Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 30, 2019 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Advanced Emissions Solutions, Inc. | ||
Entity Central Index Key | 0001515156 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 182.9 | ||
Entity Common Stock, Shares Outstanding | 18,341,113 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 12,080 | $ 18,577 |
Receivables, net | 7,430 | 9,554 |
Receivables, related party | 4,246 | 4,284 |
Inventories, net | 15,460 | 21,791 |
Prepaid expenses and other assets | 7,832 | 5,570 |
Total current assets | 47,048 | 59,776 |
Restricted cash, long-term | 5,000 | 5,195 |
Property, plant and equipment, net of accumulated depreciation of $7,444 and $1,499, respectively | 44,001 | |
Property, plant and equipment, net of accumulated depreciation of $7,444 and $1,499, respectively | 42,697 | |
Intangible assets, net | 4,169 | 4,830 |
Equity method investments | 39,155 | 6,634 |
Deferred tax assets, net | 14,095 | 32,539 |
Other long-term assets, net | 20,331 | 7,993 |
Total Assets | 173,799 | 159,664 |
Current liabilities: | ||
Accounts payable | 8,046 | 6,235 |
Accrued payroll and related liabilities | 3,024 | 8,279 |
Current portion of long-term debt | 23,932 | 24,067 |
Other current liabilities | 4,311 | 2,138 |
Total current liabilities | 39,313 | 40,719 |
Long-term debt, net of current portion | 20,434 | 50,058 |
Other long-term liabilities | 5,760 | 940 |
Total Liabilities | 65,507 | 91,717 |
Commitments and contingencies (Notes 6 and 9) | ||
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, 22,960,157 and 22,640,677 shares issued and 18,362,624 and 18,576,489 shares outstanding at December 31, 2019 and 2018, respectively | 23 | 23 |
Treasury stock, at cost: 4,597,533 and 4,064,188 shares as of December 31, 2019 and 2018, respectively | (47,533) | (41,740) |
Additional paid-in capital | 98,466 | 96,750 |
Retained earnings | 57,336 | 12,914 |
Total stockholders’ equity | 108,292 | 67,947 |
Total Liabilities and Stockholders’ equity | $ 173,799 | $ 159,664 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization | $ 7,444 | |
Accumulated depreciation and amortization | $ 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) | 22,960,157 | 22,640,677 |
Common stock, shares outstanding (in shares) | 18,362,624 | 18,576,489 |
Treasury Stock (in shares) | 4,597,533 | 4,064,188 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||
Total revenues | $ 70,086 | $ 23,945 |
Operating expenses: | ||
Payroll and benefits | 10,094 | 10,639 |
Legal and professional fees | 9,948 | 8,552 |
General and administrative | 8,123 | 4,178 |
Depreciation, amortization, depletion and accretion | 7,371 | 723 |
Total operating expenses | 84,979 | 30,345 |
Operating loss | (14,893) | (6,400) |
Other income (expense): | ||
Earnings from equity method investments | 69,176 | 54,208 |
Interest expense | (7,174) | (2,151) |
Other | 427 | 220 |
Total other income | 62,429 | 52,277 |
Income before income tax expense | 47,536 | 45,877 |
Income tax (benefit) expense | 11,999 | 10,423 |
Net income | $ 35,537 | $ 35,454 |
Earnings (loss) per common share: | ||
Basic (in dollars per share) | $ 1.96 | $ 1.78 |
Diluted (in dollars per share) | $ 1.93 | $ 1.76 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 18,154 | 19,901 |
Diluted (in shares) | 18,372 | 20,033 |
Consumables | ||
Revenues: | ||
Total revenues | $ 53,187 | $ 8,733 |
Operating expenses: | ||
Cost of revenue | 49,443 | 6,606 |
License royalties, related party | ||
Revenues: | ||
Total revenues | 16,899 | 15,140 |
Other | ||
Revenues: | ||
Total revenues | 0 | 72 |
Operating expenses: | ||
Cost of revenue | $ 0 | $ (353) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings/(Accumulated Deficit) |
Beginning Balances (in shares) at Dec. 31, 2017 | 22,465,821 | (1,713,766) | |||
Beginning Balances 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) | 217,174 | ||||
Stock-based compensation | 2,490 | $ 1 | 2,489 | ||
Issuance of stock upon exercise of options, net (in shares) | 18,667 | ||||
Issuance of stock upon exercise of options, net | 0 | ||||
Repurchase of shares to satisfy tax withholdings (in shares) | (60,985) | ||||
Repurchase of common shares to satisfy tax withholdings | (769) | $ (25,300) | (769) | ||
Cash dividends declared on common stock | (20,290) | (10,278) | (10,012) | ||
Repurchase of common shares (in hares) | (2,350,422) | ||||
Repurchase of common shares | (25,343) | $ (25,343) | |||
Net income | 35,454 | 35,454 | |||
Ending Balances (in shares) at Dec. 31, 2018 | 22,640,677 | (4,064,188) | |||
Ending Balances at Dec. 31, 2018 | 67,947 | $ 23 | $ (41,740) | 96,750 | 12,914 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 298,573 | ||||
Stock-based compensation | 2,011 | 2,011 | |||
Issuance of stock upon exercise of options, net (in shares) | 50,268 | ||||
Issuance of stock upon exercise of options, net | 156 | 156 | |||
Repurchase of shares to satisfy tax withholdings (in shares) | (29,361) | ||||
Repurchase of common shares to satisfy tax withholdings | (451) | $ (5,800) | (451) | ||
Cash dividends declared on common stock | (18,557) | (18,557) | |||
Repurchase of common shares (in hares) | (533,345) | ||||
Repurchase of common shares | (5,793) | $ (5,793) | |||
Net income | 35,537 | 35,537 | |||
Ending Balances (in shares) at Dec. 31, 2019 | 22,960,157 | (4,597,533) | |||
Ending Balances at Dec. 31, 2019 | $ 108,292 | $ 23 | $ (47,533) | $ 98,466 | $ 57,336 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 35,537 | $ 35,454 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Deferred income tax expense | 8,655 | 5,233 |
Depreciation, amortization, depletion and accretion | 7,371 | 723 |
Debt discount and debt issuance costs | 1,678 | 94 |
Operating lease expense | 3,192 | 0 |
Stock-based compensation expense, net | 2,011 | 2,490 |
Earnings from equity method investments | (69,176) | (54,208) |
Other non-cash items, net | 638 | 289 |
Changes in operating assets and liabilities, net of effects of acquired businesses: | ||
Receivables, net | 2,124 | (1,847) |
Related party receivables | 37 | (1,037) |
Prepaid expenses and other assets | (2,200) | (757) |
Costs incurred on uncompleted contracts | 0 | 15,945 |
Inventories, net | 5,505 | 237 |
Other long-term assets, net | (262) | (753) |
Accounts payable | 2,218 | (197) |
Accrued payroll and related liabilities | (5,255) | (59) |
Other current liabilities | (261) | (869) |
Billings on uncompleted contracts | 0 | (15,945) |
Operating lease liabilities | (3,180) | 0 |
Other long-term liabilities | (258) | (182) |
Distributions from equity method investees, return on investment | 73,888 | 5,500 |
Net cash provided by (used in) operating activities | 62,262 | (9,889) |
Cash flows from investing activities | ||
Distributions from equity method investees in excess of cumulative earnings | 0 | 47,175 |
Acquisition of business, net of cash acquired | (661) | (62,501) |
Acquisition of property, plant, equipment, and intangible assets, net | (7,851) | (467) |
Mine development costs | (4,726) | 0 |
Contributions to equity method investee | 0 | (750) |
Net cash used in investing activities | (13,238) | (16,543) |
Cash flows from financing activities | ||
Principal payments on term loan | (30,000) | 0 |
Principal payments on finance lease obligations | (1,354) | 0 |
Borrowings, net of debt discount - related party | 0 | 67,900 |
Debt issuance costs paid | 0 | (2,036) |
Dividends paid | (18,274) | (20,165) |
Repurchase of common shares | (5,793) | (25,343) |
Repurchase of shares to satisfy tax withholdings | (451) | (769) |
Other | 156 | (76) |
Net cash (used in) provided by financing activities | (55,716) | 19,511 |
Decrease in Cash, Cash Equivalents and Restricted Cash | (6,692) | (6,921) |
Cash, Cash Equivalents and Restricted Cash, beginning of year | 23,772 | 30,693 |
Cash, Cash Equivalents and Restricted Cash, end of year | 17,080 | 23,772 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 5,650 | 1,400 |
Cash paid for income taxes, net of refunds received | 4,308 | 7,460 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Acquisition consideration payable | 0 | 661 |
Dividends payable | $ 284 | $ 125 |
Summary of Operations and Signi
Summary of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Operations and Significant Accounting Policies | Summary of Operations and Significant Accounting Policies Nature of Operations Advanced Emissions Solutions, Inc. ("ADES" or the "Company") is a Delaware corporation with its principal office located in Highlands Ranch, Colorado and operations located in Louisiana. The Company is principally engaged in consumable mercury control options including powdered activated carbon ("PAC") and chemical technologies. The Company's proprietary environmental technologies in the power generation and industrial ("PGI") market enable customers to reduce emissions of mercury and other pollutants, maximize utilization levels and improve operating efficiencies to meet the challenges of existing and pending emission control regulations. The Company generates substantial earnings and tax credits under Section 45 ("Section 45 tax credits") of the Internal Revenue Code ("IRC") from its equity investments in certain entities and earns royalties for technologies that are licensed to Tinuum Group, LLC, a Colorado limited liability company ("Tinuum Group"). Such technologies allow Tinuum Group to provide their customers with various solutions to enhance combustion and reduced emissions of nitrogen oxide ("NO x ") and mercury from coal burned to generate electrical power. The Company’s sales occur principally throughout the United States. See Note 15 for additional information regarding the Company's operating segments. On December 7, 2018 (the "Acquisition Date"), the Company acquired (the "Carbon Solutions Acquisition") 100% of the equity interests of ADA Carbon Solutions, LLC (“Carbon Solutions”). Carbon Solutions is a manufacturer and seller of activated carbon ("AC") and the North American leader in mercury capture using PAC for the coal-fired power plant, industrial and water treatment markets. Carbon Solutions also owns an associated lignite mine (the "Five Forks Mine") that supplies the raw material for the activated carbon plant. Carbon Solutions was formed in 2008 as a 50/50 joint venture by the Company and Energy Capital Partners LLC. The Company relinquished its ownership in 2011 as part of a legal settlement agreement as described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The Company acquired Carbon Solutions primarily to expand the Company's product offerings in the mercury control industry and other complementary AC markets. Principles of Consolidation The Consolidated Financial Statements include accounts of wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. All investments in partially owned entities for which the Company has greater than 20% ownership are accounted for using the equity method based on the legal form of the Company's ownership percentage and the applicable ownership percentage of the entity and are included in the Equity method investments line item in the Consolidated Balance Sheet . As of December 31, 2019 , the Company holds equity interests of 42.5% and 50.0% in Tinuum Group and Tinuum Services, LLC ("Tinuum Services"), respectively. Tinuum Group is deemed to be variable interest entity ("VIE") under the VIE model of consolidation, but the Company does not consolidate Tinuum Group as it is not deemed to be its primary beneficiary. Cash, cash equivalents and restricted cash Cash and cash equivalents include bank deposits and other highly liquid investments purchased with an original maturity of three months or less. Restricted cash primarily consists of minimum cash balance requirements under the Term Loan and Security Agreement (the "Senior Term Loan") and is classified according to the period at which it will no longer be restricted. Receivables, net Receivables, net are recorded at net realizable value. This carrying value includes an appropriate allowance for estimated uncollectible amounts to reflect any loss anticipated on the receivables balances. Increases and decreases in the allowance for doubtful accounts are established based upon changes in the credit quality of receivables and are included as a component of the General and administrative line item in the Consolidated Statements of Operations . The allowance for doubtful accounts is based on historical experience, general economic conditions and the credit quality of specific accounts. Inventories Inventories are stated at the lower of average cost or net realizable value and consist principally of raw materials and finished goods related to the Company's PAC and chemical product offerings. The cost of inventory is determined using the average cost method. Inventories are periodically reviewed for both potential obsolescence and potential declines in anticipated selling prices. In this review, the Company makes assumptions about the future demand for and market value of the inventory, and based on these assumptions estimates the amount of any obsolete, unmarketable, slow moving or overvalued inventory. The Company will write down the value of inventories by an amount equal to the difference between the cost of the inventory and its estimated net realizable value. Additional details regarding Inventory balances are included in Note 3 . Intangible Assets Intangible assets consist of patents, licensed technology, customer relationships, developed technologies and trade names. The Company has developed technologies resulting in patents being granted by the U.S. Patent and Trademark Office. Legal costs associated with securing the patent are capitalized and amortized over the legal or useful life beginning on the patent filing date. The remaining intangible assets were recorded at fair value in connection with the Carbon Solutions Acquisition. The following table details the components of the Company's intangible assets: As of December 31, 2019 2018 (in thousands, except years) Weighted average amortization (in years) Initial Cost Net of Accumulated Amortization Initial Cost Net of Accumulated Amortization Customer relationships 5 $ 2,200 $ 1,731 $ 2,100 $ 2,071 Patents 16 1,489 1,039 1,244 891 Developed technology 5 1,600 1,259 1,600 1,578 Trade name 2 300 140 300 290 Total $ 5,589 $ 4,169 $ 5,244 $ 4,830 Included in the Consolidated Statements of Operations is amortization expense related to intangible assets of $1.0 million and $0.2 million for the years ended December 31, 2019 and 2018 , respectively. The estimated future amortization expense for existing intangible assets as of December 31, 2019 is expected to be $0.8 million for each of the five succeeding fiscal years. Investments The investments in entities in which the Company does not have a controlling interest (financial or operating), but where it has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and the Company's ownership level. Under the equity method of accounting, an investee company’s accounts are not reflected in the Company’s Consolidated Balance Sheet s and Consolidated Statements of Operations ; however, the Company’s share of the earnings or losses of the investee company is reported in the Earnings from equity method investments line item in the Consolidated Statements of Operations , and the Company’s carrying value in an equity method investee company is reported in the Equity method investments line in the Consolidated Balance Sheet . When the Company receives distributions in excess of the carrying value of the investment and has not guaranteed any obligations of the investee and/or is not required to provide additional funding to the investee, the Company recognizes such excess distributions as equity method earnings in the period the distributions occur. When the investee subsequently reports income, the Company does not record its share of such income until it equals the amount of distributions in excess of carrying value that were previously recognized in income. During the years ended December 31, 2019 and 2018 , the Company had no guarantees or requirements to provide additional funding to investees. Additionally, when the Company's carrying value in an equity method investment is zero and the Company has not guaranteed any obligations of the investee and/or is not required to provide additional funding to the investee, the Company will not recognize its share of any reported losses by the investee until future earnings are generated to offset previously unrecognized losses. As a result, equity income or loss reported on the Company's Consolidated Statements of Operations for certain equity method investees may differ from a mathematical calculation of net income or loss attributable to its equity interest based on the percentage ownership of the Company's equity interest and the net income or loss attributable to equity owners as shown on the investee company's statements of operations. Likewise, distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” in Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” in Investing cash flows. See Note 5 for additional information regarding the Company's equity method investments. Investments in partially-owned subsidiaries for which the Company has less-than-20% ownership are accounted for in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") applicable to equity investments that do not qualify for the equity method of accounting. The Company evaluates these types of investments for changes in fair value and, if there is change, recognizes the change in the Consolidated Statement of Operations. If no such events or changes in circumstances have occurred related to these types of investments, the fair value is estimated only if practicable to do so. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and includes leasehold improvements. Depreciation on assets is computed using the straight-line method over the lesser of the estimated useful lives of the related assets or the lease term (ranging from 1 to 31 years). Maintenance and repairs that do not extend the useful life of the respective asset are charged to Operating expenses as incurred. When assets are retired, or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation and any resulting gain or loss is credited or charged to income. The Company performs an evaluation of the recoverability of the carrying value of its property, plant and equipment to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Amortization of finance leased assets is included in depreciation expense and is calculated using the straight-line method over the term of the lease. Other Assets Mine Development Costs Mine development costs, which are related to the Five Forks Mine, are stated at cost less accumulated depletion and include acquisition costs, the cost of other development work and mitigation costs. Costs are amortized over the estimated life of the related mine reserves, which is 21 years . The Company performs an evaluation of the recoverability of the carrying value of mine development costs to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Mine development costs are reported in the "Other long-term assets, net" line item on the Consolidated Balance Sheet. Spare Parts Spare parts include critical spares required to support plant operations. Parts and supply costs are determined using the lower of cost or estimated replacement cost. Parts are recorded as maintenance expenses in the period in which they are consumed. Spare parts are reported in the "Other long-term assets, net" line item on the Consolidated Balance Sheet. Revenue Recognition On January 1, 2018, the Company adopted ASC 606 - Revenue from Contracts with Customers ("ASC 606") using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of initially applying ASC 606 to the opening balance of the Accumulated deficit. See further discussion of the impact of the adoption of ASC 606 in Note 8 . Effective with the Acquisition Date, Carbon Solutions adopted ASC 606 using the modified retrospective method applied to those contracts that were not completed as of December 7, 2018. There was no impact to the consolidated financial statements of the Company upon Carbon Solutions’ adoption of ASC 606, except for a reclassification from revenues to cost of revenue for Carbon Solutions for freight costs billed to its customers in conjunction with product sales, which historically were recorded as revenues. This reclassification of freight costs billed to customers to cost of revenue results in an offset to Carbon Solutions' actual freight costs recorded in cost of revenue and has no impact to Carbon Solutions' operating results. This presentation is consistent with ADES' policy of reporting freight costs, net of freight costs billed to customers, under cost of revenue. ADES adopted this policy effective with its adoption of ASC 606 on January 1, 2018. The Company recognizes revenue from a contract with a customer when a performance obligation under the terms of a contract with a customer is satisfied, which is when the customer controls the promised goods or services that are transferred in satisfaction of the performance obligation. Revenue is measured as the amount of consideration that is expected to be received in exchange for transferring goods or providing services, and the transaction price is generally fixed and generally does not contain variable or noncash consideration. In addition, the Company’s contracts with customers generally do not contain customer refund or return provisions or other similar obligations. Transfer of control and satisfaction of performance obligations are further discussed in each of the revenue components listed below. The Company uses estimates and judgments in determining the nature and timing of satisfaction of performance obligations, the standalone selling price ("SSP") of performance obligations and the allocation of the transaction price to multiple performance obligations. The Company’s principal revenue components are Consumables sales and License royalties. Consumables Consumables are comprised of the sale of AC and chemicals for mercury capture for the coal-fired power plant, industrial and water treatment markets. Customer contracts for consumables are short duration and performance obligations generally do not extend beyond one year. Certain customer contracts for consumables are comprised of evaluation tests of the Company's consumables' effectiveness and efficiency in reducing emissions. These contracts entail the delivery of consumables to the customer and the Company's evaluation of results of emissions reduction over the term of the contract. Under these types of arrangements, which are generally for durations that are short term, the Company has determined that the customer is simultaneously receiving benefits of emissions reduction from the consumption of the consumables over the testing period and this represents a single performance obligation that is satisfied over time. This determination may require significant judgment. The Company recognizes revenue over time using an input model that is generally based on the cost of consumables used by the customer during the testing period. The use of an input model and the use of total costs as the measure of progress in the satisfaction of the performance obligations may require significant judgment. In addition, under these types of contracts, the Company has determined that the services performed and related costs incurred by the Company during the testing period represent costs to fulfill a contract. License royalties, related party The Company generates revenues from royalties ("M-45 Royalties") earned under a licensing arrangement ("M-45 License") of its M-45 TM and M-45-PC TM emissions control technologies ("M-45 Technology") between the Company and Tinuum Group. The Company recognizes M-45 Royalties at a point in time based on the use of the M-45 Technology at certain RC facilities or through Tinuum Group’s use of licensed technology for rates in excess of amounts allowed for RC application. The amount of M-45 Royalties recognized is generally based on a percentage of pre-tax margins (as defined in the M-45 License) of the RC facilities using the M-45 Technology. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Sales and other taxes that are collected concurrently with revenue-producing activities are excluded from revenue. The Company has elected to account for freight costs as activities to fulfill the promise to transfer the goods, and therefore these activities are also not assessed as a separate service to customers. The Company accounts for all shipping and handling activities that occur after control of the related good transfers as fulfillment activities. These activities are included in Cost of Revenue line items of the Consolidated Statement of Operations. The Company generally expenses sales commissions when incurred because the amortization period of the asset that the Company would have recognized is one year or less. These costs are recorded in sales and marketing expenses in the General and administrative line item of the Consolidated Statement of Operations. Cost of Revenue Cost of revenue includes all labor, fringe benefits, subcontract labor, additive and coal costs, materials, equipment, supplies, travel costs and any other costs and expenses directly related to the Company’s production of revenues. The Company records estimated contract losses, if any, in the period they are determined. Payroll and Benefits Payroll and benefits costs include direct payroll, personnel related fringe benefits, sales and administrative staff labor costs and stock compensation expense. Payroll and benefits costs exclude direct labor included in Cost of revenue. Legal and Professional Legal and professional costs include external legal, audit and consulting expenses. General and Administrative General and administrative costs include director fees and expenses, rent, insurance and occupancy-related expenses, bad debt expense, impairments and other general costs of conducting business. Research and development costs are charged to expense in the period incurred and are reported in the General and administrative line item in the Consolidated Statements of Operations . Asset Retirement Obligations Reclamation obligations, which are related to the Five Forks Mine, are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, a corresponding asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The estimated reclamation obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation for the Five Forks Mine. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The Company recognizes deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest expense due to the Company's share of Tinuum Group's equity method earnings for Refined Coal ("RC") facilities, in which the related lease income or sale are treated as installment sales for federal income tax purposes. IRS section 453A requires taxpayers using the installment method to pay an interest charge on the portion of the tax liability that is deferred under the installment method. The Company recognizes IRS section 453A interest ("453A interest") and other interest and penalties related to unrecognized tax benefits in the Interest expense line item in the Consolidated Statements of Operations . Stock-Based Compensation Stock-based compensation expense is measured at the grant date based on the estimated fair value of the stock-based award and is generally expensed on a straight-line basis over the requisite service period and/or performance period of the award. Forfeitures are recognized when incurred. Stock-based compensation expense related to manufacturing employees and administrative employees is included in the Consumables, Cost of revenues and Payroll and benefits line items, respectively, in the Consolidated Statements of Operations. Stock-based compensation expense related to non-employee directors and consultants is included in the General and administrative line item in the Consolidated Statements of Operations. Dividends When a sufficient amount of available earnings exists at the time of declaration, dividends are charged as a reduction to Retained earnings in the Consolidated Balance Sheet when declared. If sufficient Retained earnings is not available, dividends declared are charged as a reduction to Additional paid-in capital in the Consolidated Balance Sheet . Earnings (Loss) Per Share Basic earnings (loss) per share is computed using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for common stock and any participating securities according to dividend and participating rights in undistributed earnings. The Company's restricted stock awards ("RSA's") granted prior to December 31, 2016 contain non-forfeitable rights to dividends or dividend equivalents and are deemed to be participating securities. RSA's granted subsequent to December 31, 2016 do not contain non-forfeitable rights to dividends and are not deemed to be participating securities. Under the two-class method, net income (loss) for the period is allocated between common stockholders and the holders of the participating securities based on the weighted-average of common shares outstanding during the period, excluding participating, unvested RSA's ("common shares"), and the weighted-average number of participating, unvested RSA's outstanding during the period, respectively. The allocated, undistributed income for the period is then divided by the weighted-average number of common shares and participating, unvested RSA's outstanding during the period to determine basic earnings per common share and participating security for the period, respectively. Pursuant to U.S. GAAP, the Company has elected not to separately present basic or diluted earnings per share attributable to participating securities in the Consolidated Statements of Operations. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share, while considering other potentially dilutive securities. Potentially dilutive securities consist of both unvested, participating and non-participating RSA's, as well as outstanding options to purchase common stock ("Stock Options") and contingent performance stock units ("PSU's") (collectively, "Potential dilutive shares"). The dilutive effect, if any, for non-participating RSA's, Stock Options and PSU's is determined using the greater of dilution as calculated under the treasury stock method or the two-class method. Potential dilutive shares are excluded from diluted earnings (loss) per share when their effect is anti-dilutive. When there is a net loss for a period, all Potential dilutive shares are anti-dilutive and are excluded from the calculation of diluted loss per share for that period. Each PSU represents a contingent right to receive shares of the Company’s common stock, and the number of shares may range from zero to two times the number of PSU's granted on the award date depending upon the price performance of the Company's common stock as measured against a general index and a specific peer group index over requisite performance periods. The number of Potential dilutive shares related to PSU's is based on the number of shares of the Company's common stock, if any, that would be issuable at the end of the respective reporting period, assuming that the end of the reporting period is the end of the contingency period applicable to such PSU's. See Note 11 for additional information related to PSU's. The following table sets forth the calculations of basic and diluted earnings per common share: Years Ended December 31, (in thousands, except per share amounts) 2019 2018 Net income $ 35,537 $ 35,454 Less: Dividends and undistributed income allocated to participating securities 44 112 Income attributable to common stockholders $ 35,493 $ 35,342 Basic weighted-average number of common shares outstanding 18,154 19,901 Add: dilutive effect of equity instruments 218 132 Diluted weighted-average shares outstanding 18,372 20,033 Earnings per share - basic $ 1.96 $ 1.78 Earnings per share - diluted $ 1.93 $ 1.76 For the years ended December 31, 2019 and 2018 , options to purchase 0.3 million and 0.3 million shares of common stock for each of the years presented were outstanding but were no t included in the computation of diluted net income per share because the exercise price exceeded the average price of the underlying shares and the effect would have been anti-dilutive. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. The Company makes assumptions on the following significant financial statement components including: • business combinations; • the carrying value of its long-lived assets; • the carrying value of its intangible assets; • asset retirement obligation; and • income taxes, including the valuation allowance for deferred tax assets and uncertain tax positions. Risks and Uncertainties The Company’s earnings are significantly affected by equity earnings it receives from Tinuum Group. As of December 31, 2019 , Tinuum Group has 20 invested RC facilities of which 8 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 prior years to conform to the current year presentation. Such reclassifications had no effect on the Company’s results of operations or financial position in any of the periods presented. New Accounting Guidance Recently Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"), 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" ("ROU") 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 7 for additional disclosures required under ASC 842 in the year of adoption. As of January 1, 2019, Tinuum Group adopted ASC 606 and ASC 842. As a result of Tinuum Group’s adoption of these pronouncements, the Company recorded a cumulative effect increase of $27.4 million to Retained earnings as of January 1, 2019, based on the Company's ownership percentage of Tinuum Group's cumulative effect adjustment, and increased its investment balance in Tinuum Group in the amount of $37.2 million and established a deferred tax liability of $9.8 million . As a result of the increase in the investment balance in Tinuum Group, for the year ended December 31, 2019 , the Company recognized equity earnings in Tinuum Group based on its pro-rata share of Tinuum Group’s net income rather than based on cash distributions received as had been required in prior periods as a result of the cumulative cash distributions exceeding the cumulative pro-rata share of Tinuum Group's net income. 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 "smaller reporting companies" (as defined by the Securities and Exchange Commission) for fiscal years beginning after December 15, 2022, including interim periods within those years, and must be adopted under a modified retrospective method approach. Entities may ado |
Acquisition
Acquisition | 12 Months Ended |
Dec. 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 Senior Term Loan in the principal amount of $70.0 million , as more fully described in Note 6 . The following table summarizes the final Purchase Price allocation. Subsequent to December 31, 2018 , the Company completed additional analysis and adjustments were made to the preliminary Purchase Price allocations as noted in the table below: Fair value of assets acquired: As Originally Reported Adjustments As Adjusted Cash $ 3,284 $ — $ 3,284 Receivables 6,409 — 6,409 Inventories 22,100 (356 ) 21,744 Prepaid expenses and other current assets 2,992 61 3,053 Spare parts 3,359 — 3,359 Property, plant and equipment 43,033 (377 ) 42,656 Mine leases and development 2,500 200 2,700 Mine reclamation asset — 2,402 2,402 Intangible assets 4,000 100 4,100 Other assets 168 — 168 Amount attributable to assets acquired 87,845 2,030 89,875 Fair value of liabilities assumed: Accounts payable 4,771 — 4,771 Accrued liabilities 7,354 254 7,608 Equipment lease liabilities 8,211 — 8,211 Mine reclamation liability 626 1,776 2,402 Other liabilities 437 — 437 Amount attributable to liabilities assumed 21,399 2,030 23,429 Net assets acquired $ 66,446 $ — $ 66,446 Adjustments to the preliminary Purchase Price allocation primarily relate to changes in fair values assigned to property, plant and equipment, intangible assets, mine reclamation liability and the related mine reclamation asset as a result of the final valuation report from the Company's third-party valuation firm issued in May 2019. During the year ended December 31, 2019 based on new information of facts and circumstances that existed as of the Acquisition Date, the Company revised its estimates used as of the Acquisition Date related to the net realizable value of certain finished goods inventory items as well as values assigned to certain prepaid and accrued expense items. The adjustments were recorded as of June 30, 2019 and were included in the Consolidated Balance Sheet as of that date and the resultant impact to the Statement of Operations was reflected for the year ended December 31, 2019. 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 $ 2,200 5 Developed technology 1,600 5 Trade name 300 2 Total intangibles acquired $ 4,100 The amounts of revenues and income before income taxes for the period from the Acquisition Date to December 31, 2018 for Carbon Solutions are as follows: (in thousands) Year ended December 31, 2018 Revenues $ 5,580 Net loss $ (391 ) Unaudited Pro Forma Financial Information The following represents the pro forma effects of the Carbon Solutions Acquisition as if it had occurred on January 1, 2017. The pro forma pre-tax income for 2018 has been calculated after applying the Company’s accounting policies in effect for that year. In addition, pro forma net income includes: (1) the impact on Carbon Solutions of the adoption of ASC 606 effective January 1, 2018, which resulted in a reclassification of $5.9 million from Revenues to Cost of Revenue for freight costs billed to customers and had no impact to income from operations; (2) the reduction in depletion, depreciation and amortization resulting from the purchase price adjustments to Property, plant and equipment and Mine development costs; (3) the adjustment to interest expense from the combination of the Senior Term Loan that was used to fund the Carbon Solutions Acquisition and the elimination of certain debt of Carbon Solutions as a result of pay-offs by the Company as of the Acquisition Date; and (4) the removal of $9.7 million in transaction costs incurred in 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. Year ended December 31, (in thousands) 2018 Revenues $ 78,591 Net income $ 31,562 |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following table summarizes the Company's inventories recorded at the lower of average cost or net realizable value as of December 31, 2019 and 2018 : As of December 31, (in thousands) 2019 2018 Product inventory (1) $ 13,515 $ 19,403 Raw material inventory 1,945 2,388 $ 15,460 $ 21,791 (1) As of December 31, 2019 and 2018 , Product inventory includes zero and $5.0 million , respectively, attributed to the increase in fair value of inventory acquired from the Carbon Solutions Acquisition. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The carrying basis and accumulated depreciation of property, plant and equipment at December 31, 2019 and 2018 are: Life in Years As of December 31, (in thousands) 2019 2018 Land and land improvements 0-31 $ 1,764 $ 2,302 Plant and operating equipment 1-31 44,015 32,999 Furniture and fixtures 1-7 1,201 701 Machinery and equipment 1-7 1,235 1,277 Leasehold improvements 1-3 245 249 Construction in progress 2,985 6,668 51,445 44,196 Less accumulated depreciation (7,444 ) (1,499 ) Total property, plant and equipment, net $ 44,001 $ 42,697 Included in plant and operating equipment as of December 31, 2019 and 2018 is mining equipment financed under various lease facilities, and obligations due under these facilities are included in finance lease obligations and capital lease obligations, respectively, in the Consolidated Balance Sheet. The total amount recorded for right of use ("ROU") assets as of December 31, 2019 related to finance lease obligations was $5.9 million , net of accumulated depreciation of $2.3 million . The total amount recorded for assets under capital lease obligations as of December 31, 2018 was $8.1 million , net of accumulated depreciation of $0.1 million . Depreciation expense for the years ended December 31, 2019 and 2018 was $6.0 million and $0.5 million , respectively. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Tinuum Group, LLC As of December 31, 2019 and 2018 , the Company’s ownership in Tinuum Group was 42.5% . Tinuum Group supplies technology, equipment and technical services to cyclone-fired and other boiler users, but its primary purpose is to place into operation facilities that produce and sell RC that lower emissions and therefore qualifies for Section 45 tax credits. NexGen Refined Coal, LLC ("NexGen") and GSFS Investments I Corp. (“GSFS”), an affiliate of The Goldman Sachs Group, Inc. ("GS"), own the remaining 42.5% and 15.0% , respectively of Tinuum Group. GSFS' ownership interest is in the form of Class B units that do not have voting rights but provide certain preferences over ADA and NexGen as to liquidation and profit distribution, including a guaranteed 15% annual return on GSFS' unrecovered investment balance, which is calculated as the original GSFS investment, plus a 15% annual return thereon, less any distributions, including the allocation of Section 45 tax credits to the members. In February 2018, the unrecovered investment balance associated with the Class B units was repaid in full. The Company has determined that Tinuum Group is a VIE, however, the Company does not have the power to direct the activities that most significantly impact Tinuum Group's economic performance and has therefore accounted for the investment under the equity method of accounting. The Company determined the voting partners of Tinuum Group have identical voting rights, equity control interests and board control interests, and therefore, concluded that the power to direct the activities that most significantly impact Tinuum Group's economic performance was shared. The following tables summarize the assets, liabilities and results of operations of Tinuum Group: As of December 31, (in thousands) 2019 2018 Current assets $ 128,473 $ 54,958 Non-current assets $ 125,820 $ 92,991 Current liabilities $ 59,392 $ 50,908 Non-current liabilities $ 13,340 $ 14,446 Members equity attributable to Class A members $ 117,006 $ 49,102 Members equity attributable to Class B members $ 28,967 $ 16,983 Noncontrolling interests $ 35,588 $ 16,510 Years Ended December 31, (in thousands) 2019 2018 Gross profit $ 104,976 $ 107,135 Operating, selling, general and administrative expenses 37,641 23,662 Income from operations 67,335 83,473 Other expenses (95 ) (5,674 ) Class B preferred return — (12 ) Loss attributable to noncontrolling interest 78,544 58,013 Net income available to Class A and B members $ 145,784 $ 135,800 ADES equity earnings from Tinuum Group $ 60,286 $ 47,175 As shown above, the Company reported earnings from its equity investment in Tinuum Group of $60.3 million and $47.2 million for the years ended December 31, 2019 and 2018 , respectively. The carrying value of the Company's investment in Tinuum Group shall be zero as long as the cumulative amount of distributions received from Tinuum Group exceeds the Company's cumulative pro-rata share of Tinuum Group's net income available to Class A members. For periods during which the ending balance of the Company's investment in Tinuum Group is zero , the Company only recognizes equity earnings from Tinuum Group to the extent that cash distributions are received from Tinuum Group during the period. For periods during which the ending balance of the Company's investment is greater than zero (e.g., when the cumulative earnings in Tinuum Group exceeds cumulative cash distributions received), the Company recognizes its pro-rata share of Tinuum Group's net income available to Class A members for the period, less any amount necessary to recover the cumulative earnings short-fall balance as of the end of the immediately preceding period. As shown in the table below, the Company’s carrying value in Tinuum Group for the years ended December 31, 2019 and 2018 were $32.3 million and zero , respectively. The amount of equity earnings or loss reported on the Consolidated Statement of Operations may differ from a mathematical calculation of earnings or loss attributable to the equity interest based upon the factor of the equity interest and the net income or loss available to Class A members as shown on Tinuum Group’s statement of operations. Additionally, for periods during which the carrying value of the Company's investment in Tinuum Group is greater than zero, distributions from Tinuum Group are reported on the Consolidated Statements of Cash Flows as "Distributions from equity method investees, return on investment" in Operating cash flows. For periods during which the carrying value of the Company's investment in Tinuum Group is zero, such cash distributions are reported on the Consolidated Statements of Cash Flows as "Distributions from equity method investees in excess of investment basis" in Investing cash flows. The following table presents the Company's investment balance, equity earnings, cash distributions and cash distributions in excess of the investment balance for the years ended December 31, 2018 and December 31, 2019 ( in thousands ): Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity loss in (excess) of investment balance Beginning balance 12/31/2017 $ — $ — $ — $ (12,218 ) ADES proportionate share of net income from Tinuum Group (1) 2018 activity 57,721 57,721 — — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2018 activity (12,218 ) (12,218 ) — 12,218 Cash distributions from Tinuum Group 2018 activity (47,175 ) — 47,175 — Adjustment for current year cash distributions in excess of investment balance 2018 activity 1,672 1,672 — (1,672 ) Total investment balance, equity earnings (loss) and cash distributions 12/31/2018 $ — $ 47,175 $ 47,175 $ (1,672 ) Impact of adoption of accounting standards (2) 2019 activity $ 37,232 $ — $ — $ — ADES proportionate share of net income from Tinuum Group 2019 activity 61,958 61,958 — — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2019 activity (1,672 ) (1,672 ) — 1,672 Cash distributions from Tinuum Group 2019 activity (65,238 ) — 65,238 — Total investment balance, equity earnings and cash distributions 12/31/2019 $ 32,280 $ 60,286 $ 65,238 $ — (1) The amounts of the Company's 42.5% proportionate share of net income as shown in the table above differ from mathematical calculations of the Company’s 42.5% equity interest in Tinuum Group multiplied by the amounts of Net Income available to Class A members as shown in the table above of Tinuum Group's results of operations due to adjustments related to the Class B preferred return. (2) 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 $27.4 million , net of the impact of income 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. Additional information related to Tinuum Group pursuant to Regulation S-X Rule of the Securities and Exchange Act of 1934 is included in Item 15 - "Exhibits and Financial Statement Schedules" ("Item 15") of this Report. Tinuum Services, LLC In 2010, the Company, together with NexGen, formed Tinuum Services for the purpose of operating and maintaining RC facilities, including those RC facilities leased or sold to third parties. The Company has determined that Tinuum Services is not a VIE and has evaluated the consolidation analysis under the Voting Interest Model. The Company has a 50% voting and economic interest in Tinuum Services, which is equivalent to the voting and economic interest of NexGen. Therefore, as the Company does not hold greater than 50% of the outstanding voting interests, either directly or indirectly, it has accounted for the investment under the equity method of accounting. As of December 31, 2019 and 2018 , the Company’s 50% investment in Tinuum Services was $6.8 million and $6.6 million , respectively. The following tables summarize the assets, liabilities and results of operations of Tinuum Services: As of December 31, (in thousands) 2019 2018 Current assets $ 308,249 $ 300,288 Non-current assets $ 99,261 $ 100,233 Current liabilities $ 155,367 $ 219,959 Non-current liabilities $ 55,746 $ 66,760 Equity $ 13,626 $ 13,134 Noncontrolling interests $ 182,771 $ 100,668 Years Ended December 31, (in thousands) 2019 2018 Gross loss $ (102,172 ) $ (85,377 ) Operating, selling, general and administrative expenses 199,691 173,500 Loss from operations (301,863 ) (258,877 ) Other expenses (1,422 ) 37 Loss attributable to noncontrolling interest 321,077 272,905 Net income $ 17,792 $ 14,065 ADES equity earnings from Tinuum Services $ 8,896 $ 7,033 Included in the Consolidated Statement of Operations of Tinuum Services for the years ended December 31, 2019 and 2018 were losses related to VIE entities that are consolidated within Tinuum Services of $321.1 million and $272.9 million , respectively. These losses do not impact the Company's equity earnings from Tinuum Services as 100% of those losses are attributable to a noncontrolling interest and eliminated in the calculations of Tinuum Services' net income attributable to the Company's interest. The following table details the carrying value of the Company's respective equity method investments included in the Equity method investments line item on the Consolidated Balance Sheet and indicates the Company's maximum exposure to loss: As of December 31, (in thousands) 2019 2018 Equity method investment in Tinuum Group $ 32,280 $ — Equity method investment in Tinuum Services 6,813 6,567 Equity method investment in other 62 67 Total equity method investments $ 39,155 $ 6,634 The Company evaluates the investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. No impairments were recorded during the years ended December 31, 2019 and 2018 . The following table details the components of the Company's respective earnings or loss from equity method investments included in the Earnings from equity method investments line item on the Consolidated Statements of Operations : Year ended December 31, (in thousands) 2019 2018 Earnings from Tinuum Group $ 60,286 $ 47,175 Earnings from Tinuum Services 8,896 7,033 Loss from other (6 ) — Earnings from equity method investments $ 69,176 $ 54,208 The following table details the components of the cash distributions from the Company's respective equity method investments included in the Consolidated Statements of Cash Flows . Distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” in Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero ; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” in Investing cash flows. Year ended December 31, (in thousands) 2019 2018 Distributions from equity method investees, return on investment Tinuum Group $ 65,238 $ — Tinuum Services 8,650 5,500 Included in Operating Cash Flows $ 73,888 $ 5,500 Distributions from equity method investees in excess of cumulative earnings Tinuum Group $ — $ 47,175 Included in Investing Cash Flows $ — $ 47,175 During the years ended December 31, 2019 and 2018 , the Company, in the aggregate, made contributions to equity method investments of zero and $0.8 million , respectively. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Debt Obligations Years ended December 31, (in thousands) 2019 2018 Senior Term Loan due December 2021, related party $ 40,000 $ 70,000 Less: net unamortized debt issuance costs (1,163 ) (1,990 ) Less: net unamortized debt discount (1,200 ) (2,052 ) Senior Term Loan due December 2021, net 37,637 65,958 Finance lease obligations (1) 6,729 8,167 44,366 74,125 Less: Current maturities (23,932 ) (24,067 ) Total long-term borrowings $ 20,434 $ 50,058 (1) As of December 31, 2018, obligations related to capital lease obligations as defined in ASC 840. Senior Term Loan In December 2018, the Company, and ADA-ES, Inc. ("ADA"), a wholly-owned subsidiary, and certain other subsidiaries of the Company as guarantors, The Bank of New York Mellon as administrative agent, and Apollo Credit Strategies Master Fund Ltd and Apollo A-N Credit Fund (Delaware) L.P. (collectively "Apollo”), affiliates of a beneficial owner of greater than five percent of the Company's common stock and a related party, entered into the Senior Term Loan in the amount of $70.0 million , less original issue discount of $2.1 million . Proceeds from the Senior Term Loan were used to fund the Carbon Solutions Acquisition as disclosed in Note 2 . The Company also paid debt issuance costs of $2.0 million related to the Senior Term Loan. The Senior Term Loan has a term of 36 months and bears interest at a rate equal to 3-month LIBOR (subject to a 1.5% floor) + 4.75% per annum, which is adjusted quarterly to the current 3-month LIBOR rate, and interest is payable quarterly in arrears. Quarterly principal payments of $6 million 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 million , is permitted so long as (a) no default or event of default exists under the Senior Term Loan and (b) expected future net cash flows from the refined coal business as of the end of the most recent fiscal quarter exceed $100 million . As of December 31, 2019 , the following table presents the future aggregate annual maturities of the Company’s Senior Term Loan excluding unamortized discounts and deferred financing costs: Year ended December 31, (in thousands) Principal Amount 2020 $ 24,000 2021 16,000 2022 — 2023 — 2024 — Total $ 40,000 Line of Credit In September 2013, ADA, as borrower, and the Company, as guarantor, entered into the Line of Credit with a bank (the "Lender") for an aggregate principal amount of $10.0 million that was secured by certain amounts due to the Company from certain Tinuum Group RC leases. The Line of Credit has been amended 13 times from the period from December 2, 2013 through December 31, 2018, including two amendments executed in 2018. On September 30, 2018, ADA, as borrower, the Company, as guarantor, and the Lender entered into an amendment (the "Twelfth Amendment") to the Line of Credit. The Twelfth Amendment decreased the Line of Credit to $5.0 million due to decreased collateral requirements, extended the maturity date of the Line of Credit to September 30, 2020 and permitted the Line of Credit to be used as collateral (in place of restricted cash) for letters of credit ("LC's") up to $5.0 million related to equipment projects and certain other agreements. Under the Twelfth Amendment, there was no minimum cash balance requirement based on the Company meeting certain conditions and maintaining minimum trailing twelve-month EBITDA (earnings before interest, taxes, depreciation and amortization), as previously defined in the "Eleventh Amendment" to the Line of Credit, of $24.0 million . On December 7, 2018, ADA, as borrower, the Company, as guarantor, and the Lender entered into a further amendment to the Line of Credit, which provided, among other things, for ADA to be able to enter into the Senior Term Loan as a guarantor so long as the principal amount of the Senior Term Loan does not exceed $70.0 million . Additionally, the financial covenants in the Line of Credit were amended and restated to be consistent with the aforementioned Senior Term Loan covenants, including maintaining a minimum cash balance of $5.0 million . As of December 31, 2019 , there were no outstanding borrowings under the Line of Credit. |
