Arq Reports Second Quarter 2024 Results
Arq (NASDAQ: ARQ) reported its Q2 2024 financial results, showing significant improvements:Revenue increased 24% to $25.4 million, driven by higher average selling prices (ASP) and improved product mix. Gross margin improved to 32%, up from 25% in the prior year period. The company reported a net loss of $2.0 million, a substantial improvement from the $5.9 million loss in Q2 2023. Adjusted EBITDA was $0.5 million, compared to a $3.0 million loss last year.
Arq secured additional granular activated carbon (GAC) supply contracts, now representing 52% of Red River's expanded nameplate capacity. The company's strategic growth projects at Corbin and Red River remain on target, with first GAC deliveries expected in Q1 2025. Capital expenditure forecasts for 2024 remain at $60-$70 million.
Arq (NASDAQ: ARQ) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando miglioramenti significativi: il fatturato è aumentato del 24% raggiungendo i 25,4 milioni di dollari, grazie a prezzi di vendita medi (ASP) più elevati e a un miglioramento del mix di prodotto. Il margine lordo è migliorato al 32%, in aumento rispetto al 25% dello stesso periodo dell'anno precedente. L'azienda ha registrato una perdita netta di 2,0 milioni di dollari, un notevole miglioramento rispetto alla perdita di 5,9 milioni di dollari del secondo trimestre 2023. L'EBITDA rettificato è stato di 0,5 milioni di dollari, rispetto a una perdita di 3,0 milioni dello scorso anno.
Arq ha assicurato ulteriori contratti di fornitura di carbone attivato granulari (GAC), che ora rappresentano il 52% della capacità nominale espansa di Red River. I progetti di crescita strategica dell'azienda a Corbin e Red River sono in linea con le previsioni, con le prime consegne di GAC attese per il primo trimestre del 2025. Le previsioni per la spesa in conto capitale per il 2024 rimangono tra i 60 e i 70 milioni di dollari.
Arq (NASDAQ: ARQ) reportó sus resultados financieros del segundo trimestre de 2024, mostrando mejoras significativas: los ingresos aumentaron un 24% alcanzando los 25.4 millones de dólares, impulsados por precios de venta promedio (ASP) más altos y una mejor mezcla de productos. El margen bruto mejoró al 32%, en comparación con el 25% del mismo período del año anterior. La compañía reportó una pérdida neta de 2.0 millones de dólares, una mejora sustancial respecto a la pérdida de 5.9 millones de dólares en el segundo trimestre de 2023. El EBITDA ajustado fue de 0.5 millones de dólares, comparado con una pérdida de 3.0 millones el año pasado.
Arq aseguró contratos adicionales de suministro de carbono activado granular (GAC), que ahora representan el 52% de la capacidad nominal ampliada de Red River. Los proyectos de crecimiento estratégico de la compañía en Corbin y Red River siguen en buen camino, con las primeras entregas de GAC esperadas para el primer trimestre de 2025. Las proyecciones de gasto de capital para 2024 se mantienen entre 60 y 70 millones de dólares.
Arq (NASDAQ: ARQ)는 2024년 2분기 재무 결과를 발표하며 значительные улучшения를 보여 주었습니다: 수익이 24% 증가하여 2540만 달러에 도달했습니다, 이는 향상된 평균 판매 가격(ASP) 및 개선된 제품 믹스 덕분입니다. 총 이익률은 32%로 개선되었습니다, 지난해 같은 기간 25%에서 상승했습니다. 회사는 200만 달러의 순손실을 보고했으며, 이는 2023년 2분기 590만 달러의 손실에서 상당히 개선된 수치입니다. 조정된 EBITDA는 50만 달러였으며, 작년에 비해 300만 달러의 손실을 기록했습니다.
Arq는 추가 granular activated carbon (GAC) 공급 계약을 확보했으며, 현재 Red River의 확장된 명목 용량의 52%를 차지하고 있습니다. Corbin 및 Red River에서의 회사의 전략적 성장 프로젝트는 목표에 따라 진행되고 있으며, 첫 번째 GAC 납품은 2025년 1분기에 예상됩니다. 2024년 자본 지출 전망은 6000만에서 7000만 달러로 유지됩니다.
