- Earnings call transcript Q3 2022

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Operator

Good afternoon ladies and gentlemen and welcome to the Midwest Energy Emissions Corp.

Third Quarter 2022 Financial Results Conference Call. All lines are in listen-only mode.

Following the presentation, we'll conduct a question-and-answer session. [Operator Instructions] This conference is being recorded on Monday, November 14th, 2022. to conference like to now would turn over the Mr. I MacPherson. Richard ahead. Please go

Richard MacPherson

thank Thank third MEXC call. for you, quarter you earnings for operator and all joining us today XXXX Environmental's

leading marked our rare of which earth efforts as litigation. include supply today a been We'll key position, business, has well. financial element growth, quarter in multiple technologies third stepping Our in stone, side to our speak growth areas our as and about

created in This growth growth mid-year foundation a early quarter Earlier quarter and second began seen spoke financial XXXX ramp-up in increases has in has supply this to that's the a of begin continued. we about XXXX. solid to shift support and gradual our growth arc major our in our and XXXX, this would that to due year, position moving through revenues the a year in that expected This continue business.

contracts, in of emphasizing approximately third million, has reached be the $X.X single is our prepare revenue trial supply power may quarter next been for that third from concluded been historically coal-fired one boosted year any due feel generation like revenue This we to quarter by demands today's caused additional as settlements from business. The upswing further supply seasonality from strong highest currently in that has process our a years. to seasonal reported and shift quarter's which this partners, discovery efforts time. Curry. I'd within and our September, we're fact well-positioned earlier we refined third our our number against trial in At by revenues. begin we're entities coal led litigation Caldwell quarter this to marks date a Cassady year. quarter legal has call prior highest This also considerable gained & pivotal The or this

quarter. increased of deferral the going about three-year increased will concern, current revenue has Based cash recently quarter all US management speak growth, supply market from position from we've last stable CFO, coal-fired and major In Vice gains Satterthwaite, figures in our demand stability will management going of debt, the the utility we issues from revenue third partnership a overall to and quarter expect financial announced our achieved Kiwi of our to further were to we year's approximatelyXX% It's growth, and continue, supply feel our a our by additional notable by will which come. the testament able that navigate been our forward. customers. The reported it our sector Our collaborative with excellent [ph] this power the on with the challenging actual Jami shortly. this removed remains operational revenue utility also generation through true loose years mix, a President conjunction business. Coal-fired for

We to may Curry our technologies believe growth Caldwell utilities, technologies with business time. our continued consistent And this efforts and turned also continue our seek and into emissions to without remain of who in partnerships the We market's Cassady our license and moving due value recognition increasing mercury beyond. XXXX be patent for and and company at a new and ourselves the corner positive & those agreement between gain position. that track on of capture remains the has using

principal with financial our was new lender, company, that through and through key financial is recent our now debt now providing unfettered underway. significant with financial this that also who debt which partner, benefits with agreement our partner, this secured an loan growth largest with the only reached a is to highlight financial As agreement discussions extended strategies, holds a our MEXC of collaborative position which single forward major The shareholder. go is mentioned, unsecured our the a and company $XXX,XXX careful Through debt lender, is million. are their $XX.X and of an shareholders capacity

XXth, portion addition agreements significant these profit the In for August to XXXX, decreasing repurchase discretion. in large with stock time. reached appropriate notable the element moving small a any lender percentage three to we a a at years by debt for to share the other maturity the significant this $X.XX the a of items buy repayment price include And allows no of has reduction of We our the remainder that at X%. of stock derive. may a three-year the of date to MEXC of portion of loans increase next back course, per extension than a anticipate held from plan company's Other of forward the an XX% debt over rate secured segments at

work is So, confident that arrangement financial will to critical towards gain MEXC years. areas, three additional our next truly this growth revised revenue allow over these we capital while

ongoing areas the that points; proceedings with certain of of conclusion the new past have call marker that in discovery key The know technologies. and other efforts two should reached the market during lawsuit the and this quarter. remains discuss strong refined significant now growth a we'll litigation our third entities lengthy environmental our against fact phase So, pivoting passed

three defendants our and next and fall. trial preparing one our months, the over process within witnesses the year are date We several the of to potential from provide This for during are of that years arguments to mind concluded. both may if trial next Expert prior team from legal sides, they trial of with now has settlements for pursued. sides are opportunity period being in most are the after discussions both build posed

We a used allow it our rare efforts to field We've the to that with from In results solution is technology from either has REEs extraction have rare been on reached that the consistent from the captured in turning processed. our range large focused will in continue conclusive part ash results coal due also critical and academic put to and or a position. be earth be not remove of our technology confident in order elements assortment these developing process elements solution, the labs, elements of -- itself. separated to legal discovered technology further process through to a to the point a asset-mined or of in out about remain lack we be that solution earths