Leases
Leases | 12 Months Ended |
Dec. 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 ROU assets and related lease liabilities for operating lease commitments that were outstanding as of December 31, 2018. The Company 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. In addition, the Company elected for all classes of underlying assets the practical expedient to not separate nonlease components from lease components and to account for each separate lease component and the nonlease components associated with that lease component as a single lease component. 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 December 31, 2019 , the Company has obligations under finance and operating leases in the amounts of $6.7 million and $5.2 million , respectively. ROU assets under finance leases are mining equipment used at the Company’s lignite mine, which provides the key raw material 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 December 31, 2019 , the Company has ROU assets, net of accumulated amortization, under finance leases and operating leases of $5.9 million and $5.1 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 commencement 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 recorded and classified as finance leases as of January 1, 2019 based on their carrying values of $8.1 million and $8.2 million , respectively, as of December 31, 2018. 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 Consolidated Balance Sheet as of December 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 Consolidated Statement of Operations for the year ended December 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 Consolidated Balance Sheet as of December 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. Under ASC 842, lease expense for operating leases for the year ended December 31, 2019 was $4.4 million , of which $3.9 million is included in Consumables - cost of revenue, exclusive of depreciation and amortization, and $0.5 million is included in General and administrative in the Consolidated Statement of Operations for the year ended December 31, 2019 . In August 2019, the Company entered into a new lease agreement covering approximately 21,000 square feet of office space for a term of 3.5 years and recorded an ROU asset of $1.2 million and a corresponding operating lease liability of $1.2 million . Lease financial information as of and for the year ended December 31, 2019 is provided in the following table: Year ended December 31, (in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 2,149 Interest on lease liabilities 365 Operating lease cost 3,673 Short-term lease cost 771 Variable lease cost (1) 371 Sublease income — Total lease cost $ 7,329 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 365 Operating cash flows from operating leases $ 3,180 Financing cash flows from finance leases $ 1,354 Right-of-use assets obtained in exchange for new finance lease liabilities $ — Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,309 Weighted-average remaining lease term - finance leases 4.2 years Weighted-average remaining lease term - operating leases 2.4 years Weighted-average discount rate - finance leases 6.1 % Weighted-average discount rate - operating leases 8.5 % (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 December 31, 2019 : (in thousands) Operating Finance Total Lease Commitments 2020 $ 2,710 $ 1,707 $ 4,417 2021 1,969 1,802 3,771 2022 721 951 1,672 2023 359 951 1,310 2024 — 1,929 1,929 Thereafter — 568 568 Total lease payments 5,759 7,908 13,667 Less: Imputed interest (567 ) (1,179 ) (1,746 ) Present value of lease payments $ 5,192 $ 6,729 $ 11,921 Disclosures under ASC 840 As previously disclosed in the Company's 2018 Annual Report on Form 10-K and under ASC 840, 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 Rent expense for the year ended December 31, 2018 was $0.3 million and was included in General and administrative expense in the Consolidated Statements of Operations . As of December 31, 2018 , mining equipment financed under capital leases of $8.1 million , net of accumulated amortization of $0.1 million , was included in Property, plant and equipment in the Consolidated Balance Sheet . |
Leases | Leases The financial statement impact from the adoption of ASC 842 as of January 1, 2019 is due to recording ROU assets and related lease liabilities for operating lease commitments that were outstanding as of December 31, 2018. The Company 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. In addition, the Company elected for all classes of underlying assets the practical expedient to not separate nonlease components from lease components and to account for each separate lease component and the nonlease components associated with that lease component as a single lease component. 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 December 31, 2019 , the Company has obligations under finance and operating leases in the amounts of $6.7 million and $5.2 million , respectively. ROU assets under finance leases are mining equipment used at the Company’s lignite mine, which provides the key raw material 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 December 31, 2019 , the Company has ROU assets, net of accumulated amortization, under finance leases and operating leases of $5.9 million and $5.1 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 commencement 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 recorded and classified as finance leases as of January 1, 2019 based on their carrying values of $8.1 million and $8.2 million , respectively, as of December 31, 2018. 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 Consolidated Balance Sheet as of December 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 Consolidated Statement of Operations for the year ended December 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 Consolidated Balance Sheet as of December 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. Under ASC 842, lease expense for operating leases for the year ended December 31, 2019 was $4.4 million , of which $3.9 million is included in Consumables - cost of revenue, exclusive of depreciation and amortization, and $0.5 million is included in General and administrative in the Consolidated Statement of Operations for the year ended December 31, 2019 . In August 2019, the Company entered into a new lease agreement covering approximately 21,000 square feet of office space for a term of 3.5 years and recorded an ROU asset of $1.2 million and a corresponding operating lease liability of $1.2 million . Lease financial information as of and for the year ended December 31, 2019 is provided in the following table: Year ended December 31, (in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 2,149 Interest on lease liabilities 365 Operating lease cost 3,673 Short-term lease cost 771 Variable lease cost (1) 371 Sublease income — Total lease cost $ 7,329 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 365 Operating cash flows from operating leases $ 3,180 Financing cash flows from finance leases $ 1,354 Right-of-use assets obtained in exchange for new finance lease liabilities $ — Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,309 Weighted-average remaining lease term - finance leases 4.2 years Weighted-average remaining lease term - operating leases 2.4 years Weighted-average discount rate - finance leases 6.1 % Weighted-average discount rate - operating leases 8.5 % (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 December 31, 2019 : (in thousands) Operating Finance Total Lease Commitments 2020 $ 2,710 $ 1,707 $ 4,417 2021 1,969 1,802 3,771 2022 721 951 1,672 2023 359 951 1,310 2024 — 1,929 1,929 Thereafter — 568 568 Total lease payments 5,759 7,908 13,667 Less: Imputed interest (567 ) (1,179 ) (1,746 ) Present value of lease payments $ 5,192 $ 6,729 $ 11,921 Disclosures under ASC 840 As previously disclosed in the Company's 2018 Annual Report on Form 10-K and under ASC 840, 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 Rent expense for the year ended December 31, 2018 was $0.3 million and was included in General and administrative expense in the Consolidated Statements of Operations . As of December 31, 2018 , mining equipment financed under capital leases of $8.1 million , net of accumulated amortization of $0.1 million , was included in Property, plant and equipment in the Consolidated Balance Sheet . |
Revenues
Revenues | 12 Months Ended |
Dec. 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 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 Consolidated Balance Sheet and, if deliverable outside of one year, is included in Other long-term liabilities in the Consolidated Balance Sheet . Trade receivables, net The following table shows the components of Trade receivables, net: As of December 31, (in thousands) 2019 2018 Trade receivables $ 8,057 $ 10,121 Less: Allowance for doubtful accounts (627 ) (567 ) Trade receivables, net $ 7,430 $ 9,554 During the years ended December 31, 2019 and 2018 , the Company recognized $0.1 million and $0.2 million , respectively, as bad debt expense related to specific accounts whose ultimate collection was in doubt. Disaggregation of Revenue and Earnings from Equity Method Investments During the year ended December 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 15 to the consolidated financial statements. The Company does not disaggregate revenue by geographic region as revenue is generated primarily from customers in the United States; however, in the PGI segment for the year ended December 31, 2019 , approximately 15% of PGI revenue was generated in Canada. The following tables disaggregate revenues by major source for the year ended December 31, 2019 and 2018 (in thousands): Year ended December 31, 2019 Segment (in thousands) PGI RC Other Total Revenue component Consumables $ 50,458 $ — $ 2,729 $ 53,187 License royalties, related party — 16,899 — 16,899 Revenues from customers 50,458 16,899 2,729 70,086 Earnings from equity method investments — 69,176 — 69,176 Total revenues and earnings from equity method investments $ 50,458 $ 86,075 $ 2,729 $ 139,262 Year ended December 31, 2018 Segment (in thousands) PGI RC Other Total Revenue component Consumables $ 8,628 $ — $ 105 $ 8,733 License royalties, related party — 15,140 — 15,140 Other 72 — — 72 Revenues from customers 8,700 15,140 105 23,945 Earnings from equity method investments — 54,208 — 54,208 Total revenues and earnings from equity method investments $ 8,700 $ 69,348 $ 105 $ 78,153 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 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 outcomes, the financial impacts of which are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its consolidated financial statements for costs related to claims, settlements, and judgments where management has assessed that a loss is probable, and an amount can be reasonably estimated. The Company did not have any significant legal proceedings. Other Commitments and Contingencies The Company also has certain limited obligations contingent upon future events in connection with the activities of Tinuum Group. The Company, NexGen and two entities affiliated with NexGen have provided GSFS with limited guaranties (the "Tinuum Group Party Guaranties") related to certain losses it may suffer as a result of inaccuracies or breach of representations and covenants. The Company also is a party to a contribution agreement with NexGen under which any party called upon to pay on a Tinuum Group Party Guaranty is entitled to receive contribution from the other party equal to 50% of the amount paid. No liability or expense provision has been recorded by the Company related to this contingent obligation as the Company believes that it is not probable that a loss will occur with respect to Tinuum Group Party Guaranties. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The Company has two classes of capital stock authorized, common stock and preferred stock, which are described as follows: Preferred Stock The Company's Board of Directors (the "Board') is authorized to provide out of the unissued shares of Preferred Stock and to fix the number of shares constituting a series of Preferred Stock and, with respect to each series, to fix the number of shares and designation of such series, the voting powers, if any, the preferences and relative, participating, option or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series. As of December 31, 2019 and 2018 , there were no shares of Preferred Stock designated or outstanding. Common Stock Holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Additionally, holders of common stock are entitled to receive dividends when and if declared by the Board, subject to any statutory or contractual restrictions on payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding shares of preferred stock. Upon dissolution, liquidation or the sale of all or substantially all of the Company's assets, after payment in full of any amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of common stock will be entitled to receive the Company's remaining assets for distribution on a pro rata basis. Stock Repurchase Programs In November 2018, the Board authorized the Company to purchase up to $20.0 million of its outstanding common stock. This stock repurchase program was to remain in effect until December 31, 2019 unless otherwise modified by the Board. As of November 2019, $2.9 million remained outstanding related to this program. In November 2019, the Board authorized an incremental $7.1 million to this stock repurchase program and provided that the program will remain in effect until all amounts are utilized or the program is otherwise modified by the Board. Previously, the Board had authorized the Company to purchase up to $20.0 million of its outstanding common stock under a separate repurchase program that was in effect until July 31, 2018. During the years ended December 31, 2019 and 2018 , under the collective stock repurchase programs authorized by the Board, the Company purchased 533,345 and 2,350,422 shares of its common stock for cash of $5.8 million and $25.3 million , inclusive of commissions and fees, respectively. Of these amounts, zero and $15.6 million , respectively, was purchased in single blocks through privately negotiated transactions. As of December 31, 2019 , the Company had $7.1 million remaining under its stock repurchase program. Quarterly Cash Dividend Dividends declared to holders of the Company's common shares during the years ended December 31, 2019 and December 31, 2018 were $18.6 million and $20.3 million , respectively. A portion of the dividends remains accrued subsequent to the payment dates and represents dividends accumulated on nonvested shares of common stock held by employees of the Company that contain forfeitable dividend rights that are not payable until the underlying shares of common stock vest. These amounts are included in both Other current liabilities and Other long-term liabilities on the Consolidated Balance Sheet as of December 31, 2019 and 2018 . Dividends declared and paid quarterly per share on all outstanding shares of common stock during the years ended December 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 June 30 0.25 June 7, 2019 0.25 June 8, 2018 September 30 0.25 September 6, 2019 0.25 September 6, 2018 December 31 0.25 December 13, 2019 0.25 December 6, 2018 $ 1.00 $ 1.00 Tax Asset Protection Plan United States federal income tax rules, and Section 382 of the Internal Revenue Code in particular, could substantially limit the use of net operating losses and other tax assets if ADES experiences an "ownership change" (as defined in the Internal Revenue Code). In general, an ownership change occurs if there is a cumulative change in the ownership of ADES by "5 percent stockholders" that exceeds 50 percentage points over a rolling three-year period. On May 5, 2017, the Board approved the declaration of a dividend of rights to purchase Series B Junior Participating Preferred Stock for each outstanding share of common stock as part of a tax asset protection plan (the "TAPP") designed to protect the Company’s ability to utilize its net operating losses and tax credits. The TAPP is intended to act as a deterrent to any person acquiring beneficial ownership of 4.99% or more of the Company’s outstanding common stock. On April 6, 2018, the Board approved the First Amendment to the Tax Asset Protection Plan (the "Amendment") that amends the TAPP. The Amendment amends the definition of "Final Expiration Date" under the TAPP to extend the duration of the TAPP and makes associated changes in connection therewith. At the Company's 2018 annual meeting, the Company's stockholders approved the Amendment, thus the Final Expiration Date will be the close of business on December 31, 2019, which was subsequently extended, as described below. On April 5, 2019, the Board approved the Second Amendment to the TAPP (the "Second Amendment") that amends the TAPP, as previously amended. The Second Amendment amends the definition of the “Final Expiration Date” under the TAPP to extend the duration of the TAPP and makes associated changes in connection therewith. At the Company's 2019 annual meeting of stockholders, the Company's stockholders approved the Second Amendment, thus the Final Expiration Date became the close of business on December 31, 2020. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Plans The Company currently has incentive plans, including the Amended and Restated 2010 Non-Management Compensation and Incentive Plan, as amended (the “2010 Plan”) and the 2017 Omnibus Incentive Plan (the “2017 Plan”) as described below. Collectively, these plans are called the “Stock Plans" and permit the Company to issue stock-based awards, including common stock, restricted stock, stock options and other rights and benefits under the plans to employees, directors and non-employees. The 2010 Plan - During 2010, the Company adopted the 2010 Plan which permits grants of stock awards to employees, which may be shares, rights to purchase restricted stock, bonuses of restricted stock, or other rights or benefits under the plan. The Company reserved 600,000 shares of its common stock for these purposes. The Plan was amended and restated as of July 19, 2012 to make non-material changes to assure Internal Revenue Code Section 409A compliance. Upon the adoption of the 2017 Plan in June 2017, the Company no longer grants any awards from the 2010 Plan. The 2017 Plan - During 2017, the Company adopted the 2017 Plan which permits grants of awards to employees, directors and non-employees, which may be shares, rights to purchase restricted stock, bonuses of restricted stock, or other rights or benefits under the plan. As of December 31, 2019 , the Company has 2,000,000 shares of its common stock authorized for issuance under the 2017 Plan. Expense RSA's - Restricted Stock Awards ("RSA's") are typically granted with vesting terms of three years. The fair value of RSA's is determined based on the closing price of the Company’s common stock on the authorization date of the grant multiplied by the number of shares subject to the stock award. Compensation expense for RSA's is generally recognized over the vesting term on a straight-line basis. Stock Options - Stock options generally vest over three years or upon satisfaction of performance-based conditions and have a contractual limit of five years from the date of grant to exercise. The fair value of stock options granted is determined on the date of grant using the Black-Scholes option pricing model and the related expense is recognized on a straight-line basis over the entire vesting period. No stock options were granted during the years ended December 31, 2019 and 2018 . When options are granted, the Company uses historical data to estimate inputs used in the Black-Scholes option pricing model. Risk-free interest rate - The risk-free interest rate for stock options granted during the period was determined by using a zero-coupon U.S. Treasury rate for the periods that coincided with the expected terms listed above. Dividends - As historically no dividends had been paid as of the date by which grants occurred, no dividend yield was included in the calculations when the outstanding options were granted. Expected volatility - To calculate expected volatility, the historical volatility of the Company's common stock was used. Expected term - The Company’s expected term of options was based upon historical exercise behavior and consideration of the options' vesting and contractual terms. RSU's - Restricted Stock Units ("RSU's") are typically granted with vesting terms of one year. The fair value of RSU's is determined based on the closing price of the Company’s common stock on the authorization date of the grant multiplied by the number of shares subject to the stock award. Compensation expense is generally recognized over the service period of the award on a straight-line basis. PSU's - Performance share units ("PSU's") generally vest over three years and are based on the grantee’s continuous service with the Company, performance measures or a combination of both. Each PSU represents a contingent right to receive shares of the Company’s common stock if the Company meets certain performance measures over the requisite period. Compensation expense is recognized for PSU awards on a straight-line basis over the vesting period based on the estimated fair value at the date of grant using a Monte Carlo simulation model. No PSU's were granted during the years ended December 31, 2019 or 2018 . Risk-free interest rate - The risk-free interest rate for PSU's granted during the period was determined by using a zero-coupon U.S. Treasury rate for the periods that coincided with the expected terms listed above. Dividends - As historically no dividends had been paid as of the date by which grants occurred, no dividend yield was included in the calculations. Expected volatility - To calculate expected volatility, the historical volatility of the Company's common stock was used. Performance period - The Company’s performance period is based upon the vesting term of the Company’s PSU awards. The Company recorded the following compensation expense related to the Stock Plans: Years Ended December 31, (in thousands) 2019 2018 RSA expense $ 2,011 $ 2,222 Stock option expense — 58 RSU expense — 210 Total stock-based compensation expense $ 2,011 $ 2,490 Stock-based compensation expense related to manufacturing employees and administrative employees is included in the Cost of goods sold and Payroll and benefits line items, respectively, in the Consolidated Statements of Operations. Stock-based compensation expense related to non-employee directors and consultants is included in the General and administrative line item in the Consolidated Statements of Operations. During the year ended December 31, 2019 and 2018 , the Company modified the terms of awards granted to zero and 13 employees in connection with its restructuring plans and termination of the impacted employees discussed in Note 19 . These modifications resulted in the accelerated vesting and incremental expense related to certain performance-based awards and restricted stock awards. As a result, during 2019 and 2018 , the Company recognized incremental stock-based compensation of zero and $0.8 million , respectively, which was included in the Payroll and benefits line item in the Consolidated Statements of Operations. The amount of unrecognized compensation cost as of December 31, 2019 , and the expected weighted-average period over which the cost will be recognized is as follows: As of December 31, 2019 (in thousands) Unrecognized Compensation Cost Expected Weighted-Average Period of Recognition (in years) RSA expense $ 2,521 1.47 Total unrecognized stock-based compensation expense $ 2,521 1.47 Activity Restricted Stock A summary of the status and activity of RSA's and RSU's is presented in the following table: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands, except for share and per share amounts) Awards Units RSA's RSU's For the year ended December 31, 2019 Non-vested at January 1, 2019 280,852 20,000 $ 9.92 $ 10.52 Granted 287,288 — $ 11.03 $ — Vested (108,081 ) (20,000 ) $ 9.77 $ 10.52 Forfeited (8,715 ) — $ 10.79 $ — Non-vested at December 31, 2019 451,344 — $ 10.65 $ — The weighted-average grant date fair value of RSA's granted or modified during the years ended December 31, 2019 and 2018 was $11.03 and $11.00 , respectively. The weighted-average grant date fair value of RSU's granted or modified during the years ended December 31, 2019 and 2018 was zero and $10.52 , respectively. The total grant-date fair value of RSA's vested during the years ended December 31, 2019 and 2018 was $1.1 million and $2.0 million , respectively. The aggregate intrinsic value of non-vested RSA's and RSU's outstanding as of December 31, 2019 was $4.7 million and zero , respectively. Stock Options A summary of option activity under the Stock Plans is presented below: (in thousands, except for share and per share amounts) Number of Weighted- Aggregate Intrinsic Value Weighted- For the year ended December 31, 2019 Options outstanding at January 1, 2019 529,780 $ 12.23 Options granted — $ — Options exercised (209,780 ) $ 9.14 Options expired / forfeited (20,000 ) $ 20.07 Options outstanding at December 31, 2019 300,000 $ 13.87 $ — 0.43 Options vested and exercisable at December 31, 2019 300,000 $ 13.87 $ — 0.43 