable, accounts payable 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 March 31, 2019 , the Company's CODM was the Company's CEO. The Company's operating and reportable segments are identified by products and services provided. As of March 31, 2019 , the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Power Generation and Industrials ("PGI"). 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 in the 2018 Form 10-K. • 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 include 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculations of basic and diluted earnings per share: Three Months Ended March 31, (in thousands, except per share amounts) 2019 2018 Net income $ 14,402 $ 7,662 Less: Dividends and undistributed income allocated to participating securities 20 25 Income attributable to common stockholders $ 14,382 $ 7,637 Basic weighted-average common shares outstanding 18,268 20,502 Add: dilutive effect of equity instruments 165 82 Diluted weighted-average shares outstanding 18,433 20,584 Earnings per share - basic $ 0.79 $ 0.37 Earnings per share - diluted $ 0.78 $ 0.37 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As of the adoption date, the Company recorded $7.0 million and $7.0 million of "right of use" assets and incremental lease liabilities, respectively. The cumulative effect of the change from the adoption of ASC 842 to the Consolidated Balance Sheet as of January 1, 2019 is shown in the table that follows: Balance as of Impact of Balance as of (in thousands) December 31, 2018 Adoption January 1, 2019 Balance Sheet Other long-term assets $ 7,993 $ 6,956 $ 14,949 Other liabilities $ 50,058 $ 3,085 $ 53,143 Other long-term liabilities $ 940 $ 3,871 $ 4,811 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 |
Summary of Finite-Lived Intangible Assets Acquired | 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 Acquisition, Pro Forma Information | 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. Three Months Ended (in thousands) March 31, 2018 Revenues $ 18,495 Net income $ 3,727 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 : As of (in thousands) March 31, 2019 December 31, 2018 Product inventory (1) $ 16,721 $ 19,523 Raw material inventory 1,558 2,388 Allowance (226 ) (120 ) $ 18,053 $ 21,791 (1) As of March 31, 2019 and December 31, 2018, this amount includes $1.4 million and $5.0 million , respectively, attributed to the increase in fair value of inventory acquired from the Carbon Solutions Acquisition. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following tables present the Company's investment balance, equity earnings and cash distributions in excess of the investment balance for the three months ended March 31, 2019 and 2018 ( in thousands ): Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2018 $ — $ — $ — $ (1,672 ) Impact of adoption of accounting standards (1) First Quarter 37,232 — — — ADES proportionate share of income from Tinuum Group First Quarter 21,439 21,439 — — Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) First Quarter (1,672 ) (1,672 ) — 1,672 Cash distributions from Tinuum Group First Quarter (16,788 ) — 16,788 — Total investment balance, equity earnings (loss) and cash distributions 03/31/19 $ 40,211 $ 19,767 $ 16,788 $ — Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2017 $ — $ — $ — $ (12,218 ) ADES proportionate share of income from Tinuum Group (2) First Quarter 12,458 12,458 — — Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) First Quarter (12,218 ) (12,218 ) — 12,218 Cash distributions from Tinuum Group First Quarter (11,050 ) — 11,050 — Adjustment for current year cash distributions in excess of investment balance First Quarter 10,810 10,810 — (10,810 ) Total investment balance, equity earnings (loss) and cash distributions 3/31/2018 $ — $ 11,050 $ 11,050 $ (10,810 ) (1) As discussed in Note 1 , Tinuum Group adopted ASC 606 and ASC 842 as of January 1, 2019. As a result of Tinuum Group’s adoption of these standards, the Company recorded a cumulative adjustment of $28.8 million , net of the impact of taxes, related to the Company's percentage of Tinuum Group's cumulative effect adjustment that increased the Company's Retained earnings as of January 1, 2019. (2) For the three months ended March 31, 2018 , the amount of the Company's 42.5% proportionate share of net income available to members as shown in the table above may differ from mathematical calculations of the Company’s 42.5% equity interest in Tinuum Group multiplied by the amounts of net income available to members as shown in the table above of Tinuum Group results of operations due to adjustments related to the Class B preferred return. The following table summarizes the results of operations of Tinuum Services: Three Months Ended March 31, (in thousands) 2019 2018 Gross loss $ (24,735 ) $ (21,006 ) Operating, selling, general and administrative expenses 49,450 40,704 Loss from operations (74,185 ) (61,710 ) Other expenses (242 ) (58 ) Loss attributable to noncontrolling interest 78,270 64,176 Net income $ 3,843 $ 2,408 ADES equity earnings from Tinuum Services $ 1,922 $ 1,204 The following table details the components of the Company's respective equity method investments included within the Earnings from equity method investments line item on the Condensed Consolidated Statements of Operations : Three Months Ended March 31, (in thousands) 2019 2018 Earnings from Tinuum Group $ 19,767 $ 11,050 Earnings from Tinuum Services 1,922 1,204 Earnings from other 1 (1 ) Earnings from equity method investments $ 21,690 $ 12,253 The following table details the components of the cash distributions from the Company's respective equity method investments included in the Condensed Consolidated Statements of Cash Flows . Distributions from equity method investees are reported in the Condensed Consolidated Statements of Cash Flows as " Distributions