Post by icemandios on Mar 9, 2022 0:41:16 GMT
Fuel Tech Reports 2021 Fourth Quarter and Full Year 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 fourth quarter and full year ended December 31, 2021.
“For full year 2021, we generated higher revenues, continued a strict cost control discipline that produced lower selling, general and administrative expenses, significantly reduced our operating loss, and reported annual net income for the first time since 2013," said Vincent J. Arnone, President and CEO. “We also ended the year in a strong financial position, with $37.1 million in total cash and no debt.”
Mr. Arnone continued, “Our FUEL CHEM ® segment performed well, generating increased revenues and higher segment operating income for full year 2021. This performance helped to offset a decline in revenues at our Air Pollution Control (APC) business due to COVID-related project delays and cancellations, as well as changes in project timing. The pace and depth of our business development activities at APC has begun to strengthen and we were pleased to announce $5.3 million of new domestic and international APC orders during the current first quarter of 2022, covering many of our APC technology offerings, including our first Flue Gas Conditioning systems in India. We continue to pursue a global sales pipeline of $50-75 million addressing emission protocols across a variety of fuel sources.
“We also continued to strategically invest in the commercialization and development of our Dissolved Gas Infusion (DGI TM ) technology initiative to address the water pollution control and treatment market. We completed successful demonstrations at three locations in the United States and continue to work with these potential customers to determine next steps. We completed the fabrication of a higher capacity DGI equipment delivery system that will allow us to meet the anticipated dissolved oxygen requirements of many of the potential customer applications that we are likely to encounter.
We have recently completed a market opportunity assessment in conjunction with an outside firm that we believe will assist our long-term product commercialization activities and we are continuing to execute on our commercialization and development plan.”
Q4 2021 Consolidated Results Overview
Consolidated revenues for the fourth quarter ended December 31, 2021 (“Q4 2021”) rose to $6.5 million from $6.2 million in Q4 2020, reflecting higher revenues at APC driven by the timing of project execution and new APC orders, partially offset by lower revenues at FUEL CHEM due to lower revenue from non-chemical sales.
Gross margin for Q4 2021 rose to 50.2% of revenues from 41.9% of revenues in Q4 2020, reflecting improved margins from the APC segment and product mix.
SG&A expenses declined to $3.2 from $3.8 million in Q4 2020, reflecting lower employee expenses and office and administrative costs relating to our foreign subsidiaries.
Operating loss narrowed to $(0.2) million from an operating loss of $(1.7) million in Q4 2020, the result of increased revenue, improved gross margin and lower SGA expenses.
Net loss in Q4 2021 was $(0.2) million, or $(0.01) per share, compared to net loss of $(1.5) million, or $(0.07) per share, in Q4 2020.
Consolidated APC segment backlog at December 31, 2021 rose to $9.1 million from $5.3 million at December 31, 2020.
APC segment revenues rose to $3.1 million from $2.5 million in Q4 2020. APC gross margin in Q4 improved to 55.6% of revenue from 29.0% of revenue, reflecting the timing of project execution and product mix.
FUEL CHEM segment revenues were $3.4 million compared to $3.7 million in Q4 2020. Segment gross margin was 45.3% compared to 50.7% in Q4 2020, reflecting a one-time higher margin system sale in last year’s fourth quarter.
Adjusted EBITDA loss was $(0.0) million in Q4 2021 compared to Adjusted EBITDA loss of $(1.1) million in Q4 2020.
2021 Full Year Overview
Consolidated revenues for 2021 rose to $24.3 million from $22.6 million, reflecting a 24.1% increase in FUEL CHEM revenues offset by a 19.4% decline in APC revenues.
Consolidated gross margin for full year 2021 and 2020 was 49.0% and 47.2%, respectively, reflecting the factors cited above. Excluding the impact of a previously disclosed $2.6 million insurance settlement recorded in Q3 2020, gross margin for full year 2020 was 29.8%.
SG&A expenses for 2021 declined by 11.4% to $12.1 million from $13.6 million in 2020, reflecting the Company’s previously completed cost containment initiatives.
Operating loss from continuing operations narrowed to $(1.5) million from $(4.3) million last year.
Net income for 2021 was $0.1 million, or $0.00 per diluted share, compared to a net loss of $(4.3) million, or $(0.17) per diluted share, in 2020. Net income for 2021 included other income of $1.6 million, reflecting full forgiveness of the loan proceeds from the Paycheck Protection Program, established pursuant to the CARES Act. Other income in 2020 was $0.1 million.
Adjusted EBITDA loss was $(0.7) million in 2021 compared to an Adjusted EBITDA loss of $(2.9) million in 2020.
Financial Condition
At December 31, 2021, cash and cash equivalents were $35.9 million and restricted cash was $1.2 million. Stockholders’ Equity at December 31, 2021 was $46.2 million, or $1.53 per share, and the Company had no debt.
