Recent ARQ transcripts
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Greg Marken | Interim President and CEO and Treasurer |
Chris Bellino | Chief Accounting Officer |
Ladies and gentlemen, thank you for standing by, and welcome to the Advanced Emissions Solutions Q4 2020 Earnings Call. At this time, all participant lines are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to your speaker today [indiscernible] Investor Relations. Thank you. Please go ahead.
you. Thank and and joining call. full-year everyone, our today you quarter fourth XXXX thank morning us for for Good earnings results me Treasurer; today Chief call Accounting on Marken, With President, Interim Officer. are Executive Chris and Greg and Bellino, Chief Officer the is as the section This well. website being of presentation today’s live version downloadable a of webcast is the within call Investor and available there at also you for replay will be support can Investor Alpha webcast the and available A site Group contact IR Relations XXX-XXX-XXXX. on
today’s reflect Slide to factors limited December remind defined of expressly me and opportunities not These statements and remarks information are the made undertakes the the other today and implied no Let quarter on could but Commission. Act. expressed filings and involve you that presentation XX-K in Securities currently XX, that of those those to in ended include XXXX, actual by Exchange the us Except available statements uncertainties materially required laws, with forward-looking identified based changed and or or on our forward-looking the developments, Form Exchange events, and Company as any other by statements are cause in XXE These update to from include, Section to as Securities these those uncertainties results, risks and reason. performance, statements. or obligation or the future to for circumstances and risks differ X and future slide any factors presentation, securities prospects for business
in conjunction remarks the review presentation with In today's addition, it to statements. important the references GAAP financial is in the very and
the to Greg. to that, call with I’d like turn So over
thanks joining morning. to and us lot this for a Thanks everyone
the year. me has a years integral of quarter in profile to in Africa, take and the is turn first, more and progress products success. quarter the talk at the published Before And channels agreement we results with of performance level variety complete sales choice Slide thank Cabot agreement that we to But bringing X has to through will We were quarter been Tinuum are for forecasts a her carbon the served basis, of facility activated joined supply that the has Chris up quarter, and product in close announced Fourth Full-year renegotiated segment. net XXXX. Europe, and a second for been our After payments our XXXX beat lower XXXX, distributions Company. XX few from in well of additional to her we our moment high activated East earnings other resulted $XX.X the distributions $X.X to a The Cabot Bellino, and mix six provider were during royalties let's yesterday, million last business the encouraging retirement current our closures her these exceeded our quarter million. internal quarter September. fourth were supply and optimizing Company's our time, again sell ADES fourth with I to the timing of and be for Tinuum. Chris from full-year aligned full-year flows the and the once and past cash about last earnings Middle cash retiring incremental royalty able million. carbon carbon lease in quarter year. over distributions in in investment XX-year the of or XX wish has based to totaled activated forecasts I'll fourth and agreements. just end our are and month. that during the On for an our of were solutions. up distributions thank enhance facilities month, of now result and into with business annual who would calls expectations. the continues on million review in contracts Fourth to third in a market our which momentum was roles begin, new on announced lower to We two of and service the to Tinuum the we our as master we $XX.X for total in the the now, support XX.X carrying continue investment strategy forward to totaled two around volume distributions our after-tax strategy go to details turning income Company quarter which transactions like and full-year XX%
we XX.X an to we portray cash that, As for EBITDA compared year-over-year impacts segment of XX.X the of Because distributions last QX our segment by to RC received. depreciation the Segment Tinuum, XX.X in segment. EBITDA Full-year cash past million and associated RC we was the compared on EBITDA the quarter the given RC in and fourth year. calls, flows of revenue comparison compared additional million adjusted adjusted million of earnings discussed timing were increased XXXX. believe to XXXX of XX% helps have reduced significantly to earnings non-cash accelerated to of recognition adjusted earnings equity
and I'd like to activated scope. segment business, Moving reflect positioning to long-term better the point to we've out more that this expansive its carbon renamed
originally to more carbon serve far our provided expect solutions. of We we markets products acquiring on where than solutions