from equity method investees, 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 from equity method investees in excess of cumulative earnings " within Investing cash flows. Three Months Ended March 31, (in thousands) 2019 2018 Distributions from equity method investees, return on investment Tinuum Group $ 16,788 $ — Tinuum Services 2,700 2,400 $ 19,488 $ 2,400 Distributions from equity method investees in excess of investment basis Tinuum Group $ — $ 11,050 $ — $ 11,050 The following table summarizes the results of operations of Tinuum Group: Three Months Ended March 31, (in thousands) 2019 2018 Gross profit $ 41,200 $ 26,413 Operating, selling, general and administrative expenses 6,582 6,007 Income from operations 34,618 20,406 Other income (expenses) 51 (1,869 ) Class B preferred return — (12 ) Loss attributable to noncontrolling interest 15,776 10,775 Net income available to members $ 50,445 $ 29,300 ADES equity earnings from Tinuum Group $ 19,767 $ 11,050 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | As of (in thousands) March 31, 2019 December 31, 2018 Senior Term Loan due December 2021, related party $ 64,000 $ 70,000 Less net unamortized debt issuance costs (1,803 ) (1,990 ) Less net unamortized debt discount (1,859 ) (2,052 ) Senior Term Loan due December 2021, net 60,338 65,958 Finance lease obligations (1) 7,827 8,167 68,165 74,125 Less: Current maturities (24,166 ) (24,067 ) Total long-term debt $ 43,999 $ 50,058 (1) For the year ended December 31, 2018, amounts relate to capital lease obligations. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Lease financial information as of and for the three months ended March 31, 2019 is provided in the following table: (in thousands) Lease Cost Finance lease cost: Amortization of right-of-use assets $ 536 Interest on lease liabilities 131 Operating lease cost 929 Short-term lease cost 171 Variable lease cost (1) 82 Total lease cost $ 1,849 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 949 Finance cash flows from finance leases $ 344 Right-of-use assets obtained in exchange for new operating lease liabilities $ 49 Weighted-average remaining lease term - finance leases 4.9 years Weighted-average remaining lease term - operating leases 2.5 years Weighted-average discount rate - finance leases 6.1 % Weighted-average discount rate - operating leases 8.6 % (1) Primarily includes common area maintenance, property taxes and insurance payable to lessors. |
Operating Lease Maturity | The following table summarizes the Company’s future lease payments under finance and operating leases as of March 31, 2019 : (in thousands) Operating Finance 2019 (remaining nine months) $ 2,823 $ 1,307 2020 2,328 1,707 2021 1,632 1,802 2022 310 951 2023 221 951 Thereafter — 2,482 Total lease payments 7,314 9,200 Less: Imputed interest (1,007 ) (1,374 ) Present value of lease payments $ 6,307 $ 7,826 |
Finance Leases Maturity | The following table summarizes the Company’s future lease payments under finance and operating leases as of March 31, 2019 : (in thousands) Operating Finance 2019 (remaining nine months) $ 2,823 $ 1,307 2020 2,328 1,707 2021 1,632 1,802 2022 310 951 2023 221 951 Thereafter — 2,482 Total lease payments 7,314 9,200 Less: Imputed interest (1,007 ) (1,374 ) Present value of lease payments $ 6,307 $ 7,826 |
Future Minimum Rental Payments for Operating Leases | The following table summarizes the Company’s future minimum non-cancellable lease payments due under capital and operating leases as of December 31, 2018: (in thousands) Operating 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: Imputed interest (1,475 ) Present value of minimum lease payments $ 8,167 |
Future Minimum Lease Payments for Capital Leases | The following table summarizes the Company’s future minimum non-cancellable lease payments due under capital and operating leases as of December 31, 2018: (in thousands) Operating 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: Imputed interest (1,475 ) Present value of minimum lease payments $ 8,167 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Accounts Receivable | The following table shows the components of Trade receivables, net: As of (in thousands) March 31, 2019 December 31, 2018 Trade receivables $ 8,339 $ 10,121 Less: Allowance for doubtful accounts (567 ) (567 ) Trade receivables, net $ 7,772 $ 9,554 |
Schedule of Disaggregation of Revenue | The following tables disaggregate revenues by major source for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 Segment PGI RC Other Total Revenue component Consumables $ 14,553 $ — $ 556 $ 15,109 License royalties, related party — 4,220 — 4,220 Revenues from customers 14,553 4,220 556 19,329 Earnings from equity method investments — 21,690 — 21,690 Total revenues and earnings from equity method investments $ 14,553 $ 25,910 $ 556 $ 41,019 Three Months Ended March 31, 2018 Segment PGI RC Other Total Revenue component Consumables $ 621 $ — $ — $ 621 License royalties, related party — 3,230 — 3,230 Other 48 — — 48 Revenues from customers 669 3,230 — 3,899 Earnings from equity method investments — 12,253 — 12,253 Total revenues and earnings from equity method investments $ 669 $ 15,483 $ — $ 16,152 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividends Declared | Dividends declared by the Board, and paid quarterly per share on all outstanding shares of common stock during the three months ended March 31, 2019 and 2018 were as follows: 2019 2018 Per share Date paid Per share Date paid Dividends declared during quarter ended: March 31 $ 0.25 March 7, 2019 $ 0.25 March 8, 2018 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Allocation of Compensation Expense | Total stock-based compensation expense for the three months ended March 31, 2019 and 2018 was as follows: Three Months Ended March 31, (in thousands) 2019 2018 RSA expense $ 317 $ 277 Stock option expense — 58 Total stock-based compensation expense $ 317 $ 335 |