Conference Call
Management will host a conference call on Wednesday, March 9, 2022 at 10:00 am ET / 9:00 am CT 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 fourth quarter and full year ended December 31, 2021.
“For full year 2021, we generated higher revenues, continued a strict cost control discipline that produced lower selling, general and administrative expenses, significantly reduced our operating loss, and reported annual net income for the first time since 2013," said Vincent J. Arnone, President and CEO. “We also ended the year in a strong financial position, with $37.1 million in total cash and no debt.”
Mr. Arnone continued, “Our FUEL CHEM ® segment performed well, generating increased revenues and higher segment operating income for full year 2021. This performance helped to offset a decline in revenues at our Air Pollution Control (APC) business due to COVID-related project delays and cancellations, as well as changes in project timing. The pace and depth of our business development activities at APC has begun to strengthen and we were pleased to announce $5.3 million of new domestic and international APC orders during the current first quarter of 2022, covering many of our APC technology offerings, including our first Flue Gas Conditioning systems in India. We continue to pursue a global sales pipeline of $50-75 million addressing emission protocols across a variety of fuel sources.
“We also continued to strategically invest in the commercialization and development of our Dissolved Gas Infusion (DGI TM ) technology initiative to address the water pollution control and treatment market. We completed successful demonstrations at three locations in the United States and continue to work with these potential customers to determine next steps. We completed the fabrication of a higher capacity DGI equipment delivery system that will allow us to meet the anticipated dissolved oxygen requirements of many of the potential customer applications that we are likely to encounter.
We have recently completed a market opportunity assessment in conjunction with an outside firm that we believe will assist our long-term product commercialization activities and we are continuing to execute on our commercialization and development plan.”
Q4 2021 Consolidated Results Overview
Consolidated revenues for the fourth quarter ended December 31, 2021 (“Q4 2021”) rose to $6.5 million from $6.2 million in Q4 2020, reflecting higher revenues at APC driven by the timing of project execution and new APC orders, partially offset by lower revenues at FUEL CHEM due to lower revenue from non-chemical sales.
Gross margin for Q4 2021 rose to 50.2% of revenues from 41.9% of revenues in Q4 2020, reflecting improved margins from the APC segment and product mix.
SG&A expenses declined to $3.2 from $3.8 million in Q4 2020, reflecting lower employee expenses and office and administrative costs relating to our foreign subsidiaries.
Operating loss narrowed to $(0.2) million from an operating loss of $(1.7) million in Q4 2020, the result of increased revenue, improved gross margin and lower SGA expenses.
Net loss in Q4 2021 was $(0.2) million, or $(0.01) per share, compared to net loss of $(1.5) million, or $(0.07) per share, in Q4 2020.
Consolidated APC segment backlog at December 31, 2021 rose to $9.1 million from $5.3 million at December 31, 2020.
APC segment revenues rose to $3.1 million from $2.5 million in Q4 2020. APC gross margin in Q4 improved to 55.6% of revenue from 29.0% of revenue, reflecting the timing of project execution and product mix.
FUEL CHEM segment revenues were $3.4 million compared to $3.7 million in Q4 2020. Segment gross margin was 45.3% compared to 50.7% in Q4 2020, reflecting a one-time higher margin system sale in last year’s fourth quarter.
Adjusted EBITDA loss was $(0.0) million in Q4 2021 compared to Adjusted EBITDA loss of $(1.1) million in Q4 2020.
2021 Full Year Overview
Consolidated revenues for 2021 rose to $24.3 million from $22.6 million, reflecting a 24.1% increase in FUEL CHEM revenues offset by a 19.4% decline in APC revenues.
Consolidated gross margin for full year 2021 and 2020 was 49.0% and 47.2%, respectively, reflecting the factors cited above. Excluding the impact of a previously disclosed $2.6 million insurance settlement recorded in Q3 2020, gross margin for full year 2020 was 29.8%.
SG&A expenses for 2021 declined by 11.4% to $12.1 million from $13.6 million in 2020, reflecting the Company’s previously completed cost containment initiatives.
Operating loss from continuing operations narrowed to $(1.5) million from $(4.3) million last year.
Net income for 2021 was $0.1 million, or $0.00 per diluted share, compared to a net loss of $(4.3) million, or $(0.17) per diluted share, in 2020. Net income for 2021 included other income of $1.6 million, reflecting full forgiveness of the loan proceeds from the Paycheck Protection Program, established pursuant to the CARES Act. Other income in 2020 was $0.1 million.
Adjusted EBITDA loss was $(0.7) million in 2021 compared to an Adjusted EBITDA loss of $(2.9) million in 2020.
Financial Condition
At December 31, 2021, cash and cash equivalents were $35.9 million and restricted cash was $1.2 million. Stockholders’ Equity at December 31, 2021 was $46.2 million, or $1.53 per share, and the Company had no debt.
Conference Call
Management will host a conference call on Wednesday, March 9, 2022 at 10:00 am ET / 9:00 am CT 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 .