Advanced Emissions Solutions, Inc (ADES) swung to a net profit for the year ended Dec. 31, 2016. The company has made a net profit of $97.68 million, or $ 4.34 a share in the year, against a net loss of $30.14 million, or $1.37 a share in the last year. Revenue during the year dropped 19.31 percent to $50.62 million from $62.74 million in the previous year. Gross margin for the year contracted 187 basis points over the previous year to 17.06 percent. Operating margin for the year stood at negative 31.80 percent as compared to a negative 66.63 percent for the previous year.
Operating loss for the year was $16.10 million, compared with an operating loss of $41.80 million in the previous year.
L. Heath Sampson, President and Chief executive officer of ADES commented, “We set bold and aspirational goals at the beginning of 2016 and I’m proud to say that we exceeded almost all of our strategic priorities throughout the course of the year. We put legacy issues behind us, we relisted on the NASDAQ exchange, we eliminated our debt and substantially increased our liquidity position. We also exceeded our initial refined coal distribution expectations with the collection of over $45 million during 2016 from our investment in Tinuum. Lastly, we reduced our operating expenses by over 50% through organizational realignment and enter 2017 with a very lean cost and highly functional organizational structure. I’m very proud of all of our associates at ADES and Tinuum, led by their President and CEO Ron Eller, and I thank them all for their hard work throughout the year in helping us achieve our objectives. Although we closed on a number of new refined coal facilities in 2016, our high expectations were dampened by challenging political headwinds against refined coal production in the U.S. I look forward to capitalizing on the improving 2017 environment; and enabling coal fired utilities and tax equity investors to produce cleaner power for the benefit of the American people.”
Operating cash flow remains negative
Advanced Emissions Solutions, Inc has spent $18.26 million cash to meet operating activities during the year as against cash outgo of $29.87 million in the last year. Cash flow from investing activities was $39.90 million for the year, up 820.60 percent or $35.56 million, when compared with the last year.
The company has spent $15.67 million cash to carry out financing activities during the year as against cash inflow of $10.03 million in the last year period.
Cash and cash equivalents stood at $13.21 million as on Dec. 31, 2016, up 42.56 percent or $3.94 million from $9.26 million on Dec. 31, 2015.
Working capital turns positive
Working capital of Advanced Emissions Solutions, Inc has turned positive to $15.20 million on Dec. 31, 2016 from negative $24.18 million on Dec. 31, 2015. Current ratio was at 1.64 as on Dec. 31, 2016, up from 0.51 on Dec. 31, 2015.
Days sales outstanding went up to 81 days for the year compared with 26 days for the same period last year.
At the same time, days payable outstanding went down to 8 days for the year from 22 for the same period last year.
Debt comes down significantly
Advanced Emissions Solutions, Inc has recorded a decline in total debt over the last one year. It stood at $4.95 million as on Dec. 31, 2016, down 80.26 percent or $20.11 million from $25.06 million on Dec. 31, 2015. Total debt was 4.61 percent of total assets as on Dec. 31, 2016, compared with 41.23 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