The weighted-average grant-date fair value of options vesting during the years ended December 31, 2019 and 2018 was zero and $0.3 million , respectively. The weighted-average grant-date fair value of options exercised during the year ended December 31, 2019 and 2018 was $0.6 million and $0.3 million , respectively. The Company received proceeds of $0.2 million from the exercise of stock options during the year ended December 31, 2019 . The Company did no t receive cash from the exercise of stock options during the year ended December 31, 2018 . Cash flows resulting from excess tax benefits, if any, are classified as part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for vested RSA's and exercised options in excess of the deferred tax asset attributable to stock compensation costs for such equity awards. The Company recorded no excess tax benefits for the years ended December 31, 2019 and 2018 . PSU's There were no PSU's granted during the years ended December 31, 2019 and 2018 . PSU's outstanding remained unvested until the third anniversary date of their issuance, at which time the actual number of vested shares was determined based upon the actual price performances of the Company’s common stock relative to a broad stock index and a peer group performance index. The following table shows the PSU's that were settled by issuing the Company's common stock relative to a peer group performance index and broad stock index. Year of Grant Net Number of Issued Shares upon Vesting Shares Withheld to Settle Tax Withholding Obligations TSR Multiple Range Russell 3000 Multiple Low High Low High For year ended December 31, 2018 2015 12,311 4,061 112.50 112.50 — — |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 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, net as presented in the Consolidated Balance Sheet : As of December 31, (in thousands) 2019 2018 Prepaid expenses and other current assets: Prepaid expenses $ 1,708 $ 1,233 Prepaid income taxes 4,228 2,940 Other 1,896 1,397 $ 7,832 $ 5,570 Other long-term assets: Right of use assets, operating leases, net $ 5,073 $ — Spare parts, net 3,453 3,278 Mine development costs, net 7,084 2,531 Mine reclamation asset, net 2,451 408 Highview investment 552 552 Other long-term assets 1,718 1,224 $ 20,331 $ 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 Five Forks Mine are depleted over the estimated life of the related mine reserves, which is 21 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 December 31, 2019 . Mine reclamation asset represents an asset retirement obligation asset and is depreciated over the estimated life of the mine. The Company holds a long-term investment (the "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 years ended December 31, 2019 and 2018 as there were no indicators of impairment or observable price changes for equity issued by Highview. The following table details the components of Other current liabilities and Other long-term liabilities as presented in the Consolidated Balance Sheet : As of December 31, (in thousands) 2019 2018 Other current liabilities: Current portion of operating lease obligations $ 2,382 $ — Accrued interest 213 407 Income and other taxes payable 678 479 Other current liabilities 1,038 1,252 $ 4,311 $ 2,138 Other long-term liabilities: Operating lease obligations, long-term $ 2,810 $ — Mine reclamation liability 2,721 624 Other 229 316 $ 5,760 $ 940 Included in Other long-term liabilities is the Mine reclamation liability, which represents an asset retirement obligation. Changes in the asset retirement obligation were as follows: As of December 31, (in thousands) 2019 2018 Asset retirement obligation, beginning of year $ 624 $ — Asset retirement obligation assumed in Carbon Solutions Acquisition 1,776 626 Accretion 205 2 Liabilities settled (78 ) (4 ) Changes due to scope and timing of reclamation 194 — Asset retirement obligations, end of year $ 2,721 $ 624 As part of the Carbon Solutions Acquisition, the Company assumed an asset retirement obligation related to the Five Forks Mine. The Company recorded the liability at its estimated fair value and periodically adjusts to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Refer to Note 2 for details regarding adjustments made to the fair values of the asset retirement obligation from the preliminary purchase price allocation. The Company’s mining activities are subject to various domestic laws and regulations governing the protection of the environment. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on current legal and regulatory requirements. Supplemental Consolidated Statements of Operations Information The following table details the components of Interest expense in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2019 2018 Interest on Senior Term Loan $ 4,112 $ 366 Debt discount and debt issuance costs 1,678 94 453A interest 1,039 1,585 Other 345 106 $ 7,174 $ 2,151 The following table details the components of Other in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2019 2018 Interest income $ 261 $ 239 Other 166 (19 ) $ 427 $ 220 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 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 and cash equivalents, accounts receivable, accounts payable, deposits and accrued expenses, approximate fair value due to the short maturity of these instruments. Accordingly, these instruments are not presented in the table below. The following table provides the estimated fair values of the remaining financial instruments: As of December 31, 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 $ 220 $ 220 $ 213 $ 213 Concentration of credit risk As of December 31, 2019 , 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 three financial institutions as of December 31, 2019 . If those institutions were unable to perform their obligations, the Company would be at risk regarding the amount of its cash balance in excess of the federal deposit insurance corporation limits ( $250 thousand ). Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2019 and December 31, 2018 , the Company had no material financial instruments carried and measured at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company completed the Carbon Solutions Acquisition, in which the fair value of the purchase consideration totaled $66.5 million . The Company's estimated fair values of the assets acquired and liabilities assumed are disclosed in Note 2 . The fair value measurements represent Level 3 measurements as they were based on significant inputs not observable in the market. The Company has applied the measurement alternative for investments without readily determinable fair values under ASC Topic 321 - Investments in Equity Securities ("ASC 321") for the Highview Investment. Fair value measurements, if any, resulting from the Company's application of the guidance in ASC 321 represent either Level 2 or Level 3 measurements. There were no changes to the carrying value of the Highview Investment for the years ended December 31, 2019 and 2018 as there were no indicators of impairment or observable price changes for equity issued by Highview. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: Years Ended December 31, (in thousands, except for rate) 2019 2018 Current portion of income tax expense: Federal $ 2,133 $ 882 State and other 1,211 4,308 3,344 5,190 Deferred portion of income tax expense (benefit): Federal 10,491 4,766 State and other (1,836 ) 467 8,655 5,233 Total income tax expense $ 11,999 $ 10,423 Effective tax rate 25 % 23 % Income tax expense differs from the amount that would be computed by applying the U.S. statutory federal income tax rate of 21% for the years ended December 31, 2019 and 2018 to income before income taxes as a result of the following: Years Ended December 31, (in thousands) 2019 2018 Federal statutory rate $ 10,027 $ 9,634 State income taxes, net of federal benefit 1,597 3,625 Permanent differences 286 130 Tax credits (338 ) (7,031 ) Valuation allowances (288 ) 4,462 Changes in tax rates 229 (464 ) Stock-based compensation 112 (216 ) UTP liability 236 — Other 138 283 Expense for the provision for income taxes $ 11,999 $ 10,423 Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and their reported amounts in the accompanying Consolidated Balance Sheets. These temporary differences result in taxable or deductible amounts in future years. Details of the Company’s deferred tax assets and liabilities are summarized as follows: As of December 31, (in thousands) 2019 2018 Deferred tax assets Tax credits $ 98,541 $ 104,553 Operating lease obligations 1,307 — Employee related liabilities 1,065 1,515 Intangible assets 1,574 1,623 Equity method investments — 9,588 Net operating loss carryforwards 2,956 2,479 Other investments 555 583 Reserves 587 45 Other 244 335 Total deferred tax assets 106,829 120,721 Less valuation allowance (79,610 ) (79,898 ) Deferred tax assets 27,219 40,823 Less: Deferred tax liabilities Property and equipment and other (11,087 ) (8,284 ) Equity method investments (736 ) — Right of use operating lease assets (1,301 ) — Total deferred tax liabilities (13,124 ) (8,284 ) Net deferred tax assets $ 14,095 $ 32,539 Accounting for income taxes requires that companies assess whether a valuation allowance should be recorded against their deferred tax asset based on an assessment of the amount of the deferred tax asset that is “more likely than not” to be realized. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company assesses the valuation allowance recorded against deferred tax assets at each reporting date. The determination of whether a valuation allowance for deferred tax assets is appropriate requires the evaluation of positive and negative evidence that can be objectively verified. Consideration must be given to all sources of taxable income available to realize a deferred tax asset, including, as applicable, the future reversal of existing temporary differences, future taxable income forecasts exclusive of the reversal of temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. In estimating taxes, the Company assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. As of December 31, 2019 , the Company concluded it is more likely than not the Company will generate sufficient taxable income within the applicable net operating loss and tax credit carry-forward periods to realize $14.1 million of its net deferred tax assets, which resulted in a decrease in the valuation allowance from December 31, 2018 of $0.3 million . In reaching this conclusion, the Company primarily considered: (1) the future reversal of existing temporary differences; and (2) forecasts of continued future taxable income. The following table presents the approximate amount of state net operating loss carryforwards and federal tax credit carryforwards available to reduce future taxable income, along with the respective range of years that the net operating loss and tax credit carryforwards would expire if not utilized: As of December 31, (in thousands) 2019 Beginning expiration year Ending expiration year Federal tax credit carryforwards $ 98,541 2032 2039 State and other operating loss carryforwards $ 2,956 2021 2039 The following table sets forth a reconciliation of the beginning and ending unrecognized tax benefits on a gross basis for the years ended December 31, 2019 and 2018 : Years Ended December 31, (in thousands) 2019 2018 Balance as of January 1 $ 54 $ 54 Increases for tax positions of prior years 892 — Balance as of December 31 $ 946 $ 54 Included in the balance of unrecognized tax benefits as of December 31, 2019 are $0.7 million of tax benefits that, if utilized, would result in adjustments to deferred taxes. The Company did not record any adjustments or recognize interest expense for uncertain tax positions for the years ended December 31, 2019 and 2018 . Interest and penalties related to uncertain tax positions are accrued and included in the Interest expense line item in the Consolidated Statements of Operations . Additionally, the Company recognizes interest expense related to the federal tax treatment of RC facilities at Tinuum Group in the Interest expense line item in the Consolidated Statements of Operations. Additional information related to the components of Interest expense is included in Note 12 . The Company files income tax returns in the U.S. and various states. The Company is no longer subject to U.S. federal examinations by tax authorities for years before 2015 . The Company is generally no longer subject to state examinations by tax authorities for years before 2013 . |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 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 December 31, 2019 , the Company's CODM was the Company's CEO. The Company's operating and reportable segments are organized by products and services provided. As of December 31, 2019 , the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Power Generation and Industrials ("PGI"). The majority of Carbon Solutions operations has been included in the PGI segment; whereas a portion has been included in All Other and Corporate. The business segment measurements provided to and evaluated by the CODM are computed in accordance with the principles listed below: • The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except as described below. • Segment revenues include equity method earnings and losses from the Company's equity method investments. • Segment operating income (loss) includes segment revenues and allocation of certain "Corporate general and administrative expenses," which includes Payroll and benefits , Legal and professional fees , and General and administrative . • RC segment operating income includes interest expense directly attributable to the RC segment. As of December 31, 2019 and 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 years ended December 31, 2019 and 2018 : Years Ended December 31, (in thousands) 2019 2018 Revenues: Refined Coal: Earnings in equity method investments $ 69,176 $ 54,208 License royalties, related party 16,899 15,140 86,075 69,348 Power Generation and Industrials: Consumables 50,458 8,628 Other — 72 50,458 8,700 Total segment reporting revenues 136,533 78,048 Adjustments to reconcile to reported revenues: Earnings in equity method investments (69,176 ) (54,208 ) Corporate and other 2,729 105 Total reported revenues $ 70,086 $ 23,945 Segment operating income (loss) Refined Coal (1) $ 83,471 $ 64,854 Power Generation and Industrials (2) (11,606 ) (2,621 ) Total segment operating income $ 71,865 $ 62,233 (1) Included in the RC segment operating income for the years ended December 31, 2019 and 2018 is 453A interest expense of $1.0 million and $1.6 million , respectively. Also included in the RC segment operating income for the year ended December 31, 2018 was $0.4 million of severance expense. (2) Included in the PGI segment operating income for the year ended December 31, 2019 and 2018 was approximately $4.7 million and $1.0 million , respectively, of amortization expense related to the fair value of inventory. Also included in the PGI segment operating income for the year ended December 31, 2019 and 2018 was $6.7 million and $0.5 million , respectively, of depreciation, amortization, and depletion on mine and plant related long-lived assets. A reconciliation of reportable segment operating income to the Company's consolidated net income is as follows: Years Ended December 31, (in thousands) 2019 2018 Total reported segment operating income $ 71,865 $ 62,233 Other operating (loss) income (1,994 ) 2 69,871 62,235 Adjustments to reconcile to income before income tax expense attributable to the Company: Corporate payroll and benefits (2,592 ) (4,970 ) Corporate legal and professional fees (7,485 ) (7,700 ) Corporate general and administrative (6,836 ) (3,305 ) Corporate depreciation and amortization (82 ) (134 ) Corporate interest expense, net (5,767 ) (521 ) Other income, net 427 272 Income before income tax expense $ 47,536 $ 45,877 Corporate general and administrative expenses include certain costs that benefit the business as a whole but are not directly related to one of the Company's segments. Such costs include, but are not limited to, accounting and human resources staff, information systems costs, legal fees, facility costs, audit fees and corporate governance expenses. A reconciliation of reportable segment assets to the Company's consolidated assets is as follows: As of December 31, (in thousands) 2019 2018 Assets: Refined Coal (1) $ 43,953 $ 11,468 Power Generation and Industrials 80,912 85,786 Total segment assets 124,865 97,254 All Other and Corporate (2) 48,934 62,410 Consolidated $ 173,799 $ 159,664 (1) Includes $39.2 million and $6.6 million of investments in equity method investees as of December 31, 2019 and 2018 , respectively. (2) Includes the Company's net deferred tax assets of $14.1 million and $32.5 million as of December 31, 2019 and 2018 , respectively. |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2019 | |
Major Customers Disclosure [Abstract] | |
Major Customers | Major Customers Revenues from external customers who represent 10% or more of the Company’s revenues for the years ended December 31, 2019 and 2018 were as follows: Years ended December 31, Customer Revenue Type Segment(s) 2019 2018 A License royalties, related party RC 24% 63% B Consumables PGI 10% —% |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Accounts Receivable The following table shows the Company's receivable balance associated with related parties as of December 31, 2019 and 2018 : As of December 31, (in thousands) 2019 2018 Receivable from related party - Tinuum Group $ 4,246 $ 4,284 Revenues The following table shows the income recognized with related parties during the years ended December 31, 2019 and 2018 : Years Ended December 31, (in thousands) 2019 2018 License royalties, related party - Tinuum Group $ 16,899 $ 15,140 The above Tinuum Group royalties are included in the License royalties, related party line in the Consolidated Statements of Operations . |
Defined Contributions Savings P
Defined Contributions Savings Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Defined Contributions Savings Plan | Defined Contribution Savings Plans The Company sponsors two qualified defined contribution savings plans (collectively the "401(k) Plans") that allow participation by eligible employees who may defer a portion of their gross pay. The Company makes contributions to the 401(k) Plans based on percentages of an employee's eligible compensation as specified in the 401(k) Plans, and such employer contributions are in the form of cash. As of January 1, 2020, the Company merged the 401(k) Plans. The following table presents the amount of the Company's contributions made to the 401(k) Plan: Years Ended December 31, (in thousands) 2019 2018 401(k) Plans employer contributions $ 553 $ 139 Due to the increase in employees resulting from the Carbon Solutions Acquisition, there was an increase in employer contributions made to the 401(k) Plan for the year ended December 31, 2019 . |
Restructuring
Restructuring | 12 Months Ended |
Dec. 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. During the year ended December 31, 2019 , the Company did not record material restructuring charges. A summary of the net pretax charges incurred by segment is as follows: Pretax Charge (in thousands, except employee data) Approximate Number of Employees Refined Coal PGI All Other and Corporate Total Year ended December 31, 2018 Restructuring charges 16 $ 448 $ 996 $ 1,685 $ 3,129 Changes in estimates — — — — Total pretax charge, net of reversals $ 448 $ 996 $ 1,685 $ 3,129 The following table summarizes the Company's utilization of restructuring accruals for the years ended December 31, 2019 and 2018 : (in thousands) Employee Severance Beginning accrual as of January 1, 2018 $ — Expense provision 3,129 Cash payments and other (1,491 ) Change in estimates — Severance liability acquired 570 Accrual as of December 31, 2018 2,208 Expense provision 172 Cash payments and other (2,051 ) Change in estimates (75 ) Accrual as of December 31, 2019 $ 254 For the years ended December 31, 2019 and 2018 , included in the Expense provision and Cash payments and other line items in the above table is stock-based compensation of zero and $0.8 million , respectively, resulting from the accelerated vesting of modified equity-based compensation awards for certain terminated employees. Restructuring accruals related to personnel are included in the Accrued payroll and related liabilities line item in the Consolidated Balance Sheet . Restructuring expenses related to personnel are included in the Payroll and benefits and Research and development, net line items in the Consolidated Statements of Operations . Restructuring accruals related to facilities are included in the Other current liabilities line item in the Consolidated Balance Sheet . Restructuring expenses related to facilities are included in the Rent and occupancy line item in the Consolidated Statements of Operations . |
Quarterly Financial Results (un
Quarterly Financial Results (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (unaudited) | Quarterly Financial Results (unaudited) Summarized quarterly results for the two years ended December 31, 2019 and December 31, 2018 are as follows: For the Quarter Ended (in thousands, except per share data) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Revenues $ 16,047 $ 19,133 $ 15,577 $ 19,329 Cost of revenues, exclusive of operating expenses shown below 11,104 11,939 12,292 14,108 Other operating expenses 9,630 9,585 7,545 8,776 Operating loss (4,687 ) (2,391 ) (4,260 ) (3,555 ) Earnings from equity method investments 12,125 14,426 20,935 21,690 Other expenses, net (1,269 ) (1,517 ) (1,927 ) (2,034 ) Income before income tax expense 6,169 10,518 14,748 16,101 Income tax (benefit) expense (2,929 ) (1) 6,595 6,634 1,699 Net income $ 9,098 $ 3,923 $ 8,114 $ 14,402 Earnings per common share – basic $ 0.50 $ 0.22 $ 0.45 $ 0.79 Earnings per common share – diluted $ 0.50 $ 0.21 $ 0.44 $ 0.78 Weighted-average number of common shares outstanding Basic 18,066 18,112 18,172 18,268 Diluted 18,275 18,339 18,377 18,433 For the Quarter Ended (in thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Revenues $ 10,626 (2) $ 5,147 $ 4,273 $ 3,899 Cost of revenues, exclusive of operating expenses shown below 4,032 (2) 954 704 563 Other operating expenses 9,745 (2), (3) 4,161 5,138 5,048 Operating (loss) income (3,151 ) 32 (1,569 ) (1,712 ) Earnings from equity method investments 16,351 9,715 15,889 12,253 Other expenses, net (930 ) (313 ) (378 ) (310 ) Income before income tax expense 12,270 (2), (3) 9,434 13,942 10,231 Income tax expense (benefit) 5,272 (4) 3,931 (1,349 ) 2,569 Net income $ 6,998 $ 5,503 $ 15,291 $ 7,662 Earnings per common share – basic $ 0.36 $ 0.28 $ 0.76 $ 0.37 Earnings per common share – diluted $ 0.36 $ 0.28 $ 0.75 $ 0.37 Weighted-average number of common shares outstanding Basic 19,339 19,726 20,062 20,502 Diluted 19,439 19,876 20,195 20,584 (1) During the fourth quarter of 2019, the Company recorded income tax benefit of $2.9 million primarily due to a decrease in current income tax expense compared to current income tax recorded form the nine months ended September 30, 2019. This decrease was primarily due to a decrease in income before income tax expense for the year ended December 31, 2019 compared to the estimated annual income before income tax expense that was used in computing current income tax expense for the nine months ended September 30, 2019. (2) During the fourth quarter of 2018, the Company completed the Carbon Solutions Acquisition and the operating results for the fourth quarter of 2018 include the operations of Carbon Solutions for the period from December 7 to December 31, 2018. For this period, Carbon Solutions contributed $5.6 million to Revenues, $3.4 million to Cost of Revenue, $2.6 million to Other Operating Expenses and $0.4 million to Loss before income tax expense. (3) During the fourth quarter of 2018, the Company incurred $3.4 million in transaction costs and $1.1 million in severance charges for executives related to the Carbon Solutions Acquisition that were recorded in Other Operating Expenses. (4) During the fourth quarter of 2018, the Company recorded income tax expense of $5.3 million primarily due to an increase of $4.5 million to the valuation allowance on its deferred tax assets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Unless disclosed elsewhere in the notes to the Consolidated Financial Statements, the following are the significant matters that occurred subsequent to December 31, 2019 . Dividends On February 7, 2020, the Board declared a quarterly dividend of $0.25 per share of common stock, which was paid on March 10, 2020 to stockholders of record at the close of business on February 21, 2020. |
Summary of Operations and Sig_2
Summary of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | The Consolidated Financial Statements include accounts of wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. All investments in partially owned entities for which the Company has greater than 20% ownership are accounted for using the equity method based on the legal form of the Company's ownership percentage and the applicable ownership percentage of the entity and are included in the Equity method investments line item in the Consolidated Balance Sheet . As of December 31, 2019 , the Company holds equity interests of 42.5% and 50.0% in Tinuum Group and Tinuum Services, LLC ("Tinuum Services"), respectively. Tinuum Group is deemed to be variable interest entity ("VIE") under the VIE model of consolidation, but the Company does not consolidate Tinuum Group as it is not deemed to be its primary beneficiary. |
Cash, cash equivalents and restricted cash | Cash and cash equivalents include bank deposits and other highly liquid investments purchased with an original maturity of three months or less. Restricted cash primarily consists of minimum cash balance requirements under the Term Loan and Security Agreement (the "Senior Term Loan") and is classified according to the period at which it will no longer be restricted. |
Receivables, net | Receivables, net are recorded at net realizable value. This carrying value includes an appropriate allowance for estimated uncollectible amounts to reflect any loss anticipated on the receivables balances. Increases and decreases in the allowance for doubtful accounts are established based upon changes in the credit quality of receivables and are included as a component of the General and administrative line item in the Consolidated Statements of Operations . The allowance for doubtful accounts is based on historical experience, general economic conditions and the credit quality of specific accounts. |