Schedule of Unrecognized Compensation Cost | The amount of unrecognized compensation cost as of March 31, 2019 , and the expected weighted-average period over which the cost will be recognized is as follows: As of March 31, 2019 (in thousands) Unrecognized Compensation Cost Expected Weighted- RSA expense $ 3,818 2.13 Total unrecognized stock-based compensation expense $ 3,818 2.13 |
Summary of Restricted Stock Activity | A summary of RSA and RSU activity under the Company's various stock compensation plans for the three months ended March 31, 2019 is presented below: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands, except for share and per share amounts) Awards Units RSA's RSU's Non-vested at January 1, 2019 280,852 20,000 $ 9.92 $ 10.52 Granted 218,465 — $ 10.84 $ — Vested (69,345 ) — $ 9.33 $ — Forfeited — — $ — $ — Non-vested at March 31, 2019 429,972 20,000 $ 10.48 $ 10.52 |
Summary of Option Activity | A summary of stock option activity for the three months ended March 31, 2019 is presented below: Number of Options Weighted-Average Aggregate Intrinsic Value (in thousands) Weighted-Average Options outstanding, January 1, 2019 529,780 $ 12.23 Options granted — — Options exercised — — Options expired / forfeited — — Options outstanding, March 31, 2019 529,780 $ 12.23 $ 508 1.21 Options exercisable, March 31, 2019 529,780 $ 12.23 $ 508 1.21 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Prepaid expenses and other assets: Prepaid expenses $ 1,400 $ 1,233 Prepaid income taxes 2,597 2,940 Other 1,507 1,397 $ 5,504 $ 5,570 Other long-term assets: Spare parts $ 3,255 $ 3,278 Mine development costs, net 2,802 2,531 Prepaid royalty expense, long-term 955 955 Highview Investment 552 552 Right of use assets, operating leases, net 6,230 — Other long-term assets 702 677 $ 14,496 $ 7,993 |
Schedule of Other Liabilities | The following table details the components of Other current liabilities and Other long-term liabilities as presented in the Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Other current liabilities: Accrued interest $ 727 $ 407 Income and other taxes payable 2,602 479 Current portion of operating lease obligations 3,004 — Other 762 1,252 $ 7,095 $ 2,138 Other long-term liabilities: Operating lease obligations, long-term $ 3,302 $ — Deferred rent — 106 Mine reclamation liability 684 624 Other long-term liabilities 85 210 $ 4,071 $ 940 |
Schedule of Statement of Operations, Supplemental Disclosures | The following table details the components of Interest expense in the Condensed Consolidated Statements of Operations: Three Months Ended March 31, (in thousands) 2019 2018 453A interest $ 322 $ 336 Interest on Senior Term Loan 1,270 — Debt discount and debt issuance costs 381 — Other 131 — $ 2,104 $ 336 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense and Effective Tax Rates | For the three months ended March 31, 2019 and 2018 , the Company's income tax expense and effective tax rates based on forecasted pre-tax income were: Three Months Ended March 31, (in thousands, except for rate) 2019 2018 Income tax expense $ 1,699 $ 2,569 Effective tax rate 11 % 25 % |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Operating Results | The following table presents the Company's operating segment results for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, (in thousands) 2019 2018 Revenues: Refined Coal: Earnings in equity method investments $ 21,690 $ 12,253 Royalties, related party 4,220 3,230 25,910 15,483 Power Generation and Industrials: Consumables 14,553 621 Other — 48 14,553 669 Total segment reporting revenues 40,463 16,152 Adjustments to reconcile to reported revenues: Earnings in equity method investments (21,690 ) (12,253 ) Corporate and other 556 — Total reported revenues $ 19,329 $ 3,899 Segment operating income (loss): Refined Coal (1) $ 25,383 $ 14,702 Power Generation and Industrials (2) (3,462 ) (938 ) Total segment operating income $ 21,921 $ 13,764 (1) Included within the RC segment operating income for the three months ended March 31, 2019 and 2018 is 453A interest expense of $0.3 million and $0.3 million , respectively. (2) Included within the PGI segment operating loss for the three months ended March 31, 2019 was $3.4 million of costs recognized as a result of the step-up in inventory fair value recorded from the Carbon Solutions Acquisition. Also included within the PGI segment operating loss for the three months ended March 31, 2019 was $2.0 million of depreciation, amortization, and depletion expense on mine and plant long-lived assets. |
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: Three Months Ended March 31, (in thousands) 2019 2018 Total reported segment operating income $ 21,921 $ 13,764 Other operating loss (398 ) — 21,523 13,764 Adjustments to reconcile to net income attributable to the Company: Corporate payroll and benefits (432 ) (1,147 ) Corporate legal and professional fees (1,961 ) (1,448 ) Corporate general and administrative (1,434 ) (941 ) Corporate depreciation and amortization (13 ) (52 ) Corporate interest (expense) income, net (1,651 ) — Other income (expense), net 69 55 Income tax expense (1,699 ) (2,569 ) Net income $ 14,402 $ 7,662 |
Reconciliation of Assets from Segment to Consolidated | A reconciliation of reportable segment assets to the Company's consolidated assets is as follows: As of (in thousands) March 31, December 31, Assets: Refined Coal (1) $ 50,802 $ 11,468 Power Generation and Industrials 82,818 85,786 Total segment assets 133,620 97,254 All Other and Corporate (2) 60,191 62,410 Consolidated $ 193,811 $ 159,664 (1) Includes $46.1 million and $6.6 million of investments in equity method investees, respectively. (2) Includes the Company's deferred tax assets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 As of December 31, 2018 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Instruments: Highview Investment $ 552 $ 552 $ 552 $ 552 Highview Obligation $ 219 $ 219 $ 213 $ 213 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the Company's change in restructuring accruals for the three months ended March 31, 2019 : (in thousands) Employee Severance Remaining accrual as of December 31, 2018 $ 2,208 Expense provision 172 Cash payments and other (740 ) Change in estimates (104 ) Remaining accrual as of March 31, 2019 $ 1,536 |