updated of Technologies up roughly segment, segment income APT $X.X was EBITDA X.X to what we to the million. for was quarter segment while APT industrials QX X.X year. XX.X previously or In short. loss in fourth adjusted last Adjusted revenue million, this So a in power was Purification our our and now XX% generation called or million against improvement has EBITDA PGI operating million Advanced been
was positively customers by Cabot impacted APT Our existing agreement. supply and quarter segment of another our execution saw strong the with
the product changed moving to capacity now a are focus Having plant's been more the broader utilization in over focus in terms main upstream we quarters to level run term longer with Our of pivot our past and customer earnings capacity. several line now will has in filling alternative the rate, margin beginning involves and segment competing sources XXXX. of profile contributed mix. to fiscal Similar volume RC identifying the of segment, also which enhance in segment fuel to the margin overtime. accretive opportunities, this weakness This
have However, the addition Cabot from we we industrial to we power away have have largely supply volume as mix success been in agreements. diversified product this our offset with to markets able generation the coal-fired in had pressure, water and greatly
of in the as colder well generation XXXX, U.S. of like that saw related we partially to early product. the materials impacted significantly products that those the demand weather operational We to take power the From for as I On coal-fired impacts both also by raw forced and fourth prices driven higher natural incoming months were related customers. note, perspective, across plains. by during the temperatures energy southern a quarter occurred across would most transportation positively to to our Texas certain and gas which constraints operations, moment the finished certain crisis due to and acknowledge an limit outgoing
and and product, full-year sufficient in our production and due operations, job million while $XX and conditions, driven an have allowance. million markets ultimately in income allow was the resumed charge a their inventory of lost how impairment our the able quarter was driver as working people in we mainly power since transportation tax deliver income asset a generation to product availability situations, consolidated net to That had consolidated deferred the we million. the incurred did well by customers loss to operations we to we would weather the second $XX.X $X.X perspective, normal to supply result the keeping customers. in tax fourth Although, supporting water going for that an full-year serving with From as of quarter, amazing continue valuation be expense, our loss these was net net increase
XX.X compared million and in fiscal year consolidated adjusted fourth XX.X was prior periods and XX.X respectively. the to million Our million EBIT XXXX million quarter the in $XX.X in
year. and to continue cash loan to reduction the prioritize evaluate remaining cost our paws and capital We maintaining of spending, continue containment, on non-core business reduced debt our of off quarter, our balance for on Regarding go to forward and this million activities. expect remain to focused QX pay cost allocation, $XX we'll our our We fourth we preservation. relative capital balance the during structure we long-term to
not liquidity any experience to capabilities, Our pleased did business focus prioritize say manufacturing interruptions. or are ensure we to and organic manufacturing we that was significant investment to and
throughout During we by also in of by the expenses and Certain other pandemic X% the related to limited fourth the to the Cabot backfilling securing measures. to related we other product the quarter of travel other XX% these roughly offset related impacts incurred corporate over fourth our positions, for restricted year. open agreements. hunting to year completing expenses year-over-year, by savings and reduced were these and addition largely matters year, supply Irrespective operating full quarter
Our focus sheet us strengthen expense on our XXXX. management in balance helped
restricted balances the year. an cash $XX.X million, $XX.X totaled including prior year-end of cash from Our increase million
agreements plants had to our supply as we a agreement, margins European two and as coal-fired end used move the related and testament removal into After key of Upon at from in announced cost opportunity incremental of subsidiary as commitments Cabot signing the in end that plants power our Cabot back announced in plant are February agreement we streams years were Europe, that The towards the Xth, important September. agreement step to the began we ADES beginning going with structure and for competitive and Cabot the agreements XXXX. see supply entered market diversifying to be months product working an an the past into agreement announced However, Africa. products East supply towards we position will Cabot for we XX assets. well we continued lignite and for improvement Middle the the activated September, of in product Red with we other fourth carbon the capturing the revenue and see over collective the deal. six fulfilling utility solutions River EBITDA immediately products the a forward. and value positive separate in and is the industrial supply These agreement to and of benefits that This proprietary of a on the quarter, on had generate are focus its mercury Turkey, will we the
