ADA-ES Announces Gains in Revenue and Net Income for the Fourth Quarter and Year.LITTLETON Littleton, city (1990 pop. 33,685), seat of Arapahoe co., N central Colo.; platted 1812, inc. 1890. It is a suburb south of Denver in an irrigated farm area. , Colo. -- ADA-ES, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADES (language) ADES - An early system on the IBM 704. Version: ADES II. [Listed in CACM 2(5):16 (May 1959)]. ) today announced financial results for the fourth quarter and year ended December December: see month. 31, 2005. See attached tables. Fourth Quarter Financial Highlights - versus fiscal 2004 fourth quarter --Total revenues rose 44% to $3.3 million. --Operating income was up 90% to $240,000. --Net income more than doubled to $213,000 or $0.04 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share from $97,000 or $0.02 per diluted share in the same period last year. Earnings per diluted share for the fourth quarter of 2005 were calculated on 17% more shares outstanding than in the fourth quarter of 2004 due to the successful completion of a 789,089-share private equity placement in October October: see month. 2005. 2005 Financial Highlights - versus fiscal 2004 --Total revenues were up 31% to $11.0 million. --Operating income grew 70% to $651,000. --Net income increased 97% to 663,000 or $0.13 per diluted share from $336,000 or $0.08 per diluted share in 2004. Earnings per diluted share for 2005 were calculated on 23% more shares outstanding than in 2004 due to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. private equity placement. Dr. Mike Durham, President of ADA-ES, stated, "2005 was a year of continued growth and development for ADA-ES. We surpassed our goal of 20% revenue growth for the year due to strong performance in our fastest-growing segment. Our mercury Our Mercury is a Canadian Indie Rock band. It's members are singer/guitarist Ben Stevenson, drummer John Watson, bassist Joseph Lubinski-Mast, and keyboardist Eric Budd. History emission control The selective and controlled use of electromagnetic, acoustic, or other emitters to optimize command and control capabilities while minimizing, for operations security: a. detection by enemy sensors; b. mutual interference among friendly systems; and/or c. sales grew 48%, stemming from: 1) commercial sales of activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. carbon injection (ACI ACI American Concrete Institute ACI Arch Coal Inc ACI Airports Council International (formerly Airport Associations Coordinating Council) ACI Automobile Club d'Italia ACI American Competitiveness Initiative ) systems and related testing services, 2) mercury measurement services and demonstrations, and 3) field activities in Department of Energy-supported programs. I am also pleased to report strong operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. for the fourth quarter and year; operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. grew at more than twice the rate of revenues during both periods." Dr. Durham continued, "During 2005, the commercial market for controls for mercury emissions from coal fired plants began in earnest ear·nest 1 adj. 1. Marked by or showing deep sincerity or seriousness: an earnest gesture of goodwill. 2. Of an important or weighty nature; grave. See Synonyms at serious. , and ADA-ES signed its first three commercial contracts of this nature. We expect this market to grow significantly in 2006. In this regard, last week we announced contracts for three more commercial systems. Under our current commercial contracts, we are supplying a total of six ACI systems, valued at approximately $1 million each, which are expected to be installed at various power plants in the U.S. and become operational during 2006 and 2007. The timing on each program is different, but we expect that some sites will begin injecting activated carbon by the end of the 2006 third quarter. ADA-ES provides activated carbon sorbent sorbent /sor·bent/ (sor´bent) an agent that sorbs; see absorbent and adsorbent. sorbent an agent that sorbs. , in partnership with NORIT Americas, as a key component to reducing mercury emissions. The commissions we would receive from such sorbent sales are expected to provide an important continuous revenue stream for the Company and serve as a solid foundation for continued growth in future years. "Additionally, the U.S. Department of Energy's National Energy Technology Laboratory (DOE/NETL) recently selected ADA-ES to perform new full-scale field tests of mercury control technology at two coal-fired power plants. We expect to recognize $7.5 million in revenues from these projects over the next two to three years." Dr. Durham concluded, "We continue to leverage our expertise, strategic relationships, and position in the emerging commercial mercury control market to further the Company's growth. With our recent capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. , we have the financial flexibility to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. exciting opportunities in this market. Given our current contracts, as well as the commercial bid requests we are receiving, we expect overall revenue growth of approximately 35% in 2006, and continue to be very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about ADA-ES' long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. outlook." Based on ADA-ES' current compensation structure, the Company believes that Financial Accounting Standard (FAS) 123R, which relates to expensing stock options, will not have a significant impact on expected 2006 operating results. Conference Call Management will conduct a conference call on Thursday, March 9, 2006 at 11:00 a.m. ET to discuss the financial results and recent developments. Interested parties may participate in the call by dialing 706-679-3200 - please call in 10 minutes before the call is scheduled to begin, and ask for the ADES call (conference ID # 6083571). The conference call will also be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via the Investor Information section of ADA-ES' website at www.adaes.com. To listen to the live call please go to the website at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company's web site. About ADA-ES Headquartered in Littleton, Colorado The City of Littleton is a home rule municipality located in the Denver Metropolitan Area of the State of Colorado. As of 2005, the city is estimated to have a total population of 40,396.[1] Littleton is the 17th most populous city in the State of Colorado. , ADA-ES, Inc. develops and implements proprietary environmental technology and specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. that mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the environmental impact from electric power and
industrial companies while reducing operating costs operating costs npl → gastos mpl operacionales .
