Exhibit 99.1
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Shareholder Meeting
PrPresentation
June 2013
NASDAQ: ADES WWW.ADAES.COM
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T
Securities Exchange Act of 1934, which provides a safe harbor for such statements in certain
circumstances. The forward-looking statements include statements or expectations regarding future
contracts, projects, demonstrations and technologies; amount and timing of production of RC,
revenues, earnings, cash flows and other financial measures; future operations; our ability to capitalize
on and expand our business to meet opportunities in our target markets and profit from our proprietarp pp g p p p y
technologies; scope, timing and impact of current and anticipated regulations and legislation; future
supply and demand; the ability of our technologies to assist our customers in complying with
government regulations and related matters. These statements are based on current expectations,
estimates, projections, beliefs and assumptions of our management. Such statements involve significant
risks and 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, changes in laws,
regulations and IRS interpretations or guidance, governmentfunding, accounting rules, prices, economic
conditions and market demand; timing of laws, regulations and any legal challenges to or repeal of
them; failure of the RC facilities to produce coal that qualifies for tax credits; termination of or
amendments to the contracts for RC facilities; decreases in the production of RC; failure to lease or sell
the remaining RC facilities on a timely basis; our inability to ramp up operations to effectively address
expected growth in our target markets; inability to commercialize our technologies on favorable terms;
impact of competition; availability, cost of anddemand for alternative tax credit vehicles and other
technologies; technical, start-up and operational difficulties; availability of raw materials and
equipment; loss of key personnel; intellectual property infringement claims from third parties;
seasonality and other factors discussed in greater detail in our filings with the Securities and Exchange
Commission (SEC). You are cautioned not to place undue reliance on such statements and to consult our
SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our
securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty
to update such statements unless required by law to do so.
©
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ADA ES I
Providing emission control solutions to the power industry for
th ADA-ES, Inc.
more than 30
years
? Portfolio of proprietary, low CAPEX technologies to meet pollution
control mandates. 17 patents issued or allowed
? Customers include most of the leading electric power companies
? Strong (and growing) cash flows from Refined Coal business through
2021
? Emission Control at early stage of compliance ramp. Near-term
equipment market, longer-term consumables supply market
? 10M shares outstanding, no significant LT debt, $22M in cash at 1Q13
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Near-term growth opportunities E i i C Refined Coal t l
?? 28 facilities eligible for Section 45 Tax Credits of
?? MATS rule took effect in 2012, compliance by 2015
?? MATS to create annual k t f 1 $2Bf Emissions Control Equipment Mercury Control Consumables
$6.59/ton (escalating) through 2021
?? 5 facilities leased/sold to
?? Rule creates $1B market for equipment market of $1-$2B for consumables to control mercury
?? ADA offers proprietary investors generating more than $50M in annual payments
?? Remaining facilities
?? ADA leading provider of equipment to meet MATS
?? Activated Carbon p p y chemical technology applied prior to combustion as alternative
to the use of activated
expected to be
leased/sold by YE2014
?? Expect $200M in annual
Injection Systems
?? Dry Sorbent Injection
Systems
carbon
?? Addressable market of
~600M tons of western
segment revenues at +90% coal per year
margin
?? Joint Venture:
42 5% ADA
?? Equipment backlog of $32.7M
at 1Q13, up from $25.3M at
4Q12 and $4.6M at 1Q12
42.5% 42.5% NexGen
15% Goldman Sachs
© 2013 ADA-ES -3-
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PORTFOLIO OF EMISSIONS CONTROL SOLUTIONS
SCRDe NOx
Flue Gas Desulfurization (FGD) Scrubber
Coal Bunker
Filter or ESP
Air Preheater
Boiler
M-ProveTM
Technology Refined Coal
Flue Gas
Conditioning
Activated Carbon
Injection (ACI)
Dry Sorbent
Injection (DSI) Refined Coal- $0 cost to utility
M-ProveTM Technology $0 capex,
$1-$4/ton reduced compliance cost
ACI/DSI- $1-$3M in capex
© 2013 ADA-ES, Inc.