Basis of Presentation - Calcula
Basis of Presentation - Calculations of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | ||
Net income | $ 14,402 | $ 7,662 |
Less: Dividends and undistributed income allocated to participating securities | 20 | 25 |
Income attributable to common stockholders | $ 14,382 | $ 7,637 |
Basic weighted-average common shares outstanding (in shares) | 18,268 | 20,502 |
Add: dilutive effect of equity instruments (in shares) | 165 | 82 |
Diluted weighted-average shares outstanding (in shares) | 18,433 | 20,584 |
Earnings per share - basic (in dollars per share) | $ 0.79 | $ 0.37 |
Earnings per share - diluted (in dollars per share) | $ 0.78 | $ 0.37 |
Restricted Sock and Employee Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares excluded from diluted shares outstanding (in shares) | 300 | 200 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares excluded from diluted shares outstanding (in shares) | 200 |
Basis of Presentation - Risks (
Basis of Presentation - Risks (Details) - Tinuum Group, LLC | Mar. 31, 2019debt_instrument |
Concentration Risk [Line Items] | |
Number of instruments held | 20 |
Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Number of instruments held | 11 |
Basis of Presentation - Adjustm
Basis of Presentation - Adjustments for Adoption (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right of use asset | $ 6,230 | ||
Operating lease, liability | 6,307 | $ 7,000 | |
Other long-term assets | 14,496 | 14,949 | $ 7,993 |
Other liabilities | 53,143 | 50,058 | |
Other long-term liabilities | $ 4,071 | 4,811 | $ 940 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right of use asset | 7,000 | ||
Other long-term assets | 6,956 | ||
Other liabilities | 3,085 | ||
Other long-term liabilities | $ 3,871 |
Basis of Presentation - Recentl
Basis of Presentation - Recently Adopted (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 51,504 | $ 12,914 | |
Tinuum Group, LLC | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Investments | $ 37,200 | ||
Deferred tax liabilities | 8,400 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU No. 2014-09 | Tinuum Group, LLC | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 28,800 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Dec. 07, 2018 | Jan. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Revenues | $ (19,329) | $ (3,899) | |||
PGI | ASU No. 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | |||||
Business Acquisition [Line Items] | |||||
Revenues | $ 2,000 | ||||
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 | ||||
Removal of transaction costs | $ 1,000 | ||||
ADA Carbon Solutions, LLC | Senior Term Loan due December 2021, net | Term Loan | |||||
Business Acquisition [Line Items] | |||||
Proceeds from issuance of debt | $ 70,000 |
Acquisition - Allocation (Detai
Acquisition - Allocation (Details) - ADA Carbon Solutions, LLC $ in Thousands | Dec. 07, 2018USD ($) |
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 |
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 |
Acquisition - Pro Forma (Detail
Acquisition - Pro Forma (Details) - ADA Carbon Solutions, LLC $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Revenues | $ 18,495 |
Net income | $ 3,727 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | ||
Product inventory | $ 16,721 | $ 19,523 |
Raw material inventory | 1,558 | 2,388 |
Allowance | (226) | (120) |
Inventories | 18,053 | 21,791 |
Inventory acquired | $ 1,400 | $ 5,000 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 20, 2010 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 46,068,000 | $ 6,634,000 | |||
Earnings from equity method investments | $ 21,690,000 | $ 12,253,000 | |||
Tinuum Group, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest, percent | 42.50% | 42.50% | |||
Equity method investments | $ 40,211,000 | $ 0 | 0 | $ 0 | |
Earnings from equity method investments | 19,767,000 | 11,050,000 | |||
Tinuum Services, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest, percent | 50.00% | ||||
Equity method investments | 5,800,000 | $ 6,600,000 | |||
Earnings from equity method investments | $ 1,922,000 | $ 1,204,000 | |||
Percent of losses removed from net income, attributable to noncontrolling interest | 100.00% |
Equity Method Investments - Res
Equity Method Investments - Results of Operations and Summary of Distributions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||
ADES equity earnings | $ 21,690 | $ 12,253 |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||
Distributions from equity method investees, return on investment | 19,488 | 2,400 |
Included in investing cash flows | 0 | 11,050 |
Tinuum Group, LLC | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||
Gross profit (loss) | 41,200 | 26,413 |
Operating, selling, general and administrative expenses | 6,582 | 6,007 |
Income (loss) from operations | 34,618 | 20,406 |
Other income (expenses) | 51 | (1,869) |
Class B preferred return | 0 | (12) |
Loss attributable to noncontrolling interest | 15,776 | 10,775 |
Net income available to members | 50,445 | 29,300 |
ADES equity earnings | 19,767 | 11,050 |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||
Distributions from equity method investees, return on investment | 16,788 | 0 |
Distributions from equity method investees in excess of investment basis | 0 | 11,050 |
Included in investing cash flows | 16,788 | 11,050 |
