Stay Cool with Active Stock: Advanced Emissions Solutions, Inc. (NASDAQ: ADES)

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On 02 June 2020, Advanced Emissions Solutions, Inc. (NASDAQ: ADES) spotted trading -67.54% off 52-week high price. On the other end, the stock has been noted 11.91% away from the low price over the last 52-weeks. The stock changed -0.80% to recent value of $4.98. The stock transacted 369600 shares during most recent day however it has an average volume of 233.19K shares. The company has 17.93M of outstanding shares and 17.97M shares were floated in the market.

Advanced Emissions Solutions, Inc. (ADES) recently filed its Yearly Report on Form 10-K and stated financial results for the fourth quarter and full year ended December 31, 2019, including information about its equity investment in Tinuum Group, LLC and Tinuum Services, LLC of which ADES owns 42.5% and 50%, respectively.

Tinuum & Refined Coal (“RC”) Highlights

Tinuum distributions to ADES were $17.1M for the fourth quarter, and $73.9M for full year 2019, increases of 13% and 40%, respectively

Royalty earnings from Tinuum Group were $4.1M for the fourth quarter and $16.9M for full year 2019, a decrease and a raise of 4% and 12%, respectively

RC Section operating income was $15.4M for the fourth quarter and $83.5M for full year 2019, a decrease and a raise of 22% and 29%, respectively

As before reported, Tinuum Group completed sales to third party investors for four additional RC facilities in 2019 which combined for roughly 15.0M incremental tons

Based on 20 invested RC facilities as of December 31, 2019, predictable future net RC cash flows to ADES are projected to be between $150M and $175M through year end 2021

Power Generation and Industrials (“PGI”) Highlights

Recognized section revenue of $50.5M for the full year 2019, contrast to $8.7M during the full year 2018, driven by consumables

Section operating loss was $11.6M for the full year 2019 contrast to an operating loss of $2.6M in the full year 2018

Section EBITDA loss was $4.6M in the full year 2019, contrast to a section EBITDA loss of $2.1M in the full year 2018

ADES Consolidated Highlights

Consolidated revenue of $16.0M during the fourth quarter and $70.1M for full year 2019, contrast to $10.6M and $23.9M for the comparable periods in 2018, primarily driven by the increase in consumables revenue Because of the acquisition of Carbon Solutions

Consolidated net income was $9.1M for the fourth quarter and $35.5M for full year 2019; pretax income was $6.2M for the fourth quarter and $47.5M for full year 2019

Ended 2019 with a cash balance, inclusive of restricted cash, of $17.1M, a decrease of $3.1M since September 30, 2019, driven primarily by debt paydown related to the senior term loan used to fund the Carbon Solutions acquisition

Made quarterly principal payment of $6.0M on the Company’s $70.0M initial face value term loan during the fourth quarter, which accounted for $1.1M in interest expense during the fourth quarter, and reduced the term loan principal balance to $40.0M

Utilized capital of $2.9M to repurchase about 277,000 outstanding shares during the fourth quarter and $5.8M to repurchase about 533,000 outstanding shares during the full year 2019

Returned a total of $24.1M to shareholders in 2019 through dividends and share repurchases

Its earnings per share (EPS) expected to touch remained 11.70% for this year while earning per share for the next 5-years is expected to reach at 50.00%. ADES has a gross margin of 25.70% and an operating margin of -31.70% while its profit margin remained 30.50% for the last 12 months. According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -11.60% from the mean of 20 days, -18.84% from mean of 50 days SMA and performed -51.41% from mean of 200 days price. Company’s performance for the week was -1.58%, -29.46% for month and YTD performance remained -52.57%.

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