Scrubber, SCR- $100M+
in capex
Large E&C
firms
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EXPECTED REVENUE MIX TRAJECTORY
GOLDMAN SACHS
15%
© 2013 ADA-ES, Inc. -5-
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REFINED COAL
CLEAN COAL SOLUTIONS, LLC (CCS)
CLEAN COAL SOLUTIONS JV
OWNERSHIP STRUCTURE
NEXGEN
ADA
42.5%
GOLDMAN SACHS
15%
42.5%
© 2013 ADA-ES, Inc. -6-
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Wingdings-RegularREFINED COAL: MONETIZATION DYNAMICS
.. Requirements to
commence operations:
.. Operating permits obtained
from each relevant state
CCS Receives:
~$3+/ton in consolidated
Each RC facility can be leased or sold to
generate revenue, or operated by CCS for
tax credit benefits to offset future tax
obligations
.. Approval from Public
Utilities Commissions (PUC)
in regulated states
I t $
payments, net $1.50-$2/ton to
ADA of pre-tax income after
payments to ADAs JV partners
.. Approval from coal and
transportation companies
.. Approval from plant owners
.. Contracts negotiated and
i d CCS RC Investor
Receives: (a)$6.59/ton tax credit
through RC production, and (b) tax
deductions for rental, utility and
operating expenses signed among CCS, RC investor and power companies
.. 3 RC investors currently Utility
Receives: value of $ $
Pays: ~$1/ton to utility, ~$2/ton for
operating expenses and ~$3+/ton to CCS engaged .. Working with additional
RC investors for remaining RC facilities
1.00 - 4.00 / ton for emissions reduction Payment of ~$1/ton from RC investor © 2013 ADA-ES, Inc. -7-
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REFINED COAL:
FINANCIAL RESULTS OF RETAINING TONS AND TAX CREDITS
CCS may operate an RC facility, retaining the tax credits, prior to
finalizing contracts with the RC investor
$20
Ms
$15
Cost of retained tons
Tax credits generated
Retained RC Results (CCS)
$5
$10
$0
1Q12 2Q12 3Q12 4Q12 1Q13
$
Cumulative Tax Credits Generated (CCS)
Ms
Note: ADAs 42.5% share of tax credits
included in net deferred tax assets NDTA
$20 $30
$40 $50 60
© 2013 ADA-ES, Inc. -8-
assets. are offset by a valuation allowance as
discussed in the footnotes to the financial
statements. $0 $10 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
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Update on 28 Refined Coal Facilities
5 facilities
generating
$ 50M + in
6 facilities in various stages of negotiations.
Expected 12 facilities to use M- 45-PC technology. First expected to be operating in 2H13
annual revenues 1 facility to be leased/sold in 2013/2014 1 facility currently currently retained, expected to be leased in
1 facility with lease contracts finalized retained (since early June),
expected to be
leased in early
~15MT/yr
2Q13
2 facilities
retained
by CCS
finalized,
waiting on PSC
approval to
begin operation
~22MT/yr
3Q13 ~60MT/yr
~4MT/yr
~2MT/yr
~3MT/yr ~3MT/yr
© 2013 ADA-ES, Inc. -9-
Operating Not currently operating
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CalibriFinancial Impact of RC Operations
Expected consolidated gross profits ($000)
Facilities Status 2Q13E
RC Facilities # 1]7
5 facilities leased/sold at 1Q13,
2 retained by CCS
$11.6 $14.0
3Q13E
RC Facility #8
Operated by CCS, expect to be
leased by the end of 2Q13
($2.9) $3.5
RC Facility #9
Not operating, contracts are final,
waiting for PSC approval
$0.0 $3.4
RC F ili #10
Commenced operations by CCS in
($0 6) Facility $1 0 *
p y
June, expect to be leased in 3Q13
0.6) 1.0 RC Facilities #11]28
Not operating, certain facilities are
in various stages of negotiation
$0.0 $0.0
$8.1 $21.9
* Expect $2.5M of Gros s Margin per quarter beginning 4Q13
Note:
ADA 42.5% of Clean Coal Solutions
Consolidated Gross Margin from RC
© 2013 ADA-ES, Inc. -10-
owns
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EMISSIONS CONTROL
ACTIVATED CARBON INJECTION SYSTEMS DRY SORBENT INJECTION SYSTEMS
Installed/installing ACI systems on over 60
boilers at coal-fired power plants Sold through our BCSI subsidiary
GOLDMAN SACHS
15%
© 2013 ADA-ES, Inc. -11-
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ArialSegoeUIEMISSION CONTROL ($ IN MILLIONS)
EC Revenues and Backlog
. MATS market developing as expected
. $1-$2B market for consumables to control mercury starting in 2016
Recently announced more than . $30M in new awards
. ADA is prepared for this market
- Supply agreements already in place, engineering capabilities expanded
- Ample (and growing) cash balance
© 2013 ADA-ES, Inc. -12-
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ACI MARKET SHARE
Boilers treated by ACI systems
© 2013 ADA-ES, Inc.