Tinuum Services, LLC | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||
Gross profit (loss) | (24,735) | (21,006) |
Operating, selling, general and administrative expenses | 49,450 | 40,704 |
Income (loss) from operations | (74,185) | (61,710) |
Other income (expenses) | (242) | (58) |
Loss attributable to noncontrolling interest | 78,270 | 64,176 |
Net income available to members | 3,843 | 2,408 |
ADES equity earnings | 1,922 | 1,204 |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||
Distributions from equity method investees, return on investment | 2,700 | 2,400 |
Earnings from other | ||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||
ADES equity earnings | $ 1 | $ (1) |
Equity Method Investments - Rol
Equity Method Investments - Rollforward of CCS Investment (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Equity Method Investments [Roll Forward] | ||||
Beginning balance | $ 6,634,000 | |||
Cash distributions from Tinuum Group | 0 | $ 11,050,000 | ||
Total investment balance, equity earnings (loss) and cash distributions | 46,068,000 | |||
Retained earnings | 51,504,000 | $ 12,914,000 | ||
Tinuum Group, LLC | ||||
Equity Method Investments [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Impact of adoption of accounting standards | $ 37,232,000 | |||
ADES proportionate share of income from Tinuum Group | 21,439,000 | 12,458,000 | ||
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) | 1,672,000 | 12,218,000 | ||
Cash distributions from Tinuum Group | 16,788,000 | 11,050,000 | ||
Adjustment for current year cash distributions in excess of investment balance | 10,810,000 | |||
Total investment balance, equity earnings (loss) and cash distributions | $ 40,211,000 | $ 0 | ||
Ownership interest, percent | 42.50% | 42.50% | ||
Ownership interest multiplied by net income available to members, percent | 42.50% | |||
Tinuum Group, LLC | Difference between Revenue Guidance in Effect before and after Topic 606 | ASU No. 2014-09 | ||||
Equity Method Investments [Roll Forward] | ||||
Retained earnings | $ 28,800,000 | |||
Tinuum Group, LLC | ADES equity earnings (loss) | ||||
Equity Method Investments [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | ||
ADES proportionate share of income from Tinuum Group | 21,439,000 | 12,458,000 | ||
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) | 1,672,000 | 12,218,000 | ||
Adjustment for current year cash distributions in excess of investment balance | 10,810,000 | |||
Total investment balance, equity earnings (loss) and cash distributions | 19,767,000 | 11,050,000 | ||
Tinuum Group, LLC | Cash distributions | ||||
Equity Method Investments [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Cash distributions from Tinuum Group | 16,788,000 | 11,050,000 | ||
Total investment balance, equity earnings (loss) and cash distributions | 16,788,000 | 11,050,000 | ||
Tinuum Group, LLC | Memorandum Account: Cash distributions and equity loss in (excess) of investment balance | ||||
Equity Method Investments [Roll Forward] | ||||
Beginning balance | (1,672,000) | (12,218,000) | ||
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) | 1,672,000 | 12,218,000 | ||
Adjustment for current year cash distributions in excess of investment balance | 10,810,000 | |||
Total investment balance, equity earnings (loss) and cash distributions | $ 0 | $ (10,810,000) |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 07, 2018 |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 7,827 | ||
Finance lease obligations | $ 8,167 | ||
Long-term Debt | 68,165 | 74,125 | |
Less: Current maturities | (24,166) | (24,067) | |
Total long-term debt | 43,999 | 50,058 | |
Senior Term Loan due December 2021, net | |||
Debt Instrument [Line Items] | |||
Less net unamortized debt issuance costs | (1,803) | (1,990) | $ (2,000) |
Less net unamortized debt discount | (1,859) | (2,052) | $ (2,100) |
Senior Term Loan due December 2021, net | 60,338 | 65,958 | |
Senior Term Loan due December 2021, net | Senior Term Loan due December 2021, related party | |||
Debt Instrument [Line Items] | |||
Senior Term Loan due December 2021, related party | $ 64,000 | $ 70,000 |
Debt Obligations - Senior Term
Debt Obligations - Senior Term Loan (Details) | Dec. 07, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Senior Term Loan | |||
Debt Instrument [Line Items] | |||
Less net unamortized debt discount | $ (2,100,000) | $ (1,859,000) | $ (2,052,000) |
Debt issuance costs | $ 2,000,000 | 1,803,000 | $ 1,990,000 |
Term | 36 months | ||
Interest rate, stated percentage | 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] | |||
Periodic payment, principal | $ 6,000,000 | ||
Senior Term Loan | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
ADA Carbon Solutions, LLC | Term Loan | Senior Term Loan | |||
Debt Instrument [Line Items] | |||
Proceeds from issuance of debt | $ 70,000,000 | ||
Senior Term Loan due December 2021, related party | Minimum | |||
Debt Instrument [Line Items] | |||
Percent of common stock owned | 5.00% |
Debt Obligations - Line of Cred
Debt Obligations - Line of Credit (Details) - USD ($) | Mar. 31, 2019 | Dec. 07, 2018 | Sep. 30, 2018 |
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||
Line of credit | $ 0 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Minimum cash balance required | $ 5,000,000 | ||
Senior Term Loan | |||
Debt Instrument [Line Items] | |||
Face amount | $ 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 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Long-term lease liabilities | $ 7,827 | |||
Operating lease, liability | 6,307 | $ 7,000 | ||
Finance lease, right of use asset | 7,500 | |||
Operating lease, right of use asset | 6,230 | |||
Operating lease, expense | 1,200 | |||
Amortization of right-of-use assets | 536 | |||
Capital leased assets | $ 8,100 | |||
Capital lease obligations | 8,167 | |||
