Post by icemandios on Nov 10, 2021 0:51:41 GMT
Fuel Tech Reports 2021 Third Quarter Financial Results
Fuel Tech, Inc. (NASDAQ: FTEK) , a technology company providing advanced engineering solutions for the optimization of combustion systems, emissions control, and water treatment in utility and industrial applications, today reported financial results for the third quarter ended September 30, 2021 (“Q3 2021”).
“We reported profitable operations in the third quarter, progressed in the ongoing development of our Dissolved Gas Infusion (DGI TM ) business, and ended the quarter with $36.3 million in total cash and no debt,” said Vincent J. Arnone, President and CEO.
“Our FUEL CHEM ® segment continued to perform well, with higher revenues and segment operating profits compared to the same period last year. FUEL CHEM benefitted from the operations of our current installed base, including recent program installations; an overall rise in demand for energy attributable to the resumption of economic activity following a period of reduced activity due to the impact of COVID-19; and increased seasonal power usage. Revenues at FUEL CHEM for the first nine months of 2021 equaled revenues produced by this segment for all of 2020.
“Our Air Pollution Control (APC) business continued to face headwinds due to ongoing project delays and cancellations that have resulted in a lack of new orders, and changes in project timing. However, as previously announced we secured $4.5 million in new contracts during Q3 2021 from customers in Korea, North America and Europe. We are also encouraged by the pace and depth of our business development activities, which reflect an increased focus on global emissions protocols across a variety of fuel sources. Our current global sales pipeline has increased to $50 -75 million from the $40-50 million range, and we have good visibility to incremental contracts to be awarded before the end of Q4 2021 in the amount of $3 to $5 million.”
Mr. Arnone continued, “With respect to our DGI business, we completed successful demonstrations at three locations in the United States and continue to work with these potential customers to determine next steps. We also completed the fabrication of a higher capacity DGI equipment delivery system that will allow us to meet the anticipated dissolved oxygen requirements of the majority of the potential customer applications that we are likely to encounter. Finally, we are close to completing a market opportunity assessment in conjunction with an outside firm that we believe will assist our long-term product commercialization activities.”
Q3 2021 Consolidated Results Overview
Consolidated revenues for the quarter declined to $7.6 million from $8.2 million in Q3 2020, reflecting higher revenues at FUEL CHEM offset by revenue declines in the APC segment.
Gross margin for Q3 2021 was 49.2% of revenues compared to 72.4% of revenues in Q3 2020. Gross margin in Q3 2020 reflected a $2.6 million insurance settlement (“the settlement”) that reduced cost of sales at the APC business by a like amount. Excluding the settlement, consolidated gross margin for Q3 2020 was 40.7%.
SG&A expenses declined to $2.8 from $3.2 million in Q3 2020, reflecting lower employee expenses and professional services.
Operating income was $0.6 million compared to operating income of $2.4 million in Q3 2020. Excluding the impact of the settlement, operating loss in Q3 2020 was $0.2 million.
Net income in Q3 2021 was $0.7 million, or $0.02 per share, compared to net income of $2.4 million, or $0.10 per share, in Q3 2020. Excluding the impact of the settlement, net loss in Q3 2020 was $0.2 million, or $(0.01) per share.
Consolidated APC segment backlog at September 30, 2021 was $8.2 million compared to $5.3 million at December 31, 2020.
APC segment revenues declined to $1.9 million in Q3 2021 from $2.9 million in Q3 2020. APC gross margin in Q3 2021 was $0.8 million, or 41.7% of revenue, compared to $3.2 million, or 110.5% of revenue, reflecting the above referenced settlement. Excluding the settlement, APC gross margin for Q3 2020 was 20.8%.
FUEL CHEM segment revenues rose to $5.6 million from $5.3 million in Q3 2020. Segment gross margin was 51.8% compared to 51.5% in Q3 2020.
Adjusted EBITDA was $0.9 million in Q3 2021 compared to an Adjusted EBITDA of $2.7 million in Q3 2020. Excluding the settlement, Adjusted EBITDA in Q3 2020 was $0.1 million.
Financial Condition
At September 30, 2021, cash and cash equivalents were $35.2 million and restricted cash was $1.1 million. Stockholders’ Equity at September 30, 2021 was $46.4 million, or $1.53 per share, and the Company had no debt.
Conference Call
Management will host a conference call on Wednesday, November 10, 2021 at 10:00 am EST / 9:00 am CST to discuss the results and business activities. Interested parties may participate in the call by dialing:
(877) 423-9820 ( Domestic ) or
(201) 493-6749 ( International )
The conference call will also be accessible via the Upcoming Events section of the Company’s web site at www.ftek.com . Following management’s opening remarks, there will be a question-and-answer session. Questions may be asked during the live call, or alternatively, you may e-mail questions in advance to dsullivan@equityny.com . For those who cannot listen to the live broadcast, an online replay will be available at www.ftek.com .
About Fuel Tech
Fuel Tech develops and commercializes state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner. Fuel Tech is a leader in nitrogen oxide (NO x ) reduction and particulate control technologies and its solutions have been in installed on over 1,200 utility, industrial and municipal units worldwide. The Company’s FUEL CHEM ® technology improves the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity. Water treatment technologies include DGI™ Dissolved Gas Infusion Systems which utilize a patented nozzle to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater industries, including remediation, aeration, biological treatment and wastewater odor management. Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. For more information, visit Fuel Tech’s web site at www.ftek.com .