Inventories | Inventories are stated at the lower of average cost or net realizable value and consist principally of raw materials and finished goods related to the Company's PAC and chemical product offerings. The cost of inventory is determined using the average cost method. Inventories are periodically reviewed for both potential obsolescence and potential declines in anticipated selling prices. In this review, the Company makes assumptions about the future demand for and market value of the inventory, and based on these assumptions estimates the amount of any obsolete, unmarketable, slow moving or overvalued inventory. The Company will write down the value of inventories by an amount equal to the difference between the cost of the inventory and its estimated net realizable value. |
Intangible assets | Intangible assets consist of patents, licensed technology, customer relationships, developed technologies and trade names. The Company has developed technologies resulting in patents being granted by the U.S. Patent and Trademark Office. Legal costs associated with securing the patent are capitalized and amortized over the legal or useful life beginning on the patent filing date. The remaining intangible assets were recorded at fair value in connection with the Carbon Solutions Acquisition. |
Investments | The investments in entities in which the Company does not have a controlling interest (financial or operating), but where it has the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and the Company's ownership level. Under the equity method of accounting, an investee company’s accounts are not reflected in the Company’s Consolidated Balance Sheet s and Consolidated Statements of Operations ; however, the Company’s share of the earnings or losses of the investee company is reported in the Earnings from equity method investments line item in the Consolidated Statements of Operations , and the Company’s carrying value in an equity method investee company is reported in the Equity method investments line in the Consolidated Balance Sheet . When the Company receives distributions in excess of the carrying value of the investment and has not guaranteed any obligations of the investee and/or is not required to provide additional funding to the investee, the Company recognizes such excess distributions as equity method earnings in the period the distributions occur. When the investee subsequently reports income, the Company does not record its share of such income until it equals the amount of distributions in excess of carrying value that were previously recognized in income. During the years ended December 31, 2019 and 2018 , the Company had no guarantees or requirements to provide additional funding to investees. Additionally, when the Company's carrying value in an equity method investment is zero and the Company has not guaranteed any obligations of the investee and/or is not required to provide additional funding to the investee, the Company will not recognize its share of any reported losses by the investee until future earnings are generated to offset previously unrecognized losses. As a result, equity income or loss reported on the Company's Consolidated Statements of Operations for certain equity method investees may differ from a mathematical calculation of net income or loss attributable to its equity interest based on the percentage ownership of the Company's equity interest and the net income or loss attributable to equity owners as shown on the investee company's statements of operations. Likewise, distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” in Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” in Investing cash flows. |
Property, Plant and Equipment | Property, plant and equipment is stated at cost less accumulated depreciation and includes leasehold improvements. Depreciation on assets is computed using the straight-line method over the lesser of the estimated useful lives of the related assets or the lease term (ranging from 1 to 31 years). Maintenance and repairs that do not extend the useful life of the respective asset are charged to Operating expenses as incurred. When assets are retired, or otherwise disposed of, the property accounts are relieved of costs and accumulated depreciation and any resulting gain or loss is credited or charged to income. The Company performs an evaluation of the recoverability of the carrying value of its property, plant and equipment to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Amortization of finance leased assets is included in depreciation expense and is calculated using the straight-line method over the term of the lease. |
Other Assets | Mine Development Costs Mine development costs, which are related to the Five Forks Mine, are stated at cost less accumulated depletion and include acquisition costs, the cost of other development work and mitigation costs. Costs are amortized over the estimated life of the related mine reserves, which is 21 years . The Company performs an evaluation of the recoverability of the carrying value of mine development costs to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. Mine development costs are reported in the "Other long-term assets, net" line item on the Consolidated Balance Sheet. Spare Parts Spare parts include critical spares required to support plant operations. Parts and supply costs are determined using the lower of cost or estimated replacement cost. Parts are recorded as maintenance expenses in the period in which they are consumed. Spare parts are reported in the "Other long-term assets, net" line item on the Consolidated Balance Sheet. |
Revenue Recognition | On January 1, 2018, the Company adopted ASC 606 - Revenue from Contracts with Customers ("ASC 606") using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of initially applying ASC 606 to the opening balance of the Accumulated deficit. See further discussion of the impact of the adoption of ASC 606 in Note 8 . Effective with the Acquisition Date, Carbon Solutions adopted ASC 606 using the modified retrospective method applied to those contracts that were not completed as of December 7, 2018. There was no impact to the consolidated financial statements of the Company upon Carbon Solutions’ adoption of ASC 606, except for a reclassification from revenues to cost of revenue for Carbon Solutions for freight costs billed to its customers in conjunction with product sales, which historically were recorded as revenues. This reclassification of freight costs billed to customers to cost of revenue results in an offset to Carbon Solutions' actual freight costs recorded in cost of revenue and has no impact to Carbon Solutions' operating results. This presentation is consistent with ADES' policy of reporting freight costs, net of freight costs billed to customers, under cost of revenue. ADES adopted this policy effective with its adoption of ASC 606 on January 1, 2018. The Company recognizes revenue from a contract with a customer when a performance obligation under the terms of a contract with a customer is satisfied, which is when the customer controls the promised goods or services that are transferred in satisfaction of the performance obligation. Revenue is measured as the amount of consideration that is expected to be received in exchange for transferring goods or providing services, and the transaction price is generally fixed and generally does not contain variable or noncash consideration. In addition, the Company’s contracts with customers generally do not contain customer refund or return provisions or other similar obligations. Transfer of control and satisfaction of performance obligations are further discussed in each of the revenue components listed below. The Company uses estimates and judgments in determining the nature and timing of satisfaction of performance obligations, the standalone selling price ("SSP") of performance obligations and the allocation of the transaction price to multiple performance obligations. The Company’s principal revenue components are Consumables sales and License royalties. Consumables Consumables are comprised of the sale of AC and chemicals for mercury capture for the coal-fired power plant, industrial and water treatment markets. Customer contracts for consumables are short duration and performance obligations generally do not extend beyond one year. Certain customer contracts for consumables are comprised of evaluation tests of the Company's consumables' effectiveness and efficiency in reducing emissions. These contracts entail the delivery of consumables to the customer and the Company's evaluation of results of emissions reduction over the term of the contract. Under these types of arrangements, which are generally for durations that are short term, the Company has determined that the customer is simultaneously receiving benefits of emissions reduction from the consumption of the consumables over the testing period and this represents a single performance obligation that is satisfied over time. This determination may require significant judgment. The Company recognizes revenue over time using an input model that is generally based on the cost of consumables used by the customer during the testing period. The use of an input model and the use of total costs as the measure of progress in the satisfaction of the performance obligations may require significant judgment. In addition, under these types of contracts, the Company has determined that the services performed and related costs incurred by the Company during the testing period represent costs to fulfill a contract. License royalties, related party The Company generates revenues from royalties ("M-45 Royalties") earned under a licensing arrangement ("M-45 License") of its M-45 TM and M-45-PC TM emissions control technologies ("M-45 Technology") between the Company and Tinuum Group. The Company recognizes M-45 Royalties at a point in time based on the use of the M-45 Technology at certain RC facilities or through Tinuum Group’s use of licensed technology for rates in excess of amounts allowed for RC application. The amount of M-45 Royalties recognized is generally based on a percentage of pre-tax margins (as defined in the M-45 License) of the RC facilities using the M-45 Technology. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Sales and other taxes that are collected concurrently with revenue-producing activities are excluded from revenue. The Company has elected to account for freight costs as activities to fulfill the promise to transfer the goods, and therefore these activities are also not assessed as a separate service to customers. The Company accounts for all shipping and handling activities that occur after control of the related good transfers as fulfillment activities. These activities are included in Cost of Revenue line items of the Consolidated Statement of Operations. The Company generally expenses sales commissions when incurred because the amortization period of the asset that the Company would have recognized is one year or less. These costs are recorded in sales and marketing expenses in the General and administrative line item of the Consolidated Statement of Operations. Cost of Revenue Cost of revenue includes all labor, fringe benefits, subcontract labor, additive and coal costs, materials, equipment, supplies, travel costs and any other costs and expenses directly related to the Company’s production of revenues. The Company records estimated contract losses, if any, in the period they are determined. |
Expenses | Payroll and Benefits Payroll and benefits costs include direct payroll, personnel related fringe benefits, sales and administrative staff labor costs and stock compensation expense. Payroll and benefits costs exclude direct labor included in Cost of revenue. Legal and Professional Legal and professional costs include external legal, audit and consulting expenses. General and Administrative General and administrative costs include director fees and expenses, rent, insurance and occupancy-related expenses, bad debt expense, impairments and other general costs of conducting business. |
Research and Development | Research and development costs are charged to expense in the period incurred and are reported in the General and administrative line item in the Consolidated Statements of Operations . |
Asset Retirement Obligations | Reclamation obligations, which are related to the Five Forks Mine, are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, a corresponding asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. The estimated reclamation obligation is based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation for the Five Forks Mine. |
Income Taxes | The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The Company recognizes deferred tax assets and liabilities and maintains valuation allowances where it is more likely than not that all or a portion of deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more-likely-than-not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest expense due to the Company's share of Tinuum Group's equity method earnings for Refined Coal ("RC") facilities, in which the related lease income or sale are treated as installment sales for federal income tax purposes. IRS section 453A requires taxpayers using the installment method to pay an interest charge on the portion of the tax liability that is deferred under the installment method. The Company recognizes IRS section 453A interest ("453A interest") and other interest and penalties related to unrecognized tax benefits in the Interest expense line item in the Consolidated Statements of Operations . |
Stock-Based Compensation | Stock-based compensation expense is measured at the grant date based on the estimated fair value of the stock-based award and is generally expensed on a straight-line basis over the requisite service period and/or performance period of the award. Forfeitures are recognized when incurred. Stock-based compensation expense related to manufacturing employees and administrative employees is included in the Consumables, Cost of revenues and Payroll and benefits line items, respectively, in the Consolidated Statements of Operations. Stock-based compensation expense related to non-employee directors and consultants is included in the General and administrative line item in the Consolidated Statements of Operations. |
Dividends | When a sufficient amount of available earnings exists at the time of declaration, dividends are charged as a reduction to Retained earnings in the Consolidated Balance Sheet when declared. If sufficient Retained earnings is not available, dividends declared are charged as a reduction to Additional paid-in capital in the Consolidated Balance Sheet . |
Earnings (Loss) Per Share | Basic earnings (loss) per share is computed using the two-class method, which is an earnings allocation formula that determines earnings (loss) per share for common stock and any participating securities according to dividend and participating rights in undistributed earnings. The Company's restricted stock awards ("RSA's") granted prior to December 31, 2016 contain non-forfeitable rights to dividends or dividend equivalents and are deemed to be participating securities. RSA's granted subsequent to December 31, 2016 do not contain non-forfeitable rights to dividends and are not deemed to be participating securities. Under the two-class method, net income (loss) for the period is allocated between common stockholders and the holders of the participating securities based on the weighted-average of common shares outstanding during the period, excluding participating, unvested RSA's ("common shares"), and the weighted-average number of participating, unvested RSA's outstanding during the period, respectively. The allocated, undistributed income for the period is then divided by the weighted-average number of common shares and participating, unvested RSA's outstanding during the period to determine basic earnings per common share and participating security for the period, respectively. Pursuant to U.S. GAAP, the Company has elected not to separately present basic or diluted earnings per share attributable to participating securities in the Consolidated Statements of Operations. Diluted earnings per share is computed in a manner consistent with that of basic earnings per share, while considering other potentially dilutive securities. Potentially dilutive securities consist of both unvested, participating and non-participating RSA's, as well as outstanding options to purchase common stock ("Stock Options") and contingent performance stock units ("PSU's") (collectively, "Potential dilutive shares"). The dilutive effect, if any, for non-participating RSA's, Stock Options and PSU's is determined using the greater of dilution as calculated under the treasury stock method or the two-class method. Potential dilutive shares are excluded from diluted earnings (loss) per share when their effect is anti-dilutive. When there is a net loss for a period, all Potential dilutive shares are anti-dilutive and are excluded from the calculation of diluted loss per share for that period. Each PSU represents a contingent right to receive shares of the Company’s common stock, and the number of shares may range from zero to two times the number of PSU's granted on the award date depending upon the price performance of the Company's common stock as measured against a general index and a specific peer group index over requisite performance periods. The number of Potential dilutive shares related to PSU's is based on the number of shares of the Company's common stock, if any, that would be issuable at the end of the respective reporting period, assuming that the end of the reporting period is the end of the contingency period applicable to such PSU's. See Note 11 for additional information related to PSU's. |
Use of Estimates | The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. The Company makes assumptions on the following significant financial statement components including: • business combinations; • the carrying value of its long-lived assets; • the carrying value of its intangible assets; • asset retirement obligation; and • income taxes, including the valuation allowance for deferred tax assets and uncertain tax positions. |
Risks and Uncertainties | The Company’s earnings are significantly affected by equity earnings it receives from Tinuum Group. As of December 31, 2019 , Tinuum Group has 20 invested RC facilities of which 8 are leased to a single customer. A majority of these leases are periodically renewed and the loss of this customer by Tinuum Group would have a significant adverse impact on its financial position, results of operations and cash flows, which in turn would have material adverse impact on the Company’s financial position, results of operations and cash flows. Concentration of credit risk As of December 31, 2019 , 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 three financial institutions as of December 31, 2019 . If those institutions were unable to perform their obligations, the Company would be at risk regarding the amount of its cash balance in excess of the federal deposit insurance corporation limits ( $250 thousand ). |
Reclassifications | Certain balances have been reclassified from prior years to conform to the current year presentation. Such reclassifications had no effect on the Company’s results of operations or financial position in any of the periods presented. |
New Accounting Guidance | Recently Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"), 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" ("ROU") 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 7 for additional disclosures required under ASC 842 in the year of adoption. As of January 1, 2019, Tinuum Group adopted ASC 606 and ASC 842. As a result of Tinuum Group’s adoption of these pronouncements, the Company recorded a cumulative effect increase of $27.4 million to Retained earnings as of January 1, 2019, based on the Company's ownership percentage of Tinuum Group's cumulative effect adjustment, and increased its investment balance in Tinuum Group in the amount of $37.2 million and established a deferred tax liability of $9.8 million . As a result of the increase in the investment balance in Tinuum Group, for the year ended December 31, 2019 , the Company recognized equity earnings in Tinuum Group based on its pro-rata share of Tinuum Group’s net income rather than based on cash distributions received as had been required in prior periods as a result of the cumulative cash distributions exceeding the cumulative pro-rata share of Tinuum Group's net income. 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 "smaller reporting companies" (as defined by the Securities and Exchange Commission) for fiscal years beginning after December 15, 2022, 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 and 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 has completed its evaluation of ASU 2018-13 and does not believe this standard will have a material impact on the Company's financial statement disclosures. In December 2019, the FASB issued ASU2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes ("ASU 2019-12"). The amendments in ASU 2019-12 simplify various aspects related to accounting for income taxes by removing certain exceptions contained in Topic 740 and also clarifies and amends existing guidance in Topic 740 to improve consistent application. ASU 2019-12 is effective for public business entities beginning after December 15, 2020, including interim periods within those years, and early adoption is permitted. The Company is currently evaluating the provisions of this guidance and assessing its impact on the Company's financial statements and disclosures and does not believe this standard will have a material impact on the Company's financial statements and disclosures. |
Fair Value of Financial Instruments | The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, deposits and accrued expenses, approximate fair value due to the short maturity of these instruments. |
Segment Reporting | 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. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company's chief operating decision maker ("CODM"), or a decision making group, in deciding how to allocate resources and in assessing financial performance. As of December 31, 2019 , the Company's CODM was the Company's CEO. The Company's operating and reportable segments are organized by products and services provided. As of December 31, 2019 , the Company has two reportable segments: (1) Refined Coal ("RC"); and (2) Power Generation and Industrials ("PGI"). The majority of Carbon Solutions operations has been included in the PGI segment; whereas a portion has been included in All Other and Corporate. The business segment measurements provided to and evaluated by the CODM are computed in accordance with the principles listed below: • The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except as described below. • Segment revenues include equity method earnings and losses from the Company's equity method investments. • Segment operating income (loss) includes segment revenues and allocation of certain "Corporate general and administrative expenses," which includes Payroll and benefits , Legal and professional fees , and General and administrative . • RC segment operating income includes interest expense directly attributable to the RC segment |
Summary of Operations and Sig_3
Summary of Operations and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Intangible Assets | The following table details the components of the Company's intangible assets: As of December 31, 2019 2018 (in thousands, except years) Weighted average amortization (in years) Initial Cost Net of Accumulated Amortization Initial Cost Net of Accumulated Amortization Customer relationships 5 $ 2,200 $ 1,731 $ 2,100 $ 2,071 Patents 16 1,489 1,039 1,244 891 Developed technology 5 1,600 1,259 1,600 1,578 Trade name 2 300 140 300 290 Total $ 5,589 $ 4,169 $ 5,244 $ 4,830 |
Calculations of Basic and Diluted Earnings Per Share | The following table sets forth the calculations of basic and diluted earnings per common share: Years Ended December 31, (in thousands, except per share amounts) 2019 2018 Net income $ 35,537 $ 35,454 Less: Dividends and undistributed income allocated to participating securities 44 112 Income attributable to common stockholders $ 35,493 $ 35,342 Basic weighted-average number of common shares outstanding 18,154 19,901 Add: dilutive effect of equity instruments 218 132 Diluted weighted-average shares outstanding 18,372 20,033 Earnings per share - basic $ 1.96 $ 1.78 Earnings per share - diluted $ 1.93 $ 1.76 |
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" ("ROU") 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) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Purchase Consideration and Allocation | The following table summarizes the final Purchase Price allocation. Subsequent to December 31, 2018 , the Company completed additional analysis and adjustments were made to the preliminary Purchase Price allocations as noted in the table below: Fair value of assets acquired: As Originally Reported Adjustments As Adjusted Cash $ 3,284 $ — $ 3,284 Receivables 6,409 — 6,409 Inventories 22,100 (356 ) 21,744 Prepaid expenses and other current assets 2,992 61 3,053 Spare parts 3,359 — 3,359 Property, plant and equipment 43,033 (377 ) 42,656 Mine leases and development 2,500 200 2,700 Mine reclamation asset — 2,402 2,402 Intangible assets 4,000 100 4,100 Other assets 168 — 168 Amount attributable to assets acquired 87,845 2,030 89,875 Fair value of liabilities assumed: Accounts payable 4,771 — 4,771 Accrued liabilities 7,354 254 7,608 Equipment lease liabilities 8,211 — 8,211 Mine reclamation liability 626 1,776 2,402 Other liabilities 437 — 437 Amount attributable to liabilities assumed 21,399 2,030 23,429 Net assets acquired $ 66,446 $ — $ 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 $ 2,200 5 Developed technology 1,600 5 Trade name 300 2 Total intangibles acquired $ 4,100 |
Business Combination, Schedule of Revenue and Net Income | The amounts of revenues and income before income taxes for the period from the Acquisition Date to December 31, 2018 for Carbon Solutions are as follows: (in thousands) Year ended December 31, 2018 Revenues $ 5,580 Net loss $ (391 ) |
