HIGHLANDS RANCH, Colo., March 31, 2014 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (Nasdaq: ADES ) (the "Company") today announced that it expects to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the "10-K") in mid-April. Prior to the release of the 10-K, the Company will issue financial results for the fourth quarter and year-ended December 31, 2013, and conduct a conference call. Additional timing and call-in details will be announced prior to filing the 10-K.
The Company is completing extensive reviews of its historical revenue recognition policy for equipment contracts in its Emission Control segment ("EC"), verifying its accounting for interest expense accruals related to taxes on deferred installment gain and certain other accounting transactions, continuing the process of assessing the effectiveness of its internal control over financial reporting, and determining possible effects on results reported in prior periods. This process has required intensive and detailed re-examination of a large number of equipment contracts, transactions and other accounting records, causing the delay in reporting.
The Company now expects its proposed change in revenue recognition methods and other immaterial adjustments will likely result in a reduction of revenues of approximately $12 million in the aggregate for prior reporting periods including the first three quarters of 2013 and an increase in backlog reported as of September 30, 2013 of a similar amount. These adjustments will have no impact on the amount of revenue ultimately recognized over the terms of the EC equipment contracts and pertain only to the EC segment. The Company now expects the combined possible effects of all adjustments on results reported in prior periods will be less than $4 million, which primarily consists of the margin associated with EC revenue changes and adjustments to interest expense accruals associated with IRS Section 453A interest on installment gains.
Dr. Michael D. Durham, President and CEO of the Company commented, "This process has taken much longer than desired. While frustrating, this effort has not, and will not, impact project execution, our relationships with customers, or our ability to win awards. The outlook for all of our segments is unchanged by these accounting adjustments. With more than $50 million in cash on our balance sheet at year-end, record backlog and positive prospects in our Emissions Control segment, and accelerating progress in our Refined Coal segment, we are excited for 2014 and the future. We will be providing updates regarding timing and any impact of the accounting review and our filings as soon as practical."
About Advanced Emissions Solutions, Inc.
Advanced Emissions Solutions, Inc. (Nasdaq: ADES ) serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.
ADA-ES, Inc. ("ADA") supplies Activated Carbon Injection ("ACI") for mercury control, Dry Sorbent Injection ("DSI") for acid gases, and technology services and other offerings in support of our customers' emissions compliance strategies. ADA's M-Prove TM technology, which reduces emissions of mercury and other metals from PRB coal, is applied directly to coal at power plants, or offered through a licensing agreement with Arch Coal for application at their mines. In addition, we are developing technologies to advance cleaner energy, including CO2 emissions control technologies through projects funded by the U.S. Department of Energy ("DOE") and industry participants.
Clean Coal Solutions, LLC ("CCS"), is a 42.5% owned joint venture by ADA that provides ADA's patented Refined Coal ("RC") CyClean™ technology to enhance combustion of and reduce emissions of NOx and mercury from coals in cyclone boilers and ADA's patent pending M-45™ and M-45-PC™ technologies for Circulating Fluidized Boilers and Pulverized Coal boilers respectively. Advanced Emissions Solutions consolidates the results of CCS in its financial statements.
BCSI, LLC is a custom designer and fabricator of engineered emissions control technologies, bulk material handling equipment, bulk storage systems, water/waste water treatment equipment, and custom components. BCSI supplies Dry Sorbent Injection ("DSI") for acid gas control using its technologically advanced cool, dry conditioned conveying air systems. BCSI's technical solutions serve a wide range of industrial clients including; coal fired utilities, water treatment, wastewater, cement kilns, food processing and industrial boilers. BCSI employs engineers and trade professionals at a 190,000+sq. ft. fabrication and office facility located in McKeesport, PA.
This press release contains forward-looking statements within the meaning of Section 21E of the 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 our financial results, the timing and results of our assessment of the effectiveness of our internal control over financial reporting and review of our accounting practices, the effects of the outcome of our assessment and review, our ability to release our earnings results and file our Annual Report on Form 10-K by mid-April 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, our assessment and review could take longer than anticipated, result in other adjustments that could be material, result in different impacts on our business operations or financial statements than those estimated above, result in our concluding that we have additional material weaknesses in our internal controls or that we need to restate previously issued financial statements 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.
Graham Mattison Vice President, Investor Relations (646) 319-1417