Fuel Tech, Inc. (NASDAQ: FTEK) , a technology company providing advanced engineering solutions for the optimization of combustion systems, emissions control, and water treatment in utility and industrial applications, today reported financial results for the third quarter ended September 30, 2021 (“Q3 2021”).
“We reported profitable operations in the third quarter, progressed in the ongoing development of our Dissolved Gas Infusion (DGI TM ) business, and ended the quarter with $36.3 million in total cash and no debt,” said Vincent J. Arnone, President and CEO.
“Our FUEL CHEM ® segment continued to perform well, with higher revenues and segment operating profits compared to the same period last year. FUEL CHEM benefitted from the operations of our current installed base, including recent program installations; an overall rise in demand for energy attributable to the resumption of economic activity following a period of reduced activity due to the impact of COVID-19; and increased seasonal power usage. Revenues at FUEL CHEM for the first nine months of 2021 equaled revenues produced by this segment for all of 2020.
“Our Air Pollution Control (APC) business continued to face headwinds due to ongoing project delays and cancellations that have resulted in a lack of new orders, and changes in project timing. However, as previously announced we secured $4.5 million in new contracts during Q3 2021 from customers in Korea, North America and Europe. We are also encouraged by the pace and depth of our business development activities, which reflect an increased focus on global emissions protocols across a variety of fuel sources. Our current global sales pipeline has increased to $50 -75 million from the $40-50 million range, and we have good visibility to incremental contracts to be awarded before the end of Q4 2021 in the amount of $3 to $5 million.”
Mr. Arnone continued, “With respect to our DGI business, we completed successful demonstrations at three locations in the United States and continue to work with these potential customers to determine next steps. We also completed the fabrication of a higher capacity DGI equipment delivery system that will allow us to meet the anticipated dissolved oxygen requirements of the majority of the potential customer applications that we are likely to encounter. Finally, we are close to completing a market opportunity assessment in conjunction with an outside firm that we believe will assist our long-term product commercialization activities.”
Q3 2021 Consolidated Results Overview
Consolidated revenues for the quarter declined to $7.6 million from $8.2 million in Q3 2020, reflecting higher revenues at FUEL CHEM offset by revenue declines in the APC segment.
Gross margin for Q3 2021 was 49.2% of revenues compared to 72.4% of revenues in Q3 2020. Gross margin in Q3 2020 reflected a $2.6 million insurance settlement (“the settlement”) that reduced cost of sales at the APC business by a like amount. Excluding the settlement, consolidated gross margin for Q3 2020 was 40.7%.
SG&A expenses declined to $2.8 from $3.2 million in Q3 2020, reflecting lower employee expenses and professional services.
Operating income was $0.6 million compared to operating income of $2.4 million in Q3 2020. Excluding the impact of the settlement, operating loss in Q3 2020 was $0.2 million.
Net income in Q3 2021 was $0.7 million, or $0.02 per share, compared to net income of $2.4 million, or $0.10 per share, in Q3 2020. Excluding the impact of the settlement, net loss in Q3 2020 was $0.2 million, or $(0.01) per share.
Consolidated APC segment backlog at September 30, 2021 was $8.2 million compared to $5.3 million at December 31, 2020.
APC segment revenues declined to $1.9 million in Q3 2021 from $2.9 million in Q3 2020. APC gross margin in Q3 2021 was $0.8 million, or 41.7% of revenue, compared to $3.2 million, or 110.5% of revenue, reflecting the above referenced settlement. Excluding the settlement, APC gross margin for Q3 2020 was 20.8%.
FUEL CHEM segment revenues rose to $5.6 million from $5.3 million in Q3 2020. Segment gross margin was 51.8% compared to 51.5% in Q3 2020.
Adjusted EBITDA was $0.9 million in Q3 2021 compared to an Adjusted EBITDA of $2.7 million in Q3 2020. Excluding the settlement, Adjusted EBITDA in Q3 2020 was $0.1 million.
Financial Condition
At September 30, 2021, cash and cash equivalents were $35.2 million and restricted cash was $1.1 million. Stockholders’ Equity at September 30, 2021 was $46.4 million, or $1.53 per share, and the Company had no debt.
Conference Call
Management will host a conference call on Wednesday, November 10, 2021 at 10:00 am EST / 9:00 am CST to discuss the results and business activities. Interested parties may participate in the call by dialing:
(877) 423-9820 ( Domestic ) or
(201) 493-6749 ( International )
The conference call will also be accessible via the Upcoming Events section of the Company’s web site at www.ftek.com . Following management’s opening remarks, there will be a question-and-answer session. Questions may be asked during the live call, or alternatively, you may e-mail questions in advance to dsullivan@equityny.com . For those who cannot listen to the live broadcast, an online replay will be available at www.ftek.com .
About Fuel Tech
Fuel Tech develops and commercializes state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner. Fuel Tech is a leader in nitrogen oxide (NO x ) reduction and particulate control technologies and its solutions have been in installed on over 1,200 utility, industrial and municipal units worldwide. The Company’s FUEL CHEM ® technology improves the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity. Water treatment technologies include DGI™ Dissolved Gas Infusion Systems which utilize a patented nozzle to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater industries, including remediation, aeration, biological treatment and wastewater odor management. Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. For more information, visit Fuel Tech’s web site at www.ftek.com .