ADA-ES Reports Third Quarter Results; Revenues Increase 43%.LITTLETON, 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 third quarter and nine months ended September 30, 2006. See attached tables. For the third quarter, total revenues increased 43% to $4.4 million, and sales in the Company's 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. segment grew 68% to $4.1 million as compared to the third quarter of 2005. Gross margin was 29%, versus 40% in the third quarter of last year, in line with the Company's expectation to experience lower margins in its mercury emission control segment. General and administrative expenses increased primarily due to the expensing of previously deferred charges incurred earlier in the year related to the Company's M&A activities that were determined not to have future value ($412,000), the implementation of stock option expensing per SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R ($95,000), expenses resulting from additional employees (an $80,000 increase), and higher legal and director fees and expenses incurred to maintain compliance (a $50,000 increase). The Company reported a net loss of $128,000 or $0.02 per diluted share compared to net income of $248,000 or $0.05 per diluted share in the same period last year. For the nine-month period, total revenues rose 47% to $11.4 million, and sales in the Company's mercury emission control segment increased 64% to $9.9 million as compared to the 2005 period. Due to the margins and the expenses outlined above, the Company reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $39,000 compared to 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 $411,000 in the first nine months of 2005. Net income was $154,000 or $0.03 per diluted share versus $450,000 or $0.09 per diluted share. Net earnings per diluted share were calculated on 16% more shares outstanding due to the successful completion of a 790,000-share private equity placement in October 2005. Dr. Mike Durham, President of ADA-ES, stated, "Our solid revenue growth for the quarter was driven by the continued strength in 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 segment. With regard to this segment, over the past three months since reporting our second quarter results, we have been awarded two contracts for mercury systems - one for a new power plant in the Western U.S., and one for an existing plant in the East. The market for mercury control systems continues to pick up momentum. As a result of impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. regulations and consent decrees, we are receiving requests for quotations from utilities for multiple control systems. We expect several utilities to award multiple unit contracts in the next few months." Dr. Durham continued, "We are also encouraged by progress made in our other key growth area, Refined Coal. Yesterday we announced the formation of ADA-NexCoal, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a 50:50 Joint Venture with NexGen to produce this product, which we expect will qualify for the tax credits provided for under Section 45 of the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. . NexGen has paid ADA-ES $1 million to date, and has the right to maintain a 50% position in the JV by paying ADA-ES an additional $4 million, payable in 8 quarterly payments of $500,000 each, beginning in the 4th quarter of 2007. "The Act provides for a tax credit with a current value of approximately $5.60 per ton of Refined Coal, which can be earned for a period of ten years ending in or before 2019. The ADA-ES Refined Coal technology builds upon ADA-ES' patented chemical developed for slagging boilers with ADA-ES expertise in sorbent-based mercury control technology. We believe that the technology is applicable to a target market of approximately 60 million tons of Refined Coal per year. We have conducted two successful tests and demonstrated the ability to meet the emission control performance required to qualify for the Section 45 tax credit. "In addition to our two key growth areas, mercury control and Refined Coal, we continue to pursue other clean energy technologies. We recently announced a project with Hythane Company, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Eden Energy Ltd., associated with the development of blended hydrogen-methane fuels known as "Hythane([R])" for motor vehicles. We are also making progress on funding to support the development of technology to capture carbon dioxide carbon dioxide, chemical compound, CO2, a colorless, odorless, tasteless gas that is about one and one-half times as dense as air under ordinary conditions of temperature and pressure. from coal-fired power plants, and hope to make an announcement in this regard in the near-term." Dr. Durham concluded, "We expect to achieve 35% revenue growth for 2006, up from our previous projection of 30% top-line growth. We are extremely optimistic about the Company's long-term prospects, based on our position as a market leader in the emerging mercury control market, where we are now receiving requests from utilities for quotations covering multiple control systems, as well as our progress in refined coal." Conference Call Management will conduct a conference call on Tuesday, November 7, 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 #1112491). The conference call will also be broadcast live over the Internet 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 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 that mitigate 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 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. 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. [TABLE OMITTED] [TABLE OMITTED] See notes accompanying ADA-ES' consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge in its Form 10-Q Form 10-Q See 10-Q. for September 30, 2006. |
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