Source: ICAC
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ArialMERCURY CONTROL: M-PROVETM TECHNOLOGY
. Patented technology designed to enable Western
coals to burn with lower mercury emissions
U.S. burns up to 600M tons of Western Coal per year
. $1.00-$4.00/ton in benefits to customer
. Technology has been licensed to Arch Coal to apply
to their PRB coals at the mine
Royalty agreement: payments to ADA of up to $1.00/ton
based on a portion of the premium paid on treated coal
sales
. ADA retains rights to apply technology at power
plants
. Initial market: states with mercury regulations
already in place
. MATS expected to create market starting in 2016
. Continued demonstration of technology to
customers
© 2013 ADA-ES, Inc. -14-
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ArialSegoeUICO2 CAPTURE: OVERVIEW
. Developing proprietary solid sorbent capture
technology to capture CO2 from flue gas in
conventional coal-fired boilers
. DOE and industry funding:
- Phase I - $3.8 M R&D at 1 KW pilot plant
completed in 2011
Ph II $20 5 M 51 h - Phase - 20.5 M, 51-month contract to scale-up
technology to 1 MW
Entered Fabrication and Construction phase of 1 MW
plant in June 2012, estimated completion in October
2013
Testing in 2014
. Advantages over competing technologies:
- For customer: lower cost and less parasitic energy
- For ADA: continuous revenues from sale of
proprietary chemical sorbents
© 2013 ADA-ES, Inc. -15-
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ArialK T k
. RC opportunities expected to provide substantial growth in
Key Takeaways
pp p p g
revenues, profits and cash flows in 2013, and consistent
revenue streams through 2021
. MATS compliance requirements are driving significant
near-term market for equipment
. M-ProveTM technology and royalty opportunity expected to
produce additional growth beyond MATS equipment market
. Developing solid sorbent capture technology to capture
CO2 from flue gas in conventional coal-fired boilers
© 2013 ADA-ES, Inc. -16-
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REORGANIZATION STRUCTURE
Advanced Emissions Solutions,
Inc.
Nasdaq: ADES
(Holding Company)
Operating Companies
ADA-ES, Inc.
BCSI, LLC
Clean Coal Solutions, LLC
42 5% ADA ES Inc
100% owned ADES
100% owned ADES
42.5% owned ADA-ES, Inc.