Our growth, test to remain in achieving recognition of that receive new period for developing environmental year. funded sorbent area areas coal-fire forward this and new expect across work internally. The updated market as environmental further and more to information debt major continues allows and that in finances we technologies on lawsuit, technologies get market look growth. the are the to we key be the later committed to These of our to into sole expected bringing the we confident patent We concerns. of three-year extension focus the our critical these our in addressing areas results

Satterthwaite, overview And call I'll for over to third Jami the so our an CFO, turn the quarter strong of Jami? results. that, with

Jami Satterthwaite

Thank experienced Hello, Rick. strongest you, position the XXXX. the quarter everyone. financial to In as quarter, third we company's since continued improve the

XXXX in The interest The approximately sales sales, driven in period. third $X.X and $X.X quarter prior revenue in by a million Total quarter increase compared million approximately share $X.X the million expense. of of million increase quarter primarily costs company XXXX Third had compared $X.XX quarter The in to in or XXXX sales company's million due and of increased as quarter for customer supply/demand a last an the the year. in was in decrease to third increased offset EBITDA from to revenue product quarter XXXX, to basic of $X the increase of in XX%. is resulting of to or of $X.X of increased coal-fired and zero $X.X diluted market and were ofXXXX, net the million an increase sorbent same third well loss per Adjusted by increased primarily cost million in of million. $X.X increase from $X.X quarter net third basic per expenses income in XXXX in expenses costs base. share compared due diluted expansion total the to third as $X.X million the the year of the was the

company and continue back $X.X call concluding of and to recent of $X.X ability XXth, deferral that, With consideration revenue going company's growth, major the receivable. company's Rick the the $X.X management a cash has position into Taking the for of Rick? September substantial the remarks. cash, believes doubt capital regarding all the working concern debt, accounts had XXXX, in current million, approximately mitigated. will in million hand been As that million over I his to

Richard MacPherson

thank financial into corner team our Jami, to partners. been with heading thank able business you excited solid we've you, year. We're our the new to and position and to the turn that a management

management session. long-term rare our firm. anticipated. earth and to behalf near-term interest litigation the operator all to to we'd team, the On track thank today like that, to back call commitment, our and the Our of With listening over are developments the in their for I'll with our continued in for you your MEXC of technologies turn progress on shareholders begin question-and-answer

Operator

Ladies our question-and-answer we'll Thank [Operator gentlemen, session. and you. now Instructions] conduct Okay.

Eric So, Investor. your from first Please go comes [Indiscernible] ahead. question from

Unidentified Analyst

Rick. Hi

on questions congratulations the all, for quarter. I've two got solid of First you.

would you on mentioned you give that be? When do this potential -- some guidance on You will sort settlements. there have that -- of anticipate morning's presentation expert guys an you

Richard MacPherson

call. Well, Eric, thanks the for joining

getting to his matter, which the expert already trial. of In witness the party expert hires is has So, who of that witness. is damages procedural Each have report a to case, court. process part this whole legal hired an we a made

-- to our consideration and after evaluation of him. privy We made to provided report, full has information that to are but of company been it not court all that by the

provided, public reasonable, based that be information on nor number would But So, made that believe. we interesting been the would the it. privy expect has a court I that appreciate that am to and was not it

Unidentified Analyst

like Got XXXX? expect speak it. the your question, may to that growth And what numbers you look and can second in then you

Richard MacPherson

and $XX worth that consider if continue have now business recurring partial at amount -- to come approximately you on where guidance the expected for mention year million we're solid, due business. reiterate would the XXXX. expect of the this a million I contracted million that in revenue effectively to time These that business we but we is we've XX% billings give I can the is contracts contracts thing to is XXXX is contracts to can place, the booked. million approximately what doing that on at, We derived $XX And pace year-over-year. contracted repeat yet the are took $XX actual that's $XX growing of growing one that and we have annual the we're annually just that growth

see and guidance a the ends give through we I end on. in I are the we're exactly to So things this up. that like that will sometime near where see into other have There XXXX. future. year strong working of position going would come

most So in we but guidance very likely the year, year on strong give do even XXXX firm for business -- next the alone. core just expect early guidance a I year,

Unidentified Analyst

it, Wonderful. Thank I appreciate so much. Rick.