Business Acquisition, Pro Forma Information | The pro forma results do not include any anticipated synergies or other expected benefits of the Carbon Solutions Acquisition. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the Carbon Solutions Acquisition been consummated as of January 1, 2017. Year ended December 31, (in thousands) 2018 Revenues $ 78,591 Net income $ 31,562 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Recorded at the Lower of Average Cost or Net Realizable Value | The following table summarizes the Company's inventories recorded at the lower of average cost or net realizable value as of December 31, 2019 and 2018 : As of December 31, (in thousands) 2019 2018 Product inventory (1) $ 13,515 $ 19,403 Raw material inventory 1,945 2,388 $ 15,460 $ 21,791 (1) As of December 31, 2019 and 2018 , Product inventory includes zero and $5.0 million , respectively, attributed to the increase in fair value of inventory acquired from the Carbon Solutions Acquisition. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The carrying basis and accumulated depreciation of property, plant and equipment at December 31, 2019 and 2018 are: Life in Years As of December 31, (in thousands) 2019 2018 Land and land improvements 0-31 $ 1,764 $ 2,302 Plant and operating equipment 1-31 44,015 32,999 Furniture and fixtures 1-7 1,201 701 Machinery and equipment 1-7 1,235 1,277 Leasehold improvements 1-3 245 249 Construction in progress 2,985 6,668 51,445 44,196 Less accumulated depreciation (7,444 ) (1,499 ) Total property, plant and equipment, net $ 44,001 $ 42,697 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table presents the Company's investment balance, equity earnings, cash distributions and cash distributions in excess of the investment balance for the years ended December 31, 2018 and December 31, 2019 ( in thousands ): Description Date(s) Investment balance ADES equity earnings (loss) Cash distributions Memorandum Account: Cash distributions and equity loss in (excess) of investment balance Beginning balance 12/31/2017 $ — $ — $ — $ (12,218 ) ADES proportionate share of net income from Tinuum Group (1) 2018 activity 57,721 57,721 — — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2018 activity (12,218 ) (12,218 ) — 12,218 Cash distributions from Tinuum Group 2018 activity (47,175 ) — 47,175 — Adjustment for current year cash distributions in excess of investment balance 2018 activity 1,672 1,672 — (1,672 ) Total investment balance, equity earnings (loss) and cash distributions 12/31/2018 $ — $ 47,175 $ 47,175 $ (1,672 ) Impact of adoption of accounting standards (2) 2019 activity $ 37,232 $ — $ — $ — ADES proportionate share of net income from Tinuum Group 2019 activity 61,958 61,958 — — Recovery of cash distributions in excess of investment balance (prior to cash distributions) 2019 activity (1,672 ) (1,672 ) — 1,672 Cash distributions from Tinuum Group 2019 activity (65,238 ) — 65,238 — Total investment balance, equity earnings and cash distributions 12/31/2019 $ 32,280 $ 60,286 $ 65,238 $ — (1) The amounts of the Company's 42.5% proportionate share of net income as shown in the table above differ from mathematical calculations of the Company’s 42.5% equity interest in Tinuum Group multiplied by the amounts of Net Income available to Class A members as shown in the table above of Tinuum Group's results of operations due to adjustments related to the Class B preferred return. (2) 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 $27.4 million , net of the impact of income 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. The following table details the carrying value of the Company's respective equity method investments included in the Equity method investments line item on the Consolidated Balance Sheet and indicates the Company's maximum exposure to loss: As of December 31, (in thousands) 2019 2018 Equity method investment in Tinuum Group $ 32,280 $ — Equity method investment in Tinuum Services 6,813 6,567 Equity method investment in other 62 67 Total equity method investments $ 39,155 $ 6,634 The following tables summarize the assets, liabilities and results of operations of Tinuum Group: As of December 31, (in thousands) 2019 2018 Current assets $ 128,473 $ 54,958 Non-current assets $ 125,820 $ 92,991 Current liabilities $ 59,392 $ 50,908 Non-current liabilities $ 13,340 $ 14,446 Members equity attributable to Class A members $ 117,006 $ 49,102 Members equity attributable to Class B members $ 28,967 $ 16,983 Noncontrolling interests $ 35,588 $ 16,510 Years Ended December 31, (in thousands) 2019 2018 Gross profit $ 104,976 $ 107,135 Operating, selling, general and administrative expenses 37,641 23,662 Income from operations 67,335 83,473 Other expenses (95 ) (5,674 ) Class B preferred return — (12 ) Loss attributable to noncontrolling interest 78,544 58,013 Net income available to Class A and B members $ 145,784 $ 135,800 ADES equity earnings from Tinuum Group $ 60,286 $ 47,175 The following tables summarize the assets, liabilities and results of operations of Tinuum Services: As of December 31, (in thousands) 2019 2018 Current assets $ 308,249 $ 300,288 Non-current assets $ 99,261 $ 100,233 Current liabilities $ 155,367 $ 219,959 Non-current liabilities $ 55,746 $ 66,760 Equity $ 13,626 $ 13,134 Noncontrolling interests $ 182,771 $ 100,668 Years Ended December 31, (in thousands) 2019 2018 Gross loss $ (102,172 ) $ (85,377 ) Operating, selling, general and administrative expenses 199,691 173,500 Loss from operations (301,863 ) (258,877 ) Other expenses (1,422 ) 37 Loss attributable to noncontrolling interest 321,077 272,905 Net income $ 17,792 $ 14,065 ADES equity earnings from Tinuum Services $ 8,896 $ 7,033 The following table details the components of the Company's respective earnings or loss from equity method investments included in the Earnings from equity method investments line item on the Consolidated Statements of Operations : Year ended December 31, (in thousands) 2019 2018 Earnings from Tinuum Group $ 60,286 $ 47,175 Earnings from Tinuum Services 8,896 7,033 Loss from other (6 ) — Earnings from equity method investments $ 69,176 $ 54,208 The following table details the components of the cash distributions from the Company's respective equity method investments included in the Consolidated Statements of Cash Flows . Distributions from equity method investees are reported on the Consolidated Statements of Cash Flows as “return on investment” in Operating cash flows until such time as the carrying value in an equity method investee company is reduced to zero ; thereafter, such distributions are reported as “distributions in excess of cumulative earnings” in Investing cash flows. Year ended December 31, (in thousands) 2019 2018 Distributions from equity method investees, return on investment Tinuum Group $ 65,238 $ — Tinuum Services 8,650 5,500 Included in Operating Cash Flows $ 73,888 $ 5,500 Distributions from equity method investees in excess of cumulative earnings Tinuum Group $ — $ 47,175 Included in Investing Cash Flows $ — $ 47,175 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Years ended December 31, (in thousands) 2019 2018 Senior Term Loan due December 2021, related party $ 40,000 $ 70,000 Less: net unamortized debt issuance costs (1,163 ) (1,990 ) Less: net unamortized debt discount (1,200 ) (2,052 ) Senior Term Loan due December 2021, net 37,637 65,958 Finance lease obligations (1) 6,729 8,167 44,366 74,125 Less: Current maturities (23,932 ) (24,067 ) Total long-term borrowings $ 20,434 $ 50,058 (1) As of December 31, 2018, obligations related to capital lease obligations as defined in ASC 840. |
Schedule of Future Aggregate Annual Maturities of Long-term Debt | As of December 31, 2019 , the following table presents the future aggregate annual maturities of the Company’s Senior Term Loan excluding unamortized discounts and deferred financing costs: Year ended December 31, (in thousands) Principal Amount 2020 $ 24,000 2021 16,000 2022 — 2023 — 2024 — Total $ 40,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Lease financial information as of and for the year ended December 31, 2019 is provided in the following table: Year ended December 31, (in thousands) 2019 Finance lease cost: Amortization of right-of-use assets $ 2,149 Interest on lease liabilities 365 Operating lease cost 3,673 Short-term lease cost 771 Variable lease cost (1) 371 Sublease income — Total lease cost $ 7,329 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 365 Operating cash flows from operating leases $ 3,180 Financing cash flows from finance leases $ 1,354 Right-of-use assets obtained in exchange for new finance lease liabilities $ — Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,309 Weighted-average remaining lease term - finance leases 4.2 years Weighted-average remaining lease term - operating leases 2.4 years Weighted-average discount rate - finance leases 6.1 % Weighted-average discount rate - operating leases 8.5 % (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 December 31, 2019 : (in thousands) Operating Finance Total Lease Commitments 2020 $ 2,710 $ 1,707 $ 4,417 2021 1,969 1,802 3,771 2022 721 951 1,672 2023 359 951 1,310 2024 — 1,929 1,929 Thereafter — 568 568 Total lease payments 5,759 7,908 13,667 Less: Imputed interest (567 ) (1,179 ) (1,746 ) Present value of lease payments $ 5,192 $ 6,729 $ 11,921 |
Finance Leases Maturity | The following table summarizes the Company's future lease payments under finance and operating leases as of December 31, 2019 : (in thousands) Operating Finance Total Lease Commitments 2020 $ 2,710 $ 1,707 $ 4,417 2021 1,969 1,802 3,771 2022 721 951 1,672 2023 359 951 1,310 2024 — 1,929 1,929 Thereafter — 568 568 Total lease payments 5,759 7,908 13,667 Less: Imputed interest (567 ) (1,179 ) (1,746 ) Present value of lease payments $ 5,192 $ 6,729 $ 11,921 |
Future Minimum Rental Payments for Operating Leases | As previously disclosed in the Company's 2018 Annual Report on Form 10-K and under ASC 840, 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 | As previously disclosed in the Company's 2018 Annual Report on Form 10-K and under ASC 840, 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) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Receivables | The following table shows the components of Trade receivables, net: As of December 31, (in thousands) 2019 2018 Trade receivables $ 8,057 $ 10,121 Less: Allowance for doubtful accounts (627 ) (567 ) Trade receivables, net $ 7,430 $ 9,554 |
Schedule of Disaggregation of Revenue | The following tables disaggregate revenues by major source for the year ended December 31, 2019 and 2018 (in thousands): Year ended December 31, 2019 Segment (in thousands) PGI RC Other Total Revenue component Consumables $ 50,458 $ — $ 2,729 $ 53,187 License royalties, related party — 16,899 — 16,899 Revenues from customers 50,458 16,899 2,729 70,086 Earnings from equity method investments — 69,176 — 69,176 Total revenues and earnings from equity method investments $ 50,458 $ 86,075 $ 2,729 $ 139,262 Year ended December 31, 2018 Segment (in thousands) PGI RC Other Total Revenue component Consumables $ 8,628 $ — $ 105 $ 8,733 License royalties, related party — 15,140 — 15,140 Other 72 — — 72 Revenues from customers 8,700 15,140 105 23,945 Earnings from equity method investments — 54,208 — 54,208 Total revenues and earnings from equity method investments $ 8,700 $ 69,348 $ 105 $ 78,153 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividends Declared | Dividends declared and paid quarterly per share on all outstanding shares of common stock during the years ended December 31, 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 June 30 0.25 June 7, 2019 0.25 June 8, 2018 September 30 0.25 September 6, 2019 0.25 September 6, 2018 December 31 0.25 December 13, 2019 0.25 December 6, 2018 $ 1.00 $ 1.00 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Allocation of Compensation Expense | The Company recorded the following compensation expense related to the Stock Plans: Years Ended December 31, (in thousands) 2019 2018 RSA expense $ 2,011 $ 2,222 Stock option expense — 58 RSU expense — 210 Total stock-based compensation expense $ 2,011 $ 2,490 |
Schedule of Unrecognized Compensation Cost | The amount of unrecognized compensation cost as of December 31, 2019 , and the expected weighted-average period over which the cost will be recognized is as follows: As of December 31, 2019 (in thousands) Unrecognized Compensation Cost Expected Weighted-Average Period of Recognition (in years) RSA expense $ 2,521 1.47 Total unrecognized stock-based compensation expense $ 2,521 1.47 |
Summary of Restricted Stock Activity | A summary of the status and activity of RSA's and RSU's is presented in the following table: Restricted Stock Weighted-Average Grant Date Fair Value (in thousands, except for share and per share amounts) Awards Units RSA's RSU's For the year ended December 31, 2019 Non-vested at January 1, 2019 280,852 20,000 $ 9.92 $ 10.52 Granted 287,288 — $ 11.03 $ — Vested (108,081 ) (20,000 ) $ 9.77 $ 10.52 Forfeited (8,715 ) — $ 10.79 $ — Non-vested at December 31, 2019 451,344 — $ 10.65 $ — |
Summary of Option Activity | A summary of option activity under the Stock Plans is presented below: (in thousands, except for share and per share amounts) Number of Weighted- Aggregate Intrinsic Value Weighted- For the year ended December 31, 2019 Options outstanding at January 1, 2019 529,780 $ 12.23 Options granted — $ — Options exercised (209,780 ) $ 9.14 Options expired / forfeited (20,000 ) $ 20.07 Options outstanding at December 31, 2019 300,000 $ 13.87 $ — 0.43 Options vested and exercisable at December 31, 2019 300,000 $ 13.87 $ — 0.43 |
Schedule of Performance-Based Units, Settled | The following table shows the PSU's that were settled by issuing the Company's common stock relative to a peer group performance index and broad stock index. Year of Grant Net Number of Issued Shares upon Vesting Shares Withheld to Settle Tax Withholding Obligations TSR Multiple Range Russell 3000 Multiple Low High Low High For year ended December 31, 2018 2015 12,311 4,061 112.50 112.50 — — |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 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, net as presented in the Consolidated Balance Sheet : As of December 31, (in thousands) 2019 2018 Prepaid expenses and other current assets: Prepaid expenses $ 1,708 $ 1,233 Prepaid income taxes 4,228 2,940 Other 1,896 1,397 $ 7,832 $ 5,570 Other long-term assets: Right of use assets, operating leases, net $ 5,073 $ — Spare parts, net 3,453 3,278 Mine development costs, net 7,084 2,531 Mine reclamation asset, net 2,451 408 Highview investment 552 552 Other long-term assets 1,718 1,224 $ 20,331 $ 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 Consolidated Balance Sheet : As of December 31, (in thousands) 2019 2018 Other current liabilities: Current portion of operating lease obligations $ 2,382 $ — Accrued interest 213 407 Income and other taxes payable 678 479 Other current liabilities 1,038 1,252 $ 4,311 $ 2,138 Other long-term liabilities: Operating lease obligations, long-term $ 2,810 $ — Mine reclamation liability 2,721 624 Other 229 316 $ 5,760 $ 940 |
Schedule of Change in Asset Retirement Obligation | Included in Other long-term liabilities is the Mine reclamation liability, which represents an asset retirement obligation. Changes in the asset retirement obligation were as follows: As of December 31, (in thousands) 2019 2018 Asset retirement obligation, beginning of year $ 624 $ — Asset retirement obligation assumed in Carbon Solutions Acquisition 1,776 626 Accretion 205 2 Liabilities settled (78 ) (4 ) Changes due to scope and timing of reclamation 194 — Asset retirement obligations, end of year $ 2,721 $ 624 |
Schedule of Statement of Operations, Supplemental Disclosures | The following table details the components of Interest expense in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2019 2018 Interest on Senior Term Loan $ 4,112 $ 366 Debt discount and debt issuance costs 1,678 94 453A interest 1,039 1,585 Other 345 106 $ 7,174 $ 2,151 The following table details the components of Other in the Consolidated Statements of Operations : Years Ended December 31, (in thousands) 2019 2018 Interest income $ 261 $ 239 Other 166 (19 ) $ 427 $ 220 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 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 $ 220 $ 220 $ 213 $ 213 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Benefit (Expense) from Continuing Operations | The provision for income taxes consists of the following: Years Ended December 31, (in thousands, except for rate) 2019 2018 Current portion of income tax expense: Federal $ 2,133 $ 882 State and other 1,211 4,308 3,344 5,190 Deferred portion of income tax expense (benefit): Federal 10,491 4,766 State and other (1,836 ) 467 8,655 5,233 Total income tax expense $ 11,999 $ 10,423 Effective tax rate 25 % 23 % |
Reconciliation of Expected Federal Income Taxes at Statutory Rates | Income tax expense differs from the amount that would be computed by applying the U.S. statutory federal income tax rate of 21% for the years ended December 31, 2019 and 2018 to income before income taxes as a result of the following: Years Ended December 31, (in thousands) 2019 2018 Federal statutory rate $ 10,027 $ 9,634 State income taxes, net of federal benefit 1,597 3,625 Permanent differences 286 130 Tax credits (338 ) (7,031 ) Valuation allowances (288 ) 4,462 Changes in tax rates 229 (464 ) Stock-based compensation 112 (216 ) UTP liability 236 — Other 138 283 Expense for the provision for income taxes $ 11,999 $ 10,423 |
Deferred Tax Assets And Liabilities | Details of the Company’s deferred tax assets and liabilities are summarized as follows: As of December 31, (in thousands) 2019 2018 Deferred tax assets Tax credits $ 98,541 $ 104,553 Operating lease obligations 1,307 — Employee related liabilities 1,065 1,515 Intangible assets 1,574 1,623 Equity method investments — 9,588 Net operating loss carryforwards 2,956 2,479 Other investments 555 583 Reserves 587 45 Other 244 335 Total deferred tax assets 106,829 120,721 Less valuation allowance (79,610 ) (79,898 ) Deferred tax assets 27,219 40,823 Less: Deferred tax liabilities Property and equipment and other (11,087 ) (8,284 ) Equity method investments (736 ) — Right of use operating lease assets (1,301 ) — Total deferred tax liabilities (13,124 ) (8,284 ) Net deferred tax assets $ 14,095 $ 32,539 |
Summary of Operating Loss Carryforwards and Tax Credit Carryforwards | The following table presents the approximate amount of state net operating loss carryforwards and federal tax credit carryforwards available to reduce future taxable income, along with the respective range of years that the net operating loss and tax credit carryforwards would expire if not utilized: As of December 31, (in thousands) 2019 Beginning expiration year Ending expiration year Federal tax credit carryforwards $ 98,541 2032 2039 State and other operating loss carryforwards $ 2,956 2021 2039 |
Schedule of Unrecognized Tax Benefits | The following table sets forth a reconciliation of the beginning and ending unrecognized tax benefits on a gross basis for the years ended December 31, 2019 and 2018 : Years Ended December 31, (in thousands) 2019 2018 Balance as of January 1 $ 54 $ 54 Increases for tax positions of prior years 892 — Balance as of December 31 $ 946 $ 54 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Operating Results | The following table presents the Company's operating segment results for the years ended December 31, 2019 and 2018 : Years Ended December 31, (in thousands) 2019 2018 Revenues: Refined Coal: Earnings in equity method investments $ 69,176 $ 54,208 License royalties, related party 16,899 15,140 86,075 69,348 Power Generation and Industrials: Consumables 50,458 8,628 Other — 72 50,458 8,700 Total segment reporting revenues 136,533 78,048 Adjustments to reconcile to reported revenues: Earnings in equity method investments (69,176 ) (54,208 ) Corporate and other 2,729 105 Total reported revenues $ 70,086 $ 23,945 Segment operating income (loss) Refined Coal (1) $ 83,471 $ 64,854 Power Generation and Industrials (2) (11,606 ) (2,621 ) Total segment operating income $ 71,865 $ 62,233 (1) Included in the RC segment operating income for the years ended December 31, 2019 and 2018 is 453A interest expense of $1.0 million and $1.6 million , respectively. Also included in the RC segment operating income for the year ended December 31, 2018 was $0.4 million of severance expense. (2) Included in the PGI segment operating income for the year ended December 31, 2019 and 2018 was approximately $4.7 million and $1.0 million , respectively, of amortization expense related to the fair value of inventory. Also included in the PGI segment operating income for the year ended December 31, 2019 and 2018 was $6.7 million and $0.5 million , respectively, of depreciation, amortization, and depletion on mine and plant related 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: Years Ended December 31, (in thousands) 2019 2018 Total reported segment operating income $ 71,865 $ 62,233 Other operating (loss) income (1,994 ) 2 69,871 62,235 Adjustments to reconcile to income before income tax expense attributable to the Company: Corporate payroll and benefits (2,592 ) (4,970 ) Corporate legal and professional fees (7,485 ) (7,700 ) Corporate general and administrative (6,836 ) (3,305 ) Corporate depreciation and amortization (82 ) (134 ) Corporate interest expense, net (5,767 ) (521 ) Other income, net 427 272 Income before income tax expense $ 47,536 $ 45,877 |
Reconciliation of Assets from Segment to Consolidated | A reconciliation of reportable segment assets to the Company's consolidated assets is as follows: As of December 31, (in thousands) 2019 2018 Assets: Refined Coal (1) $ 43,953 $ 11,468 Power Generation and Industrials 80,912 85,786 Total segment assets 124,865 97,254 All Other and Corporate (2) 48,934 62,410 Consolidated $ 173,799 $ 159,664 (1) Includes $39.2 million and $6.6 million of investments in equity method investees as of December 31, 2019 and 2018 , respectively. (2) Includes the Company's net deferred tax assets of $14.1 million and $32.5 million as of December 31, 2019 and 2018 , respectively. |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Major Customers Disclosure [Abstract] | |
Schedule of Sales by Major Customers | Revenues from external customers who represent 10% or more of the Company’s revenues for the years ended December 31, 2019 and 2018 were as follows: Years ended December 31, Customer Revenue Type Segment(s) 2019 2018 A License royalties, related party RC 24% 63% B Consumables PGI 10% —% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table shows the income recognized with related parties during the years ended December 31, 2019 and 2018 : Years Ended December 31, (in thousands) 2019 2018 License royalties, related party - Tinuum Group $ 16,899 $ 15,140 The following table shows the Company's receivable balance associated with related parties as of December 31, 2019 and 2018 : As of December 31, (in thousands) 2019 2018 Receivable from related party - Tinuum Group $ 4,246 $ 4,284 |
Defined Contributions Savings_2
Defined Contributions Savings Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Contributions and Recognized Expense | The following table presents the amount of the Company's contributions made to the 401(k) Plan: Years Ended December 31, (in thousands) 2019 2018 401(k) Plans employer contributions $ 553 $ 139 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Net Pretax Charges Incurred by Segment | A summary of the net pretax charges incurred by segment is as follows: Pretax Charge (in thousands, except employee data) Approximate Number of Employees Refined Coal PGI All Other and Corporate Total Year ended December 31, 2018 Restructuring charges 16 $ 448 $ 996 $ 1,685 $ 3,129 Changes in estimates — — — — Total pretax charge, net of reversals $ 448 $ 996 $ 1,685 $ 3,129 |
Schedule of Utilization of Restructuring Accruals | The following table summarizes the Company's utilization of restructuring accruals for the years ended December 31, 2019 and 2018 : (in thousands) Employee Severance Beginning accrual as of January 1, 2018 $ — Expense provision 3,129 Cash payments and other (1,491 ) Change in estimates — Severance liability acquired 570 Accrual as of December 31, 2018 2,208 Expense provision 172 Cash payments and other (2,051 ) Change in estimates (75 ) Accrual as of December 31, 2019 $ 254 |
Quarterly Financial Results (_2
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly results for the two years ended December 31, 2019 and December 31, 2018 are as follows: For the Quarter Ended (in thousands, except per share data) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Revenues $ 16,047 $ 19,133 $ 15,577 $ 19,329 Cost of revenues, exclusive of operating expenses shown below 11,104 11,939 12,292 14,108 Other operating expenses 9,630 9,585 7,545 8,776 Operating loss (4,687 ) (2,391 ) (4,260 ) (3,555 ) Earnings from equity method investments 12,125 14,426 20,935 21,690 Other expenses, net (1,269 ) (1,517 ) (1,927 ) (2,034 ) Income before income tax expense 6,169 10,518 14,748 16,101 Income tax (benefit) expense (2,929 ) (1) 6,595 6,634 1,699 Net income $ 9,098 $ 3,923 $ 8,114 $ 14,402 Earnings per common share – basic $ 0.50 $ 0.22 $ 0.45 $ 0.79 Earnings per common share – diluted $ 0.50 $ 0.21 $ 0.44 $ 0.78 Weighted-average number of common shares outstanding Basic 18,066 18,112 18,172 18,268 Diluted 18,275 18,339 18,377 18,433 For the Quarter Ended (in thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Revenues $ 10,626 (2) $ 5,147 $ 4,273 $ 3,899 Cost of revenues, exclusive of operating expenses shown below 4,032 (2) 954 704 563 Other operating expenses 9,745 (2), (3) 4,161 5,138 5,048 Operating (loss) income (3,151 ) 32 (1,569 ) (1,712 ) Earnings from equity method investments 16,351 9,715 15,889 12,253 Other expenses, net (930 ) (313 ) (378 ) (310 ) Income before income tax expense 12,270 (2), (3) 9,434 13,942 10,231 Income tax expense (benefit) 5,272 (4) 3,931 (1,349 ) 2,569 Net income $ 6,998 $ 5,503 $ 15,291 $ 7,662 Earnings per common share – basic $ 0.36 $ 0.28 $ 0.76 $ 0.37 Earnings per common share – diluted $ 0.36 $ 0.28 $ 0.75 $ 0.37 Weighted-average number of common shares outstanding Basic 19,339 19,726 20,062 20,502 Diluted 19,439 19,876 20,195 20,584 (1) During the fourth quarter of 2019, the Company recorded income tax benefit of $2.9 million primarily due to a decrease in current income tax expense compared to current income tax recorded form the nine months ended September 30, 2019. This decrease was primarily due to a decrease in income before income tax expense for the year ended December 31, 2019 compared to the estimated annual income before income tax expense that was used in computing current income tax expense for the nine months ended September 30, 2019. (2) During the fourth quarter of 2018, the Company completed the Carbon Solutions Acquisition and the operating results for the fourth quarter of 2018 include the operations of Carbon Solutions for the period from December 7 to December 31, 2018. For this period, Carbon Solutions contributed $5.6 million to Revenues, $3.4 million to Cost of Revenue, $2.6 million to Other Operating Expenses and $0.4 million to Loss before income tax expense. (3) During the fourth quarter of 2018, the Company incurred $3.4 million in transaction costs and $1.1 million in severance charges for executives related to the Carbon Solutions Acquisition that were recorded in Other Operating Expenses. (4) During the fourth quarter of 2018, the Company recorded income tax expense of $5.3 million primarily due to an increase of $4.5 million to the valuation allowance on its deferred tax assets. |