Accrued lease payments and accrued lease incentives | 100 | |||
Rent expense | $ 100 | |||
Property and equipment | 42,423 | 42,697 | ||
Accumulated depreciation and amortization | 2,830 | 1,499 | ||
Assets Held under Capital Leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Property and equipment | 8,100 | |||
Accumulated depreciation and amortization | $ 100 | |||
General and Administrative Expense | ||||
Lessee, Lease, Description [Line Items] | ||||
Amortization of right-of-use assets | 100 | |||
Consumables | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, expense | $ 1,100 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finance lease cost: | ||
Amortization of right-of-use assets | $ 536 | |
Interest on lease liabilities | 131 | |
Operating lease cost | 929 | |
Short-term lease cost | 171 | |
Variable lease cost | 82 | |
Total lease cost | 1,849 | |
Operating cash flows from operating leases | 949 | |
Finance cash flows from finance leases | 344 | $ 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 49 | |
Weighted-average remaining lease term - finance leases | 4 years 10 months 24 days | |
Weighted-average remaining lease term - operating leases | 2 years 6 months | |
Weighted-average discount rate - finance leases | 6.10% | |
Weighted-average discount rate - operating leases | 8.60% |
Leases - Disclosures under ASC
Leases - Disclosures under ASC 840 (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leases ASC 842 | |||
2019 | $ 2,823 | ||
2020 | 2,328 | ||
2021 | 1,632 | ||
2022 | 310 | ||
2023 | 221 | ||
Thereafter | 0 | ||
Total minimum lease payments | 7,314 | ||
Less: Imputed interest | (1,007) | ||
Present value of minimum lease payments | 6,307 | $ 7,000 | |
Finance Leases ASC 842 | |||
2019 | 1,307 | ||
2020 | 1,707 | ||
2021 | 1,802 | ||
2022 | 951 | ||
2023 | 951 | ||
Thereafter | 2,482 | ||
Total minimum lease payments | 9,200 | ||
Less: Imputed interest | (1,374) | ||
Present value of minimum lease payments | $ 7,827 | ||
Operating Leases, Future Minimum Payments | |||
2019 | $ 3,619 | ||
2020 | 2,273 | ||
2021 | 1,632 | ||
2022 | 310 | ||
2023 | 221 | ||
Thereafter | 0 | ||
Total minimum lease payments | 8,055 | ||
Capital Leases, Future Minimum Payments | |||
2019 | 1,749 | ||
2020 | 1,707 | ||
2021 | 1,802 | ||
2022 | 951 | ||
2023 | 951 | ||
Thereafter | 2,482 | ||
Total minimum lease payments | 9,642 | ||
Less: Imputed interest | (1,475) | ||
Present value of minimum lease payments | $ 8,167 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Collection terms | Credit terms are generally net 30 from the date of invoice. | |
Provision for debt expense | $ 0 | $ (0.2) |
Reduction of sales, settlement of previous commitment | 0.3 | |
Allowance for doubtful accounts receivable, write-offs | $ 0.2 | |
Number of operating segments | segment | 2 |
Revenues - Trade Receivables (D
Revenues - Trade Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables | $ 8,339 | $ 10,121 |
Less: Allowance for doubtful accounts | (567) | (567) |
Total | $ 7,772 | $ 9,554 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue component | $ 19,329 | $ 3,899 |
Earnings from equity method investments | 21,690 | 12,253 |
Total revenues and earnings from equity method investments | 19,329 | 3,899 |
Total revenues and earnings from equity method investments | 41,019 | |
Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues and earnings from equity method investments | 40,463 | 16,152 |
Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 15,109 | 621 |
License royalties, related party | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 4,220 | 3,230 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 0 | 48 |
Power Generation and Industrials | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 14,553 | 669 |
Earnings from equity method investments | 0 | 0 |
Power Generation and Industrials | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues and earnings from equity method investments | 14,553 | 669 |
Power Generation and Industrials | Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 14,553 | 621 |
Power Generation and Industrials | Consumables | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 14,553 | 621 |
Power Generation and Industrials | License royalties, related party | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 0 | 0 |
Power Generation and Industrials | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 48 | |
Power Generation and Industrials | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 0 | 48 |
Refined Coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 4,220 | 3,230 |
Earnings from equity method investments | 21,690 | 12,253 |
Refined Coal | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Earnings from equity method investments | 21,690 | 12,253 |
Total revenues and earnings from equity method investments | 25,910 | 15,483 |
Refined Coal | Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 0 | 0 |
Refined Coal | License royalties, related party | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 4,220 | 3,230 |
Refined Coal | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 0 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 556 | 0 |
Earnings from equity method investments | 0 | 0 |
Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues and earnings from equity method investments | 556 | 0 |
Other | Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | 556 | 0 |
Other | License royalties, related party | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | $ 0 | 0 |
Other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue component | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Restricted cash, long-term | $ 5,195 | $ 5,195 |
Restricted cash, short term | $ 100 | $ 100 |
Tinuum Group, LLC | ||
Related Party Transaction [Line Items] | ||
Limited guarantees. percent | 50.00% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Nov. 30, 2018 | May 05, 2017 | |
