Advanced Emissions Solutions Inc. (ADES) shares rose 15.98% to trade at $5.37 in after-market on Monday, May 10, 2021. Earlier, ADES’s stock lost 1.07% to close Monday’s session at $4.63. ADES shares have declined 37.94% over the last 12 months, and they have lost 2.94% in the past week. Over the past three months, the stock has gone down 21.53%, while over the past six months, it has added only1.09%.
Let’s see what could be the reason behind its turnaround on Monday?
Financial results announcement
On May 10, 2021, Advanced Emissions Solutions, Inc submitted its quarterly report on Form 10-Q and reported financial results for the first quarter ended March 31, 2021.
Q1 2021 financial highlights
- ADES earned revenue of $21.1 million in Q1 2021 compared with $12.3 million in Q1 2020.
- first-quarter costs of revenues were $12.5 million compared to $11.5 million in the first quarter of 2020.
- operating expenses were $8.3 million in Q1 2021 compared to $9.4 million in the first quarter of 2020.
- ADES net income for Q1 2021 was $13.7 million compared to a net loss of $1.9 million for the first quarter of 2020.
- Consolidated adjusted EBITDA was $26.1 million in Q1 2021 compared to $10.8 million in Q1 2020.
- On March 31, 2021, ADES had cash balances, including restricted cash, totalled $52.2 million compared to $35.9 million as of December 31, 2020.
Maximizing shareholder value
On May 10, 2021, Advanced Emissions Solutions, Inc initiated a strategic review to assess a range of strategic alternatives to maximize shareholder value.
ADEShas also hiredDucera Partners, LLC as its financial advisor and Gibson, Dunn & Crutcher LLP to serve as its legal advisor to assist with the evaluation process.
Red river plant incident
On April 23, 2021, Advanced Emissions Solutions isolated the incident at its Red river plant in Coushatta, Louisiana last evening. The incident involved an isolated fire in one of the plant’s coal handling systems and resulted in non-life-threatening injuries to two employees.
Price increased for activated carbon products and front-end coal additives
On March 29, 2021, Advanced Emissions Solutionsincreased the price on all activated carbon products and front-end coal additives, effective April 1, 2021. The increase will vary from 10% to 15% depending on the specific product, grade, and application.
ADES stock popped up in the after-hours due to the announcement of its financial results which were quite impressive. We can expect ADES to gain more on Tuesday and in the coming days.
About Advanced Emissions Solutions, Inc.
Advanced Emissions Solutions, Inc. serves as the holding entity for a family of companies that provide emissions solutions to customers in power generation and other industries.