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BALANCE SHEET HIGHLIGHTS
3/31/13 12/31/12 $s in Millions
Cash & Cash Equivalents $21.9 $9.7
Working Capital, net of
deposits and deferred
revenues
$22.1 $1.6
Long-term Liabilities, net
of deferred revenues* $5.7 $5.6
Shares Outstanding 10.1 10.0
*Long-term liabilities at 3/31/13 include $13.3M of deferred revenue related to Clean Coal, as
shown on the balance © 2013 ADA-ES, Inc. -18-
sheet
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Wingdings-RegularFINANCIAL SUMMARY:
Q1 2013 VS VS. Q1 2012
$ in Ms 2013 2012
Revenues $68.3 $18.2
Gross Margin / Margin %, Including Coal Sales $9.7 / 14% $4 / 22%
Adjusted Gross Margin / Margin %, Excluding Coal
Sales and Retained Tonnage Operating Expense* $16.2 / 70% $6.4 / 76%
.. Retained tonnage has a dominating impact on GAAP Income Statement
.. $45M of 1Q13 revenues and costs are due to coal sales and purchases relating to retained RC
Net Income (Loss) $(2.2) $(2.4)
~facilities
.. ~$6.5M of 1Q13 operating expenses are due to ~1.9M retained tons, which generated $12.6M
in tax credits
.. Financial benefit of tax credits generated will not been seen until future quarters due to
valuation allowance
*See appendix for explanation of non-GAAP financial measures
© 2013 ADA-ES, Inc. -19-
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Calibri-BoldCalibri-ItalicArialSegoeUICalibriREFINED COAL
For the Three
Months Ended
$(000) 2013 2012 31]Dec]12
Rental income 12,2$ 13 $ 5,391 $ 9,802
Coal sales 44,960 9,773 51,365
For the Three Months Ended
March 31,
Other income 950 10 11
Total RC Revenues $ 58,123 $ 15,174 $ 61,178
Cost of Revenues $ 51,469 $ 12,043 $ 57,984
Gross Margin $ 6,654 $ 3,131 $ 3,194
Gross Margin Percentage 11% 21% 5%
Adjusted Gross Margin* $ 13,144 $ 5,572 $ 9,656
Adjusted Gross Margin Percentage* 99% 99% 98%
See Appendix for explanation of non]GAAP measures.
* Adjusted gross margin and adjusted gross margin percentage excludes coal sales and raw coal purchases and retained tonnage operating expenses.
Operating Statistics (millions)
Tons for leased facilities 3.2 1.4 2.5
Tons retained 1.9 0.3 2.1
Total tons treated 5.1 1.7 4.6
T C dit t db t i dt $ 12 6 $ 1 7 $ 13 3
. CCS operated 8 facilities in 1Q13, 5 of which were leased/sold to RC investors at Quarter-end
- In 1Q13 the three+ RC facilities operated by Clean Coal incurred operating expenses of $6.5M but generated $12.6M
Tax Credits generated by JV ] retained tons 12.6 1.7 13.3
Tax Credits to ADA (42.5%) $ 5.4 $ 0.7 $ 5.7
three in tax credits
- The operation of these units included $45M in pass through coal purchases/sales
© 2013 ADA-ES, Inc. -20-
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Appendix
© 2013 ADA-ES, Inc.
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NON-GAAP FINANCIAL MEASURES
© 2013 ADA-ES, Inc.
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Wingdings-RegularBusiness Segments
Refined Coal
.. CyCleanTM, M-45TM and M45-PCTM .. Regulations have created 1B market for .. Developing technology to capture
Emissions Control
Systems CO2 Capture y
technologies reduce mercury and
NOx emissions and qualify for
Section 45 Tax Credits of $6.59 per ton for next 8 years
.. Each facility can be leased or sold g $
MATS technologies - Activated Carbon Injection: control mercury
- Dry Sorbent injection: control acid gases p g gy p
CO2 from flue gas in coal-fired boilers
.. Ongoing research partnership with
Department of Energy and Southern
y Company
to generate revenue or operated by
Clean Coal for tax credit benefit
.. 42.5% stake in Clean Coal Solutions
JV with NexGen & Goldman Sachs
g
- Carbon Mitigation strategies for Hg
re-emissions in WFGD
- Non-SO3 based LFGC Technology for
ESP resistivity enhancement
.. Coal treatment technology to reduce
.. 1MW pilot plant under
construction. Testing in 2014
mercury emissions; licensed to Arch Coal
© 2013 ADA-ES, Inc. Confidential and Proprietary Information
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ArialCoal Energy
SOURCES OF U.S. ELECTRICITY, 2011 19% 13% 1%
. Coal expected to provide ~ 40% of
Americas electricity in 2035
according to Department of Energy
. 1,200 existing coal-fired power plants
i th US t th j it f
25% 42%
in the generate the majority of the nations electricity, and consume
~ 900M to 1B tons of coal each year
. EPRI estimates that the coal-fired
power industry will invest $275 billion
Coal
in retrofits through 2035
. Lower coal prices benefit our
customers
. 11 new coal-fired power projects
Natural Gas
Nuclear
currently have permits and are
expected to begin construction in the
next year
. The energy in Americas recoverable
S U S EIA M h 2012
Renewables
Petroleum
gy
coal reserves is equivalent to 1 trillion
barrels of oil about equal 2/3rds of
the worlds known reserves
. In order to maintain its leadership
position, coal must burn cleaner Source: U.S. EIA, March © 2013 ADA-ES, Inc.