forward. fortunate establishing going in are business partners to committed We an Cabot have
consolidated We to expect the our supply activated our improve materially with assets performance. and financial of carbon agreements Cabot the economics
ramp will generation year, we we less up production we As to reduce our the that our exposure portfolio. of power than expect over next XX%
are regulations quantify these EU coming online early we impact month, new the industries potential are the creates too like This ensure vital and to pollutant still last economic ours of agreement beyond. to announced and it's by a regulations. control abiding the mercury XXXX in need solutions While in other the EMEA for
clearer understanding expect gain come of We the as to financial a those online. impacts regulations
important the America. mix revenue However, our diversifying ongoing that downside we on offered are providing and further while related plant agreement geographic pressure by power step capacity, confident generation to also to further the protection the the North is expansion an utilizing in
diversification to by impact are these much remains the bid power. remained the provided business and on sources challenged tied and simultaneously our continuing to pandemic. in of addition In but alternative markets, to market product the power we agreements, portfolio fuel current The generation cheap by very
infrastructure. product increasingly our sales We non-power water. has effort out spent and generation building time have like municipal capabilities industrials and and our markets, grown internal considerable and competitive And organically offering
of As time. have and diversification year-over-year. of us on customer as balance But but mix. We with the basis, groundwork our as are well mix, it the the products annualized encouraging pleased overall forward. will earlier, assets with scale remains of for addition water have product our to margins as volumes profitability achieved we to carbon is the in a future. It success am the efforts, provide viability will customers segment more business portfolio, related to as our better The I doubled moving of and a of we improve continue and result ensure portion an and both our activated our said increase these smaller financial the strategic need for the I a Overall, assets over this we progress. our year, post term than new laying we applications, longer
first, full segment I'd XX our to and to more line and We expect the But I'll about outlook. earnings of solid quarter APT profile call our financial to talk XXXX, of we performance. our like fourth to a the strategy and refilled in million XX year after-tax coal sight over the million improve review to of flows. cash Chris have to turn
Greg. you, Thank
to our in financial to XX.X for earnings Slide turn continually XX million investments to higher equity from X fourth Fourth method were the the were quarter quarter equity year X to quarter Full decline earnings and Let's The year of for method review. low investments compared new earnings XXXX. XX.X on XXXX. million and million through compared driven in group was two all equity by million investments primarily grew, and method earnings due RC full during facilities. depreciation fourth
increase quarter months in in higher useful royalty lease upon compared royalty and X.X facilities XX, result compared totaled offset quarter compared Fourth fourth year year, XX of the from as Company's royalty this to million equity revenue to of XX.X from leases compared full result in rent the due XX.X royalty September Red margins, lower revenue our with primarily to revenues is product and payments by X.X of in increased earnings revenue restructuring and increased million Cabot lower was compared million to related Full quarter lives decreased the and payments expense consumables to million impact the fourth Decline which group of well of customer, in the million XXXX. a Tinuum the in million Fourth the the increase also quarter impacts Tinuum were third estimated in ton quarter revenue Tinuum, the due during in XXXX. of fourth of lower of of driven XXXX As earnings lower equity the of customer million earnings. XXXX. volumes mix, the XXXX. result quarter inclusive XX.X to million, earnings River the in was depreciation pre-tax three in Full income RC The reduction XXXX. by the was year which totaled partially beginning Royalty income XX.X quarter ended at net the fourth based other totaled to supply The a XX.X applicable quarter revenue volume largest agreements. group percentage as and per to year fourth depreciation consumables XXXX. and earnings to expenses. plants, impacted