Class of Stock [Line Items] | ||||
Stock repurchased | $ 245 | $ 267 | ||
Maximum | ||||
Class of Stock [Line Items] | ||||
Requirement to own shares outstanding as percent | 4.99% | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchased (in shares) | 63,876 | 149,217 | ||
Stock repurchased | $ 700 | $ 1,600 | ||
Common Stock | Maximum | ||||
Class of Stock [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 20,000,000 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 317,000 | $ 335,000 |
Proceeds from stock options exercised | 0 | |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 317,000 | 277,000 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 0 | $ 58,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Unrecognized Compensation Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 3,818 |
Expected Weighted- Average Period of Recognition (in years) | 2 years 1 month 17 days |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 3,818 |
Expected Weighted- Average Period of Recognition (in years) | 2 years 1 month 17 days |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Restricted stock awards | |
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 |
Expected term (in years) | 5 years |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Non-vested Restricted Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted stock awards | |
Number of SAR's Outstanding and Exercisable | |
Non-vested shares, Beginning balance (in shares) | shares | 280,852 |
Granted (in shares) | shares | 218,465 |
Vested (in shares) | shares | (69,345) |
Forfeited (in shares) | shares | 0 |
Non-vested shares, Ending balance (in shares) | shares | 429,972 |
Units | |
Non-vested shares, Weighted-Average Grant Date Fair Value, Beginning Balance (in usd per share) | $ / shares | $ 9.92 |
Granted, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 10.84 |
Vested in period, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 9.33 |
Forfeited, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 0 |
Non-vested shares, Weighted-Average Grant Date Fair Value, Ending Balance (in usd per share) | $ / shares | $ 10.48 |
RSUs | |
Number of SAR's Outstanding and Exercisable | |
Non-vested shares, Beginning balance (in shares) | shares | 20,000 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Non-vested shares, Ending balance (in shares) | shares | 20,000 |
Units | |
Non-vested shares, Weighted-Average Grant Date Fair Value, Beginning Balance (in usd per share) | $ / shares | $ 10.52 |
Granted, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 0 |
Vested in period, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 0 |
Forfeited, Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | 0 |
Non-vested shares, Weighted-Average Grant Date Fair Value, Ending Balance (in usd per share) | $ / shares | $ 10.52 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Option Activity (Details) - Stock options $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Employee and Director Options | |
Options outstanding, start of year (in shares) | shares | 529,780 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | 0 |
Options expired / forfeited (in shares) | shares | 0 |
Options outstanding, end of year (in shares) | shares | 529,780 |
Options vested and exercisable (in shares) | shares | 529,780 |
Weighted Average Exercise Price | |
Options outstanding, start of year (in usd per share) | $ / shares | $ 12.23 |
Options granted (in usd per share) | $ / shares | 0 |
Options exercised (in usd per share) | $ / shares | 0 |
Options expired / forfeited (in usd per share) | $ / shares | 0 |
Options outstanding, end of year (in usd per share) | $ / shares | 12.23 |
Options vested and exercisable, weighted average exercise price (in usd per share) | $ / shares | $ 12.23 |
Options outstanding, intrinsic value | $ | $ 508 |
Options exercisable, intrinsic value | $ | $ 508 |
Options outstanding, weighted average remaining contractual term | 1 year 2 months 16 days |
Options exercisable, weighted average remaining contractual term | 1 year 2 months 16 days |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid expenses and other assets and Other assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Prepaid expenses and other assets: | |||
Prepaid expenses | $ 1,400 | $ 1,233 | |
Prepaid income taxes | 2,597 | 2,940 | |
Other | 1,507 | 1,397 | |
Other current assets | 5,504 | 5,570 | |
Other long-term assets: | |||
Spare parts | 3,255 | 3,278 | |
Mine development costs, net | 2,802 | 2,531 | |
Prepaid royalty expense, long-term | 955 | 955 | |
Highview Investment | 552 | 552 | |
Right of use assets, operating leases, net | 6,230 | ||
Other long-term assets | 702 | 677 | |
Total | $ 14,496 | $ 14,949 | $ 7,993 |
Supplemental Financial Inform_4
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Mine reserves, amortization period | 18 years | |
Highview Enterprises Limited | ||
Investment [Line Items] | ||
Ownership interest, percent | 8.00% | |
Payments to acquire investments | $ 2.8 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other current liabilities: | |||
Accrued interest | $ 727 | $ 407 | |
Income and other taxes payable | 2,602 | 479 | |
Current portion of operating lease obligations | 3,004 | ||
Other | 762 | 1,252 | |
Other current liabilities | 7,095 | 2,138 | |
Other long-term liabilities: | |||
Operating lease obligations, long-term | 3,302 | 0 | |
Deferred rent | 0 | 106 | |
Mine reclamation liability | 684 | 624 | |
Other long-term liabilities | 85 | 210 | |
Other long-term liabilities | $ 4,071 | $ 4,811 | $ 940 |
Supplemental Financial Inform_6
Supplemental Financial Information - Supplemental Income Statement, Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
453A interest | $ 322 | $ 336 |
Interest on Senior Term Loan | 1,270 | 0 |