Summary of Operations and Sig_4
Summary of Operations and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 07, 2018 | Dec. 31, 2010 | |
Accounting Policies [Line Items] | ||||
Amortization expense | $ 1 | $ 0.2 | ||
Estimated future amortization, year one | 0.8 | |||
Estimated future amortization, year two | 0.9 | |||
Estimated future amortization, year three | 0.9 | |||
Estimated future amortization, year four | 0.9 | |||
Estimated future amortization, year five | $ 0.9 | |||
Stock options | ||||
Accounting Policies [Line Items] | ||||
Total shares excluded from diluted shares outstanding (in shares) | 300,000 | 300,000 | ||
Performance share units | ||||
Accounting Policies [Line Items] | ||||
Total shares excluded from diluted shares outstanding (in shares) | 0 | 0 | ||
Mine Reserve | ||||
Accounting Policies [Line Items] | ||||
Property and equipment estimated useful lives | 21 years | |||
Minimum | ||||
Accounting Policies [Line Items] | ||||
Property and equipment estimated useful lives | 1 year | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Property and equipment estimated useful lives | 31 years | |||
Tinuum Group | ||||
Accounting Policies [Line Items] | ||||
Ownership interest | 42.50% | 42.50% | ||
Tinuum Services | ||||
Accounting Policies [Line Items] | ||||
Ownership interest | 50.00% | 50.00% | 50.00% | |
ADA Carbon Solutions, LLC | ||||
Accounting Policies [Line Items] | ||||
Ownership interest acquired | 100.00% |
Summary of Operations and Sig_5
Summary of Operations and Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Initial Cost | $ 5,589 | $ 5,244 |
Net of Accumulated Amortization | $ 4,169 | 4,830 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 5 years | |
Initial Cost | $ 2,200 | 2,100 |
Net of Accumulated Amortization | $ 1,731 | 2,071 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 16 years | |
Initial Cost | $ 1,489 | 1,244 |
Net of Accumulated Amortization | $ 1,039 | 891 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 5 years | |
Initial Cost | $ 1,600 | 1,600 |
Net of Accumulated Amortization | $ 1,259 | 1,578 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization (in years) | 2 years | |
Initial Cost | $ 300 | 300 |
Net of Accumulated Amortization | $ 140 | $ 290 |
Summary of Operations and Sig_6
Summary of Operations and Significant Accounting Policies - Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Net income | $ 9,098 | $ 3,923 | $ 8,114 | $ 14,402 | $ 6,998 | $ 5,503 | $ 15,291 | $ 7,662 | $ 35,537 | $ 35,454 |
Less: Dividends and undistributed income allocated to participating securities | 44 | 112 | ||||||||
Income attributable to common stockholders | $ 35,493 | $ 35,342 | ||||||||
Basic weighted-average number of common shares outstanding (in shares) | 18,066 | 18,112 | 18,172 | 18,268 | 19,339 | 19,726 | 20,062 | 20,502 | 18,154 | 19,901 |
Add: dilutive effect of equity instruments (in shares) | 218 | 132 | ||||||||
Diluted weighted-average number of common shares outstanding (in shares) | 18,275 | 18,339 | 18,377 | 18,433 | 19,439 | 19,876 | 20,195 | 20,584 | 18,372 | 20,033 |
Earnings per share - basic (in dollars per share) | $ 0.50 | $ 0.22 | $ 0.45 | $ 0.79 | $ 0.36 | $ 0.28 | $ 0.76 | $ 0.37 | $ 1.96 | $ 1.78 |
Earnings per share - diluted (in dollars per share) | $ 0.50 | $ 0.21 | $ 0.44 | $ 0.78 | $ 0.36 | $ 0.28 | $ 0.75 | $ 0.37 | $ 1.93 | $ 1.76 |
Summary of Operations and Sig_7
Summary of Operations and Significant Accounting Policies - Risks and Uncertainties (Details) - Tinuum Group | Dec. 31, 2019debt_instrument |
Concentration Risk [Line Items] | |
Number of instruments held | 20 |
Single Customer | |
Concentration Risk [Line Items] | |
Number of instruments held | 8 |
Summary of Operations and Sig_8
Summary of Operations and Significant Accounting Policies - New Accounting Guidance (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Aug. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease, right of use asset | $ 5,073 | $ 1,200 | $ 0 | |
Present value of lease payments | 5,192 | $ 1,200 | ||
Other long-term assets | 20,331 | $ 14,949 | 7,993 | |
Other liabilities | 53,143 | 50,058 | ||
Other long-term liabilities | 5,760 | 4,811 | 940 | |
Retained earnings | $ 57,336 | $ 12,914 | ||
Tinuum Group, LLC | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Investments | 37,200 | |||
Deferred tax liabilities | 9,800 | |||
ASU No. 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease, right of use asset | 7,000 | |||
Present value of lease payments | 7,000 | |||
Other long-term assets | 6,956 | |||
Other liabilities | 3,085 | |||
Other long-term liabilities | 3,871 | |||
ASU No. 2014-09 | Tinuum Group, LLC | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 27,400 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Dec. 07, 2018 | Jan. 01, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||||||||
Acquisition related costs | $ 3,400 | |||||||||||
Revenues | $ (16,047) | $ (19,133) | $ (15,577) | $ (19,329) | (10,626) | $ (5,147) | $ (4,273) | $ (3,899) | $ (70,086) | $ (23,945) | ||
Cost of revenue | $ (11,104) | $ (11,939) | $ (12,292) | $ (14,108) | (4,032) | $ (954) | $ (704) | $ (563) | ||||
PGI | ASU No. 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenues | $ 5,900 | |||||||||||
Cost of revenue | $ 5,900 | |||||||||||
ADA Carbon Solutions, LLC | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 75,000 | |||||||||||
Consideration transferred | 66,500 | |||||||||||
Cash paid | 65,800 | |||||||||||
Purchase adjustments payable | 700 | |||||||||||
Assumed debt and contractual commitments | 11,800 | |||||||||||
Cash acquired | (3,300) | |||||||||||
Acquisition related costs | 4,500 | |||||||||||
Revenues | (5,600) | |||||||||||
Cost of revenue | $ (3,400) | |||||||||||
Removal of transaction costs | $ 9,700 | |||||||||||
ADA Carbon Solutions, LLC | Term Loan | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Proceeds from issuance of debt | $ 70,000 |
Acquisition - Allocation (Detai
Acquisition - Allocation (Details) - ADA Carbon Solutions, LLC - USD ($) $ in Thousands | Dec. 07, 2018 | Dec. 31, 2019 |
Fair value of assets acquired: | ||
Cash | $ 3,284 | $ 3,284 |
Receivables | 6,409 | 6,409 |
Inventories | 22,100 | 21,744 |
Prepaid expenses and other current assets | 2,992 | 3,053 |
Spare parts | 3,359 | 3,359 |
Property, plant and equipment | 43,033 | 42,656 |
Mine leases and development | 2,500 | 2,700 |
Mine reclamation asset | 0 | 2,402 |
Intangible assets | 4,000 | 4,100 |
Other assets | 168 | 168 |
Amount attributable to assets acquired | 87,845 | 89,875 |
Fair value of liabilities assumed: | ||
Accounts payable | 4,771 | 4,771 |
Accrued liabilities | 7,354 | 7,608 |
Equipment lease liabilities | 8,211 | 8,211 |
Mine reclamation liability | 626 | 2,402 |
Other liabilities | 437 | 437 |
Amount attributable to liabilities assumed | 21,399 | 23,429 |
Net assets acquired | $ 66,446 | 66,446 |
Adjustments | ||
Cash | 0 | |
Receivables | 0 | |
Inventories | (356) | |
Prepaid expenses and other current assets | 61 | |
Spare parts | 0 | |
Property, plant and equipment | (377) | |
Mine leases and development | 200 | |
Mine reclamation asset | 2,402 | |
Intangible assets | 100 | |
Other assets | 0 | |
Amount attributable to assets acquired | 2,030 | |
Accounts payable | 0 | |
Accrued liabilities | 254 | |
Equipment lease liabilities | 0 | |
Mine reclamation liability | 1,776 | |
Other liabilities | 0 | |
Amount attributable to liabilities assumed | 2,030 | |
Net assets acquired | 0 | |
Customer relationships | ||
Fair value of assets acquired: | ||
Intangible assets | 2,200 | |
Adjustments | ||
Weighted Average Useful Life (years) | 5 years | |
Developed technology | ||
Fair value of assets acquired: | ||
Intangible assets | 1,600 | |
Adjustments | ||
Weighted Average Useful Life (years) | 5 years | |
Trade name | ||
Fair value of assets acquired: | ||
Intangible assets | $ 300 | |
Adjustments | ||
Weighted Average Useful Life (years) | 2 years |
Acquisition - Revenue and Net I
Acquisition - Revenue and Net Income (Details) - ADA Carbon Solutions, LLC $ in Thousands | 1 Months Ended |
Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Revenues | $ 5,580 |
Net loss | $ (391) |
Acquisition - Pro Forma (Detail
Acquisition - Pro Forma (Details) - ADA Carbon Solutions, LLC $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Revenues | $ 78,591 |
Net income | $ 31,562 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | ||
Product inventory | $ 13,515,000 | $ 19,403,000 |
Raw material inventory | 1,945,000 | 2,388,000 |
Inventories | 15,460,000 | 21,791,000 |
Inventory acquired | $ 0 | $ 5,000,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 51,445 | |
Total property and equipment, gross | $ 44,196 | |
Less accumulated depreciation | (7,444) | |
Less accumulated depreciation | (1,499) | |
Total property, plant and equipment, net | $ 44,001 | |
Total property, plant and equipment, net | 42,697 | |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 31 years | |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1,764 | |
Total property and equipment, gross | 2,302 | |
Land and land improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 0 years | |
Land and land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 31 years | |
Plant and operating equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 44,015 | |
Total property and equipment, gross | 32,999 | |
Plant and operating equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Plant and operating equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 31 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1,201 | |
Total property and equipment, gross | 701 | |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 7 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1,235 | |
Total property and equipment, gross | 1,277 | |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 7 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 245 | |
Total property and equipment, gross | 249 | |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Life in Years | 3 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 2,985 | |
Total property and equipment, gross | $ 6,668 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Finance lease, right of use asset | $ 5,900 | |
Accumulated depreciation and amortization | (2,300) | |
Property and equipment | $ 42,697 | |
Accumulated depreciation | (1,499) | |
Depreciation | $ 6,000 | 500 |
Capital Leases Mining Assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 8,100 | |
Accumulated depreciation | $ (100) |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2010 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Earnings from equity method investments | $ 12,125,000 | $ 14,426,000 | $ 20,935,000 | $ 21,690,000 | $ 16,351,000 | $ 9,715,000 | $ 15,889,000 | $ 12,253,000 | $ 69,176,000 | $ 54,208,000 | ||
Equity method investments | $ 39,155,000 | $ 6,634,000 | 39,155,000 | 6,634,000 | ||||||||
Impairment of equity method investments | 0 | 0 | ||||||||||
Purchase of and contributions to equity method investments | $ 0 | $ 800,000 | ||||||||||
Tinuum Group | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest | 42.50% | 42.50% | 42.50% | 42.50% | ||||||||
Preferred return to third party unitholders | 15.00% | |||||||||||
Earnings from equity method investments | $ 60,286,000 | $ 47,175,000 | ||||||||||
Equity method investments | $ 32,280,000 | $ 0 | 32,280,000 | 0 | $ 0 | |||||||
Losses related to VIEs, attributable to noncontrolling interest | 78,544,000 | 58,013,000 | ||||||||||
Tinuum Group | Cash distributions | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Earnings from equity method investments | 47,175,000 | |||||||||||
Equity method investments | $ 65,238,000 | $ 47,175,000 | $ 65,238,000 | $ 47,175,000 | $ 0 | |||||||
NexGen Refined Coal, LLC (NexGen) | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest | 42.50% | 42.50% | ||||||||||
GSFS Investments I Corp. (GSFS) | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest | 15.00% | 15.00% | ||||||||||
Tinuum Services | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||
Earnings from equity method investments | $ 8,896,000 | $ 7,033,000 | ||||||||||
Equity method investments | $ 6,813,000 | $ 6,567,000 | 6,813,000 | 6,567,000 | ||||||||
Losses related to VIEs, attributable to noncontrolling interest | $ 321,077,000 | $ 272,905,000 | ||||||||||
Losses attributable to noncontrolling interest | 100.00% | 100.00% |
Equity Method Investments - Sum
Equity Method Investments - Summary of Equity Method Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
ADES equity earnings (loss) | $ 12,125,000 | $ 14,426,000 | $ 20,935,000 | $ 21,690,000 | $ 16,351,000 | $ 9,715,000 | $ 15,889,000 | $ 12,253,000 | $ 69,176,000 | $ 54,208,000 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | 39,155,000 | 6,634,000 | 39,155,000 | 6,634,000 | |||||||
Earnings from equity method investments | 12,125,000 | $ 14,426,000 | $ 20,935,000 | $ 21,690,000 | 16,351,000 | $ 9,715,000 | $ 15,889,000 | $ 12,253,000 | 69,176,000 | 54,208,000 | |
Distributions from equity method investees, return on investment | 73,888,000 | 5,500,000 | |||||||||
Included in Investing Cash Flows | 0 | 47,175,000 | |||||||||
Tinuum Group | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Current assets | 128,473,000 | 54,958,000 | 128,473,000 | 54,958,000 | |||||||
Non-current assets | 125,820,000 | 92,991,000 | 125,820,000 | 92,991,000 | |||||||
Current liabilities | 59,392,000 | 50,908,000 | 59,392,000 | 50,908,000 | |||||||
Non-current liabilities | 13,340,000 | 14,446,000 | 13,340,000 | 14,446,000 | |||||||
Noncontrolling interests | 35,588,000 | 16,510,000 | 35,588,000 | 16,510,000 | |||||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
Gross profit (loss) | 104,976,000 | 107,135,000 | |||||||||
Operating, selling, general and administrative expenses | 37,641,000 | 23,662,000 | |||||||||
Income (loss) from operations | 67,335,000 | 83,473,000 | |||||||||
Other expenses | (95,000) | (5,674,000) | |||||||||
Class B preferred return | 0 | (12,000) | |||||||||
Loss attributable to noncontrolling interest | 78,544,000 | 58,013,000 | |||||||||
Net income (loss) | 145,784,000 | 135,800,000 | |||||||||
ADES equity earnings (loss) | 60,286,000 | 47,175,000 | |||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | 32,280,000 | 0 | 32,280,000 | 0 | $ 0 | ||||||
Earnings from equity method investments | 60,286,000 | 47,175,000 | |||||||||
Distributions from equity method investees, return on investment | 65,238,000 | 0 | |||||||||
Distributions from equity method investees in excess of cumulative earnings | 0 | 47,175,000 | |||||||||
Included in Investing Cash Flows | 1,672,000 | ||||||||||
Tinuum Group | Class A | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Members equity attributable to Class A members | 117,006,000 | 49,102,000 | 117,006,000 | 49,102,000 | |||||||
Tinuum Group | Class B | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Members equity attributable to Class A members | 28,967,000 | 16,983,000 | 28,967,000 | 16,983,000 | |||||||
Tinuum Services | |||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||
Current assets | 308,249,000 | 300,288,000 | 308,249,000 | 300,288,000 | |||||||
Non-current assets | 99,261,000 | 100,233,000 | 99,261,000 | 100,233,000 | |||||||
Current liabilities | 155,367,000 | 219,959,000 | 155,367,000 | 219,959,000 | |||||||
Non-current liabilities | 55,746,000 | 66,760,000 | 55,746,000 | 66,760,000 | |||||||
Equity | 13,626,000 | 13,134,000 | 13,626,000 | 13,134,000 | |||||||
Noncontrolling interests | 182,771,000 | 100,668,000 | 182,771,000 | 100,668,000 | |||||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
Gross profit (loss) | (102,172,000) | (85,377,000) | |||||||||
Operating, selling, general and administrative expenses | 199,691,000 | 173,500,000 | |||||||||
Income (loss) from operations | (301,863,000) | (258,877,000) | |||||||||
Other expenses | (1,422,000) | 37,000 | |||||||||
Loss attributable to noncontrolling interest | 321,077,000 | 272,905,000 | |||||||||
Net income (loss) | 17,792,000 | 14,065,000 | |||||||||
ADES equity earnings (loss) | 8,896,000 | 7,033,000 | |||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | 6,813,000 | 6,567,000 | 6,813,000 | 6,567,000 | |||||||
Earnings from equity method investments | 8,896,000 | 7,033,000 | |||||||||
Distributions from equity method investees, return on investment | 8,650,000 | 5,500,000 | |||||||||
Other | |||||||||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||||||
ADES equity earnings (loss) | (6,000) | 0 | |||||||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||||||||||
Equity method investments | $ 62,000 | $ 67,000 | 62,000 | 67,000 | |||||||
Earnings from equity method investments | $ (6,000) | $ 0 |
Equity Method Investments - Rol
Equity Method Investments - Rollforward of CCS Investment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Equity Method Investments [Roll Forward] | |||||||||||
Beginning balance | $ 6,634,000 | $ 6,634,000 | |||||||||
Cash distributions from Tinuum Group | $ (12,125,000) | $ (14,426,000) | $ (20,935,000) | (21,690,000) | $ (16,351,000) | $ (9,715,000) | $ (15,889,000) | $ (12,253,000) | (69,176,000) | $ (54,208,000) | |
Adjustment for current year cash distributions in excess of investment balance | 0 | 47,175,000 | |||||||||
Ending balance | 39,155,000 | 6,634,000 | 39,155,000 | 6,634,000 | |||||||
Retained earnings | 57,336,000 | 12,914,000 | 57,336,000 | 12,914,000 | |||||||
Tinuum Group | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Beginning balance | 0 | 0 | 0 | 0 | |||||||
Impact of adoption of accounting standards | $ 37,232,000 | ||||||||||
ADES proportionate share of net income from Tinuum Group | 61,958,000 | 57,721,000 | |||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | (1,672,000) | (12,218,000) | |||||||||
Cash distributions from Tinuum Group | (60,286,000) | (47,175,000) | |||||||||
Adjustment for current year cash distributions in excess of investment balance | 1,672,000 | ||||||||||
Ending balance | $ 32,280,000 | $ 0 | $ 32,280,000 | $ 0 | |||||||
Ownership interest | 42.50% | 42.50% | 42.50% | 42.50% | |||||||
Ownership interest multiplied by net income available to members, percent | 42.50% | 42.50% | |||||||||
Tinuum Group | Adjustments for New Accounting Pronouncement | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Cash distributions from Tinuum Group | $ (65,238,000) | ||||||||||
Tinuum Group | Difference between Revenue Guidance in Effect before and after Topic 606 | ASU No. 2014-09 | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Retained earnings | 27,400,000 | ||||||||||
Tinuum Group | ADES equity earnings (loss) | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Beginning balance | 47,175,000 | 0 | 47,175,000 | $ 0 | |||||||
Impact of adoption of accounting standards | 0 | ||||||||||
ADES proportionate share of net income from Tinuum Group | 61,958,000 | 57,721,000 | |||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | (1,672,000) | (12,218,000) | |||||||||
Cash distributions from Tinuum Group | 0 | ||||||||||
Adjustment for current year cash distributions in excess of investment balance | 1,672,000 | ||||||||||
Ending balance | $ 60,286,000 | $ 47,175,000 | 60,286,000 | 47,175,000 | |||||||
Tinuum Group | ADES equity earnings (loss) | Adjustments for New Accounting Pronouncement | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Cash distributions from Tinuum Group | 0 | ||||||||||
Tinuum Group | Cash distributions | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Beginning balance | 47,175,000 | 0 | 47,175,000 | 0 | |||||||
Impact of adoption of accounting standards | 0 | ||||||||||
ADES proportionate share of net income from Tinuum Group | 0 | 0 | |||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | 0 | 0 | |||||||||
Cash distributions from Tinuum Group | (47,175,000) | ||||||||||
Adjustment for current year cash distributions in excess of investment balance | 0 | ||||||||||
Ending balance | 65,238,000 | 47,175,000 | 65,238,000 | 47,175,000 | |||||||
Tinuum Group | Cash distributions | Adjustments for New Accounting Pronouncement | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Cash distributions from Tinuum Group | 65,238,000 | ||||||||||
Tinuum Group | 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 | 1,672,000 | 12,218,000 | |||||||
Impact of adoption of accounting standards | $ 0 | ||||||||||
ADES proportionate share of net income from Tinuum Group | 0 | 0 | |||||||||
Recovery of cash distributions in excess of investment balance (prior to cash distributions) | (1,672,000) | (12,218,000) | |||||||||
Cash distributions from Tinuum Group | 0 | ||||||||||
Adjustment for current year cash distributions in excess of investment balance | 1,672,000 | ||||||||||
Ending balance | $ 0 | $ 1,672,000 | 0 | $ 1,672,000 | |||||||
Tinuum Group | Memorandum Account: Cash distributions and equity loss in (excess) of investment balance | Adjustments for New Accounting Pronouncement | |||||||||||
Equity Method Investments [Roll Forward] | |||||||||||
Cash distributions from Tinuum Group | $ 0 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 07, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt, net of current portion | $ 20,434 | $ 50,058 | ||
Finance lease obligations | 6,729 | |||
Finance lease obligations | $ 8,200 | 8,167 | ||
Long-term debt, including current maturities | 44,366 | 74,125 | ||
Less: Current maturities | (23,932) | (24,067) | ||
Total long-term borrowings | 20,434 | 50,058 | ||
Senior Term Loan | ||||
Debt Instrument [Line Items] | ||||
Senior Term Loan due December 2021, related party | 40,000 | |||
Less: net unamortized debt issuance costs | (1,163) | (1,990) | $ (2,000) | |
Less: net unamortized debt discount | (1,200) | (2,052) | ||
Long-term debt, net of current portion | 37,637 | 65,958 | ||
Senior Term Loan | Affiliated Entity | ||||
Debt Instrument [Line Items] | ||||
Senior Term Loan due December 2021, related party | $ 40,000 | $ 70,000 |
Debt Obligations - Senior Term
Debt Obligations - Senior Term Loan (Details) | 1 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 07, 2018USD ($) | |
Senior Term Loan | |||
Debt Instrument [Line Items] | |||
Face amount | $ 70,000,000 | $ 70,000,000 | |
Discount | 2,052,000 | $ 1,200,000 | |
Debt issuance costs | $ (1,990,000) | (1,163,000) | $ (2,000,000) |
Term | 36 months | ||
Stated interest rate | 4.75% | ||
Minimum cash balance required | $ 5,000,000 | ||
Expected future net cash flows from refined coal business | 1.75 | ||
Maximum annual collective dividends and buybacks | $ 30,000,000 | ||
Minimum requirement from future net cash flows from refined coal business | $ 100,000,000 | ||
Senior Term Loan | Beginning on March 1, 2019 | |||
Debt Instrument [Line Items] | |||
Quarterly payment, principal | $ 6,000,000 | ||
Senior Term Loan | 3-month LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Affiliated Entity | Minimum | |||
Debt Instrument [Line Items] | |||
Percent of common stock owned | 5.00% |
Debt Obligations - Senior Ter_2
Debt Obligations - Senior Term Loan Maturities (Details) - Senior Term Loan $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 24,000 |
2021 | 16,000 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Total | $ 40,000 |
Debt Obligations - Letters of C
Debt Obligations - Letters of Credit and Other (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 07, 2018 | Sep. 30, 2018 | Sep. 30, 2013 |
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | $ 10,000,000 | |||
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 | $ 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 - Additional Information
Leases - Additional Information (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2019USD ($)ft² | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Long-term lease liabilities | $ 6,729 | |||
Present value of lease payments | $ 1,200 | 5,192 | ||
Finance lease, right of use asset | 5,900 | |||
Operating lease, right of use asset | $ 1,200 | 5,073 | $ 0 | |
Capital leased assets | $ 8,100 | |||
Capital lease obligations | 8,167 | $ 8,200 | ||
Accrued lease payments and accrued lease incentives | 100 | |||
Operating lease, expense | 4,400 | |||
Amortization of right-of-use assets | 2,149 | |||
Square feet under lease | ft² | 21 | |||
Operating leases, term of contract | 3 years 6 months | |||
Property and equipment | 42,697 | |||
Accumulated depreciation and amortization | 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 | 500 | |||
Rent expense | $ 300 | |||
Consumables | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, expense | $ 3,900 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finance lease cost: | ||
Amortization of right-of-use assets | $ 2,149 | |
Interest on lease liabilities | 365 | |
Operating lease cost | 3,673 | |
Short-term lease cost | 771 | |
Variable lease cost | 371 | |
Sublease income | 0 | |
Total lease cost | 7,329 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | 365 | |
Operating cash flows from operating leases | 3,180 | |
Financing cash flows from finance leases | 1,354 | $ 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 0 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,309 | |
Weighted-average remaining lease term - finance leases | 4 years 2 months 29 days | |
Weighted-average remaining lease term - operating leases | 2 years 4 months 14 days | |
Weighted-average discount rate - finance leases | 6.10% | |
Weighted-average discount rate - operating leases | 8.50% |
Leases - Disclosures under ASC
Leases - Disclosures under ASC 840 (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Aug. 31, 2019 | Dec. 31, 2018 |
Operating Leases ASC 842 | |||
2020 | $ 2,710 | ||
2021 | 1,969 | ||
2022 | 721 | ||
2023 | 359 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Total lease payments | 5,759 | ||
Less: Imputed interest | (567) | ||
Present value of lease payments | 5,192 | $ 1,200 | |
Finance Leases ASC 842 | |||
2020 | 1,707 | ||
2021 | 1,802 | ||
2022 | 951 | ||
2023 | 951 | ||
2024 | 1,929 | ||
Thereafter | 568 | ||
Total lease payments | 7,908 | ||
Less: Imputed interest | (1,179) | ||
Present value of lease payments | 6,729 | ||
Leases ASC 842 | |||
2020 | 4,417 | ||
2021 | 3,771 | ||
2022 | 1,672 | ||
2023 | 1,310 | ||
2024 | 1,929 | ||
Thereafter | 568 | ||
Total lease payments | 13,667 | ||
Less: Imputed interest | 1,746 | ||
Present value of lease payments | $ 11,921 | ||
Operating Leases, Future Minimum Payments | |||
2019 | $ 3,619 | ||
2020 | 2,273 | ||
2021 | 1,632 | ||
2022 | 310 | ||
2023 | 221 | ||
Thereafter | 0 | ||
Total | 8,055 | ||
Capital Leases, Future Minimum Payments | |||
2019 | 1,749 | ||
2020 | 1,707 | ||
2021 | 1,802 | ||
2022 | 951 | ||
2023 | 951 | ||
Thereafter | 2,482 | ||
Total | 9,642 | ||
Less: Imputed interest | (1,475) | ||
Present value of minimum lease payments | $ 8,167 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Collection terms | Credit terms are generally net 30 from the date of invoice | |