incurred the quarter XX.X to the XXXX by earnings million, as net driven Full-year XX income of royalty in in of XXXX, the changes for to generating impairment expense. was be as of during As XXXX. transactions Fourth quarter, the from negatively the loss XX.X equity XXXX. was now due two net we charge in net impacted income million Company primarily XXXX. income compared investments year facilities XX these to coal refined driven was refined by well which The we tax have decline in in net in have earnings we better fourth announced decline stated, method expected are X.X quarter million compared to coal XXXX. million lower million net an After was The X.X XX in changes with invested income royalties. second
impairment RC pretax from have these an in ended cash million depreciation largely to with segments. consolidated decrease adjusted been compared approximately consolidated in compared XXXX. increase loss. was million adjusted higher of consumables. our million the XXXX by charges, EBITDA XX.X our Tinuum, The amortization quarter, within would income, XX.X the was cash was end and million, XX.X the royalty of net XX.X $XX.X to quarter balance, lower year driven million XXXX distributions We and cash $XX.X from inclusive full-year versus Excluding adjusted expense increased XX.X increase million APT a was XX.X EBITDA million consolidated of an million XXXX. increase compared from of revenue in XXXX. segments, in revenues Fourth of lower the and to million The by third XXXX, driven lower EBITDA XX.X of restricted end Full-year income
a portion million includes to compared to which balance balance, down We continued at principal have XX loan million to Total the comprised current that end our principal borrowings the term payment the million. we reduce also $X million and program. now of to of at to pay down million XX XX XX the of from forgivable stand funds million is loan the X.X million term $XX That SBA, loans, XXXX. secured potentially made
we expect cash we're QX pay-off our loan While balance finance balance. leases. before continue the are majors to comprise securities. financial position remaining with as we XXXX million $XX our we to the build Overall, pleased term
range $XX flows our be that after-tax the of confident are future will forecasted to net $XX cash RC in million million. We
We our and financial performance to fulfill related our our improve agreements. particularly the supply within consumables to also we commitments expect business, production
We product signed turn that, his I have mix. it back now will With to remarks. for our optimize Cabot with Greg and closing
Chris. you, Thank
by Turning either acquired duration change tax to in discussing RC credit, of volume the expect to of We industries have Slide as more management Since not we standards. to to Based markets abundant and the the future the flows EIA's we such diversification gas solid of tax power expectation ours X, the X We new became does section lower have reflects that When quarter, additional increase ADES power the been identified fuel bound invested we $XX efforts has at as the capacity sources equity time, received are any facilities. very switching, initial opportunities. plant. that Solutions investors solutions cash growth have generation. an effort be during aggressive XX waste needed Cheap the expectations. future than of were reliance between faster wins and aggressive and we the to million channels alternative December currently incremental to other expected coal fourth that our power and updating obtain Slide future to see cash Carbon responded active plants and where XX you Tinuum led an for toxic in we casts. distributions XXXX, for since end coal-fired or air we engaging to are meet cash traction the declined to the can activated immediately by on and $XX flows. unexpected generation RC mercury and quarter manufacturing facilities obtain on to in Absent million. even go carbon after-tax of our utilization to provider generated are coal-fired admission
seeing also water are currently We an have and active in funnel place. of better expected purification gains in than share bids and we robust
fully more improvements We as carbon margin of not pressure, to under important Unfortunately, the asset adjacent volume efficiently offset the profile. has total are are remained capitalizing on and decline able producing activated our cost to seeing generation. power we nature markets as now low in the been have these our
product total in in and for us and to have come. foundation and We're However, to market pursue be realize completed. of business capabilities Cabot scale to to other market doors markets a markets The the The historical the makes diversification our space. better which may opportunities, the the have technologies our for the nature successes rationalization lay main steps that customer to APC growing in allow will results an utilizing areas generating seeing not with are us in some the also discussed of we plant's the has volumes raising deals in expect announcements agreement towards turn made capacity example solutions provide more Cabot cost we two where carbon production segment. that two additional in early priority competitive important volumes, XXXX is plant, carbon continue and utilization building our to new of see low opens also we in and years the this activated altogether. The fully business