This press release and the referenced conference call contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which provide a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for such statements in certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . These statements include the Company's expectations regarding future revenues or other financial measures, anticipated projects and new contracts, anticipated growth in the market and similar items. Such statements involve significant uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including but not limited to changing economic conditions and market demand for ADA-ES' products and services, changes in technology, failure to satisfy performance guarantees, federal funding, laws or regulations, results of demonstrations of the Company's and other licensed technologies, operational difficulties, availability of skilled personnel, and other factors discussed in the Company's filings with the U.S. Securities and Exchange Commission.
ADA-ES, Inc. and Subsidiary
Consolidated Statements of Operations
(unaudited)
(amounts in thousands, except shares and per share amounts)
Fourth Quarter Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
REVENUES:
Mercury emission control $ 2,771 $ 1,366 8,784 5,940
Flue gas conditioning 400 842 1,917 2,122
Combustion aids and other 96 54 327 355
------- ------- ------- -------
Total revenues 3,267 2,262 11,028 8,417
COST OF SERVICES 2,057 1,351 6,741 5,020
------- ------- ------- -------
GROSS MARGIN 1,210 911 4,287 3,397
OTHER COST AND EXPENSES:
General and administrative 629 608 2,502 2,046
Research and development 307 150 977 815
Depreciation and amortization 34 27 157 153
------- ------- ------- -------
Total expenses 970 785 3,636 3,009
------- ------- ------- -------
OPERATING INCOME 240 126 651 383
OTHER INCOME (EXPENSE):
Interest income (expense), net 182 (3) 312 (34)
Other, net (35) 36 36 49
------- ------- ------- -------
Total other income (expense) 147 33 348 15
------- ------- ------- -------
NET INCOME BEFORE TAX 387 159 999 398
PROVISION FOR TAX BENEFIT
(EXPENSE) (174) (62) (336) (62)
------- ------- ------- -------
NET INCOME 213 97 663 336
------- ------- ------- -------
OTHER COMPREHENSIVE INCOME (LOSS),
NET OF TAX 25 34 (1) 34
------- ------- ------- -------
COMPREHENSIVE INCOME $ 238 $ 131 $ 662 $ 370
==== ==== ==== ====
NET INCOME PER COMMON SHARE -
(Basic and Diluted) $ .04 $ .02 $ .13 $ .08
==== ==== ==== ====
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING: 5,411 4,781 4,966 4,126
===== ===== ===== =====
WEIGHTED AVERAGE DILUTED COMMON
SHARES OUTSTANDING: 5,666 4,863 5,137 4,193
===== ===== ===== =====
See notes accompanying ADA-ES' consolidated financial statements
in its Form 10-KSB for December 31, 2005.
ADA-ES, Inc. and Subsidiary
Consolidated Balance Sheet
(unaudited)
(amounts in thousands)
ASSETS
------
December 31, 2005 December 31,2004
----------------- ----------------
Current Assets:
Cash & cash equivalents $ 14,026 $ 2,108
Accounts receivable, net of
allowance for doubtful accounts 3,014 1,198
Investment in securities 2,915 713
Prepaid expenses, inventory and
other 283 248
---------------- ---------------
Total current assets 20,238 4,267
Property and Equipment, at cost 1,663 1,345
Less accumulated depreciation and
amortization (1,013) (896)
---------------- ---------------
Net property and equipment 650 449
Goodwill, net of amortization 2,024 2,024
Intangible Assets, net of
amortization 156 146
Investment in securities and other
assets 5,648 6,194
---------------- ---------------
Total Assets $ 28,716 $ 13,080
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable 1,706 433
Accrued expenses 654 403
Deferred revenues 460 202
---------------- ---------------
Total current liabilities 2,820 1,038
Long-Term Liabilities:
Deferred compensation and other
liabilities 40 32
---------------- ---------------
Total long-term liabilities 40 32
Stockholders' Equity:
Common stock, no par value 26,318 13,134
Accumulated other comprehensive
income 33 34
Accumulated deficit (495) (1,158)
---------------- ---------------
Total stockholders' equity 25,856 12,010
---------------- ---------------
Total Liabilities and Stockholders'
Equity $ 28,716 $ 13,080
================ ===============
See notes accompanying ADA-ES' consolidated financial statements
in its Form 10-KSB for December 31, 2005.
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