Advanced Emissions Solutions Will Increase Prices on all Activated Carbon Products and Front-End Coal Additives

Rhea-AI Summary

Advanced Emissions Solutions (NASDAQ: ADES) announced a price increase of 10% to 15% on all activated carbon products and front-end coal additives, effective April 1, 2021, or as contract terms allow. This adjustment is attributed to rising costs in raw materials, transportation, and operations, deemed necessary to sustain the company’s ability to provide reliable service amid the ongoing COVID-19 pandemic. The company emphasizes its commitment to meeting customer needs while ensuring business profitability.

Positive

• Price increase of 10% to 15% may enhance revenue given rising operational costs.
• Continued focus on customer service during the COVID-19 pandemic shows resilience.
• Strong supply chain management has been maintained despite global challenges.

Negative

• Price increases may lead to reduced demand from customers sensitive to price hikes.
• Increased operational costs could threaten profit margins if not managed effectively.

GREENWOOD VILLAGE, Colo., March 29, 2021 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (NASDAQ: ADES) (the "Company" or "ADES"), the parent company of ADA-ES, Inc. and ADA Carbon Solutions, LLC (collectively, "ADA"), today announced a price increase, effective April 1, 2021 or as contract terms permit, on all activated carbon products and front-end coal additives. The increase will vary from 10% to 15% depending on the specific product, grade, and application.

Throughout the COVID-19 Global Pandemic, our team has remained focused on continuing to meet the needs of our customers reliably and consistently. We have adapted our processes, improved our safety protocols, and worked closely to maintain a robust supply chain. These price increases have become necessary due to increases in raw material, transportation, and operational costs to produce and deliver our products. This price recovery is a necessary step to ensure the business remains in a strong position to continue reliably serving our customers.

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 the power generation and other industries.

ADA brings together ADA Carbon Solutions, LLC, a leading provider of powder activated carbon ("PAC") and ADA-ES, Inc., the providers of ADA® M-Prove™ Technology.  We provide products and services to control mercury and other contaminants at coal-fired power generators and other industrial companies. Our broad suite of complementary products control contaminants and help our customers meet their compliance objectives consistently and reliably.

CarbPure Technologies LLC, (“CarbPure”), formed in 2015 provides high-quality PAC and granular activated carbon ideally suited for treatment of potable water and wastewater. Our affiliate company, ADA Carbon Solutions, LLC manufactures the products for CarbPure.

Tinuum Group, LLC (“Tinuum Group”) is a 42.5% owned joint venture by ADA that provides patented Refined Coal (“RC”) technologies to enhance combustion of and reduce emissions of NOx and mercury from coal-fired power plants.

Caution on Forward-Looking Statements

Statements in this press release regarding the Company's business that are not historical facts, including statements concerning maintaining business profitability and allowing for future investment, are forward-looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.

Source: Advanced Emissions Solutions, Inc.

Investor Contact:

Alpha IR Group
Ryan Coleman or Chris Hodges
312-445-2870
ADES@alpha-ir.com

FAQ

What did Advanced Emissions Solutions announce on March 29, 2021?

The company announced a price increase of 10% to 15% on activated carbon products and front-end coal additives, effective April 1, 2021.

Why is ADES increasing prices on its products?

The price increase is due to rising costs in raw materials, transportation, and operations.

How does ADES plan to maintain customer service during the pandemic?

ADES has improved safety protocols and adapted processes to ensure reliable service and supply chain management.

What is the potential impact of price increases on ADES?

While it may enhance revenue, it could also lead to decreased demand from customers sensitive to price hikes.