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PORTFOLIO OF EMISSIONS CONTROL SOLUTIONS
SCR
DeNOx
Flue Gas Desulfurization
(FGD) Scrubber
Coal
Bunker
Filter
ESP
Air
Preheater or Boiler
Scrubber
Additive M-Prove TM
Technology
Refined Coal Flue Gas
Conditioning
Activated Carbon
Injection (ACI)
Dry Sorbent
Injection (DSI)
© 2013 ADA-ES, Inc.
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ArialSegoeUIRefined Coal: Introduction & Overview
. The American Jobs Creation Act of 2004, Section 45 of the IRC: contains
provisions to incentivize the production of pollution mitigating Refined Coal
(RC) via annually escalating tax credits per ton of coal burned. RC reduces
mercury by 40%+ and NOx emissions by 20%+ when that coal is burned.
. Clean Coal Solutions (CCS) JV offers three technologies that produce Section
45 Refined Coal
- The CyCleanTM, M-45TM and M-45-PCTM technologies provide on-site, proprietary pretreatment
to Powder River Basin (PRB) and Lignite coals treatment for use in cyclone boilers,
circulating fluid bed boilers and pulverized coal boilers.
Key Dates
. June 2010: Clean Coal Solutions commences operations at first two RC facilities
. December 2010: Congress extends placed-in-service deadline for new RC
facilities to 12/31/11
. January - December 2011: CCS fabricates, installs and places-in-service 26
additional RC units able to qualify for Section 45 tax credits
. June 2011: an affiliate of Goldman Sachs purchases a 15% stake in CCS for $60M
. 2012 - 2014: CCS focused on capturing the value of Section 45 tax credits
© 2013 ADA-ES, Inc.
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ArialSegoeUIQ1 2013 Refined Coal Highlights
. A 5th RC facility sold to a new RC investor- $20M upfront
payment, $ 5M more with p y , receipt of PLR in 2013
- The 5 leased/sold RC facilities are expected to produce
more than $50M in annual revenues
. Restructured leases with our first RC investor
. M-45-PC TM technology demonstrated successfully at
several sites
- Tested at four plants with six boilers
- First PC facility expected to be operating as early as the
2H13
© 2013 ADA-ES, Inc.
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REFINED COAL:
FINANCIAL IMPACT OF CONVERTING A RC FACILITY FROM CCS OPERATION
TO 3RD PARTY RC INVESTOR
3rd CCS Consolidated financial example for a 3 MT/yr facility
$10
$15 $12M/yr
~$9M
CCS Self Monetization 3 Party RC Investor
$5
ons
Operating
CAPEX
$-
Millio
($2M)
Payment from
RC investor
Expense
Cash at Closing
( Pre-Paid Rent)
$(10)
$(5)
($9M/yr)
)
$(15)
© 2013 ADA-ES, Inc.
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CONTACTS
Michael D. Durham, Ph.D., MBA
President & CEO
Graham Mattison
Vice President, Investor Relations
(646) 319 1417
Mark H. McKinnies
SVP & CFO
646)-319-graham.mattison@adaes.com
© 2013 ADA-ES, Inc.