Arq (NASDAQ: ARQ) a annoncé ses résultats financiers du deuxième trimestre 2024, montrant des améliorations significatives : le chiffre d'affaires a augmenté de 24% pour atteindre 25,4 millions de dollars, grâce à des prix de vente moyen (ASP) plus élevés et à un meilleur mélange de produits. La marge brute a été améliorée à 32%, contre 25% lors de la même période l'année précédente. L'entreprise a rapporté une perte nette de 2,0 millions de dollars, une amélioration substantielle par rapport à la perte de 5,9 millions de dollars au deuxième trimestre 2023. L'EBITDA ajusté était de 0,5 million de dollars, comparé à une perte de 3,0 millions l'année dernière.
Arq a obtenu des contrats supplémentaires d'approvisionnement en carbone activé granulaire (GAC), représentant désormais 52% de la capacité nominale élargie de Red River. Les projets de croissance stratégique de l'entreprise à Corbin et Red River restent sur la bonne voie, avec les premières livraisons de GAC attendues pour le premier trimestre de 2025. Les prévisions de dépenses d'investissement pour 2024 restent entre 60 et 70 millions de dollars.
Arq (NASDAQ: ARQ) hat seine Finanzzahlen für das zweite Quartal 2024 veröffentlicht, die bedeutende Verbesserungen zeigen: der Umsatz stieg um 24% auf 25,4 Millionen US-Dollar, was auf höhere durchschnittliche Verkaufspreise (ASP) und eine verbesserte Produktmischung zurückzuführen ist. Die Bruttomarge verbesserte sich auf 32%, im Vergleich zu 25% im Vorjahreszeitraum. Das Unternehmen berichtete von einem Nettoverlust von 2,0 Millionen US-Dollar, eine deutliche Verbesserung gegenüber dem Verlust von 5,9 Millionen US-Dollar im zweiten Quartal 2023. Das angepasste EBITDA betrug 0,5 Millionen US-Dollar, verglichen mit einem Verlust von 3,0 Millionen US-Dollar im vergangenen Jahr.
Arq sicherte sich zusätzliche Lieferverträge für granularen Aktivkohle (GAC), die nun 52% der erweiterten Nominalkapazität von Red River ausmachen. Die strategischen Wachstumsprojekte des Unternehmens in Corbin und Red River sind auf Kurs, mit den ersten GAC-Lieferungen, die für das erste Quartal 2025 erwartet werden. Die Prognosen für die Investitionsausgaben für 2024 liegen weiterhin zwischen 60 und 70 Millionen US-Dollar.
- Revenue increased 24% year-over-year to $25.4 million
- Gross margin improved to 32%, up from 25% in the prior year period
- Average Selling Price (ASP) increased by 16% compared to the prior year period
- Adjusted EBITDA improved to $0.5 million from a $3.0 million loss in Q2 2023
- Secured additional GAC supply contracts, representing 52% of Red River's expanded nameplate capacity
- Completed a $15 million private placement of common stock, bolstering liquidity
- Reported a net loss of $2.0 million in Q2 2024
- Faced construction delays at Red River facility due to unprecedented rain
- Capital expenditures increased to $28.8 million in the first half of 2024, up from $10.4 million in the prior year period
- Cash and restricted cash decreased to $37.2 million from $44.0 million in the previous quarter
Insights
Arq's Q2 2024 results show significant improvements, indicating a positive trajectory for the company. The 24% YoY revenue increase to
Arq's strategic positioning in the activated carbon market looks promising. The company has secured contracts for 52% of Red River's expanded GAC capacity, indicating strong market demand. The diverse customer base across water, biogas and air filtration industries suggests multiple growth avenues. Arq's inclusion in the Russell 3000 and 2000 Indices enhances its visibility to investors. The
Arq's progress in environmentally efficient carbon products is noteworthy. The company's focus on activated carbon for purification and sustainable materials positions it well in the growing green technology sector. The successful commissioning of the Corbin facility, using purified bituminous coal waste feedstock, demonstrates innovative approaches to sustainability. The strong demand for GAC products, evidenced by pre-production contracts, indicates a robust market for environmental purification technologies. However, the reliance on coal-based feedstock may pose future challenges as industries increasingly seek non-fossil fuel alternatives. Arq's ability to diversify its feedstock sources and expand into newer environmental applications will be important for long-term sustainability and growth in this rapidly evolving sector.