Provision for debt expense | $ | $ (0.1) | $ (0.2) |
Number of operating segments | segment | 2 | |
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | PGI | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Percent of revenue generated | 15.00% |
Revenues - Trade Receivables (D
Revenues - Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables | $ 8,057 | $ 10,121 |
Less: Allowance for doubtful accounts | (627) | (567) |
Trade receivables, net | $ 7,430 | $ 9,554 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | $ 70,086 | $ 23,945 | ||||||||
Earnings from equity method investments | $ 12,125 | $ 14,426 | $ 20,935 | $ 21,690 | $ 16,351 | $ 9,715 | $ 15,889 | $ 12,253 | 69,176 | 54,208 |
Total revenues and earnings from equity method investments | $ 16,047 | $ 19,133 | $ 15,577 | $ 19,329 | $ 10,626 | $ 5,147 | $ 4,273 | $ 3,899 | 70,086 | 23,945 |
Total revenues and earnings from equity method investments | 139,262 | 78,153 | ||||||||
Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues and earnings from equity method investments | 136,533 | 78,048 | ||||||||
Consumables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 53,187 | 8,733 | ||||||||
License royalties, related party | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 16,899 | 15,140 | ||||||||
Other | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 0 | 72 | ||||||||
PGI | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 50,458 | 8,700 | ||||||||
Earnings from equity method investments | 0 | 0 | ||||||||
PGI | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues and earnings from equity method investments | 50,458 | 8,700 | ||||||||
PGI | Consumables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 50,458 | 8,628 | ||||||||
PGI | Consumables | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 50,458 | 8,628 | ||||||||
PGI | License royalties, related party | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 0 | 0 | ||||||||
PGI | Other | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 72 | |||||||||
Refined Coal | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 16,899 | 15,140 | ||||||||
Earnings from equity method investments | 69,176 | 54,208 | ||||||||
Refined Coal | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Earnings from equity method investments | 69,176 | 54,208 | ||||||||
Total revenues and earnings from equity method investments | 86,075 | 69,348 | ||||||||
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 | 16,899 | 15,140 | ||||||||
Refined Coal | Other | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 0 | |||||||||
Other | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 2,729 | 105 | ||||||||
Earnings from equity method investments | 0 | 0 | ||||||||
Other | Operating Segments | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Total revenues and earnings from equity method investments | 2,729 | 105 | ||||||||
Other | Consumables | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenue component | 2,729 | 105 | ||||||||
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 - Tinuum Group and Consultant Obligation (Details) | Dec. 31, 2019 |
Tinuum Group | |
Related Party Transaction [Line Items] | |
Limited guarantees, percent | 50.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)voteshares | Dec. 31, 2018USD ($)shares | Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | May 05, 2017 | |
Class of Stock [Line Items] | |||||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | |||
Number of votes per common share | vote | 1 | ||||
Repurchase of shares | $ 451,000 | $ 769,000 | |||
Dividends paid | 18,600,000 | $ 20,300,000 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Remaining authorized repurchase amount | $ 7,100,000 | $ 2,900,000 | |||
Authorized incremental amount | $ 7,100,000 | ||||
Repurchase of shares (in shares) | shares | 533,345 | 2,350,422 | |||
Repurchase of shares | $ 5,800,000 | $ 25,300,000 | |||
Common Stock | Single Block through a Privately Negotiated Transaction | |||||
Class of Stock [Line Items] | |||||
Repurchase of shares | $ 0 | $ 15,600,000 | |||
Maximum | |||||
Class of Stock [Line Items] | |||||
Requirement to own shares outstanding as percent | 4.99% | ||||
Maximum | Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares authorized to be repurchased | $ 20,000,000 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||||||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1 | $ 1 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)employee$ / sharesshares | Dec. 31, 2018USD ($)employee$ / sharesshares | Dec. 31, 2010shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employees affected | employee | 0 | 13 | |
Net increase in share-based compensation | $ | $ 0 | $ 800,000 | |
Proceeds received upon exercise of stock options | $ | $ 200,000 | $ 0 | |
RSA expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non vested shares granted, weighted average grant date fair value (in usd per share) | $ / shares | $ 11.03 | $ 11 | |
Vested in period, value | $ | $ 1,100,000 | $ 2,000,000 | |
Aggregate intrinsic value, nonvested | $ | $ 4,700,000 | ||
Granted (in shares) | shares | 287,288 | ||
RSA expense | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Contractual term | 5 years | ||
Options granted (in shares) | shares | 0 | 0 | |
Shares issued as a result of options exercised | $ | $ 0 | $ 300,000 | |
Weighted-average grant-date fair value | $ | $ 600,000 | $ 300,000 | |
Options exercised (in shares) | shares | 209,780 | 0 | |
RSU expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Non vested shares granted, weighted average grant date fair value (in usd per share) | $ / shares | $ 0 | $ 10.52 | |
Aggregate intrinsic value, nonvested | $ | $ 0 | ||
Granted (in shares) | shares | 0 | ||
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Granted (in shares) | shares | 0 | 0 | |
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | shares | 600,000 | ||
2017 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance (in shares) | shares | 2,000,000 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 2,011 | $ 2,490 |
RSA expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 2,011 | 2,222 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 0 | 58 |
RSU expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 0 | $ 210 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Unrecognized Compensation Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 2,521 |
Expected Weighted-Average Period of Recognition (in years) | 1 year 5 months 19 days |
RSA expense | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation costs, RSA expense | $ 2,521 |
Expected Weighted-Average Period of Recognition (in years) | 1 year 5 months 19 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Non-vested Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
RSA expense | ||
Restricted Stock | ||
Non-vested at January 1, 2019 | 280,852 | |
Granted (in shares) | 287,288 | |
Vested (in shares) | (108,081) | |
Forfeited (in shares) | (8,715) | |
Non-vested at December 31, 2019 | 451,344 | 280,852 |
Weighted-Average Grant Date Fair Value | ||
Non-vested shares, weighted average grant date fair value, at January 1, 2019 (in usd per share) | $ 9.92 | |
Non vested shares granted, weighted average grant date fair value (in usd per share) | 11.03 | $ 11 |
Vested in period, weighted average grant date fair value (in usd per share) | 9.77 | |
Forfeited, weighted average grant date fair value (in usd per share) | 10.79 | |
Non-vested shares, weighted average grant date fair value, at December 31, 2019 (in usd per share) | $ 10.65 | $ 9.92 |
RSU expense | ||
Restricted Stock | ||
Non-vested at January 1, 2019 | 20,000 | |
Granted (in shares) | 0 | |
Vested (in shares) | (20,000) | |
Forfeited (in shares) | 0 | |
Non-vested at December 31, 2019 | 0 | 20,000 |
Weighted-Average Grant Date Fair Value | ||
Non-vested shares, weighted average grant date fair value, at January 1, 2019 (in usd per share) | $ 10.52 | |
Non vested shares granted, weighted average grant date fair value (in usd per share) | 0 | $ 10.52 |
Vested in period, weighted average grant date fair value (in usd per share) | 10.52 | |
Forfeited, weighted average grant date fair value (in usd per share) | 0 | |
Non-vested shares, weighted average grant date fair value, at December 31, 2019 (in usd per share) | $ 0 | $ 10.52 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options Outstanding and Exercisable | ||
Options outstanding, beginning of year (in shares) | 529,780 | |
Options granted (in shares) | 0 | 0 |
Options exercised (in shares) | (209,780) | 0 |
Options expired / forfeited (in shares) | (20,000) | |
Options outstanding, end of year (in shares) | 300,000 | 529,780 |
Options vested and exercisable (in shares) | 300,000 | |
Weighted- Average Exercise Price | ||
Options outstanding, end of year (in usd per shares) | $ 12.23 | |
Options granted (in usd per shares) | 0 | |
Options exercised (in usd per shares) | 9.14 | |
Options expired / forfeited (in usd per shares) | 20.07 | |
Options outstanding, end of year (in usd per shares) | 13.87 | $ 12.23 |
Options vested and exercisable, weighted average exercise price (in usd per shares) | $ 13.87 | |
Options outstanding, end of year, aggregate intrinsic value | $ 0 | |
Options outstanding, end of year, weighted average remaining contractual term (in years) | 5 months 5 days | |
Options vested and exercisable, aggregate intrinsic value | $ 0 | |
Options vested and exercisable, weighted average remaining contractual term (in years) | 5 months 5 days |
Stock-Based Compensation - PSUs
Stock-Based Compensation - PSUs Settled (Details) - Performance share units - 2015 | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Net Number of Issued Shares upon Vesting (in shares) | 12,311 |
Shares Withheld to Settle Tax Withholding Obligations (in shares) | 4,061 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
TSR Multiple Range | 112.50 |
Russell 3000 Multiple | 0 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
TSR Multiple Range | 112.50 |
Russell 3000 Multiple | 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid expenses and other assets and Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Aug. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets: | ||||
Prepaid expenses | $ 1,708 | $ 1,233 | ||
Prepaid income taxes | 4,228 | 2,940 | ||
Other | 1,896 | 1,397 | ||
Prepaid expenses and other current assets | 7,832 | 5,570 | ||
Other long-term assets: | ||||
Right of use assets, operating leases, net | 5,073 | $ 1,200 | 0 | |
Spare parts, net | 3,453 | 3,278 | ||
Mine development costs, net | 7,084 | 2,531 | ||
Mine reclamation asset, net | 2,451 | 408 | ||
Highview investment | 552 | 552 | ||
Other long-term assets | 1,718 | 1,224 | ||
Total | $ 20,331 | $ 14,949 | $ 7,993 |
Supplemental Financial Inform_4
Supplemental Financial Information - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Nov. 30, 2014 | Dec. 31, 2019 | |
Highview Enterprises Limited | ||
Schedule of Investments [Line Items] | ||
Ownership interest, percent | 8.00% | |
Payments to acquire investments | $ 2.8 | |
Mine Reserve | ||
Schedule of Investments [Line Items] | ||
Property and equipment estimated useful lives | 21 years |
Supplemental Financial Inform_5
Supplemental Financial Information - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other current liabilities: | |||
Current portion of operating lease obligations | $ 2,382 | $ 0 | |
Accrued interest | 213 | 407 | |
Income and other taxes payable | 678 | 479 | |
Other current liabilities | 1,038 | 1,252 | |
Total other current liabilities | 4,311 | 2,138 | |
Other long-term liabilities: | |||
Operating lease obligations, long-term | 2,810 | 0 | |
Mine reclamation liability | 2,721 | 624 | |
Other | 229 | 316 | |
Total other long-term liabilities | $ 5,760 | $ 4,811 | $ 940 |
Supplemental Financial Inform_6
Supplemental Financial Information - Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning of year | $ 624 | $ 0 |
Asset retirement obligation assumed in Carbon Solutions Acquisition | 1,776 | 626 |
Accretion | 205 | 2 |
Liabilities settled | (78) | (4) |
Changes due to scope and timing of reclamation | 194 | 0 |
Asset retirement obligations, end of year | $ 2,721 | $ 624 |
Supplemental Financial Inform_7
Supplemental Financial Information - Supplemental Income Statement - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest on Senior Term Loan | $ 4,112 | $ 366 |
Debt discount and debt issuance costs | 1,678 | 94 |
453A interest | 1,039 | 1,585 |
Other | 345 | 106 |
Interest expense | $ 7,174 | $ 2,151 |
Supplemental Financial Inform_8
Supplemental Financial Information - Supplemental Income Statement - Other (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest income | $ 261 | $ 239 |
Other | 166 | (19) |
Total other nonoperating income (expense) | $ 427 | $ 220 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments: | ||
Highview investment | $ 552 | $ 552 |
Carrying Value | ||
Financial Instruments: | ||
Highview investment | 552 | 552 |
Highview Obligation | 220 | 213 |
Fair Value | ||
Financial Instruments: | ||
Highview investment | 552 | 552 |
Highview Obligation | $ 220 | $ 213 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Dec. 07, 2018USD ($) |
ADA Carbon Solutions, LLC | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Consideration transferred | $ 66.5 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current portion of income tax expense: | ||||||||||
Federal | $ 2,133 | $ 882 | ||||||||
State and other | 1,211 | 4,308 | ||||||||
Current portion of income tax expense | 3,344 | 5,190 | ||||||||
Deferred portion of income tax expense (benefit): | ||||||||||
Federal | 10,491 | 4,766 | ||||||||
State and other | (1,836) | 467 | ||||||||
Deferred portion of income tax (benefit) expense | 8,655 | 5,233 | ||||||||
Total income tax expense | $ (2,929) | $ 6,595 | $ 6,634 | $ 1,699 | $ 5,272 | $ 3,931 | $ (1,349) | $ 2,569 | $ 11,999 | $ 10,423 |
Effective tax rate | 25.00% | 23.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expected Federal Income Taxes at Statutory Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amount | ||||||||||
Federal statutory rate | $ 10,027 | $ 9,634 | ||||||||
State income taxes, net of federal benefit | 1,597 | 3,625 | ||||||||
Permanent differences | 286 | 130 | ||||||||
Tax credits | (338) | (7,031) | ||||||||
Valuation allowances | (288) | 4,462 | ||||||||
Changes in tax rates | 229 | (464) | ||||||||
Stock-based compensation | 112 | (216) | ||||||||
UTP liability | 236 | 0 | ||||||||
Other | 138 | 283 | ||||||||
Total income tax expense | $ (2,929) | $ 6,595 | $ 6,634 | $ 1,699 | $ 5,272 | $ 3,931 | $ (1,349) | $ 2,569 | $ 11,999 | $ 10,423 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Tax credits | $ 98,541 | $ 104,553 |
Operating lease obligations | 1,307 | |
Employee related liabilities | 1,065 | 1,515 |
Intangible assets | 1,574 | 1,623 |
Equity method investments | 0 | 9,588 |
Net operating loss carryforwards | 2,956 | 2,479 |
Other investments | 555 | 583 |
Reserves | 587 | 45 |
Other | 244 | 335 |
Total deferred tax assets | 106,829 | 120,721 |
Less valuation allowance | (79,610) | (79,898) |
Deferred tax assets | 27,219 | 40,823 |
Less: Deferred tax liabilities | ||
Property and equipment and other | (11,087) | (8,284) |
Equity method investments | (736) | 0 |
Right of use operating lease assets | (1,301) | |
Total deferred tax liabilities | (13,124) | (8,284) |
Net deferred tax assets | $ 14,095 | $ 32,539 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Net deferred tax assets | $ 32,539 | $ 14,095 |
Release of valuation allowance | $ 4,500 | (300) |
Tax benefits that would result in adjustments to deferred taxes | $ (700) |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards and Tax Credit Carryforwards (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Federal | |
Income Taxes [Line Items] | |
Tax credit carryforwards | $ 98,541 |
State | |
Income Taxes [Line Items] | |
Operating loss carryforwards | $ 2,956 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of January 1 | $ 54 | $ 54 |
Increases for tax positions of prior years | 892 | 0 |
Balance as of December 31 | $ 946 | $ 54 |
Business Segment Information -
Business Segment Information - Segment Operating Results (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||
Number of reportable segments | segment | 2 | |||||||||
Revenues: | ||||||||||
Earnings from equity method investments | $ 12,125,000 | $ 14,426,000 | $ 20,935,000 | $ 21,690,000 | $ 16,351,000 | $ 9,715,000 | $ 15,889,000 | $ 12,253,000 | $ 69,176,000 | $ 54,208,000 |
Revenue component | 70,086,000 | 23,945,000 | ||||||||
Total revenues and earnings from equity method investments | 16,047,000 | 19,133,000 | 15,577,000 | 19,329,000 | 10,626,000 | 5,147,000 | 4,273,000 | 3,899,000 | 70,086,000 | 23,945,000 |
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | (4,687,000) | $ (2,391,000) | $ (4,260,000) | $ (3,555,000) | (3,151,000) | $ 32,000 | $ (1,569,000) | $ (1,712,000) | (14,893,000) | (6,400,000) |
453A interest | 1,039,000 | 1,585,000 | ||||||||
Proceeds received upon exercise of stock options | 200,000 | 0 | ||||||||
Consumables | ||||||||||
Revenues: | ||||||||||
Revenue component | 53,187,000 | 8,733,000 | ||||||||
Refined Coal | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | 69,176,000 | 54,208,000 | ||||||||
Revenue component | 16,899,000 | 15,140,000 | ||||||||
Refined Coal | Consumables | ||||||||||
Revenues: | ||||||||||
Revenue component | 0 | 0 | ||||||||
Power Generation and Industrials | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | 0 | 0 | ||||||||
Revenue component | 50,458,000 | 8,700,000 | ||||||||
Power Generation and Industrials | Consumables | ||||||||||
Revenues: | ||||||||||
Revenue component | 50,458,000 | 8,628,000 | ||||||||
Operating Segments | ||||||||||
Revenues: | ||||||||||
Total revenues and earnings from equity method investments | 136,533,000 | 78,048,000 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | 71,865,000 | 62,233,000 | ||||||||
Operating Segments | Refined Coal | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | 69,176,000 | 54,208,000 | ||||||||
License royalties, related party | 16,899,000 | 15,140,000 | ||||||||
Total revenues and earnings from equity method investments | 86,075,000 | 69,348,000 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | 83,471,000 | 64,854,000 | ||||||||
Severance expense | 400,000 | |||||||||
Operating Segments | Power Generation and Industrials | ||||||||||
Revenues: | ||||||||||
Total revenues and earnings from equity method investments | 50,458,000 | 8,700,000 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | (11,606,000) | (2,621,000) | ||||||||
Amortization related to fair value of inventory | $ 4,700,000 | $ 1,000,000 | 4,700,000 | 1,000,000 | ||||||
Proceeds received upon exercise of stock options | 6,700,000 | 500,000 | ||||||||
Operating Segments | Power Generation and Industrials | Consumables | ||||||||||
Revenues: | ||||||||||
Revenue component | 50,458,000 | 8,628,000 | ||||||||
Operating Segments | Power Generation and Industrials | Other | ||||||||||
Revenues: | ||||||||||
Revenue component | 0 | 72,000 | ||||||||
Intersegment Eliminations | Refined Coal | ||||||||||
Revenues: | ||||||||||
Earnings from equity method investments | (69,176,000) | (54,208,000) | ||||||||
All Other and Corporate | ||||||||||
Revenues: | ||||||||||
Total revenues and earnings from equity method investments | 2,729,000 | 105,000 | ||||||||
Segment reporting operating income (loss) | ||||||||||
Segment operating income (loss) | (1,994,000) | 2,000 | ||||||||
RCM6, LLC (RCM6) | Refined Coal | ||||||||||
Segment reporting operating income (loss) | ||||||||||
453A interest | $ 1,000,000 | $ 1,600,000 |
Business Segment Information _2
Business Segment Information - Reconciliation of Reportable Segment Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | $ (4,687) | $ (2,391) | $ (4,260) | $ (3,555) | $ (3,151) | $ 32 | $ (1,569) | $ (1,712) | $ (14,893) | $ (6,400) |
Corporate payroll and benefits | (10,094) | (10,639) | ||||||||
Corporate legal and professional fees | (9,948) | (8,552) | ||||||||
Corporate general and administrative | (8,123) | (4,178) | ||||||||
Corporate depreciation and amortization | (7,371) | (723) | ||||||||
Other income, net | 427 | 220 | ||||||||
Net income | $ 9,098 | $ 3,923 | $ 8,114 | $ 14,402 | $ 6,998 | $ 5,503 | $ 15,291 | $ 7,662 | 35,537 | 35,454 |
Operating Segments | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | 71,865 | 62,233 | ||||||||
Other operating (loss) income | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | (1,994) | 2 | ||||||||
Segment Reconciling Items | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Total reported segment operating income | 69,871 | 62,235 | ||||||||
Corporate payroll and benefits | (2,592) | (4,970) | ||||||||
Corporate legal and professional fees | (7,485) | (7,700) | ||||||||
Corporate general and administrative | (6,836) | (3,305) | ||||||||
Corporate depreciation and amortization | (82) | (134) | ||||||||
Corporate interest expense, net | (5,767) | (521) | ||||||||
Other income, net | 427 | 272 | ||||||||
Net income | $ 47,536 | $ 45,877 |
Business Segment Information _3
Business Segment Information - Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 173,799 | $ 159,664 |
Equity method investments | 39,155 | 6,634 |
Deferred tax assets, net | 14,095 | 32,539 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 124,865 | 97,254 |
Operating Segments | Refined Coal | ||
Segment Reporting Information [Line Items] | ||
Assets | 43,953 | 11,468 |
Operating Segments | Power Generation and Industrials | ||
Segment Reporting Information [Line Items] | ||
Assets | 80,912 | 85,786 |
All Other and Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 48,934 | $ 62,410 |
Major Customers (Details)
Major Customers (Details) - Sales - Operating Segments | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A | RC | ||
Revenue, Major Customer [Line Items] | ||
Major customer percentage | 24.00% | 63.00% |
Customer B | PGI | ||
Revenue, Major Customer [Line Items] | ||
Major customer percentage | 10.00% | 0.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - Tinuum Group - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Receivable from related party | $ 4,246 | $ 4,284 |
License royalties, related party | $ 16,899 | $ 15,140 |
Defined Contributions Savings_3
Defined Contributions Savings Plan (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | |
Retirement Benefits [Abstract] | ||
Number of qualified defined contribution savings plans | plan | 2 | |
401(k) Plans employer contributions | $ | $ 553 | $ 139 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 3,129 | |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 570 | |
Severance | ADA Carbon Solutions, LLC | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 600 |
Restructuring - Net Pretax Bene
Restructuring - Net Pretax Benefits (Charges), Incurred by Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | |
Approximate Number of Employees | employee | 16 |
Restructuring charges | $ 3,129 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | 3,129 |
All Other and Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,685 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | 1,685 |
Refined Coal | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 448 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | 448 |
PGI | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 996 |
Changes in estimates | 0 |
Total pretax charge, net of reversals | $ 996 |
Restructuring - Utilization of
Restructuring - Utilization of Restructuring Accruals (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Severance liability acquired | $ 3,129 | |
Share-based compensation | $ 0 | 800 |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Accrual, Beginning balance | 2,208 | 0 |
Expense provision | 172 | 3,129 |
Cash payments and other | (2,051) | (1,491) |
Change in estimates | (75) | 0 |
Severance liability acquired | 570 | |
Accrual, Ending balance | $ 254 | $ 2,208 |
Quarterly Financial Results (_3
Quarterly Financial Results (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||||||||
Revenues | $ 16,047 | $ 19,133 | $ 15,577 | $ 19,329 | $ 10,626 | $ 5,147 | $ 4,273 | $ 3,899 | $ 70,086 | $ 23,945 |
Cost of revenues, exclusive of operating expenses shown below | 11,104 | 11,939 | 12,292 | 14,108 | 4,032 | 954 | 704 | 563 | ||
Other operating expenses | 9,630 | 9,585 | 7,545 | 8,776 | 9,745 | 4,161 | 5,138 | 5,048 | ||
Operating (loss) income | (4,687) | (2,391) | (4,260) | (3,555) | (3,151) | 32 | (1,569) | (1,712) | (14,893) | (6,400) |
Earnings from equity method investments | 12,125 | 14,426 | 20,935 | 21,690 | 16,351 | 9,715 | 15,889 | 12,253 | 69,176 | 54,208 |
Other expenses, net | (1,269) | (1,517) | (1,927) | (2,034) | (930) | (313) | (378) | (310) | ||
Income before income tax expense | 6,169 | 10,518 | 14,748 | 16,101 | 12,270 | 9,434 | 13,942 | 10,231 | 47,536 | 45,877 |
Income tax (benefit) expense | (2,929) | 6,595 | 6,634 | 1,699 | 5,272 | 3,931 | (1,349) | 2,569 | 11,999 | 10,423 |
Net income | $ 9,098 | $ 3,923 | $ 8,114 | $ 14,402 | $ 6,998 | $ 5,503 | $ 15,291 | $ 7,662 | $ 35,537 | $ 35,454 |
Earnings per common share - basic (in dollars per share) | $ 0.50 | $ 0.22 | $ 0.45 | $ 0.79 | $ 0.36 | $ 0.28 | $ 0.76 | $ 0.37 | $ 1.96 | $ 1.78 |
Earnings per common share - diluted (in dollars per share) | $ 0.50 | $ 0.21 | $ 0.44 | $ 0.78 | $ 0.36 | $ 0.28 | $ 0.75 | $ 0.37 | $ 1.93 | $ 1.76 |
Weighted-average number of common shares outstanding: | ||||||||||
Basic (in shares) | 18,066 | 18,112 | 18,172 | 18,268 | 19,339 | 19,726 | 20,062 | 20,502 | 18,154 | 19,901 |
Diluted (in shares) | 18,275 | 18,339 | 18,377 | 18,433 | 19,439 | 19,876 | 20,195 | 20,584 | 18,372 | 20,033 |
Acquisition related costs | $ 3,400 | |||||||||
Release of valuation allowance | 4,500 | $ (300) | ||||||||
ADA Carbon Solutions, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Revenues | 5,600 | |||||||||
Cost of revenues, exclusive of operating expenses shown below | 3,400 | |||||||||
Other operating expenses | 2,600 | |||||||||
Income before income tax expense | (400) | |||||||||
Weighted-average number of common shares outstanding: | ||||||||||
Acquisition related costs | $ 4,500 | |||||||||
Severance charges | $ 1,100 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 07, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||||||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1 | $ 1 | |
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividends declared (in dollars per share) | $ 0.25 |
Uncategorized Items - ades-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,950,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 27,442,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,950,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 27,442,000 |