Richard MacPherson

for your questions. you Thank

Operator

please Your next private a ahead. question comes Tim investor. go from [Indiscernible], Tim,

Unidentified Analyst

strong ask about just I'd growth. Hey, like of a visibility Rick, quarter. congratulations to the bit the little more on a

rate any of of of about fair should wins. I got a embedded sort visibility You business? of alluded new it? million, embedded any This such sort all $X.X how in million contracts. $XX of $XX you've a a to sort built XX% kind thinking into new growth amount get that XXXX materially The require continued Is to of be doesn't that to million, is or

Richard MacPherson

folks Well, case, to that, the constantly but have that use growth to process, the so we -- we licensed. but to are is yet in would that's our $XX that have course, much the that worst on of expect very of given with Tim, be million, be continue negotiations top embedded,

working of that which is licenses we've options, other have for of lot wins are supply the on. The part announced contract that a we

looking to million. indeed, we But significant I for $XX business have like amount into to expect million, quarter up of is we a give that, sometime to we out how again, next up, once but would that see do But very the there XXXX near growth. putting finishing $XX recurring numbers added base bring much that the So last the forward is to some year. in future for guidance

Unidentified Analyst

any paid know I included of Rick. lawsuit in clear, is numbers outside coal your outside XXXX that you're any projection a are or has refined coal, utilities operating settlements not mean, the I number of using sort legal and/or I'm business of a so just legal technology just of of for. that not are even And ongoing the that that's Those or getting refined This either? for proceeding? Okay. strictly

Richard MacPherson

are which about technology plants umbrella. now. example, still are hand Tim, different under we approximately, that XX numbers, without multiple with using core Correct. are operating in We're only the just presenting units power have base the coal numbers for that licensing There refined the

interesting us as probably it that as those results to proceeds, as business how the of So more have a litigation the react They will potential for litigation. plants this to be hand. new or very much business, in representing than huge see current

our that to underway continues we be utilities in very are things discussions news year a process And with the market. XXXX. we number besides and all that of expect those as strong bringing So have considered, continue, more to all-in-all, expect to a

Unidentified Analyst

is right business trying business? strength operating rates How Rick. strength or then is context at you... -- And some if just much are underlying multiyear that of coal that highs you much generation understand I'm just here, helping that loads And does Okay. domestic could base your utilization how help provide now. to the near

Richard MacPherson

Tim. go ahead, Sorry,

Unidentified Analyst

I was QX, as weaker a into you, expect you normally, just should it'd it of directly like demand, but be some be to QX, higher still QX. result still obviously, than going ask Do go seasonality the I into loads? stronger you mean, seasonally

Richard MacPherson

Yes.

stay coal of to three get the expect to two, there. in amount we question, enough is can't the to industry and People out next particular. drive strong it, first answer over So of part years that's the demand it your strong

a and people it's more. to actually so up So continue bump or I ramping up -- expect going supply, with are bit

relationship growth. to We that direct a are

feeding are stay a cost value to increased to who of as their compliance. capacity have miniscule. firms in maximum the clients is our at And We percentage

year-over-year the same expect continue that our a So we business we to continues, solid as uptick now quarter-over-quarter the and showing. in rate this at results we're expect

we place, to availability and infrastructure settles revenue as move be more. the So and that of we of enough as projected swath up. supply to to possibly more. able quarter, we'll But in and forward. over the into we thing that XXXX in have We it side that supply mind and be that put expect fourth will as XXXX, paid through in all contracts increases to go in to renegotiated can place, expect a continue move product we generate drive supply strong we strong chains for also our moves massive get well ramp extremely put able Texas things be that But business of even this for a develop to keeping take positioned wider XXXX, much forward out will

Unidentified Analyst

Great. Okay. All And right. final then two just questions.

a are number quarter. of that profitability little bit the of At quarter? terms obviously, are be your in earnings better you in even legal that's impacting one-offs Is goes in point, that material briefly, that profitability your of here just First, able you that must the to cost those almost extra from some than were you $X.XX perspective quarterly, away. though costs slightly that of are post through a running the flown impeding kind

Richard MacPherson

small able but a is So do, only we've in been from back kick most in to financial of we've back to to XXXX, multinationals. carry come XXXX maintain which these pants a able against and the not and been the litigation for load company, we've the been of interesting is what XXXX, able huge

an overall our settlement with to So, flow in if when increase will shareholders we significance that the of get value. debt reduce money get directly shared be a back -- we enterprise and through

of The legal about of out feel have pocket. we paid costs good position the So, we're that very the been in. for majority

we to what to things and managing the not but way more any we've unreasonable in outside increased and to accomplish, a without work allowed strong, And will over managers it's firm sources it point operate know to been the as to going team going allow example, of allow is the continue financially can see is cost not in of past around able than from we been that will showing the management us coming pass-through that a be and the mentioned, should years that the an trial. us over usual done going now stand has have wins been to got for and We I that, nicely able and any expect But to what this to we have that's business factored amount past to five small company to to for gain the to this back that's financial get particular. the turned wins -- something the recognize our quarter. that leading period that for we've the that's any in market manage, is it at up rate rest it's