Debt discount and debt issuance costs | 381 | 0 |
Other | 131 | 0 |
Interest expense | $ 2,104 | $ 336 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 1,699 | $ 2,569 |
Effective tax rate | 11.00% | 25.00% |
Decrease in valuation allowance | $ (4,000) | |
Estimated federal income tax expense | 800 | $ 2,100 |
Estimated state income tax expense | $ 900 | $ 500 |
Business Segment Information -
Business Segment Information - Segment Operating Results (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenues: | ||
Earnings in equity method investments | $ 21,690 | $ 12,253 |
Total revenues | 19,329 | 3,899 |
Total reported revenues | 19,329 | 3,899 |
Segment operating income (loss): | ||
Total segment operating income | (3,555) | (1,712) |
453A interest | 322 | 336 |
Refined Coal | ||
Revenues: | ||
Earnings in equity method investments | 21,690 | 12,253 |
Total revenues | 4,220 | 3,230 |
Refined Coal | RMC6, LLC (RCM6) | ||
Segment operating income (loss): | ||
453A interest | 300 | 300 |
Power Generation and Industrials | ||
Revenues: | ||
Earnings in equity method investments | 0 | 0 |
Total revenues | 14,553 | 669 |
Consumables | ||
Revenues: | ||
Total revenues | 15,109 | 621 |
Consumables | Refined Coal | ||
Revenues: | ||
Total revenues | 0 | 0 |
Consumables | Power Generation and Industrials | ||
Revenues: | ||
Total revenues | 14,553 | 621 |
Other | ||
Revenues: | ||
Total revenues | 0 | 48 |
Other | Refined Coal | ||
Revenues: | ||
Total revenues | 0 | |
Other | Power Generation and Industrials | ||
Revenues: | ||
Total revenues | 48 | |
Operating Segments | ||
Revenues: | ||
Total reported revenues | 40,463 | 16,152 |
Segment operating income (loss): | ||
Total segment operating income | 21,921 | 13,764 |
Operating Segments | Refined Coal | ||
Revenues: | ||
Earnings in equity method investments | 21,690 | 12,253 |
Royalties, related party | 4,220 | 3,230 |
Total reported revenues | 25,910 | 15,483 |
Segment operating income (loss): | ||
Total segment operating income | 25,383 | 14,702 |
Operating Segments | Power Generation and Industrials | ||
Revenues: | ||
Total reported revenues | 14,553 | 669 |
Segment operating income (loss): | ||
Total segment operating income | (3,462) | (938) |
Inventory adjustments | 3,400 | |
Severance costs | 2,000 | |
Operating Segments | Consumables | Power Generation and Industrials | ||
Revenues: | ||
Total revenues | 14,553 | 621 |
Operating Segments | Other | Power Generation and Industrials | ||
Revenues: | ||
Total revenues | 0 | 48 |
Intersegment Eliminations | Refined Coal | ||
Revenues: | ||
Earnings in equity method investments | (21,690) | (12,253) |
Corporate and Other | ||
Revenues: | ||
Total reported revenues | 556 | 0 |
Segment operating income (loss): | ||
Total segment operating income | $ (398) | $ 0 |
Business Segment Information _2
Business Segment Information - Reconciliation of Reportable Segment Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Consolidated operating income | $ (3,555) | $ (1,712) |
Corporate payroll and benefits | (2,556) | (2,214) |
Corporate legal and professional fees | (1,976) | (1,548) |
Corporate general and administrative | (2,142) | (1,170) |
Corporate depreciation and amortization | (2,102) | (116) |
Corporate interest (expense) income, net | 70 | 0 |
Other income (expense), net | 0 | 26 |
Income tax expense | (1,699) | (2,569) |
Net income | 14,402 | 7,662 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Consolidated operating income | 21,921 | 13,764 |
All Other and Corporate | ||
Segment Reporting Information [Line Items] | ||
Consolidated operating income | (398) | 0 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Consolidated operating income | 21,523 | 13,764 |
Corporate payroll and benefits | (432) | (1,147) |
Corporate legal and professional fees | (1,961) | (1,448) |
Corporate general and administrative | (1,434) | (941) |
Corporate depreciation and amortization | (13) | (52) |
Corporate interest (expense) income, net | (1,651) | 0 |
Other income (expense), net | 69 | 55 |
Income tax expense | $ (1,699) | $ (2,569) |
Business Segment Information _3
Business Segment Information - Segment Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 193,811 | $ 159,664 |
Equity method investments | 46,068 | 6,634 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 133,620 | 97,254 |
Operating Segments | Refined Coal | ||
Segment Reporting Information [Line Items] | ||
Assets | 50,802 | 11,468 |
Operating Segments | Power Generation and Industrials | ||
Segment Reporting Information [Line Items] | ||
Assets | 82,818 | 85,786 |
All Other and Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 60,191 | $ 62,410 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost method investment | $ 552 | $ 552 |
Highview Obligation | 219 | 213 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost method investment | 552 | 552 |
Highview Obligation | $ 219 | $ 213 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Dec. 07, 2018 | Mar. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Time deposits, $250,000 or more | $ 250 | |
ADA Carbon Solutions, LLC | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Consideration transferred | $ 66,500 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net of change in estimates | $ 100,000 | $ 0 | |
Employee Severance | ADA Carbon Solutions, LLC | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 600,000 |
Restructuring - Utilization of
Restructuring - Utilization of Restructuring Accruals (Details) - Employee Severance $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Remaining accrual as of December 31, 2017 | $ 2,208 |
Expense provision | 172 |
Cash payments and other | (740) |
Change in estimates | (104) |
Remaining accrual as of March 31, 2019 | $ 1,536 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | May 06, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.25 |