Ongoing improvement to ASP and profitability of foundational PAC business
Red River expansion remains on target for first GAC deliveries in Q1 2025
GREENWOOD VILLAGE, Colo., Aug. 12, 2024 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ: ARQ) (the "Company" or "Arq"), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the quarter ended June 30, 2024.
Financial Highlights
- Generated revenue of
$25.4 million in Q2 2024, up24% over the prior year period, driven by enhanced contract terms including higher average selling prices (“ASP”) and positive changes in product mix - Increased ASP in Q2 2024 by approximately
16% over the prior year period, reflecting the fifth consecutive quarter of double-digit YoY percentage growth in ASP - Improved gross margin to
32% in Q2 2024, an improvement of more than 700 basis points vs.25% in the prior year period, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost management - Reported Net loss of
$2.0 million in Q2 2024, reflecting a significant improvement over the prior year period loss of$5.9 million - Adjusted EBITDA of
$0.5 million in Q2 2024 vs. Adjusted EBITDA loss of$3.0 million in the prior year period(1) - Exited Q2 2024 with cash and restricted cash of
$37.2 million - Capital expenditure forecasts for full year 2024 remain at
$60 -$70 million
(1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Note on Non-GAAP Financial Measures” for the definitions of non-GAAP financial measures.
Recent Business Highlights
- Secured additional granular activated carbon ("GAC") supply contracts bringing total contracted volume to 13 million pounds per year (when fully scaled up to ultimate run-rate requirements), representing
52% of Red River’s expanded nameplate GAC capacity of 25 million pounds. - Arq was added to the Russell 3000 and Russell 2000 Indices effective July 2024. Inclusion demonstrates Arq’s evolution and transformation while increasing visibility and prominence within the investment community.
- Completed a
$15 million private placement of common stock ("PIPE raise") with an institutional investor in May 2024; unsolicited investment further bolsters liquidity. - Corbin facility commissioning commenced early in Q2 2024, producing initial product utilized for quality control and specification testing of purified bituminous coal waste feedstock. Production expected to ramp up in Q4 2024.
- Signed non-binding term sheet to refinance the Company’s existing Term Loan that would materially expand the size of the facility, further enhancing liquidity.
“Our second quarter results represent yet another period of solid execution as we continue to maximize the profitability of our foundational PAC portfolio, advance our strategic GAC growth projects towards completion, and further solidify our capital position,” commented Bob Rasmus, CEO of Arq. “Additionally, activity continued to build throughout the second quarter, providing solid momentum as we head into our seasonally stronger quarters during the second half. We are confident that our PAC portfolio will generate positive cash flow in 2024, providing a solid foundation to build upon with our higher-margin GAC revenue and cash flow in 2025 and beyond.”
Rasmus continued, “Our team is working diligently and efficiently to advance our Corbin and Red River strategic growth projects, both of which remain on target. Our team continues to secure additional supply agreements, bringing total contracting levels to
Second Quarter 2024 Results
Revenue totaled
Cost of revenue totaled
Despite this maintenance cost, gross margin improved to
Selling, general and administrative expenses totaled
Research and development costs totaled
Operating loss was
Interest expense was
Net loss was
Adjusted EBITDA was
See note below regarding the use of the Non-GAAP financial measure Adjusted EBITDA loss and a reconciliation to the most comparable GAAP financial measure.