Unidentified Analyst

And right. debt comment. did your to All Okay. you and one extension, question -- relating refinancing last just then a just

extending I the able intrigued with by great gave First, option you're did was some that But flexibility. you shareholder. that negotiate a share job repurchase option, very out, largest yourself to your

was it And there XX.X important proceeds you'd shares. may subject is to think that that discuss? to place? from is care how option in to some Thank you for settlements was you that that about you get I Can that you. million talk have flexibility or

Richard MacPherson

The Yes, is, question, folks for we're very thank been of have with of folks but with. about say view have that. to deal professional from pleased a point all, this that you behind that first lending class I been What Tim. that nothing can first final

company discussed be that So forward enterprise with move for our the option value of to table the that the the we reduce to in take the to major them off that able and have on ability keeping a increase all to stock and of with of efforts the exchange, shareholders. to overhead benefit

to fair work nothing conditions, them, to the expect there's stock a negotiate undue a able we to share, from and work. course, to given $X.XX what for use I and to we when a few go coming how price able very that that, were with any we they're and to open-minded very at will we any would And of make so what acquire stock. us be as is proceeds think settlement that can And to acquire we

as much an that significantly see we opportunity So, the very reduce to dilution forward. going

Unidentified Analyst

you Rick. Okay. Great. it. Appreciate Congrats. very Thank much,

Richard MacPherson

Thank you.

Operator

Feinberg go comes Jeff, Feinberg ahead. Investments. question next please from Your Jeff from

Jeff Feinberg

much. very Thank you congratulations. Rick, Great job,

business number two, is Just $X.XX out the you through, one? here, on have, walk here, analysis. so $XX revenue $XX these refresh say what And us couple levels, much. shares on or the share can just number call that of I'd duration of sensitivity at us please? you is you Thank questions follow-up help just model rate, a a EBITDA what company memory, million is of potential the hypothetical, to option in the can you illustrative at a those run million the understand

Richard MacPherson

to may occur portions so which are overall to after make for and can should over that stock positive decision. mentioned, of the the on dramatically the that would as any that forward. for to be I at for a term as in it of wins date over debt, realize significantly affect the of regards one-time that will option extended will question EBITDA do EBITDA decision calculate, that, costs we I to business. with expect much questions. And be the expect thanks would to very looked and wins you another EBITDA. have the period to of The the And yet legal have improve we make on our acquiring XXXX able projected expect company, is on I next the significant that improve the years the to the would I three what time, EBITDA that so extraction our would substantially With us Jeff, beyond, second core any the numbers period move we but mean that volume.

you we that at we've general year. so in a giving are far, look next had starting without on million If the base discussion full guidance $XX

bottom number You example like the that into X%, end where see we far business year this as a is. and and for exactly enhance next core of by maybe to for in revenue is the presented have we and of go line will finishing that can past year's XXXX. EBITDA look once to what that detail that at able specific management on Jeff, so call be I'd the you the value time EBITDA calculate year together further put at up, towards project the some quarter,

Jeff Feinberg

Sounds wonderful. Thank you very much.

Richard MacPherson

Jeff. you, Thank

Operator

Richard we closing to remarks. have questions time the for back I'll all it today. turn That's for

Richard MacPherson

again. through the that thanks folks, different track. in year of were and We told development. a earlier going well Well, things number we areas on of that They way you are were our working

We front. very our to are still in negotiations are regards growing with discussed not litigation good position using substantially. development lot feel with and we've unlicensed the that a There's the about on folks technology today we that

we'll bringing the year-end a Our growing in are well you team have continues round to market Look call, fourth forward prior solid to meet results I actual the the of next demands quarter. to the be to XXXX. and very that quarter-over-quarter. would into expect which

the will the session the with and call license which those expect Anything happens. with with everybody win. touch be We of contracts, regards that only agreement in we announcing and in a can Keep market keep a of part licensing to it we well. announcement happens mind, supply is new an XXXX, projections as as update will management growth have so for

follow-on As of core company. you just cases, helps additional to value lot generates a in build business which see, can it of the the the

of So and time, Cheers. I'll couple with for you again the much say we growth very months. forward continuing look next that, thank over your our to

Operator

concludes and please you you today. ask lines. Ladies disconnect gentlemen, We this participating your call and for for conference your thank that

Birchtech (BCHT) 15 Nov 222022 Q3 Earnings call transcript