Advanced Emissions Solutions(ADES) - 2023 Q4 - Annual Results

Revenue Performance - Q4 2023 revenues increased by 20% YoY to $28.1 million, driven by higher average selling prices and positive product mix changes[1] - Full year 2023 revenues totaled $99.2 million, down from $103.0 million in the prior year, primarily due to lower sales from power generation customers[7] - Total revenue for Q4 2023 was $28,104,000, an increase of 19.5% compared to $23,409,000 in Q4 2022[13] Profitability and Income - Gross margin improved to 50% in Q4 2023, up from 25.4% in the prior year period, reflecting a focus on profitability and cost management[3] - Adjusted EBITDA for Q4 2023 was $7.2 million, compared to a loss of $1.2 million in the prior year period, marking the second consecutive quarter of positive Adjusted EBITDA[4] - The company achieved positive net income of $3.3 million in Q4 2023, the first positive net income quarter since Q4 2021[1] - Operating income for Q4 2023 was $3,104,000, compared to a loss of $3,374,000 in Q4 2022, marking a significant turnaround[13] - Net income for the year ended December 31, 2023, was a loss of $12,249,000, compared to a loss of $8,917,000 in 2022, indicating ongoing challenges[14] Capital Expenditures and Forecast - Capital expenditures for full year 2023 were $27.5 million, significantly higher than $8.9 million in the prior year, driven by strategic growth projects[5] - Full year 2024 capital expenditures are forecasted to be $55-60 million, with Red River Phase 1 expected to account for $45-50 million of that total[6] - The company plans to fund 2024 capital expenditures through cash on hand, cash generation, and potential customer prepayments, with no plans to issue equity[6] Debt and Financial Health - Total debt as of December 31, 2023, was $20.9 million, up from $4.6 million in the prior year, primarily due to a $10.0 million term loan related to the acquisition[5] - Cash and restricted cash at the end of 2023 was $54,153,000, down from $76,432,000 at the end of 2022[15] - The company reported a decrease in total current liabilities to $23,048,000 in 2023 from $23,884,000 in 2022, indicating improved short-term financial health[12] - The company issued common stock, generating net proceeds of $15,220,000 in 2023, which supports liquidity and operational funding[15] Asset Growth - Total assets increased to $235,502,000 as of December 31, 2023, up from $181,164,000 in 2022, reflecting growth in the company's asset base[12] Strategic Initiatives - The company plans to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward[16] - The Red River GAC facility expansion is on track for commissioning in Q4 2024, with ongoing strong demand for high-performance granular products[2] Shareholder Impact - The weighted-average number of common shares outstanding increased to 32,367,000 in 2023 from 18,506,000 in 2022, reflecting the impact of stock issuance[13]