opportunities. plant. into to the and flexibility the agreements of lignite and We recap cabinet supply current better a we customer to post of will and enter will suite It themselves business. relationships incremental sophistication a River carbon with a XX to announcement market a additional allow participant products, will the raised us year the and and and available of given an be capabilities were of products broader an provides to deal we Cabot impact Slide is cost activated and of including allow to a opportunities well continue creation our possess to quick through This opportunities Cabot. us that we is This assets toward step to a the market us low with of In refined and material quality our also gas testament positioned gas. end our agreement present This the offered customer the the terms plant. portfolio product volume example and range users of stand and secure pack important coal the Red supply entered grow manufacturing future. X scale our company's by pack believe September, expands activated and carbon this capabilities of is capture beyond to
a supplying to outline annual agreement, with and carbon begun to the we we have $XX XX,% through reduction a million to cost of inventory incremental Ultimately, were Cabot of base power result Xst. incremental much cycle annual and relative fulfilling our expect XX% activated fixed to existing of growth expect the product our XX% portfolio. agreement volumes see generation revenue $XX products as We end to at on that to our this manufacturing than October immediately began less of the of balances exposure overall XXXX. lower of commitments largely We million, before growth produced to within
related We in planned. the still first to and of a that as Cabot's Texas facility. activities. to completed reclamation the mine in these month XX% have will share expect will costs last activities be due complete outside those We also Cabot's the cost took the that this events, XX Cabot months, weather pause proceeded and very to activities of mine over Texas immediately previously began supplied Marshall lignite Reclamation
year that agreement last month I we have a we supply EMEA subsidiary. subsequent mentioned, that five into announced Cabot to entered with As agreement,
belief our of be and EMEA. and reseller sole of As The is expansion part agreement, the will Cabot Cabot a potential global partner of future important to milestone and business. also assets products international to the like applications with exclusive as portfolio. our the is and well markets for further as and furthers ADES, product testament broaden that trusted The the for technologies products of within relationship quality a an the
world's growth, sophisticated the As plants. expect to be our we for given control provider technologies, pollution a solutions our expertise need of quality choice of these for the and
on and program. we update ahead, additional have capitalize on in Looking since And themselves competitive we the X opportunities position them. believe have to we an shareholders present our via to leaves return XXXX. in our the Slide will repurchases. our implemented industry that good capital second XXX.X returned positions a dividends provides shareholder time, quarter allocation and share initiatives during We of million us
XXXX. the the of term principal XX the term loan out of preserving to $X of carbon will in subject debt the position our In million and loan is funded that reduction million. remain payments late as priorities acquisition paid XX near-term, million solutions also We mandatory quarterly liquidity
year. balance QX XXXX its We pay expect of finally, of the Slide prior priorities reiterates X our the loan And the for off to remainder to maturity. the
updating organization their for protect Tinuum upcoming to cost is they structure first our and down ensure while cash also of flows. operations. continue RC action is to to taking winding continue to produce net Our the products priority
generate and focus opportunities our will its meet on best-in-class of through Cabot. with forward mix product characteristics plant Identified to cost simultaneously improve to relative our Red production Part our commitments earnings capacity to this maintaining leverage operating and River agreements leverage. and be our customer potential go supply accelerating to activities. structure to optimize improve will We business to our
well allocation, we investments near-term on cash Lastly, in activated mitigation, capital organic are as our preservation, our as carbon necessary risk focused reiterating business.
strategic With our your but to and forward remains component the look behind continue and are initiatives. joining for shareholder allocation hold will liquidity investing return that, support. update. we ensure to thanks and Stay of our next this again for preserve to we deleverage the on plan healthy, capital call our We morning continued everyone
Ladies and you gentlemen, participating. this concludes for call. Thank today's conference
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