Capex and Balance Sheet
Capital expenditures totaled
Cash as of June 30, 2024, including
Total debt, inclusive of financing leases, as of June 30, 2024, totaled
Conference Call and Webcast Information
Arq has scheduled a conference call to begin at 9:00 a.m. Eastern Time on Tuesday, August 13, 2024. The conference call webcast information will be available via the Investor Resources section of Arq's website at www.arq.com. Interested parties may participate in the conference call by registering at https://www.webcast-eqs.com/arq20240813. Alternatively, interested parties may access the live conference call via phone by dialing (877) 407-0890 or (201) 389-0918 and referencing Arq. A supplemental investor presentation will be available on the Company's Investor Resources section of the website prior to the start of the conference call. A replay of the event will be made available shortly after the event and accessible via the same webcast link referenced above. Alternatively, the replay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13747947. The dial-in replay will expire after August 20, 2024.
Additionally, Bob Rasmus, CEO of Arq, will be presenting today, August 13, 2024, at the Canaccord Genuity 44th Annual Growth Conference. The presentation is scheduled to begin at 4:15 p.m. Eastern Time. To access the presentation via live webcast, please visit https://wsw.com/webcast/canaccord98/arq/2260764. A replay of the event will be made available shortly following the presentation via the same link.
About Arq
Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.
Caution on Forward-Looking Statements
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. When used in this press release, the words “can,” “will,” "may," “intends,” “expects,” "continuing," “believes,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. All statements that address activities, events or developments that the Company intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: business strategy, expectations about future demand and pricing for our PAC and GAC products and our ability to enter into new markets, the ability to successfully integrate legacy Arq's business and effectively utilize legacy Arq’s products and technology, the estimated costs and timing associated with potential capital improvements at our facilities, financing sources for such projects and potential production outputs thereafter, expected market supply of GAC products and the cost savings and environmental benefits of our GAC products, and the timing and scope of future regulatory developments and the related impact of such on the demand for our products. The forward-looking statements included in this press release involve 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, timing of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; impact of competition; availability, cost of and demand for alternative energy sources and other technologies; technical, start up and operational difficulties; competition within the industries in which the Company operates; our inability to commercialize our products on favorable terms; our inability to effectively and efficiently commercialize new products; changes in construction costs or availability of construction materials; our inability to effectively manage construction and startup of the Red River GAC Facility or Corbin Facility; our inability to obtain required financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of the inflation and macroeconomic uncertainty, including from the ongoing pandemic and armed conflicts around the world, and such uncertainty’s effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; pending litigation; as well as other factors relating to our business strategy, goals and expectations concerning the Arq Acquisition (including future operations, future performance or results); our ability to maintain relationships with customers, suppliers and others with whom it does business and meet supply requirements, or its results of operations and business generally; risks related to diverting management’s attention from our ongoing business operations; costs related to the Arq Acquisition; opportunities for additional sales of our AC products and end-market diversification; the timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; our ability to meet customer supply requirements; the rate of coal-fired power generation in the U.S., the timing and cost of capital expenditures and the resultant impact to our liquidity and cash flows as described in our filings with the SEC, with particular emphasis on the risk factor disclosures contained in those filings. You are cautioned not to place undue reliance on the forward-looking statements made in this press release and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. The forward-looking statements contained in this press release are presented as of the date hereof, and we disclaim any duty to update such statements unless required by law to do so.
Source: Arq, Inc.
