ADA-ES Announces Third Quarter Financial Results.Business Editors 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.--(BUSINESS WIRE)--Nov. 7, 2003 ADA-ES, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :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 third quarter and nine-month period ended September 30, 2003. See attached tables. For the third quarter, total revenues increased 5% to $1.5 million from $1.4 million in the same quarter last year. Due to staffing additions, general and administrative expenses increased, resulting in 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. of $74,000 compared to $123,000 in the third quarter of 2002. Net income was $71,000 or $.02 per share for the quarter versus $120,000 or $.04 per share in last year's third quarter. The third quarter represented the Company's seventh consecutive quarter of profitability. For the first nine months of 2003, revenues rose 13% to $4.4 million from $3.9 million in the comparable period of 2002. Due to staffing additions, operating income was $256,000 in the nine-month period of 2003, compared to $351,000 in the same period last year, while net income was $237,000 or $.07 per share versus $326,000 or $.10 per share in the first nine months of 2002. Dr. Michael Durham, President of ADA-ES, stated, "Mercury 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 rose 39% in the third quarter and 42% in the nine-month period, which supported lower revenues in flue gas Flue gas is gas that exits to the atmosphere via a flue, which is a pipe or channel for conveying exhaust gases from a fireplace, oven, furnace, boiler or steam generator. Quite often, it refers to the combustion exhaust gas produced at power plants. conditioning and combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion. aids. Importantly, gross profit in this segment grew at a faster rate than sales - by 188% in the quarter and 78% year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. . We expect continued growth in this area of business resulting from contracts in hand and others being negotiated for mercury measurement and control work being conducted at power plants across the country." Dr. Durham continued, "During the quarter, we completed the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from Earth Sciences and commenced trading as a independent Company. Now that ADA-ES is operating as a separate entity, we believe the Company is better positioned 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>. the market potential relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc pending mercury emission regulations, which the Department of Energy estimates will produce a $2 - 5 billion market. Additionally, subsequent to the completion of the spin-off, Arch Coal Arch Coal (NYSE: ACI) is a United States coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S. invested $1.3 million in ADA-ES, including $1.0 million of common stock at $7.26 per share. This investment further strengthened our existing relationship with Arch to jointly market ADA-249 to cyclone-fired power plants." Dr. Durham added, "More recently, we announced the addition of two new members to our Board of Directors, John Eaves, COO (Cell Of Origin) See mobile positioning. of Arch Coal, and Jeffrey Smith, an attorney with 25 years of experience in environmental law. We believe their expertise will be extremely valuable to ADA-ES." Mark McKinnies, CFO See Chief Financial Officer. of ADA-ES, commented, "At September 30, 2003, ADA-ES had working capital of $1.2 million, an increase of $508,000 from the second quarter of 2003. We achieved cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the first nine months of 2003 of $157,000, as compared to $80,000 in the same period of 2002. We expect to generate positive cash flow from operations throughout 2003." Dr. Durham concluded, "Based on our unique position in the emerging market for mercury emission control and the strategic relationships we have established for this segment and our combustion aids segment, we are enthusiastic about the Company's near and 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. business prospects. We look forward to updating you with our progress." Conference Call Management will conduct a conference call on Friday, November 7, 2003 at 11:00 a.m. ET to discuss the financial results and recent developments. Interested parties may participate in the call by dialing 973-935-8504 - please call in 10 minutes before the call is scheduled to begin, and ask for the ADES call. 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 may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides 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 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. in this document that are based on information the Company believes reasonable, but such projections and statements involve significant uncertainties. Actual events or results - including predicted revenues and achievement of positive cash flow - could differ materially from those discussed in the forward-looking statements as a result of various factors including but not limited to changing market demand for ADA-ES chemicals and systems and changes in technology, laws or regulations, demand for the company's securities, 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)
Three months ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
--------------------------------------------
REVENUES:
Flue gas conditioning $452 $649 $1,534 $1,845
Mercury emission
control 1,018 730 2,552 1,794
Combustion aids and
other 44 61 300 235
---------- ---------- ---------- ----------
Total revenues $1,514 $1,440 $4,386 $3,874
COST AND EXPENSES:
Operating 919 793 2,350 1,956
General and
administrative 467 451 1,563 1,362
Research and
development 19 43 126 118
Depreciation and
amortization 35 30 91 87
--------- --------- --------- ---------
Total expenses 1,440 1,317 4,130 3,523
--------- --------- --------- ---------
OPERATING INCOME 74 123 256 351
OTHER INCOME (EXPENSE):
Interest expense (6) (3) (7) (25)
Other, net 3 -- (12) --
--------- --------- --------- ---------
Total other
income (expense) (3) (3) (19) (25)
--------- --------- --------- ---------
NET INCOME $71 $120 $237 $326
==== ===== ==== =====
NET INCOME PER COMMON
SHARE - (Basic and
Diluted) $.02 $.04 $.07 $.10
==== ==== ==== ====
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
(ADJUSTED TO REFLECT
SPIN-OFF): 3,376,000 3,344,000 3,355,000 3,344,000
======== ======== ======== ========
See notes accompanying ADA-ES' consolidated financial statements in
its Form 10-QSB for September 30, 2003.
ADA-ES, Inc. and Subsidiary
Consolidated Balance Sheet
(unaudited)
(amounts in thousands)
ASSETS
--------
September December
30, 2003 31, 2002
--------- --------
Current Assets:
Cash & cash equivalents $785 $325
Accounts receivable, net of allowance for
doubtful accounts 1,021 1,081
Prepaid expenses, inventory and other 144 167
--------- --------
Total current assets 1,950 1,573
Property, Plant and Equipment, at cost 1,263 950
Less accumulated depreciation and amortization (761) (678)
--------- --------
Net property, plant and
equipment 502 272
Goodwill, net of amortization 2,024 2,024
Intangible Assets, net of amortization 107 88
Other 17 17
--------- --------
Total Assets $4,600 $3,974
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------
Current Liabilities:
Notes payable 118 4
Accounts payable 291 454
Accrued expenses 244 173
Deferred revenues 130 383
--------- --------
Total current liabilities 783 1,014
Long-Term Liabilities:
Notes payable - affiliate 300 --
Notes payable - bank 522 --
Other 200 10
--------- --------
Total long-term liabilities 1,022 10
Stockholders' Equity:
Common stock, no par value 4,461 5,326
Receivable from parent -- (473)
Accumulated deficit (1,666) (1,903)
--------- --------
Total stockholders' equity 2,795 2,950
--------- --------
Total Liabilities and Stockholders' Equity $4,600 $3,974
========= ========
See notes accompanying ADA-ES' consolidated financial statements in
its Form 10-QSB for September 30, 2003.
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