Investor Contact:
Anthony Nathan, Arq
Marc Silverberg, ICR
investors@arq.com
| Arq, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| As of | ||||||||
| (in thousands, except share data) | June 30, 2024 | December 31, 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 28,478 | $ | 45,361 | ||||
| Receivables, net | 15,812 | 16,192 | ||||||
| Inventories, net | 22,648 | 19,693 | ||||||
| Prepaid expenses and other current assets | 4,280 | 5,215 | ||||||
| Total current assets | 71,218 | 86,461 | ||||||
| Restricted cash, long-term | 8,719 | 8,792 | ||||||
| Property, plant and equipment, net of accumulated depreciation of | 123,407 | 94,649 | ||||||
| Other long-term assets, net | 45,238 | 45,600 | ||||||
| Total Assets | $ | 248,582 | $ | 235,502 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 16,795 | $ | 14,603 | ||||
| Current portion of debt obligations | 2,419 | 2,653 | ||||||
| Other current liabilities | 7,393 | 5,792 | ||||||
| Total current liabilities | 26,607 | 23,048 | ||||||
| Long-term debt obligations, net of current portion | 17,978 | 18,274 | ||||||
| Other long-term liabilities | 14,397 | 15,780 | ||||||
| Total Liabilities | 58,982 | 57,102 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock: par value of | — | — | ||||||
| Common stock: par value of | 41 | 38 | ||||||
| Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of June 30, 2024 and December 31, 2023, respectively | (47,692 | ) | (47,692 | ) | ||||
| Additional paid-in capital | 171,095 | 154,511 | ||||||
| Retained earnings | 66,156 | 71,543 | ||||||
| Total Stockholders’ Equity | 189,600 | 178,400 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 248,582 | $ | 235,502 | ||||
| Arq, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 25,405 | $ | 20,445 | $ | 47,145 | $ | 41,250 | ||||||||
| Cost of revenue, exclusive of depreciation and amortization | 17,227 | 15,336 | 30,940 | 32,511 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 7,011 | 7,994 | 14,677 | 19,277 | ||||||||||||
| Research and development | 929 | 774 | 2,554 | 1,506 | ||||||||||||
| Depreciation, amortization, depletion and accretion | 1,658 | 2,428 | 3,374 | 4,565 | ||||||||||||
| Gain on sale of Marshall Mine, LLC | — | — | — | (2,695 | ) | |||||||||||
| Total operating expenses | 9,598 | 11,196 | 20,605 | 22,653 | ||||||||||||
| Operating loss | (1,420 | ) | (6,087 | ) | (4,400 | ) | (13,914 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Earnings from equity method investments | — | 462 | — | 1,100 | ||||||||||||
| Interest expense | (829 | ) | (834 | ) | (1,620 | ) | (1,368 | ) | ||||||||
| Other | 311 | 603 | 663 | 785 | ||||||||||||
| Total other (expense) income | (518 | ) | 231 | (957 | ) | 517 | ||||||||||
| Loss before income taxes | (1,938 | ) | (5,856 | ) | (5,357 | ) | (13,397 | ) | ||||||||
| Income tax (expense) benefit | (30 | ) | — | (30 | ) | 33 | ||||||||||
| Net loss | $ | (1,968 | ) | $ | (5,856 | ) | $ | (5,387 | ) | $ | (13,364 | ) | ||||
| Loss per common share: | ||||||||||||||||
| Basic | $ | (0.06 | ) | $ | (0.21 | ) | $ | (0.16 | ) | $ | (0.53 | ) | ||||
| Diluted | $ | (0.06 | ) | $ | (0.21 | ) | $ | (0.16 | ) | $ | (0.53 | ) | ||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 34,356 | 27,360 | 33,229 | 25,739 | ||||||||||||
| Diluted | 34,356 | 27,360 | 33,229 | 25,739 | ||||||||||||
| Arq, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (5,387 | ) | $ | (13,364 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation, amortization, depletion and accretion | 3,374 | 4,565 | ||||||
| Stock-based compensation expense | 1,435 | 1,108 | ||||||
| Operating lease expense | 1,049 | 1,449 | ||||||
| Amortization of debt discount and debt issuance costs | 299 | 244 | ||||||
| Gain on sale of Marshall Mine, LLC | — | (2,695 | ) | |||||
| Earnings from equity method investments | — | (1,100 | ) | |||||
| Other non-cash items, net | (55 | ) | 3 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables and related party receivables | 380 | 3,622 | ||||||
| Prepaid expenses and other assets | 1,036 | 2,213 | ||||||
| Inventories, net | (1,493 | ) | (4,946 | ) | ||||
| Other long-term assets, net | (1,089 | ) | (2,886 | ) | ||||
| Accounts payable and accrued expenses | (1,821 | ) | (10,114 | ) | ||||
| Other current liabilities | 1,560 | 83 | ||||||
| Operating lease liabilities | (786 | ) | 398 | |||||
| Other long-term liabilities | (926 | ) | 261 | |||||
| Net cash used in operating activities | (2,424 | ) | (21,159 | ) | ||||
| Cash flows from investing activities | ||||||||
| Acquisition of property, plant, equipment, and intangible assets, net | (28,766 | ) | (10,383 | ) | ||||
| Acquisition of mine development costs | (85 | ) | (1,247 | ) | ||||
| Cash and restricted cash acquired in business acquisition | — | 2,225 | ||||||
| Payment for disposal of Marshall Mine, LLC | — | (2,177 | ) | |||||
| Distributions from equity method investees in excess of cumulative earnings | — | 1,100 | ||||||
| Net cash used in investing activities | (28,851 | ) | (10,482 | ) | ||||
| Cash flows from financing activities | ||||||||
| Net proceeds from common stock issued in private placement transactions | 14,951 | 15,220 | ||||||
| Net proceeds from common stock issuance, related party | 800 | — | ||||||
| Repurchase of common stock to satisfy tax withholdings | (599 | ) | (160 | ) | ||||
| Principal payments on finance lease obligations | (565 | ) | (577 | ) | ||||
| Principal payments on CTB Loan | (268 | ) | (213 | ) | ||||
| Net proceeds from CFG Loan, related party, net of discount and issuance costs | — | 8,522 | ||||||
| Net cash provided by financing activities | 14,319 | 22,792 | ||||||
| Decrease in Cash and Restricted Cash | (16,956 | ) | (8,849 | ) | ||||
| Cash and Restricted Cash, beginning of period | 54,153 | 76,432 | ||||||
| Cash and Restricted Cash, end of period | $ | 37,197 | $ | 67,583 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Change in accrued purchases for property and equipment | $ | 4,013 | $ | 328 | ||||
| Equity issued as consideration for acquisition of business | $ | — | $ | 31,206 | ||||
| Paid-in-kind dividend on Series A Preferred Stock | $ | — | $ | 157 | ||||
Note on Non-GAAP Financial Measures
To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by the non-cash impact of equity earnings from equity method investments and other non-cash gains, increased by cash distributions from equity method investments and other non-cash losses. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net loss, the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.
We believe that the EBITDA and Adjusted EBITDA measures are less susceptible to variances that affect our operating performance. We include these non-GAAP measures because management uses them in the evaluation of our operating performance, and believe they help to facilitate comparison of operating results between periods. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains, and losses which can vary widely across different industries or among companies within the same industry and may not be indicative of core operating results and business outlook.
EBITDA and Adjusted EBITDA:
The following table reconciles net loss, our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA loss and Adjusted EBITDA loss.
| Arq, Inc. and Subsidiaries Reconciliation ofNet LosstoAdjusted EBITDA (Loss) (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss(1) | $ | (1,968 | ) | $ | (5,856 | ) | $ | (5,387 | ) | $ | (13,364 | ) | ||||
| Depreciation, amortization, depletion and accretion | 1,658 | 2,428 | 3,374 | 4,565 | ||||||||||||
| Amortization of Upfront Customer Consideration | 127 | 127 | 254 | 254 | ||||||||||||
| Interest expense, net | 606 | 308 | 1,038 | 598 | ||||||||||||
| Income tax expense (benefit) | 30 | — | 30 | (33 | ) | |||||||||||
| EBITDA (loss) | 453 | (2,993 | ) | (691 | ) | (7,980 | ) | |||||||||
| Cash distributions from equity method investees | — | 462 | — | 1,100 | ||||||||||||
| Equity earnings | — | (462 | ) | — | (1,100 | ) | ||||||||||
| Gain on sale of Marshall Mine, LLC | — | — | — | (2,695 | ) | |||||||||||
| Adjusted EBITDA (loss) | $ | 453 | $ | (2,993 | ) | $ | (691 | ) | $ | (10,675 | ) | |||||
(1) Included in Net loss for the three and six months ended June 30, 2023 are
FAQ
What was Arq's (ARQ) revenue in Q2 2024?
How much of Red River's GAC capacity has Arq (ARQ) contracted as of Q2 2024?
When does Arq (ARQ) expect to begin GAC deliveries from the Red River facility?
What is Arq's (ARQ) capital expenditure forecast for 2024?
